Government Bids: How to Get Started

Getting started with government bids can be a daunting process for companies who have never tried to navigate through the requirements and bureaucracy before. It can seem like an overly competitive environment where only those companies with "friends on the inside" get the lucrative contracts. But the fact of the matter is that there is any number of contracts out there with strong revenue possibilities for small businesses as well. And all it takes is a little knowhow to throw your hat in the ring and start securing your own government contracts.

When you start looking for contracts to bid on, you should look locally as well as at the federal level. Many municipal governments award contracts that may not pay as much, but it will start building your credibility with federal agencies.

Next you need to make sure you are registered with the appropriate databases - particularly the CCR (Central Contractor Registration). This is the source the federal government looks to when it needs to find out more about your company, so make sure your profile is always up to date and showing off your track record of completed and satisfactory work.

There are a number of online sources out there that can help you with you government bids. After all, you're not very likely to see an Invitation to Bid show up on the supermarket classifieds. These online resources can help you locate work that is in your geographical location, or work that may be out of state, but work you are specially suited for. You should register on these sites and sign up for their notification service. Sometimes the difference between securing a contract and losing it is simply a matter of time. When an Invite to Bid has a very short window for accepting bids, you have to be ready to go for it at a moment's notice.

Once you've found a contract that you wish to bid on, you should examine the requirements very carefully. Make sure that you are, in fact, capable of delivering on the contract. If you fail to do so, or if the contract is terminated for default, you will have earned a bad reputation that could haunt you for a long time to come.

Submitting your government bids, then, should also follow the requirements set out in the Invitation to Bid. Make sure that you meet all the requirements and certifications specified in the Invitation, and always submit the materials in an organized and professional manner. If you make things easy for the contract manager you will be far more likely to receive the work.

Some new companies may be tempted to simply make the lowest bid possible to try and secure the contract. This can prove to be a mistake in many cases. You need to consider all your costs, from labor to equipment to payroll taxes and everything in between. If your government bids won't cover these costs, you'll soon find yourself out of business. So make a bid that is low, but always be smart and be reasonable. You'll find that a good track record can take you further than the lowest bid.

Finally, don't be afraid to seek out help from people who have already been through the process. Whether it's an online source or another company you've dealt with in the past, sometimes you'll need their experience to guide you through the rough waters of government bids. But once you've learned to do some navigation on your own, you'll find it easier and easier to build a profitable business.