Government contracting programs have grown from $182 billion in 1998 to nearly $400 billion in 2008. In 2007, $83 billion of this went to small businesses This is the first in a series of blogs that will help you understand how to tap into this source of business.
How the Government Buys
Unlike private sector buyers, the Federal Government has an extraordinarily transparent purchasing system. All of the rules and regulations are clear to everyone from the beginning.
When any Federal agency buys products or services, it must follow Federal Acquisition Regulations (FAR), a standardized set of regulations that establish procedures for every step in the procurement process.
Commercial opportunities are posted at FedBizOpps, the Government's one-stop virtual marketplace. The website allows potential suppliers to identify contracting opportunities. Agencies are required to post buying requirements for contracts expected to exceed $25,000.
When a government office wants to purchase products or services, they frequently search the Central Contractor Registration (CCR) database of companies wanting to do business with the government. It is important to register your business on CCR.
Federal purchases above $3,000 but under $100,000 must be reserved for small businesses, All purchases of up to $3,000 are classified as "micro-purchases" and can be made without obtaining competitive quotes. These purchases are not necessarily reserved for small businesses, and, importantly, agencies can make these purchases using a government credit card.
Suppliers wishing to participate in these programs must provide a sealed bid, which is then opened in a public forum where the information is recorded.
For more information, please visit our other Northern Leasing sites:
http://wiki.northernleasing.com
http://support.northernleasing.com
http://blog.northernleasing.com
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