Table of Contents
Getting from point A to point Z in your hunt for those 8a government contracts can feel overwhelming. If this is your first go-around, likely, you don’t know where to even begin. The following guidelines will help clear your uncertainty. So you can start taking those crucial steps toward landing the big deal. Keep in mind, that this process is no cakewalk. Steel your nerves. Take a breath.
Let’s get started.
Also known as set-asides , 8a government contracts are included in the government budget to help small businesses. The reason for the name “set-aside” is because a certain percentage of the budget must be spent on smaller companies. Seeing as small businesses are considered the “backbone of America,” the government makes it a point to protect them. This keeps larger organizations from devouring the guppies. After all, those massive sharks were once small and vulnerable themselves. The growth of a new business could bring a wave of innovation, insight, and industry advantage on an international scale. Not to mention the inevitable job boom – especially in impoverished communities lacking opportunities.
If you aren’t sure if your organization qualifies for 8a certification, let’s go over some considerations. Like size. Believe it or not, size not simply determined by how many employees you have. Well… yes and no. The government will determine it based on a few factors. Like what industry your business falls under. They’ll refer to the North American Industry Classification System. Or, for short, the NAICS code.
Codes abound in the NAICS database – anything from uranium mining to tortillas. That’s right. Tortillas. That should give an idea of how comprehensive it is.
The government will look up which code your business falls under. After which, they’ll determine your small business status by:
Turns out you’re an 8(a)-certified small business in the tortilla-making industry? Your odds of winning an 8(a) government contract just shot up. You see, every year the US federal government is allotted $600 billion in contract money. FAR (the Federal Acquisition Regular) is a U.S. law. It requires the government to spend a minimum of 23% of that budget on up-and-comers like yourself.
Chances favour you even more if your organization classifies as:
Now that we’ve gone over the avenues of opportunity for small businesses, let’s move on to the next pickle. Which would be finding said opportunities – for small or large companies.
You won’t need to bop around all over the internet and compile a Frankenstein of separate entries. The Federal agencies are obligated to list all opportunities for bids. You can find many of these bids on several portals available online. If you’re diligent enough, you’ll come across databases that let you identify other competitors or manage all of your contracts. And, as was mentioned earlier, many of these contracts are segmented for smaller companies. Some set-asides can also be found in larger contracts – relegating the smaller scale tasks for a small business. These are known as sole-source contracts.
Oh, by the way – we’ve streamlined your RFP research efforts. All you have to do is swing by any of our sector-specific portals.
Like with any business, the true mark of success always points to the same horizon. Profit, profit, profit. Louder for the folks in the back. Let’s say you’re interested in a specific bid. One that promises an impressive pay out. Sure, that number might send most owners chasing like a dog after a ’93 Toyota. But you’re a savvy, restrained owner – you take your time to measure every angle. That includes cost.
Being clear on each of these is important. No, crucial. Because the bid proposal process, and delivering on your promise if you win, is a grind. To say the least.
Alrighty, then. Assuming you answered the earlier questions, it’s magic hour. Time to step up to the plate and prepare your bid proposal to –
Hold on. Sorry to burst the bubble. But there’s another important consideration. If this isn’t your first foray into proposal-Ville, take note of how your company performed. The US government regularly ranks vendors based on past performance on contracts. Leading with your previous jobs (if they didn’t go well) could put you on the losing end of the next bid.
Oh, the headache of needing work history to get work, but not having worked so you can’t work. A circular dilemma for most businesses – and every recent college graduate. But that’s a whole different can of worms. On the business end, there’s a way you can get around that obstacle.
Subcontracting. You know that 23% spending allotment we talked about? This would be a great way to start building up that resume. Get a few gigs under your belt and BOOM – an impressive vendor rating. Just make sure you deliver as promised and you should be good.
Networking gets a bad rep. Sure, maybe you’ve had a few uncomfortable experiences with oily-haired business-card-wielding weirdos. You know, the ones that laugh a little too hard at every joke. For the sake of not triggering your past social trauma, let’s not call it Networking. Let’s call it relationship building. Or “finding kindred spirits”. However you label it, it’s important to embrace it. Because many federal agencies encourage vendors like yourself to step into that arena. They regularly host events to meet with business suitors.
Why not win half the battle way before you’ve written your RFP proposal?
Next up: get a seasoned RFP writer to review an existing proposal or create one from scratch.
We’ve noticed a pep in your step. Maybe that’s the look of a business owner who is finally ready to take on their first proposal. Or win the next one. In case you need an at-a-glance segment to refer to during your journey…
Let’s revisit:
Governments must spend up to 23% of their annual contracting budget on small businesses. To determine your small 8a government contract eligibility, look up your industry code and meet their required employee headcount. Confirm that your business is also majority-owned by a U.S. citizen. You can find government bids on online portals – visit any of the RFP portal links we listed above.
Factor if your business can provide the service or good while maintaining healthy profit margins. Improve the odds of winning a bid by getting (or raising) your vendor score. First-timers without a record should explore subcontracting work. Put together the right RFP response team (including writers) to create a bid-winning package.
Need help with your proposal?
Our services
RFP Writing
Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our writers will break down the solicitation documents, allowing you to see what the bid and the contract involve. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority.
Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.
RFP Mentor
Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents.
Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.
Proposal Ready
Do you need help with preparing a bid proposal? Proposal Ready can help businesses that are new to bidding or those in need of rejuvenating their content. Our Bid Consultants will create:
Find more helpful tips and advice in our blogs. We cover topics including:
Feel free to reach out to us for a quote on our bid writing services. We wish you luck on your bidding journey!
All information and data on this blog site are for informational purposes only. Hudson Outsourcing LLC makes no representations as to accuracy, completeness, suitability, or validity, of any information. Hudson Outsourcing LLC will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS IS with no warranties and confers no rights.
Hudson Outsourcing LLC will not be responsible for any material that is found at the end of the links that may be posted on this blog site.
Because the information on this blog is based on Hudson Outsourcing LLC’s own opinion and experience, it should not be considered professional financial investment advice. The ideas and bidding strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Hudson Outsourcing LLC’s thoughts and opinions will also change from time to time as the market changes and as Hudson Outsourcing LLC develops.
