Securing federal contracts can be a game-changer for your small business. With the U.S. government spending billions of dollars annually on goods and services, it represents a significant market opportunity. However, before you can start bidding on federal contracts, you’ll need to complete a few steps, including obtaining a D-U-N-S Number. Don’t worry—this process isn’t as complicated as it may seem! In this article, we’ll break it down into easy-to-understand steps so you can navigate the path to securing federal contracts and getting your D-U-N-S Number.
A federal contract is an agreement between a business and the U.S. government for the provision of products or services. Federal contracts are awarded to businesses that meet certain requirements and can deliver goods or services that the government needs. These contracts can range from supplying office supplies to providing construction services for military bases.
Before you can bid on federal contracts, your business must be registered with the System for Award Management (SAM). This is the U.S. government's online portal where businesses must be listed in order to do business with federal agencies.
Go to the SAM website (www.sam.gov).
Create an account and follow the instructions to fill out your business profile.
Provide details such as your company’s legal name, physical address, tax ID, and business structure.
Once registered, you’ll receive a Unique Entity Identifier (UEI), which replaces the D-U-N-S Number in SAM. This ID is now required for federal contracts.
Note that SAM registration must be renewed annually, so keep track of the renewal dates to remain eligible for federal contracts.
A D-U-N-S Number (Data Universal Numbering System) is a unique identifier for businesses, issued by Dun & Bradstreet. While the D-U-N-S Number is no longer required for SAM registration, it is still valuable for businesses pursuing federal contracts, especially if you're working with contractors or partners who may require this number.
Visit the Dun & Bradstreet website: Go to www.dnb.com to apply for a D-U-N-S Number.
Fill out the form: You'll need to provide your business name, address, phone number, and the name of the owner.
Wait for your number: Dun & Bradstreet will process your application and send you a D-U-N-S Number, usually within 1–2 business days.
Creditworthiness: It helps establish your business's credit profile, which can be important when seeking business loans or working with partners.
Eligibility for Contracts: Some agencies or contractors still prefer to see a D-U-N-S Number, especially for large-scale projects.
Once you’re registered with SAM and possibly have a D-U-N-S Number, the next step is to start looking for federal contract opportunities. Several platforms are available where you can search for contracts based on your business’s capabilities:
SAM.gov: In addition to registering, SAM.gov lists open government contracts. You can search by industry, keywords, or even specific government agencies.
FedBizOpps: This is now part of SAM.gov and is where federal agencies post contract opportunities.
GSA Schedules: If you provide products or services that the government regularly purchases, you may want to get on a General Services Administration (GSA) Schedule, which is a pre-approved list of suppliers for federal agencies.
Grants.gov: If your business is involved in research or other grant-eligible projects, you can apply for grants posted by federal agencies.
Use Filters: Make sure to use the search filters on SAM.gov to narrow down opportunities relevant to your business.
Know Your NAICS Code: Your business should have a North American Industry Classification System (NAICS) code, which helps categorize your business for the purpose of finding relevant contracts.
Watch for Set-Asides: The government sets aside certain contracts for small businesses, such as Small Business Set-Asides, 8(a) Businesses, and Women-Owned Businesses. Be sure to check the eligibility for these categories if applicable.
Once you've identified a contract that suits your business, the next step is to submit a bid or proposal. Federal contracts typically require detailed proposals that include your qualifications, the scope of work, and the cost of services or products.
Understand the Requirements: Carefully read the contract’s Request for Proposal (RFP) or Request for Quote (RFQ) document. This will outline the expectations, timelines, and evaluation criteria.
Be Clear and Detailed: Provide a clear breakdown of your proposed approach, timelines, and costs. Government agencies value transparency and accuracy.
Highlight Your Experience: Emphasize your previous work (if applicable) and any certifications or qualifications that show you’re capable of delivering the required goods or services.
Follow Instructions: Pay close attention to formatting and submission guidelines. Missing documents or incomplete proposals could lead to disqualification.
After submitting your proposal, the government will evaluate all bids based on factors like price, technical capability, and past performance. If your business is selected, you’ll be awarded the contract and will enter into a formal agreement with the government.
Once awarded a contract, it’s important to deliver on your promises and maintain high-quality work. Keep track of progress and stay in communication with the contracting agency. Payments are typically made after certain milestones are met, and you must submit invoices for reimbursement.
Securing federal contracts can be an exciting growth opportunity for your small business. While it may take some time and effort to get started, following these straightforward steps—registering with SAM, obtaining a D-U-N-S Number (if desired), finding opportunities, and submitting proposals—will help you navigate the process with confidence.
Remember, patience and persistence are key. With the right preparation, your small business can tap into the vast market of federal contracts and begin working with government agencies to build long-term success.