Success Starter
You are about to embark on an intensive, results-driven training unlike any other. Your instructors are experienced
and talented individuals who have successfully navigated the government contracting process, both for themselves and
others. They will apply their proven, cut-through-the-clutter, contract-winning strategies to you and your business.
The true test of your success won't be some arbitrary pop quiz, but rather how quickly you actually operate as an
informed, active, and educated government contractor. Your training will encompass hearing, seeing, saying, and
doing — real-world action steps and experiences that imprint themselves on your brain. We'll teach you how to think
like a government contractor, talk like a government contractor, and act like a government contractor. Most
important, you'll have been taught how to review solicitations — IFBs, RFPs, and more — like a seasoned government
contractor, not emotionally, but with a clinical eye to their profitability and their potential to serve you well
in reaching your financial goals.
In anticipation of your intensive course of study and interactive exercises, we've put together this Success Starter
as a warm-up, a few laps around the track if you will, to give you some practice in preparation for the serious
hands-on training to come. Just as marathon runners stretch the ‘ol hamstrings and do a few crunches before the
big race, you can warm up for your training with the exercises listed here. It's not necessary that you complete
any or all of the five steps before attending the training. The program itself will provide you with all the
direction, training, guidance, and support you need to begin pursuing government contracts. These Success Starter
steps are simply provided for those of you who would like to warm up before the big day. If you're ready, let's
get started!
P.S. Drop all your preconceived notions about what the training will be like. Government contracting is less
about boring paperwork and more about networking and relationship building than you ever thought. You'll learn
to forge bonds with the "real people" who buy your goods and services, not interact with some nameless, faceless
bureaucracy. The person-to-person aspect makes all the difference!
Step One: Review a copy of the FAR on the Internet
http://www.arnet.gov/far/
The basic rulebook for government contracts is the Federal Acquisition Regulation, commonly known as the "FAR."
The FAR, which had its beginnings in the Armed Services Procurement Regulation, established in 1947, is considered
the bible for federal government contracting. The FAR contains all the rules governing the contracting process as
well as all the forms and clauses used in contracts. The FAR has recently gone through a significant rewrite to
reflect and implement all of the recent changes made in recent law. In order to do business with the federal
government, you definitely need to have a basic knowledge of what is in the FAR and how to use it. The FAR is
divided into 53 parts, each dealing with a separate aspect of the acquisition process. Parts one to six deal with
general government acquisition matters. Parts seven to 12 deal with aspects of acquisition planning. The rest of
the FAR deals with other topics, such as simplified acquisition threshold (formerly known as small purchases),
large-dollar value buys, labor laws, contract administration, applicable clauses, and forms. Relevant parts for
small businesses include Part 19, small-business programs, and Part 52, which contains the standard terms and
conditions contained in a government contract.
Step Two: Investigate micro-purchases for macro-opportunity
GSA SmartPay
Micro-purchases represent a separate and significant area of opportunity for business owners who want to sell to the
government. Micro-purchases are defined as purchases under $2,500. They are exempt from the requirement to obtain
competitive quotes or process a sole-source justification. (Purchases of $2,500+ require either competitive quotes
or a sole-source justification.)
The lion's share of micro-purchases is made with a government credit card. If you don't currently have a credit card
merchant account, you might want to consider obtaining one. According to gsa.gov, 392,500 cardholders use a purchase
card. In fiscal year 2003, the federal government spent $16.4 billion in credit card purchases. These purchases were
made by government personnel, not just official government buyers.
Although the largest credit card users were the Department of Defense, the Department of Veterans Prime Vendors, and
the Department of Veterans Affairs (accounting for almost $12.1 billion), every government office uses a credit card for
almost everything it needs. About 70 percent of all government procurement transactions are for micro-purchases and are
done with a credit card.
For example, the Internal Revenue Service currently spends approximately $4 million per month through individual
purchase card transactions. Approximately 12,000 IRS field employees use the purchase cards to make purchases up
to $2,500. These purchases, made throughout all IRS offices within the United States, cover a myriad of services,
supplies, and equipment.
To appreciate the "macro-opportunity" with micro-purchases, take this little tour: Do you wonder how many potential
government credit card micro-purchase customers are out there? If every government office uses the purchase card for
almost everything it needs, take a look at the long list of U.S. government departments and agencies. Visit
firstgov.gov and click "A-Z Agency Index" on the right-hand menu bar. (Word has it there's more than 1,100 federal
agencies including boards, commissions, committees, executive branch, judicial branch, legislative branch,
independent agencies, and quasi-official agencies… but we didn't bother counting!)
Exactly what can be purchased on the government purchase card? Read all about SmartPay® and review the "Frequently
Asked Questions."
Step Three: Get your DUNS number "done"
Use the link at http://www.ccr.gov/ in the upper right-hand corner to start the process. This will speed the process
up versus going straight through DNB’s Web site.
DUNS stands for Data Universal Number System. DUNS numbers are issued by Dun & Bradstreet (D&B). The D&B DUNS
number is a unique nine-digit identification sequence, which provides unique identifiers of single-business entities,
while linking corporate family structures together. D&B links the DUNS numbers of parent companies, subsidiaries,
headquarters, and branches on more than 100 million corporate family members around the world. Used by the world's
most influential standard-setting organizations, it is recognized, recommended, and/or required by many industry
and trade associations, including the United Nations, the U.S. federal government, the Australian government and
the European Commission. In today's global economy, the DUNS number has become the standard for keeping track of
the world's businesses.
A DUNS number is required for registration in the Central Contractor Registry (CCR) and is available free of charge
at dnb.com. However, a D-U-N-S® Number alone will not establish a D&B credit file for your company. If you would also
like to show that your business is creditworthy, you will probably need to establish a credit file.
If you do not have a DUNS number, visit dnb.com and click on the link for "Get a D&B D-U-N-S® number." You'll be
asked to provide an address, telephone number, business start date, and type of business. The process takes about
10 minutes and is free of charge. To establish a credit file and obtain a DUNS number at the same time, simply
choose the CreditBuilder option from the same Web site. Please note that CreditBuilder requires a fee.
Step Four: Find your "NAICS"
North American Industry Classification System (NAICS) Codes (pronounced "nakes") are used for classifying business
establishments and industries doing business with the government. NAICS was developed jointly by the United States,
Canada, and Mexico to provide new comparability in statistics about business activity across North America.
Identify the primary code that describes your business enterprise. You can access the NAICS manual at the Small
Business Administration’s Web site (sba.gov). Or you can search for your products and services by keyword at the
NAICS Web site (www.census.gov/epcd/www/naics.html).
When you’re searching the NAICS site, try to be specific. Keywords can provide many different and diverse categories.
A search on the keyword "computer" gave us everything from computer cabling to computer furniture.
Computer and network cable installation under NAICS 235310 — Electrical Contractors
Computer boards, unloaded, merchant wholesalers under NAICS 423690 — Other Electronic Parts and Equipment Merchant Wholesalers
Computer equipment stores under NAICS 443120 — Computer and Software Stores
Computer furniture, metal household-type, manufacturing under NAICS 337124 — Metal Household Furniture Manufacturing
Explore the system thoroughly to determine what the primary industry code is for your business. There may be many,
but identify one that fits your core competencies.
Step Five: Find business at www.fbo.gov
One way to locate potential government customers is through FedBizOpps (Federal Business Opportunities), the
official Web site listing of all federal government contracting opportunities and awards priced more than
$25,000. Government buyers are able to post information about their business opportunities directly to
FedBizOpps at fbo.gov. The FedBizOpps site is updated every business day,
with approximately 500 – 1,000 new notices posted.
Take a spin around the fbo.gov site to see different ways you can search or browse
the site.