Sba Government Contracting Classroom
Do you want to develop a more in-depth understanding of government contracting before diving into the federal marketplace? The SBA Government Contracting Classroom is a wonderful online course series that thoroughly explains what you need to know about government contracts for small business. These courses are a great resource to learn more about the specific forms and processes involved in registering for, finding, and winning government contracts for small businesses.
What Are Government Contracts
They are legal agreements between a government agency and a contractor that obligates the government agency to pay for goods or services. Once the contract is awarded, the business must fulfill its part of the deal according to the terms of the agreement.
There are two types of government contracts:
Prime contracts are entered into between the government and a prime contractor. This is where the governments goods or services will be delivered and where it directs most of its oversight efforts.
Subcontracts are agreements between prime contractors and subcontractors who provide goods or services to fulfill their obligations under the prime contract.
Understand The Solicitation Type
There are a few different avenues that government agencies use to request proposals from potential government contractors, and as you may have come to expect, each comes with its own jargony acronym and paperwork rundown. But the type of solicitation used for a particular contract tells you a lot about what the agency expects from your proposal, so itâs important to understand the difference.
Following are the main three solicitation types youâre most likely to see on SAM.gov or any other listing of government contracting opportunities:
Request for Quotation
A request for quotation is the simplified acquisition procedure for government agencies typically used for contracts under $150,000. However, while this is considered simplified by government standards, you may still find it more involved than other scope of work proposals your business has completed for private entities. Consult the SAM.gov database to view past RFQ proposals to better understand how an RFQ should be successfully completed for a business in your industry.
Request for Proposal
Invitation for Bid
Invitations for bid refer to sealed solicitation processes for government procurement, meaning there is no negotiation between agency and vendor. The submitted bid package is considered final, and price point is most often seen as the key differentiator between qualified bidders.
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Request For Supply Arrangement
This method is used to solicit bids from a pool of pre-qualified suppliers for specific requirements. The intent is to establish a framework to permit expeditious processing individual bid solicitations which result in legal binding contracts for the goods and services described in those bid solicitations.
For more information, please visit the Supply Arrangements Web page.
Iv Mutuality Of Obligation
The mutuality of obligation is the contractual agreement between parties to the terms of consideration. In mutuality of obligation, one party holds more leverage than another party.
For example, one of them has the right to cancel. In that case, a court may assess whether or not the mutuality of obligation has been met. If it is not reached, the court might void the contract.
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What Is The Non
The non-competitive approach is only used in certain special circumstances:
- The need is one of pressing emergency in which delay would be injurious to the public interest
- The estimated expenditure does not exceed:
- $25,000 for goods or $40,000 for services and construction contracts
- $100,000 for architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work
- $100,000 for the Canadian International Development Agency service contracts related to international development assistance programs or projects
The Three Main Types Of Federal Contracts
Contracts with the federal government are frequently classified into three categories.
Fixed-price contracts are government contracts in which the payment amount doesnt change based on how much money the contractor spends or how long they work. Fixed-price contracts are also known as lump-sum contracts because they have a set price.
This contract is recommended if you have a clear idea of what exactly you want to happen.
A fixed-price contract also makes it easier for buyers to plan their finances. Customers can design their budgets accordingly because they know how much the product or service costs upfront.
A cost-plus contract states that a company will get reimbursed for its incurred costs and a percentage of the total contract price as profit. These agreements are helpful in specific industries like the construction industry.
There are four kinds of cost-plus contracts:
Time and materials contracts
Time and materials contracts are used when the project has no definite structure. The time and materials contracts are deals that goes with the flow.
This type of contract is excellent for people who are still undecided when starting their project. People who sell things use time and materials contracts when they cant figure out how long it will take them to do the job and what kind of materials theyll need.
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Find Your Companys Naics Code
Most businesses also need a North American Industry Classification System code, which classifies your businessâs industry, country, and economic sector for purposes of government contracting. This code is needed in order to register your business.
Consult the Small Business Administration for guidance on identifying your industry code, keeping in mind that if your business operates across multiple industries or sectors, you might need to report multiple NAICS codes.
Role Of The Labour Program
As administrator of the FCP, the Labour Program is responsible for:
- promoting the importance of employment equity
- providing information, tools and guidance and working with organizations to fulfill their obligations
- assigning AIEE numbers to new organizations
For more information, consult the FCP compliance requirements.
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Search Government Contracts Over $10000
As part of Canadas second Action Plan on Open Government, the Government of Canada has committed to the disclosure of contracting data via a centralized, machine-readable database available to the public. Originally announced in Budget 2004, departments are required to disclose contracts and amendments valued over and under $10,000 in a manner outlined in the Guidelines on the Proactive Disclosure of Contracts under the Directive on the Management of Procurement. Amendments to the Access to Information Act codified the aforementioned reporting requirements with the Royal assent of Bill C-58 in June 2019.
Information on contracts issued/amended by or on behalf of federal institutions can be searched here using keyword, institution, quarter, and year.
The Search Government Contracts over $10,000 content has recently been updated. At this time, there are a number of records that have not been migrated from the archived site. Refer to the Contracts over $10,000 Legacy Data for more information on these records.
Found 876715 records
Start Writing Your Contract Proposal
You have to write a formal and winning proposal and submit it to the requesting authority following their specifications.
Ensure that your proposal contains the following:
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About State Of Michigan Procurement
State of Michigan Procurement is the State of Michigan’s central purchasing office and serves as the Department of Technology, Management and Budget’s central purchasing authority.
In accordance with the Management and Budget Act, the office sets policies and procedures for purchasing across state departments and manages all aspects of high-level, complex bids to help state agencies achieve their missions and ensure the best value for Michigan residents.
C Historically Underutilized Business Zones
Historically underutilized business zones are certified to get ten percent price evaluation and eligibility for different types of government contracts once they have successfully passed through the Small Business Administrations requirements.
As long as a small business qualifies, there is no limit on how long it can engage in the HUBZone programs. All they have to do is to recertify for the program once a year while taking an examination every three fiscal years.
Meanwhile, the Small Business Administration may unexpectedly visit a categorized HUBZones small business and conduct inspection to ensure whether the information they have given for the program application or recertification process is precise or not.
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Are Government Contracts Profitable
Whether its your companys first contract or youve been providing products and services to the federal government for years, one thing is certain: Government contracting can be very profitable.
Government contracting allows businesses to get paid for providing products and services that help the government meet its goals. The federal government allocated over 140 billion dollars to contracts with small businesses in 2020.
Government contracting gives you access to the worlds largest customer . It also can provide your business with stability, profitability, and growth opportunities you may not find in other markets.
Seek A Subcontracting Opportunity
While the SAM.gov database handles direct contracts with government agenciesâknown in government terms as prime contractsâthere is another form of government contracts for small businesses to explore: subcontracting.
As the name suggests, subcontracting opportunities involve negotiating contracts with current government contractors to complete a portion of the work designated by the prime contractors. In other words, subcontractors are the vendorâs vendor. Subcontracting on government contracts can be both a lucrative business opportunity and a chance to learn more about government contracting before attempting to bid on prime contracts directly with the U.S. government.
Similar to SAM.gov, the SBA maintains a searchable database called SUB-Net that highlights available subcontracting opportunities. If youâre just getting started with government contracting or would like a layer of experience between government agency clientele and your own business, searching SUB-Net for subcontracting opportunities is a great starting point.
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What Are The Easiest Government Contracts To Win
The best way to determine the likelihood of winning is to look at your companys past performance. If you dont have relevant past performance, teaming up with other companies can be effective.
Make sure your team is comprised of companies that have a strong track record of success in similar contracts, as well as companies that have won contracts in the location and agency youre targeting.
The GSA Schedule contract is the easiest government contract to win because its a long-standing contract with commercial industries providing the government access to millions of commercial services and products at affordable prices.
Aside from the GSA, there is no definite answer to what is the easiest government contract a small business can get. However, certain industries have more opportunities than others. Some of these include:
How To Get Government Contracts: Prepare Your Proposal
Though you likely have experience creating proposals and scope of work orders for prospective clients in the private sector, little can prepare you for the unique process of preparing a government contract proposal. In fact, completing a bid or proposal for a government agency may be more akin to completing your business taxes or a stack of forms for the DMV.
Even so, there are plenty of opportunities to share your unique value add and let your business shine within the pages of your proposalâas long as you fit within the confines of agency formats and expectations.
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Request For Standing Offer
This method is used to solicit standing offers to provide goods and services on an as-and-required basis, at firm prices, as per established terms and conditions. It clearly states the requirement, the evaluation method and selection criteria, the call-up procedures, the ranking methodologies, whenever applicable, to be used for making call-ups against the authorized standing offer, and all terms and conditions applicable to the contract that is brought into effect, as a result of any call-up.
For more information, please visit the Standing Offers Web page.
Assess Your Business Readiness
Theres no question that competition for government contracts is quite steep. Before you get too far into the bidding process, make sure this is the right option for your business.
The General Services Administration has found that businesses with the following assets tend to have higher chances of winning a government contract:
- Businesses with two years of experience working with federal contracts, either as a prime or subcontractor.
- Businesses that have contacts and relationships within the federal contracting community.
- Business owners who work with a mentor who is a successful GSA contractor.
- Businesses that attend GSA seminars and workshops on contracting.
- Businesses that invest between $80K$130K to find and manage the initial government contract.
The GSA has a readiness assessment that can show you where your strengths and weaknesses lie before you spend time and money bidding on government contracts.
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Register In The System For Award Management
The System for Award Management is a database of companies that are interested in government contracts, maintained by the U.S. government. Whereas a business customer in the private sector might come across your business on Google, LinkedIn, or some other search or social network, decision-makers at government agencies use SAM to identify potential vendors.
For this reason, small businesses looking to obtain government contracts should invest a similar level of effort into creating a compelling and search-friendly SAM profile as they would spend on SEO strategy or your companyâs LinkedIn profile.
To get started, your business will need to register as a government vendor in the SAM system. While your SAM profile must be updated at least once a year to remain active, firms committed to obtaining government contracts should update and refine their SAM profile at least quarterly, if not monthly or more.
Remember that although youâre pitching to government agencies, the decision-makers within those agencies are real people. Avoid the temptation to fall into overly technical and bureaucratic descriptions of your products or services. Working with a government agency doesnât require stifling the personality behind your brand!
Supply And Delivery Of Office Products Print And Copy Paper And Laser Toners Vor Arrangement
Ministry of Public and Business Service Delivery Supply Chain Ontario
The Ministry of Public and Business Service Delivery , Supply Chain Ontario , has established a new Vendor of Record arrangement for the Supply and Delivery of Office Products, Print and Copy Paper and Laser Toners.
The VOR arrangement, effective June 21, 2022, is for a term of up to two years with an option to extend for one additional year. The VOR arrangement is mandatory for Ontario Public Service ministries and agencies and is optionally available to non-OPS entities including municipalities, academic institutions, school boards, health care providers, and major transfer payment recipients.
The VOR arrangement allows suppliers to provide consistent quality and service across the province and provides discounted prices on a list of core items and a discount rate off catalogue and *Net Products.
The following vendors have been awarded the following categories:
- Home delivery option
- Free delivery on orders of $50 or more
- Five days normal delivery to most places within the province, seven business days to remote locations
- Price upon request for bulk orders
- No minimum or maximum purchase quantities on any item
*Net Products means office product items excluding print and copy paper and laser toners, on the catalogue that are:
How to access the VOR arrangement
For Non-OPS entities
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The Easiest Government Contracts To Win
The U.S. government is known to be one of the markets oldest and largest purchasers. In fact, it purchases billions to trillions per year in goods and services.
Regardless of business size, understanding how to approach and win government contracts is a key component of success or failure for many companies. Winning the first contract can be a perplexing task, but there are resources to make it easier. Keep reading to learn more.
Determine Your Business Size
You might assume that determining your businessâs size doesnt require much thought. However, for the purposes of qualifying for government contracts for small businesses, you need to qualify according to SBA size standards.To help you easily answer this question, the SBA offers a Size Standards Tool, which uses your NAICS number along with some basic information about your business to determine whether it qualifies as an SBA-designated small business.
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Introducing The Michigan Supplier Community
Are you a Michigan based business looking to do business with the State of Michigan? The Michigan Supplier Community or MiSC for short was established in 2019 to encourage expanded business opportunities within low-income communities and underutilized business areas. Eligible companies can join the MiSC program for free.
Full details are available at Michigan.gov/MiSC
How Contracts Are Awarded
After evaluating bids, Procurement Services will issue a contract to the successful supplier.
The name of the successful supplier, award date, and the contracted prices will be available on the Alberta Purchasing Connection following the contract award.
Unsuccessful suppliers will be debriefed by Procurement Services, upon request.
The solicitation will specify if the award will be made to one or more suppliers.
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