Businesses that work with the federal government must meet a wide range of strict requirements in order to win and keep government contracts. The complexity of the many laws and regulations that accompany government contracts can be daunting, but with the right support, it doesn’t have to be. Once you’ve learned the ropes, you’ll be poised to start bidding on and winning contracts with the biggest customer in the world: the United States government. Let’s start by looking at basic government contractor requirements and how you can prepare to meet them.
Government Contractor Requirements
While some government contractor requirements may vary depending on the terms of a specific contract, there are a number of broad government contractor requirements that apply to any business providing goods or services to the federal government.
Before you are even able to compete and bid on federal contracts, there are certain requirements you must meet.
Get Properly Registered
If your small business wants to bid on federal contracts, you’ll need to be properly registered. This process starts with obtaining a Unique Entity Identifier (UEI). If you have not yet, get registered with the System for Award Management (SAM) at SAM.gov. You’ll receive your 12-digit alphanumeric UEI when you do.
You’ll also be able to use SAM to determine if your business qualifies to bid on contracts for small businesses or if it’s eligible for any contracts under special Small Business Administration (SBA) programs. Special SBA programs include the following:
- Business Development program (for small disadvantaged businesses)
- Women-Owned Small Business Federal Contract program
- Programs for businesses owned by veterans
- The HUBZone program (for small businesses serving historically underutilized business zones)
Determine Your NAICS Code
Once you are registered with SAM and your UEI has been assigned, you’ll need to determine your North American Industry Classification System (NAICS) code. NAICS codes classify all businesses based upon their industry and the product or service provided. All businesses will have at least one primary NAICS code, but companies that sell multiple products or provide multiple services may have multiple NAICS codes.
Meet Size Requirements
The federal government is required by law to provide opportunities for small businesses to bid on government contracts. However, in order to bid on these contracts, there are maximum size requirements set forth by the SBA that a business and its affiliates must fall under.
Size standards are assigned based on NAICS codes. Broadly speaking, manufacturing companies with 500 or fewer employees — and non-manufacturing companies with less than $7.5 million in average annual receipts — are considered small businesses. It’s important to note that these numbers do not apply to every industry, and there are exceptions in certain industries (you can find more information by reviewing Title 13 Part 121.201 of the Code of Federal Regulations (CFR) or by referring to the SBA’s table of small business size standards). The best way to determine if your particular business meets size requirements is to use the SBA’s Size Standards Tool.
Maintain Compliance
Once you’ve followed the steps above, to win and keep government contracts, you’ll be required to maintain compliance with all relevant laws and regulations. These regulations are set forth by the Federal Acquisition Regulation (FAR). You can find the details of the many requirements and regulations that all government contractors are beholden to listed in the Code of Federal Regulations.
Demonstrate Strong Cybersecurity
Any small business seeking a contract with the U.S. Department of Defense (DoD) must be able to prove its ability to safeguard all systems and data in accordance with the relevant Cybersecurity Maturity Model Certification (CMMC) that applies to the specific contract in question.
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Do you have questions about how to navigate the world of government contractor requirements? We’ve got answers. For over 20 years, GovCon has helped hundreds of clients navigate the complex world of DCAA compliance, streamline their operations, pass audits, and win federal contracts. We use our real-world experience to simplify your process, reduce the cost of compliance, and improve accuracy. We’d love to show you how GovCon can simplify the government contracting process for you. Contact us any time.