The federal government may provide funds for research and development through grants, cooperation agreements, contracts, or even other transaction arrangements. A government contract, unlike grants and cooperation agreements, is a procurement instrument. This indicates that the primary goal of a federal contract is to buy properties or commodities for the clear benefit or use of the United States Government.
Federal contracts are subject to a stringent set of terms and conditions, which include provisions from the Federal Acquisition Regulation (FAR). They often necessitate frequent reporting as well as a high level of accountability to the government. Failure to complete the project in strict accordance with the agreement and provide the specified deliveries on time and within budget may lead to criminal and/or civil fines, as well as financial implications.
Other Transaction Agreements (OTAs) are exempt from grant administration procedures and federal procurement restrictions. The Federal Contracts Services Team is in charge of handling any OTAs or subcontractors and suppliers under OTAs, as well as proposals that may result in OTAs, regardless of whether the University is the main beneficiary or a subcontractor.
How to find demand for federal contracts?
We will learn about the demands that every federal government contractor who wants to participate must meet.
Set up your company.
To be recognized for government contracting projects, your company must first register with the System for Award Management (SAM.gov). The System for Award Management of the United States Federal is an official website that provides searchable databases for organizations interested in obtaining government contracts.
Obtain a Unique Entity Identification Number
A firm must possess a specific nine-digit number from the Data Universal Numbering System in order to participate in the latest government contracting bidding procedure (DUNS Number). However, on April 4, 2022, the government federal contracts discontinued the usage of DUNS in favor of the UEI or Unique Entity ID generated at SAM.gov.
A unique Entity ID (UEI) is a 12-character alphanumeric ID that, like the DUNS Number, is used to trace down firms’ worldwide financial activities.
Obtain a code from the North American Industry Classification System.
All small firms and government contractors must have a North American Industry Classification System (NAICS) code. The US government employs this one-of-a-kind code to rapidly categorize federal contractors and small enterprises and collect economic statistics data.
To apply for and bid on government contracts, your organization will need to get a NAICS code. Keep in mind, however, that if you work in various industries, you may be required to obtain multiple NAICS codes.
Examine your EIN (Employer Identification Number).
The Employer Identification Number, or EIN, is another criterion that both a small business and an enterprise must meet.
The EIN, also referred to as the federal Tax Identification Number or Tax Identification Number, is a nine-digit number that companies use to report taxes. Businesses can apply for an Employer Identification Number (EIN) directly from the Internal Revenue Service (IRS) at no cost.
Submit an application for certification
For small enterprises qualifying for government certification, the federal government developed small company programs and sole-source contracts.
The Small Business Administration may handle your certificates. It is strongly advised that once you have received your certificate, you maintain all of the documentation for your records. However, if you desire to amend any information throughout the application process, you must contact the SBA promptly to update your application.
Size requirements must be met.
Prior to submitting any proposal, make sure your firm satisfies the size requirements because this determines whether or not your company is eligible for certain federal contracts.
The Code of Federal Regulations Title 13 Part 121 lists all of the government’s exceptions and rules for all business standards.
To learn more about whether your company qualifies as a small business for federal contracting, see the SBA Table of Size Standards and Size Standards Tool on the official website.
Investigate government agencies
This step may be unnecessary if you want to conduct business with any government department. However, if you want to work for a specific government agency, such as the military department, you must completely grasp how they function, acquire, and set budgets.
By researching the individual government agency, you might well be able to concretely prepare to bid on their open contract.
Look for available government contracts on the internet.
After your company has met all of the federal contracts demand, you may look for open commercial contracts to see whether federal government agencies are interested in purchasing your product or service.
It may also be beneficial to visit SAM.gov to learn more about the department’s previous acquisitions and recent biddings.
Examine smaller state and municipal contracts.
Small company certification may take some time, so if you are keen to secure a federal contract, you may want to start with local or state government business prospects.
Each municipality and state has a unique set of contract regulations.
