Us Small Business Administrations Government Contracting Program
The Government Contracting Program of SBA ensures that small businesses receive their fair share of federal contracts. SBAâs programs include the establishment of small business set-asides, certification of small businesses to perform on federal contracts, and opportunities in subcontracting to large business prime contractors.
The Government Contracting Program of SBA works to make sure small businesses get at least 23% of all federal contracting dollars.
Additionally, the government tries to award a certain percentage of all federal prime contracting dollars to small businesses each year called Set-asides, that meet certain socio-economic conditions. They include Minority-owned, Women-owned, Service-disabled veteran-owned and HUBZone-certified small businesses.
SBA also provides information and assistance to firms who are interested in obtaining federal contracts.
SBA staff can be contacted for additional information at the following locations:
Montgomery County Procurement Resources
- Montgomery County Office of Procurement, provides information and guidelines regarding the purchase of services and products by Montgomery County government.
- Contracting Information review current opportunities on the Office of Procurement web site and research existing County contracts using dataMontgomery.
- Contract Administrators departmental contacts that purchase goods and services.
- How to do business with the Montgomery County Department of Health & Human Resources.
- How to become a contractor for the Montgomery County Department of Recreation.
- How to do business with the Montgomery County Department of Health and Human Services.
Raytheon 2022 Q2 Results Overview
Raytheon reports results in four main segments, namely Collins Aerospace Systems at 29.2% of Q2 2022 net sales, Pratt & Whitney at 29% of Q2 2022 net sales, Raytheon Intelligence & Space at 20.9% of Q2 2022 net sales and Raytheon Missiles & Defense at 20.8% of Q2 2022 net sales:
Figure 4. Raytheon 2022 Q2 Sales Breakdown
Raytheon Technologies Form 10-Q For Q2 2022
Collins Aerospace Systems saw sales growth of 10.2% Y/Y on the back of recovering commercial air traffic, partially offset by weakness in military sales.
Pratt & Whitney reported the highest revenue growth in the quarter at 16% Y/Y fueled by both commercial and government orders.
In contrast to buoyant market conditions enjoyed by the former two segments, results at RIS & RMD were lackluster with sales coming in at -6% for RIS and -11% for RMD respectively. Backlog at both divisions was relatively flat, up $1bn to $30bn at RMD but down $2bn to $16bn at RIS.
All in all, Raytheon confirmed its full-year 2022 forecast, with free cash flow seen at circa $6bn, up from $5bn in 2021:
Figure 5. Raytheon 2022 Forecast
Raytheon Technologies Q2 2022 Investor Webcast Presentation
It can be expected that growth will moderate going into 2023 on the back of a more gradual recovery in air traffic, offset by a pick-up in government defense spending.
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The Basics Of Employee Benefits For Government Contractors
March 4, 2021 by Brandon Downs
In 2020, the United States government spent approximately $1.1 trillion on contractual services and supplies, according to the Bureau of the Fiscal Service. Being a government contractor offers a range of benefits, such as good income, flexible work, timely payments and stable employment. However, companies that do business with the federal government must comply with specific labor laws and regulations. It is important to thoroughly review and understand these laws prior to accepting a government contract.
Contents
Know The Size Standards
The Small Business Administration uses its size standards when determining which businesses are small or large. The SBA declares a company to be small if it is
- With 500 employers or less
- if the total income of a nonmanufacturing business is below 7.5 million US dollars
- if it is independently owned and operated
- is not dominant in its field of operation
This matters because different laws apply depending on business size.
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Become A Certified Government Contractor
Check out SBA’s site for information on Becoming a Federal Contractor. In short, for your small business to serve as a prime contractor or subcontractor, youll need to legally qualify as a small business and register as a government contractor. Then you can start looking for both prime or subcontracting opportunities with the federal government.
Free Guide To Getting Started In Government Contracting
In this blog post, we took a general overview of how you can get the best possible start in government contracting.
However, if you want to take it a step further, and get a more detailed, step-by-step guide for getting started, we have a FREE guide for you.
Most government contracting guides will give you just the basics such as filling out the paperwork and submitting bids.
USFCR’s Practical Guide to Getting Started in Government Contracting covers the basics but also gives you actionable strategies for building a new and reliable source of revenue.
Originally published Apr 23, 2021 10:35:04 AM, updated August 23, 2022
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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
- GSAs 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.
Find Government Contracting Opportunities
After fulfilling the previous requirements, your small business is now more searchable by procurement officers! But if you want to pursue government contracting, you should be proactive in seeking contracting opportunities.
1. Enter subcontracting
Several factors affect a government agencys contractor selection process, but usually, government contracts are awarded based on an excellent business reputation. And that is why a small business must establish a good track record as a vendor before they qualify for contracts. So to start building a good business reputation in the industry, you should begin as a subcontractor first.
Usually, complex and large-scale federal contracts require a subcontracting plan to ensure that the contractor will complete the contract satisfactorily. And that is why prime government contractorsthe qualified contractors who work directly with the governmentseek out small businesses to be subcontractors to help them execute the work stipulated in the government contract.
In this scenario, being a subcontractor means working under the prime contractor instead of the federal government. But if you managed to pull off an exemplary job, you can add that experience to your track record and thus, open more doors for you! Furthermore, this also grants you the opportunity to work with giant companies and network with them.
2. Get on a GSA Schedule
3. Search for set-asides
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Understand The Type Of Solicitation
Government contracts come in different forms, and the type of solicitation issued will give you insight into what the government agency expects from your proposal. There are three main solicitation types youre likely to see from the federal government:
- Request for quotation : Typically used for contracts under $150,000, this vehicle is relatively simple and seeks information on price, delivery or other information for planning purposes.
- Request for proposal : For larger acquisitions, applicants need to provide details about how they would perform a specific project or supply a specific product.
- Invitation for bid : Similar to an RFP, the IFB or ITB is for projects over $100,000. It represents a sealed solicitation for government procurement, meaning there is no negotiation between agency and vendor.
Each of these solicitations requires a strategic approach to pricing. In an RFQ, for instance, your business is likely to compete with others to see who can offer the best value or lowest price. Responding to an IFB, conversely, takes careful consideration to ensure youre setting a fair price there will be no room for negotiation if you overshoot the bid or leave out key details.
Get The Required Id Numbers And Registrations
There are several basic contract requirements that businesses seeking a contract must meet to consider an award, and these include:
1. A Unique Entity Identifier s a 12-digit number assigned by Dun and Bradstreet. If you do not have one, you must apply for one and wait for it to be approved before proceeding with your SAM registration.
2. The North American Industry Classification System Code is a unique six-digit number maintained by The Economic Classification Policy Committee . Its purposes are to provide
- a uniform scheme for classifying business establishments from national to local economic activities
- a standard way of organizing businesses and their products is to compare similar businesses
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Finding Opportunities To Bid On
Once youre fully registered in SAM, youre ready to start bidding on contracts. Being able to find and place bids on government contracts is arguably one of your most valuable skills as a contractor, but there is certainly a learning curve to using the governments bidding system. The federal government uses their own bidding system known as Beta SAM. This works as a search portal for government contractors to find opportunities they want to bid on.
If youve ever worked on contracting websites like Fiverr and Upwork, Beta SAM has a similar purpose, but is exclusively for US government contracts. Youll want to get familiar with searching and bidding in Beta SAM so that you can begin finding appropriate contracts for your business as soon as possible.
Is It Worth Becoming A Government Contractor
Is it worth it to become a government contractor? I cannot give a definite answer whether it will be beneficial to your company or not because it will all go back down to your eagerness and willingness to take risks in working for a new market.
Definitely, there are pros and cons to becoming a government contractor. Many say that the industry has sustained its small business and remained in the competition. At the same time, others say that the contracting industry did not work for them.
Nevertheless, as a small business owner, all your decisions will affect the overall outcome of the company. With that said, if you want to pursue government contracting, make sure that you are willing to overcome every challenge along the way and will push through to creating a successful company.
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Obtaining A Gsa Schedule Contract
Another way to sell to the government is by obtaining a General Services Administration Schedule contract. Schedules are long-term, government-wide contracts between commercial suppliers and the government that allow you to sell to any federal agency. Vendors are pre-approved and ceiling prices and other terms are pre-negotiated, so the process is a lot quicker and more streamlined than with public bidding, plus youll face less competition.
GSA Schedules are categorized by types of products and servicesyou can find the list of Schedules on the GSA website. For instance, IT services and software are sold through IT Schedule 70.
Keep in mind that holding a GSA Schedule contract only qualifies you to sell to government agencies it doesnt guarantee sales, so youll still need to market yourself. But first, to get approved youll have to complete a number of registrations and certifications, and youre typically required to have been in business for at least two years.
Booz Allen Hamilton 2023 Q1 Results Overview
Bearing in mind that Booz Allen Hamiltonâs financial year starts in April, the company reports revenues in three main customer segments, namely Defense Clients at 45% of Q1 2023 revenue, Intelligence Clients at 18% of Q1 2023 revenue and Civil Clients at 34% of Q1 2023 revenue:
Figure 7. Booz Allen Hamilton Revenue Breakdown Q2 2021-2022
Booz Allen Hamilton Form 10-Q for Q1 2023
Of the 13.1% revenue growth in the quarter, 8% was organic with the rest made up by inorganic contributions. CEO Horacio Rozanski highlighted on the conference call that the company will continue to be active on the M& A front to help it reach its adjusted EBITDA target of $1.2bn to $1.3bn in fiscal 2025 :
And fourth, we must deploy capital in a way that creates maximum value and drives our strategy forward. In the past few months, we have remained active in building our M& A pipeline focusing on acquisitions that will accelerate our VoLT strategy. I firmly believe that strategic M& A, like our proposed acquisition of EverWatch increases both innovation and competition, and that the interest of the government and strategic acquirers are fully aligned. We remain disciplined and committed to deploying capital in a manner consistent with our investment thesis.
Turning to the backlog, it saw growth of 6.8% Y/Y to $28.6bn.
All in all, the outlook was confirmed, including the adjusted EPS range of $4.15-$4.45, with the caveat relating to taxes which we highlighted in the Raytheon section as well :
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Focusing On Your Talent
WTW brings over 35 years of industry experience to help clients navigate the complex human capital landscape of government contracting. Our team understands the unique accounting and procurement challenges of government contractors and their implications to human capital and benefit plan management.
How we help our government contractor clients:
Improved employee experience
Supporting an employer mindset of employees as consumers. Recognizing ways to address the full well-being spectrum for todays employee, including physical, emotional, social, and financial wellbeing.
Proactive talent solutions
Consulting and tools to help you offer competitive compensation and benefits to engage and attract employees in the war for talent, especially against other adjacent industries.
Industry connectivity
Our relationships within the industry and with prominent government contracting attorneys and auditors, such as the Defense Contract Management Agency and the Defense Contract Audit Agency , enable an open dialogue and allow you to balance your legal, moral, and practical obligations in various situations .
Industry-based solutions
We can help you with our firsthand working knowledge of the industry trends and how to mitigate the impact of contract turnover. We can also offer guidance during the restructuring of business units and internal functions due to realignment or merger and acquisition transactions.
Government Contracting Procedures Briefly
Each agency of the federal government conducts business with the public through three specific authorized agents, called contracting officers. These officers are:
- The Procurement Contracting Officer awards contracts and deals with contract terminations in the event the contractor defaults on the terms of the contract.
- The Administrative Contracting Officer administers the contract.
- The Termination Contracting Officer deals with contract terminations when the government chooses to terminate the contract for its own reasons.
Depending on the situation, the same person may the PCO, the ACO, and the TCO.
As a sovereign entity , the federal government retains rights that commercial businesses do not have. Perhaps most importantly, the government has the right to unilaterally change the terms of the contract, provided that the changes are within the general parameters of the contract.
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Keep Tabs On Federal Contracting Opportunities
Once you have successfully registered your business at SAM.gov, you should now learn how to scout for contract opportunities. Fortunately, you dont have to search high and low to explore the latest contract opportunitiesyou can do it at SAM.gov!
Back then, the federal government used the Federal Business Opportunities Website to publish contract opportunities. But the government has integrated the functionalities of this website into the SAM.gov website for a more streamlined experience.
Trends In Defense Spending
Defense spending growth varies a lot from one decade to the next. For example, absolute world defense budgets more than doubled in size in the period 2000-2010. More recently, world defense spending growth slowed in the 2010s to about 1% per year in the aftermath of the financial crisis. Thereâs reason to believe that the 2020s will be another period of strong defense spending growth given the heightened geopolitical uncertainty and the need to build up defensive capabilities following the war in Ukraine. After this period of above trendline growth is over, it is likely that defense spending growth will average about 3% per year, in line with nominal GDP growth for developed countries.
Figure 1. Contract awards by the U.S. Department of Defense, 2018-Q3 2022
TenderAlpha
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