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The History Channel recently aired a compelling piece that paralleled the crisis of the Great Depression with today’s volatile economic conditions. As I watched with uncertainty, I have to admit that I was intrigued by the host of opportunities that lie on the horizon. To keep the landscape from spiraling further out of control, local, state and federal governments will continue to step in and provide ways to stimulate the economy. What does this mean if you’re an entrepreneur or small business owner? It’s time to expand your horizons. The government is going to become a major source of contracts, not that it isn’t already, and you should be positioned to take advantage of all this sector has to offer.

To put things into perspective, the US federal government awards more than $200 billion in contracts each year. According to the Small Business Administration, small firms won a record $83.2 billion in federal prime contracts in fiscal 2007 - almost $6 billion more than fiscal year 2006. This figure does not include the $64.8 billion awarded to small firms through subcontracts. These are impressive numbers that are expected to rise since the government is still shy of missing its goal of awarding at least 23 percent of contracts to small businesses.

Interested? I bet. But don’t think you can simply call up the Department of Defense and get work. This is not how it happens. Here’s how to land a government contract and what you can expect along the way:

1. Prepare for a long, intense and very complicated process – earning the government’s respect and dollars is not easy. As a first step, get yourself up-to-speed on the various rules and regulations. Check with your city, state or the Federal Acquisitions Regulations (FAR) database which details the government acquisition process, competitive and sealed bidding and how contracts are awarded.
2. Your entire business and background are subject to scrutiny when trying to get in the good graces of Uncle Sam. You’ll need to prepare for a critical review of every aspect of your finances, personnel, history and track record. This is one instance where you’ll want to make sure to cross your T’s and dot your I’s.
3. All government agencies are subject to federally-mandated rules and must award a certain percentage of contracts to small businesses with special designations. As a women-owned, veteran-owned, small disadvantaged or service-disabled veteran-owned business, you should receive special consideration so make sure your status is known.
4. Sign-up with the Central Contractor Registration (CCR) a central source for businesses that are seeking to work with the federal government. Here you’ll be able to create a power profile for your business and pitch it in the best possible light to government agencies. Experts cite that you must have a Web site and be sure to mention it in on this registry.
5. When a government agency needs work done, they will announce so an “Invitation to Bid” or stated “Request for Proposals (RFPs)” - periods that last only so long. Some deadlines may be as short as a month, so you’ll need to respond promptly. Most bid requests ask for similar information such as resumes of key individuals, list of representative projects and so on. It helps to have these items ready and on hand.

Your greatest challenge may be finding the project announcements, as different agencies use different outlets. I would suggest starting with your respective industry association (i.e. Associated Builders and Contractors, American Nursery & Landscape Association, etc.). These organizations are often the first to hear about government RFPs and may have an area on their Web site for you to reference. You’ll also consider attending Business Matchmaking events. And don’t forget the newspapers. Procurement opportunities are sometimes listed in the classifieds and various other sections, as well as the site FedBizOpps.gov – the government’s virtual marketplace.

Now if you happen to land a government contract, find yourself a good connection at the appropriate accounts payable department well before it is time to invoice. Uncle Sam often requires very specific items in order to process payments. Forget one little thing and your invoice will be rejected. This means instead of waiting on average 45 days for payment, you could be waiting well over two months.

Ready to get started? The SBA offers a wealth of resources to help you along.

Tags: American Nursery and Landscape Association, Associated Builders, Business Matchmaking, Central Contractor Registration, FedBizOpps, How to land a government contract, Procurement Opportunities, SBA, Small Business Administration, Uncle Sam, working with the government