6 Tips for Procuring Government Contracts if you are a Small Veteran Owned Business

The United States government is the world's largestpurchaser of goods and services ensuring small businesses are awarded 23% offederal contracting dollars annually. Here are six tips for procuringgovernment contacts if you are a Veteran Owned Small Business (VOSB) orService-Disabled Veteran-Owned Small Business (SDVOSB).

First,you want to ensure your business qualifies as a “Veteran Owned Small Business” or “Service-Disabled Veteran-Owned Small Business” for government contractingby way of the size standard tools provided by the Small Business Association (SBA).

To become certified with the SBA as a VOSB or SDVOSB, yourcompany must meet these criteria:

·      Be considered a small business, as defined bythe size standard corresponding to any North American Industry ClassificationSystem (NAICS) code listed in the business’s System for Award Management (SAM)profile. The SBA generally categorizes a small business as a manufacturingcompany with 500 employees or fewer, and most non-manufacturing businesses withaverage annual receipts under $7.5 million.

·      Must not have less than 51% of the businessowned and controlled by one or more veterans.

·      To be certified as an SDVOSB, you must have noless than 51% of the business owned and controlled by one or more veteransrated as service-disabled by the VA.

·      For veterans who are permanently disabled andcan’t manage the business’s daily operations, their company can still qualifyif their spouse or appointed caregiver is helping to manage the businessaffairs.

·      To see a complete list of eligibilityrequirements, refer to the FederalRegister.

Registerwith the System for Award Management (SAM)

To be eligible to bid for government contracts, you arerequired to register your business in the federal government’s System for AwardManagement. SAM is a database that government agencies use to locatecontractors. Once registered, you create an in-depth and accurate businessprofile.

The Small Business Administration describes your small business profile in SAM as "like a resume." Therefore, you want to ensure your profile is comprehensive and detailed so it can be found duringsearches by government agencies.

You also want to learn about the types of availablecontracts for small businesses. These include sole-source set-aside contracts,joint ventures, and competitive set-aside contracts.

Networkingwith other small veteran-owned businesses

Consider seeking events focusing on government contractingor government-related procurement of goods and services in general. At theseevents, you may get to meet and interact with other veteran-owned smallbusiness owners who have experience researching, identifying, and bidding oncontracts. No matter how much you learn about something from books or inschool, there are nuances when dealing with the real world that can only belearned through experience, either through you or through word of mouth from anetworking contact. This is one way networking could be highly beneficial.

Identifyinggovernment purchasing trends

According to Bloomberg, the federal government is expectedto see record contract spending, potentially surpassing $750 billion. Spendingdrives growth, IT, and R&D, where trends can be realized and are ones thatprospective small business owners may want to keep an eye on. Some of theseinclude:

·      Contract Spending Trends

There have been noticeable increases in best-in-class (BIC) contractspending, which helps to speed up procurement and keep pricing consistent.

·      Funding for outdated IT

There are 24 major government agencies, all regularly vying for an ITmakeover. Government agencies typically spend over $100 billion annually ontheir IT. Outdated IT systems create costly maintenance issues and lead tocybersecurity vulnerability, among other problems.

·      Staying compliant within an evolvinglandscape

As the world and policy change and evolve, contractors must review theirability to manage unexpected disturbances in the supply chain, environment-relatedrisks and blowback, and the capability to navigate litigation should somethingarise. Pushes for new policy and change are a regularly occurring theme withpredictable and unforeseen implications.

Consult a financial professional

Procuring government contracts as a VOSB or SDVOSB has thepotential to be beneficial. Still, like anything else, without the properresearch, planning, and forecasting, you could find yourself swimming in a seaof financial problems and operating challenges. A financial professional canhelp to guide you in a direction that works for you and your business.

Important Disclosures:

The opinionsvoiced in this material are for general information only and are not intendedto provide specific advice or recommendations for any individual.

Allinformation is believed to be from reliable sources; however, LPL Financialmakes no representation as to its completeness or accuracy.

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Sources:

Basicrequirements | U.S. Small Business Administration (sba.gov)

How to Procure Government Contracts for Your Veteran-Owned Small Business(linkedin.com)

HOWTO: Government Contracting for Your Veteran-owned Business | U.S. SmallBusiness Administration (sba.gov)

Trendsin Government Contracting | Bloomberg Government (bgov.com)

Veterancontracting assistance programs | U.S. Small Business Administration (sba.gov)

This article was prepared by LPL Marketing Solutions

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