Why Sell to the Government of the United States?

Why Sell to the Government of the United States?

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Why sell to the government? It's a question that many business owners pose. Some may have investigated the prospect of United States Government contracting only to have found the entire process too overwhelming. It's possible, as well, that some of the business requirements outlined in government solicitations seemed too far out of reach to small business owners who were just beginning, had not yet achieved a minimum gross sales amount.

Whatever factor it was that may have deterred you from trying to sell to the government of the United States, the question still remains: "Why sell to the government?"

There are many levels of US Government contracting, and understanding the various elements of federal procurement will help make the answer to the question of why sell to the government a bit more clear.

United States Government Contracting

Contracting with the United States Government is often a profitable mission that is achieved by more than one company. While only a single business can sell to the government as a prime contractor, there may be additional companies involved providing additional services as subcontractors. These subcontracting opportunities are the open door small businesses need to start generating revenue via federal procurement.

While it's true that a minimum time in businesses is required to engage in government contracts as a prime contractor, providing subcontracting services for the completion of a United States Government contract requires much less. If you are a small business owner whose business does not yet qualify to sell to the United States Government directly, it may benefit you to find a company which specializes in networking small, medium, and large businesses for the purpose of offering a wide range of products and services to the government.

Subcontracting Requirements

When large contract awards exceeding the amount of six-hundred-fifty-thousand dollars ($ 650,000.00) are sought by larger corporations and other companies servicing the United States Government as a prime contractor, federal regulation requires such businesses assign a subcontracting coordinator. Furthermore, federal procurement contracts considered 'large' by the US Government require a subcontracting plan along with capabilities statement.

As a small or medium businesses owner interested in offering subcontracting services to these types of companies, acquiring direct contact with assigned subcontracting coordinators is fairly easy. If you are interested in contacting a larger business about subcontracting opportunities, visit the Small Business Administration Subcontracting Opportunities Directory or speak to your local representative. You may also wish to research additional federal subcontracting directories, such as DOD Subcontracting directory, Department of Treasury Small Business Subcontracting Opportunities, and more.

Federal Procurement Market

Federal procurement - although still a competitive market - offers a much more defined target consumer base to businesses and corporations of all sizes. Some of the benefits of federal procurement include:

An exact outline of goods and services being solicited.
A POC (Point of Contact) from whom to gain clarification.
Over two hundred billion dollars ($ 200,000,000,000.00) set aside annually for small, disadvantaged businesses.
United States Government continues to spend when Private Sector spending is limited by economic downturn.

The process of selling to the government is not necessarily easy, but the world of federal procurement makes it possible for any business to profit from the billions of dollars spent every year. Sometimes contracting with the Federal Government means you get in where you can and build a solid past performance record until your business is finally able to sell to the government directly.

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