Government Contracts for Small Businesses

To assist small businesses in obtaining government contracts, the U.S. Small Business Administration (SBA) collaborates with other federal government departments.

Small businesses have the opportunity to expand since many government agencies are required to offer some of their contracting opportunities to small firms.

What Sort of Business Is Considered Small?

The SBA’s rules specify which small firms are eligible within their particular industry. The SBA guidelines evaluate a company’s revenue over the previous three years and its number of employees during the previous 12 months.

The SBA uses the following factors to assess whether a company is a small business:

• The company is profit-oriented.
• The business is located in the United States, as are its operations.
• The company is not regarded as a leader in its industry on a national level.
• Whether or not the company is run and owned independently

Use the SBA Size Standards Tool to see if your company is eligible.

The Small Business Administration: What Is It?

The activity of overseeing and managing a small business operation is referred to as small business administration. Sometimes, especially if the company is a smaller boutique, one can run a small firm alone. However, a board of directors or management team may occasionally be in charge of a relatively small company.

Every firm, even a tiny one, needs effective small business management or administration to succeed and expand. Many large organizations started as tiny businesses and expanded rapidly because of their superior operations management.

Are There Any Other Small Business Government Contracts Programs?

The SBA runs a number of initiatives to aid small businesses in obtaining federal contracts:

• HUBZones: historically underutilized business zones Small firms that fulfill the SBA’s definition of a small business and are located in a HUBZone may be eligible for additional incentives when doing business with the government.
• Service-Disabled Veteran-Owned Firms: A part of federal contracts are reserved for small businesses that are owned and managed by people with disabilities in the military.

Government contracts are reserved in part for women-owned small businesses.

Where Do I Begin the Government Contract Application Process?

When you are certain that your company is eligible, you must do a few steps before submitting a bid for a government contract:

• Each place of business must register to get a D-U-N-S Number, which serves as an identity number.
• SAM (System of Award Management) database registration.
• Find your company’s North American Industry Classification System (NAICS) code. This will be relevant to your company’s region, industry, and type.

Businesses should also have an independent audit of their performance conducted by Open Ratings, Inc. if they are interested in General Services Administration (GSA) contracts from the United States.

Where Can I Find Opportunities for Government Contracts?

Contracting opportunities are listed on both the GSA and the Federal Business Opportunities (FBO) website.

What Tasks Are Involved in Small Business Management?

Small business management and administration entail keeping an eye on all key facets of a company’s operations, such as:

• Establishing a business, registering it, incorporating it, and other preliminary steps;
• Finding, Hiring, Training, and Managing Employees;
• Accounting, Financing, Loans, and Insurance Issues;
• Advertising and Public Relations;
• Issuing Stock and Other Securities;
• Debt Collection and Debt Management;
• Management of Day-to-Day Operations;
• Mergers and Acquisitions.

Finally, small business owners must ensure that all of these duties are carried out according to all relevant local, state, and federal regulations. The complete range of business management activities, such as employment, training, and managing personnel, are governed by several regulations.

For instance, almost all company activities require contracts of some kind; thus, understanding the different kinds of contracts a business might sign regularly and how they should be written would be interesting to practically every business owner.

Having a working connection with a business lawyer who can counsel the company on its contractual arrangements, examine its contracts, and possibly negotiate and construct contracts as necessary may be helpful.

As soon as someone considers launching a business, legal difficulties arise. Which legal form the business should take would be one of the first concerns. The owner must choose between operating as a closed corporation, a limited liability partnership, a sole proprietorship, a partnership, or another type of entity. Weighing the benefits and drawbacks of the many possibilities and choosing the best one may be simple or difficult to do.

Another area where federal and state law is applicable and an owner has numerous choices to make is hiring staff through job listings. An owner might not want to spend their time handling the hiring’s technicalities. The owner will then need to choose a search company to handle it in its place. To discover the ideal fit, this would need interviewing search firms, after which you sign a contract for hiring services.

Or, the owner could implement a system within the company to manage this task. The following are some of the challenges the owner would have to deal with:

• Choosing the Right Job Title to Post: Starting with a job title that adheres to industry standards and appropriately describes the position’s responsibilities is a good place to start when advertising a position opening;
• Exactly What the Job Responsibilities Are: A list or paragraph summarizing what the employee would be expected to do and how they would contribute to the organization should serve as the explanation of the position’s responsibilities;
• Requirements: It must be made clear if someone with a particular degree, certification, or license is required. Additionally, specify the qualifications that should be met by the applicant as well as the minimum number of years of experience required.
• Job Location: The location where the employee will be expected to carry out the work duties should be included in the job posting. If traveling is necessary for the job, it should be specified along with the area and frequency of the required trip.
• Statement of Equal Employment Opportunity Compliance: Lastly, a job advertisement should clearly state that a company complies with the EEOC criteria for hiring if it has 15 or more employees and 20 or more for age discrimination issues if it has 20 or more.

The owner must then think about the terms and circumstances of employment for the employee or employees after hiring one, two, or more. If the employer wants the employee to sign a personal contract, the contract needs to be written and evaluated to ensure that the owner’s desired terms and conditions are included. A business owner needs to know what clauses in an employment contract an employer wants to have to negotiate the contract. Should a conflict be settled in court if necessary, for instance, if there is one and a potential claim for breach of contract? Or would it be preferable to specify that the disagreement would be settled using alternative dispute resolution procedures?

The Fair Labor Standards Act (FLSA), a federal law that establishes standards for many elements of employment, including the federal minimum wage and overtime compensation, is another federal legislation that an owner must be familiar with. Additionally, it establishes requirements for both the public and commercial sectors’ record-keeping and hiring of young people. Laws governing wage rates and hours are also prevalent in several states.

Or, instead of using individual contracts, a business owner may want to hire a large number of staff members and require a manual of policies and procedures to outline the company’s terms and conditions of employment.

Of course, it goes without saying that every company must take care to ensure that it does not discriminate in the recruitment, hiring, or management of employees on the basis of membership in a protected class, such as:

• Race, color, or ethnicity;
• Place of origin or ancestry;
• Religion;
• Marital status;
• Pregnancy;
• Family or parental status;
• Age;
• Physical or mental disability, unless the person has a genuine qualification;
• Gender or gender identity; and
• Sexual orientation.

Should I Get Help Applying for Government Contracts from a Lawyer?

In order to register as a small firm and look into contracting options, you might not require a contract lawyer. However, you should speak with a lawyer with experience managing government contracts if you have any issues about approving or negotiating a contract with the government.