Six Ways To Finance A Government Contract
Bidding for government contracts can be a great way to grow a small business. Government agencies at the federal, state, county, and city levels purchase every type of good and service. If you sell a product or service, there is a good chance that the government buys it.
However, finding a government contract is actually the easy part. Its the fulfillment and delivery of the contract where small businesses usually experience problems. These problems arise because few companies have the funding necessary to fulfill their government contracts. In this article, we discuss six financial solutions to this problem. We cover:
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Alion Science And Technology Corporation
Total dollars obligated: $783,060,389
Total number of contract actions: 1,135
Alion is an 80-year-old company that is among the most dominant corporations in the government and aerospace artificial intelligence sector. It has long served as a contractor for the military and other government elements, and its technologies support weapons platforms and training solutions.
Bell Boeing Joint Project Office
Total dollars obligated: $2,509,740,101
Total number of contract actions: 4,830
The Bell Boeing Joint Project Office is an aerospace and defense company that specializes in manufacturing and assembling complete aircraft. In 2018, the company landed a contract to provide 58 V-22 Osprey tiltrotors to the U.S. Navy, Marines, and Air Force, as well as the government of Japan.
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Company Contracts And Ethics: Interactions With The Federal Government
Jeannine LeCompte, Publishing and Research Coordinator
Occasionally, a long-term care facility will engage in a contractual arrangement with the federal government as a prime contractor or subcontractor on federal projects or federally funded projectswhether on the state or federal level. In such an event, the rules pertaining to government contracts have requirements over and above ordinary contracts.
These extra rules can be divided into four broad categories: recordkeeping, cost and pricing data, quality control, and certification.
1. Recordkeeping: In contrast to ordinary contracts, the LTC is obliged to maintain and provide the government with ongoing audit access to accounting and other records. These records must also be kept for as long as the applicable laws require.
3. There is also a direct obligation upon all contractors with the state to provide full quality control, testing, and compliance with all specifications as clearly stated in the contract. Any failure to deliver goods and services that do not meet these requirements is a serious breach, and can have fraud, waste, and abuse consequences far beyond ordinary civil proceedings.
Huntington Ingalls Industries Inc
Total dollars obligated: $7,244,968,532
Total number of contract actions: 2,865
Shipbuilder Huntington Ingalls Industries Inc. was formed as a spinoff of defense giant Northrop Grumman. Billed as “America’s largest military shipbuilding company,” the firm has built more ships in more classes than any other naval shipbuilder.
Doing Business With The Federal Government As A Subcontractor
The federal government spends billions of dollars on contracts each year, making it the largest buyer of goods and services in the country. Working with the government as a supplier or contractor is a huge opportunity for small businesses, especially since federal agencies are mandated to contract at least 23% to small business owners.
However, most small business owners likely struggle to understand how to break into government contracting. Even after you have filled out the forms to be certified as a small, woman-owned or minority-owned business, you cant just sit back and wait for contracts to come your way. Like all new clients, it takes time, energy, a good strategy and strong relationships to get a contract with the government. Thats where subcontracting comes in.
A company that holds a contract directly with the government is called the prime contractor. Subcontracting is when a piece of the contract is handed from the prime contractor to another company for completion, making them a subcontractor. For large contracts, there can be sub-subcontractors and even sub-sub-subcontractors!
Like federal agencies, primes are held accountable for meeting any small business goals associated with the contract. This means that the primes will look for small, women, minority, veteran and HUB Zone businesses that can do the work. Your job is to make sure youre found.
Homeland Security Department Requires Services For Covid
- Federal agency: Department of Homeland Security
- Contract type: Indefinite-delivery indefinite-quantity
In November 2020, the Homeland Security Department announced that Federal Resources was selected as one of the awardees of the contract to supply COVID-19 testing solutions to the department. The $2 billion contract has a one-year base period with four additional one-year extensions.
The contract obliges the company to expand its pandemic response efforts by distributing Molecular Diagnostic test kits and testing services to the Departments customers. These RT-PCR test solutions allow customers to adapt to the current situation and avoid virus transmission.
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Wheeler Army Airfield Construction Projects
- Federal agency: U.S. Army
- Contract type: Firm fixed-price contract
- Value: $53.15 million
- Contract date: October 6, 2022
Kiewit was awarded a $53.15 million contract for constructing a concrete rotary-wing aircraft parking apron, concrete taxiways, a helipad, and a concrete parallel taxiway at Wheeler Army Airfield. The work occurs in Wahiawa, Hawaii, with an estimated completion date of December 31, 2024.
The total amount of the contract, $53.15 million, was obligated from the U.S. Army Corps of Engineers of Honolulu, Hawaii, from the fiscal 2022 funds at the time of the award. Kiewit Corporation won the contract among three bids.
These Are The Top 10 Government Contractors
Bloomberg Governments BGOV200 is an annual summary of the top federal government contractors and critical market trends. In fiscal year 2021, federal spending reached $649 billion. While this is an overall decrease of $37 billion from fiscal year 2020s $687 billion, its still more than the years preceding 2020.
Fiscal 2020s all-time high marked the fifth straight fiscal year of spending growth, after five years of market decline. Spending to combat Covid-19 boosted fiscal 2021 obligations, pushing some companies into the BGOV200 for the first time.
Our BGOV200 Federal Industry Leaders report ranks the top 200 vendors by value of prime, unclassified contracts awarded by U.S. agencies in fiscal 2021. It analyzes the top contracts at 25 agencies and departments, and in 19 different purchasing categories.
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Macandrews & Forbes Holdings Inc
Total dollars obligated: $865,397,476
Total number of contract actions: 1,651
MacAndrews & Forbes is a holdings company with an impressive portfolio of companies that cover industries as diverse as cosmetics, biotechnology, and digital entertainment. One of its companies, AM General, recently won a $356 million contract to build 1,673 tactical military vehicles.
Do Government Contractors Make Good Money
According to the 2020 general pay scale, the average annual income for a Federal contractor in the United States is $108,931. However, keep in mind that the specified amount may change depending on the contracts and procurement agency with which a company works.
Do federal government contractors make good money? No one knows the direct answer to that question. Because, in the end, the prime contracts and the government contract funds will be the deciding factors.
Things may go well for a contractor who obtains their first job because they have already made a noise for its name in the government contracting industry. Assume the federal market approves of a companys operations and believes it can provide what they require. In this instance, the government contractor is more likely to receive future contractual chances.
Getting into the industry takes a lot of law enforcement processes. Still, suppose you are really interested in potentially working with the federal government. In that case, you can check out the website of Small Business Administration for their one on one counseling and training courses.
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Us Army Contracting Command Awards Contract For Procurement Of 20 Armored Recovery Vehicles $14 6 Million
- Contract type: Firm-fixed-price contract
- Contract end date: December 2021
In April 2021, Federal Resources received a $14.6 million contract award from U.S. Army Contracting Command. Under the contract, the company procured 20 armored recovery vehicles, technical manuals, spare parts, maintenance, and training, with an expected finish date on December 2021.
Wheeler Army Airfield Improvements On Existing Runways
- Federal agency: U.S. Army
- Contract type: Firm fixed-price contract
- Value: $44.93 million
- Contract date: September 29, 2020
In 2020, Wheeler Army Airfield in Schofield Barracks, Hawaii underwent several construction projects, including a rotary wing aircraft parking apron, fixed-wing parallel taxiway, perpendicular taxiway, helipads, and reduction of the width of an existing runway. Kiewit Infrastructure worked on the project, which was estimated for completion on June 30, 2022.
The U.S. Army Corps of Engineers of Joint Base Elmendorf-Richardson, Alaska was the contracting activity and had obligations for the full amount of $44.93 million from the fiscal 2020 military construction funds. Kiewit secured the contract between two bids solicited via the internet.
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Science Applications International Corporation
Total dollars obligated: $3,456,304,296
Total number of contract actions: 148,117
Science Applications International Corporation supplies federal civilian agencies and the intelligence community, as well as the Army, Navy, Air Force, and Marines. The company provides mission support in the form of engineering, training, and simulation, while also providing information technology, platforms like ground vehicles and weapons systems, and logistics services.
What Is Caci International Inc
CACI International Inc. is an established $6 billion American multinational company based in Northern Virginia that provides professional services and IT capabilities. The current CEO of CACI is John Mengucci, who also won a 2022 Wash100 award.
CACI, pronounced Kay See, is an acronym for California Civil Instructions.
CACI works with many parts of the US federal government, such as the Defense, Homeland Security, Intelligence, and Healthcare departments. The company assists the government with national security, soldier safety, and high-quality government assistance.
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Caddell Construction Co Inc
Total dollars obligated: $1,201,522,600
Total number of contract actions: 108
With more than $1.2 billion in government contracts, Caddell Construction Co. Inc. has a portfolio of more than $11 billion in projects, both public and private. Its reach spreads into vast and varied industries, like aviation, residential, healthcare, and military.
Total dollars obligated: $1,223,268,002
Total number of contract actions: 875
The Sierra Nevada Corporation specializes in space, aviation, national security, and defense. The company’s contracts include space systems, aircraft design, navigation and guidance, electronic warfare, and unmanned systems.
Total dollars obligated: $1,284,885,865
Total number of contract actions: 1,937
If California were a country, it would be the world’s fifth-largest economy, ahead of the United Kingdom. With nearly 40 million residents, it’s the most populous state in America, and its $2.7 trillion economy represents 14 percent of the American economy. The state holds a long list of government contracts.
Battelle Memorial Institute Inc
Total dollars obligated: $2,336,705,618
Total number of contract actions: 1,691
In the world of government contracts, few names ring louder than Battelle Memorial Institute Inc. The company has divisions that include research and development, laboratory management, and product design and manufacturing. Battelles government offerings include maritime systems and technologies, tactical systems and vehicles, security and law enforcement, aerospace systems, and public health.
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Nerships Or Llcs With Federal Government Contracts
A partnership or LLC that is negotiating a contract with the federal government or that has not completed performance of such a contract is prohibited from making contributions and expenditures. However, an individual partner in such a firm may make contributions and expenditures from personal funds .
Also, an individual, who is, in their own right or as a sole proprietor, a federal government contractor or negotiating a contract with the federal government may not make contributions or expenditures using any funds under their control. Note that the spouse of such an individual is not prohibited from making a personal contribution or expenditure in their own name .
The Government Contracts Regulations
10.1.1 As required by Section 5 of the Government Contracts Regulations, the contracting authority is to solicit bids before any contract is entered into. The competitive approach in determining a contractor should therefore be the norm. Because it is not always possible, practical, or cost effective to seek bids for every proposed contract, Section 6 of the Government Contracts Regulations permits certain exceptions.
10.1.2 Departments and agencies should not accept bids from one another or from the provinces, municipalities, territories or Crown Corporations unless the department, agency or Crown Corporation bidding is authorized by policy or statute. Departments and agencies may, pursuant to section 3 of the Contracting Policy, arrange transactions that involve the transfer of goods, services or real property between departments, Crown Corporations, provinces, municipalities and the Territories.
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How To Sell To The Government
As the acquisition arm of the federal government, GSA plays a vital role in connecting the private sector with federal agencies fulfilling their business needs. GSA offers professional services, equipment, supplies, telecommunications, and information technology from commercial businesses to government organizations and the military through acquisition solutions from its Federal Acquisition Service .
GSA also provides workplaces to the government by constructing, managing, and preserving federal buildings, and by leasing and managing commercial real estate through its Public Buildings Service .
The 2018 Transportation Housing And Urban Development Bill: Funding American Transit
A large portion of the money used for capital improvement across the United States is provided by legislation passed through the U.S. House of Representatives Committee on Appropriations. In July 2017 the committee approved the Transportation, Housing and Urban Development Funding Bill for 2018READ MORE
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Los Alamos National Security Llc
Contracts won in 2017: $2.5 billion Largest federal agency customer: Energy Revenue: $5.3 billion
The Los Alamos National Laboratorys current stated mission is to focus on national security and contributions to 21st century science. The lab was originally created to develop the atomic bomb during World War II.
Earlier this year, nonprofit Triad National Security LLC took over management of the lab. Despite its nonprofit status, New Mexico lawmakers are fighting to ensure the company will continue to pay state taxes. Today, about 65 percent of the laboratorys budget goes towards weapons development.
Small Businesses And The Federal Government: Working Together One Contract At A Time
This is the fifth post in a series highlighting different aspects of strategic planning in the Federal Government. Today, we will meet the U.S. Small Business Administration and learn how they leverage their strategic planning initiatives to hit Government-wide objectives, including partnering with and growing disadvantaged small businesses.
When Douglas Craft retired from the military, he landed in New Mexico and started his own business: Crystal Clear Manufacturing, a company specializing in janitorial services, operations and maintenance, and landscaping.
Thanks to the support of the U.S. Small Business Administration , Crofts company grew from a net worth of $80,000 to more than $25 million more than a thirtyfold increase.
The SBA provides services to the business community by helping small business owners access mentoring, counseling, and training, capital, and government contracting assistance. Craft received support in all of these areas. The SBA helped him file for veteran benefits and enrolled him in their 8 program for socially and economically disadvantaged businesses. This opened the door for Crystal Clear Manufacturing to grow.
Douglas Craft is a small business owner who receives support from the SBA.
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The Daily Journal Of The United States Government
This site displays a prototype of a Web 2.0 version of the daily Federal Register. It is not an official legal edition of the Federal Register, and does not replace the official print version or the official electronic version on GPOs govinfo.gov.
The documents posted on this site are XML renditions of published Federal Register documents. Each document posted on the site includes a link to the corresponding official PDF file on govinfo.gov. This prototype edition of the daily Federal Register on FederalRegister.gov will remain an unofficial informational resource until the Administrative Committee of the Federal Register issues a regulation granting it official legal status. For complete information about, and access to, our official publications and services, go to About the Federal Register on NARAs archives.gov.
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Addressing Mission And Enterprise Customer Needs
CACI is dedicated to helping customers and government solve their problems and support modernization concerns. The company culture values its reliable experts and professionals, shareholders, and consumers. CACI International Inc ranks 7th place among Information Technology Services companies worldwide.
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Federal Government Procurement Programs And Resources
- beta.sam.gov — This site is the official source for Federal Government Contracting Opportunities. Anyone interested in doing business with the government can use this system to research active opportunities.
- The System for Award Management is an official website of the U.S. government. There is no cost to use SAM. You can use this site for FREE to:
- Register to do business with the U.S. government
- Update or renew your entity registration
- Check status of an entity registration
- Search for entity registration and exclusion records
- GSA’s Federal Supply Schedules also known as Multiple Award Schedules , are contracts that allow federal customers to acquire more than 4 million services and products directly from more than 8,600 commercial suppliers. Under the schedules program, GSA enters into contracts with commercial firms to provide supplies and services at stated prices for given periods of time.
- The Small Business Administrations Government Contracting Programs to assist small, woman, minority and veteran-owned and disadvantaged business owners obtain or increase government contracts.