Business Insights

So you have made the decision to start bidding on government contracts – great! Now you may be wondering just what type of bids to pursue: should you start with state and local contracts, or “jump in the deep end” and go for the more lucrative federal bid opportunities? The decision can be challenging, and the answer will depend on what type of business you operate, where you are located, and the resources and manpower you have at your disposal. The best way to determine which bids are right for your business is to create a business map of your company that details what you do, how much work you can handle during a given timeframe and how you would like to see your business develop in terms of growth. Once you answer these questions, you will be one step closer to determining the government contracts that are a good fit for your business.

President John F. Kennedy once said, “Ask not what your country can do for you – ask what you can do for your country.” This quote is very inspiring, but in practical terms it can be a difficult question to answer: what can you do for your country?

Every year, the federal government endeavors to award 23 percent of all federal contract dollars to small businesses. For small janitorial and cleaning service providers, it would be a missed opportunity if they did not take advantage of the many government contracts that are available to them.

Getting Certified



Why Certify? Businesses that are certified as minority-owned are subject to different laws and regulations than other businesses, and as such are very different entities from typical enterprises. Unlike a standard business license or registration, a minority-owned business enterprise certification is not required to run a minority-owned business, although certification can provide many benefits for a company - especially in regards to government contracting. 

Opportunities can arrive unexpectedly, via many different avenues, and businesses should always be prepared for these unexpected opportunities. Having a marketing strategy ready for if and when an opportunity knocks will be helpful for you in terms of selling your services and reassuring potential clients that you meet. For example, you may run into the head of a local government agency at your child’s soccer game or at a social gathering with friends. As any salesperson can tell you, one personal face-to-face interaction is worth a thousand online interactions; therefore, being prepared to market your business effectively in an instant will leave a lasting impression on whomever you have the chance to meet.

When searching for government contracts to bid on, small businesses must keep in mind what types of contracts are available within the government-contracting sphere. The two main types of contracts that small businesses will come across are fixed-price and cost-reimbursement contracts. No matter what kind of product or service a business is offering to the government, it’s helpful for small businesses to learn about the various contract types that exist before bidding on any local, state, or federal RFPs.

FedBizOpps.gov (Federal Business Opportunities) is the primary source for federal government contract opportunities that are valued at over $25,000. Federal procurement regulations require that bids worth $25,000 or more be published through FedBizOpps. Exploring FedBizOpps is a great way to gain insight into the products and services that the federal government is interested in buying. However, since federal contracts worth less than $25,000 are not required to be published, not every government opportunity will be listed with this service. It’s also important to note that listings on FedBizOpps do not include state and local opportunities (state and local contracts can usually be found on your state or county procurement portal).

The economy of the United States is not as healthy as it was ten years ago.  While it is normal for economies to grow and contract over time, the financial crisis that began in 2008 has been particularly damaging to the American economy and recovery has been sluggish at best.  According to the U.S. Department of Commerce, the national economy decreased by 0.2% in the first quarter of 2015, before reversing course and growing by 2.2% in the fourth quarter. Despite the difficulty of current economic conditions however, one thing that remains certain is the necessity of government spending in the public sphere.

Relationships and timing mean everything in business. These two factors can mean the difference between growing your business or missing out on a great opportunity and it’s no different when it comes to bidding on government contracts. The actions you take to make plans and build trust with government agencies is crucial. You need to act SMART to get through the bid process and win contracts!

You may be surprised to hear that federal, state and local governments really do care about what they purchase and how it will affect people and the environment. Over the last 20 years or so, governments have been focusing more on purchasing environmentally friendly and energy-efficient products and services. What does this mean for businesses? For vendors who provide green products or services, it means that it’s a great time to start bidding on government contracts and growing your business as public agencies and individuals become more environmentally conscious.