Contracting from start to finish (Part I)
Many business owners get intimidated when they hear the word government contracting. And yes, its true, if you want to do government contracting, your company needs to be in good shape financially, your processes need to be well defined, and your company needs to be operationally sound. But, if you meet these three criteria, then, there are several good reasons to enter into the mysterious worlds of government contracting. Over the next several articles, we will reveal and discuss the pros and cons of becoming a contractor with the federal government.
Pros:
Most government agencies pay very fast
Most government agencies have small business preferences (We will discuss this at length in future articles)
Most government agencies are always looking for new contractors and suppliers
Many of the jobs have long term contracts, guaranteed work for an extended period of time
Most government agencies will do whatever they can to help out a new contractor
There are several entry points typically in the government sector versus the private sector
Cons:
Paperwork can sometimes be overwhelming
In the construction field, the margins are really tight right now
Not submitting your paperwork on time means you don’t get paid
The regulations and compliance can be overwhelming
However, if your company is solid in infrastructure, has it operational processes well documented, already follows the laws as they pertain to your industry, then you may want to consider government contracting.
So, how do you start?
There are several layers of government contracting we will reference in our articles all under the guise of “government contracting.” And unfortunately, they all require different kinds of registrations and certifications which we will cover in future blogs. But, for now, understanding whether government contracting is for your business or not is the most important consideration to make before going forward.
They are agencies/utilities, municipalities (including counties), large cities and their agencies, state governments, federal government, and large prime contractors. The question is, which one is right for you? Our next post will cover that.