Federal contracting offers many lucrative opportunities for businesses, helping them secure valuable contracts and expand their market presence. However, a number of myths surround federal contracting. Let us debunk these myths and unveil the reality of federal contracting, as these myths often discourage businesses from participating in federal contracting.
Unveiling the Reality of Federal Contracting Myths
At both the Federal and State levels, government agencies count on small companies to assist them in completing their projects. Federal contracting helps them identify many small businesses and offers them opportunities to bid for government projects. Though there is a lot of competition for government projects, there is still tremendous potential to succeed in them with minimal investment. Some myths and the actual reality that surrounds federal contracting are as follows.
- Federal contracts are for large corporations only:
In reality, small businesses can also bid and win federal contracts. The federal government sets aside certain contracts for small businesses, such as those owned by women, veterans, and other minority groups
- Winning the Government Contracts is Very Complicated
Winning federal contracts involves detailed procedures. Though the process is a little complicated, there are a number of support systems, such as the Small Business Administration, that help businesses navigate it easily.
- In order to win federal contracts, businesses should have connections with authorities
In reality, federal contracts are extremely transparent and fair. All the federal contracts will be awarded on the basis of cost and capability. The past performance of the company may also be taken into account while awarding the projects. Personal connections have nothing to do with awarding federal contracts.
- There are no profits in federal contracts
A very common federal contracting myth is that these contracts are not profitable. In reality, they are very lucrative and generally offer long-term and stable revenue streams. These contracts also offer a number of opportunities for business growth and diversification.
- Only companies based in the US can bid on Federal contracts
Even though a number of contracts are restricted only to businesses that are based in the United States, the Federal government offers a lot of opportunities for international firms as well. When domestic companies are not able to meet the needs of the business, international firms will be given the opportunities.
- Winning the Federal contract guarantees payment
The Federal government generally has a very strong record of paying its bills on time. However, businesses should still comply with the terms of the contract and ensure that they deliver quality products and services so that they can be assured of receiving their payment on time.
- Federal contracts are generally complex and large
Federal contracts might differ in size and complexity. There are a number of opportunities for small and simpler businesses. The federal government also offers tremendous opportunities for businesses that are new to federal contracting.
- The proprietor should be an expert to succeed in federal contracts
Though business expertise helps businesses succeed in federal contracts, it is not a mandatory criterion. Businesses can seek help from external consultants, legal teams, and other experts to assist them with the complexities of federal contracting.
- Federal agencies only work with the contractors they know
This is a major federal contracting myth; federal agencies actually seek competition and look for new vendors to make sure that they are getting the best value. Therefore they give opportunities for new vendors as well.
- New contractors do not get support from the Government
This is not true, there are a number of programs and initiatives that the federal government takes, to support new contractors. It conducts a number of training workshops and has also simplified its acquisition procedures to empower small contractors.
Small businesses and businesses that are new to federal contracting should understand these realities to take advantage of contracts offered by the government with great clarity and confidence.