The process of winning and fulfilling your first government contract can be daunting. While working as a contractor or subcontractor for the federal government can open up significant opportunities for small business owners, the laws and regulations that govern the process can feel confusing to navigate, especially for those new to the process. But with the right support, it doesn’t have to. For those just starting out, keep in mind these tips for new government contractors.
Tips for New Government Contractors
Get Registered
A lot of time, money, and work goes into winning your first government contract. So once you have that first contract, make sure your company is registered in the System for Award Management (SAM) database — you’ll need to be registered in order to be paid.
Build a Network
One of the best tips for new government contractors is to get to know other new government contractors. Attending conferences, training, and seminars not only can help you build your knowledge base and get questions about government contracting answered, but also it can help you build relationships with other contractors and subcontractors in your field. Having a robust network is important, especially for new contractors — it’s a great way to meet peers, find mentorship opportunities, and build relationships that may lead to further contracts and opportunities down the road.
Be Patient
Winning your first government contract can take time — and money. While these numbers fluctuate, the U.S. Small Business Administration (SBA) notes that some small businesses may spend between $80,000 and $130,000 just to earn their first government contract.
And the journey doesn’t end after you win that first contract. The SBA has this reminder for new or would-be government contractors: “It could take up to two years to start making a return on your investment. You’ll need to have enough cash flow to sustain your business. Maintaining a diverse list of private-sector clients can help offset any potential initial losses.”
Get Tech-Savvy
To be a successful government contractor, you’ll need to be tech-savvy — not only to find and apply for contract opportunities but also to submit invoices and get paid. If “tech-savvy” doesn’t currently describe you or your business, don’t fret. GovCon has a number of training and software packages that can help ensure your business has accounting and software systems in place that will help you succeed as a government contractor.
Stay Compliant
There’s no way to overstate how important it is for government contractors to stay compliant with federal regulations. The rules and regulations that you’ll be required to meet will vary based on the specifics of your contract, but all government contractors must maintain compliance with regulations set forth under the Federal Acquisition Regulation (FAR), the set of rules that govern the acquisition process for the federal government.
Government contractors are also subject to regular audits by the Defense Contract Audit Agency (DCAA), the federal agency responsible for ensuring that all government contracts are both awarded and administered in accordance with federal guidelines and regulations.
Ask for Help
Winning and fulfilling your first contracts as a new government contractor can be daunting, but there are a number of resources that can help you succeed. To start, the SBA provides a directory of various counseling and training resources available for government contractors, no matter how new or experienced you are.
Get Trained — and Stay Trained
The rules and regulations that govern government contracting are complex and dynamic. That’s why initial and ongoing training is important for both new and experienced government contractors. GovCon can help at every step along the way. Wondering what to look for in DCAA-compliant software? Need comprehensive DCAA compliance training? Looking for support for proposal pricing and negotiating Indirect Rates? GovCon does it all.
For over 20 years, we’ve helped hundreds of clients navigate the complex world of DCAA compliance, streamline their operations, pass audits, and win contracts. We use our real-world experience to simplify your process, reduce the cost of compliance, and improve accuracy. Our government contracting software is built specifically to manage DCAA accounting and compliance, leaving no expense unaccounted for. We’d love to show you how GovCon can simplify DCAA compliance for you. Contact us any time.