What type of Contracts are available?
When searching for government contracts to bid on, small businesses must keep in mind what types of contracts are available within the government-contracting sphere.
The two main types of contracts that small businesses will come across are fixed-price and cost-reimbursement contracts. No matter what kind of product or service a business is offering to the government, it’s helpful for small businesses to learn about the various contract types that exist before bidding on any local, state, or federal RFPs.
Know your capacity
Knowing details about the various types of contracts available to businesses before bidding on government RFPs will ensure that you understand when payment for your services will be issued and what form it will take. With this knowledge, contractors can make the best possible decisions to ensure the success of their businesses.
FedBizOpps.gov (Federal Business Opportunities) is the primary source for federal government contract opportunities that are valued at over $25,000. Federal procurement regulations require that bids worth $25,000 or more be published through FedBizOpps.
Exploring FedBizOpps is a great way to gain insight into the products and services that the federal government is interested in buying. However, since federal contracts worth less than $25,000 are not required to be published, not every government opportunity will be listed with this service. It’s also important to note that listings on FedBizOpps do not include state and local opportunities (state and local contracts can usually be found on your state or county procurement portal).
To take advantage of opportunities published on FedBizOpps, you are required to have an active Sam.gov account as well as a Duns and Cage number. Click on the links below to register your business and find more information about acquiring these important credentials.
Federal Registration Links:
The pursuit of State, local or federal contracts is something that many business owners consider to be crucial to the success and growth of their business. Providing a product or service to the government offers great business opportunities for firms across the country, and FedBizOpps is among the most helpful resources for businesses that are looking for any type of federal contract.
The American Recovery and Reinvestment Act
In 2009, President Obama signed the American Recovery and Reinvestment Act into law. This legislation was created in response to the economic crisis the U.S. was facing, and was rolled out with the goal of jumpstarting the economy. Under this Act, Congress appropriated funds to federal agencies that in turn provided the funds to state and local agencies to be used for contracts and grants, among other expenditures. Since the program’s beginning, the Federal government has dished out billions of dollars to states and agencies to help boost state and regional economies. According to Recovery.gov, the five states that awarded the most contracts between 2009 and 2012 were California, Maryland, Virginia, Texas and Colorado; combined, these states benefitted from an estimated total of $13.2 billion in federal funds that were passed on through contracts to local businesses in the states.
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