Did you know that government agencies are required to contract services from small businesses each year? These goals are negotiated yearly with the Small Business Administration (SBA). For example, Health and Human Services (HHS) estimates that, for FY 2005, $1,667,600,000 will be allocated for small business or 30% of their budget. However, in FY 2003, HHS provided $1.9B to small businesses or almost 31% of their available resources. Are you and your business taking advantage of this growth opportunity?

I often hear entrepreneurs, when asked if they are marketing to the federal government, respond, "I thought about it, but it was too confusing." Indeed, the process can seem confusing, but it is well worth taking the time to understand it. Federal contracting is an excellent option to help your company continue to grow in a market downturn.

The first step in the process is to register your company in the Central Contractor Registration (CCR) database. Registration in this database is required for all firms contracting with the federal government. This first step gives agencies an opportunity to look at your company as a potential vendor and gives them a way to pay your invoices easily. Go to www.ccr.gov. You will need to have your Dunn & Bradstreet number, Tax Identification Number (TIN) or Employer Identification Number (EIN), your banking information (most agencies will send payments directly to your bank), and your NAICS and SIC codes. These codes can be found at www.census.gov/epcd/www/naics.html and www.census.gov/epcd/www/naicstab.htm. You will also need to provide some other general information about your company, including address, number of employees, etc.

You may need to register for a General Services Administration (GSA) Schedule, but don't start there. A GSA Schedule does not guarantee you business; it just gives you the right to play. To get more information on the types of GSA Schedules, you can check out the GSA web site www.gsa.gov.

Once your business is registered, you will need to identify opportunities from targeted agencies. Decide what your product offering is and why it fits a particular agency's agenda. Begin your process by looking at the agency forecast. The forecast is a list of products, projects and services the agency is looking for and can be found on the websites for most agencies. For example, to work with the United States Army, go to their small business web site (www.sellingtoarmy.info) and look for business opportunities (www.sellingtoarmy.info/army_opps.asp).

Also, be sure to look at an agency's history of what was bought in the past to determine if there might be an ongoing contract where you can become a subcontractor. Subcontracting is probably the best way for you to get started. Since many companies do not understand the federal contracting process, subcontracting is a good way to learn the "rules of the road." When you work with a Prime Contractor as a sub, you can get into their Mentor Protégé program, and they will teach you about federal contracting, federal accounting, targeting an opportunity, selling to the agencies and much more.

Once you have an idea of the needs within a particular agency and how your business could meet those needs, the next step is to contact the small business liaison at that agency. These specialists are ready to work with you and help you navigate the system.

Here is a general overview of the process:

1. Identify opportunities where your product or service can satisfy an agency need.
2. Contact the Small Business Specialist in that agency.
3. Put your presentation together including a business plan and product descriptions. This is your opportunity to pitch your solution to their problem.
4. Keep your presentation very focused in the beginning to get in the door. Do NOT try to be all things to all people. FOCUS on a single opportunity. Do a tremendous job on that single project and begin creating your positive track record.
5. Once you have a positive experience with one agency, you will have more opportunities to do more projects with them and also get referrals to other agencies.

Yes, the contracting process can be confusing. But once you begin to perform and meet or exceed agency expectations, you will have an ongoing book of business that will continue even in economic hard times. The government never goes out of business!

Consider attending "Marketing to the Federal Government" Nov 2-4, 2004 to learn more about what some of the largest federal agencies are looking for and how your company can participate in billions of dollars of contracting opportunities. Visti www.technologyinsider.net/mfg04 for more information. WITI Members: See the member area for a discount.

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