Sell Your Product or Service to
The U.S. Government
by Robert Sullivan
The United States Government is the world's largest purchaser
of goods and services to the tune of over $225 BILLION dollars
annually. Virtually everything you can think of is purchased in
both large and small quantities. So, have no doubt that whatever
service or product your business is selling it is being sought
by this prolific buyer! Also, get the idea out of your head that
the Government only deals in large purchases. Sure, they buy
airplanes and submarines for billions of dollars but in fact
this level of buying accounts for less than 5% of all Government
purchases. The majority of purchases are for $5,000 or less.
Furthermore, and equally important, the U.S. Small Business
Administration (SBA) has a mandate to make sure small businesses
obtain a certain percentage of everything the government buys.
Because of this, nearly all government agencies have special
small business programs that are designed to ensure this mandate
is met. The SBA also operates electronic bulletin boards as well
as a page on the Internet. Don't overlook them as a source of
information and assistance.
Now then, how can you possibly pass up a customer like this?
So what's the catch? None, really. There is a perception that
doing business with Uncle Sam is so hard that the trouble is not
worth it. The secret to selling to the government is to be
knowledgeable about the process. Here are a dozen initial steps
you can take that will put you on the road to making the largest
customer in the world yours!
A Dozen Steps to Success!
ONE. Determine the Standard Industrial Code (SIC) code
for your products or services. This code is used by many
agencies when purchasing and you will need it when filling out
various forms. SIC codes are listed in "The Standard
Industrial Classification Manual" (700 pages!) which is
available at most larger libraries. Check the reference section.
You can also purchase your own copy from the Government Printing
Office for $29. Call them at 202 512 1800.
TWO. Get a CAGE code. This is an alpha-numeric
identifier assigned by the Defense Logistics Services Center and
identifies your business. CAGE numbers are used by many
government purchasing activities to identify the firms with
which they do business. This code is especially important if you
want to sell to any of the Defense Agencies. You obtain a CAGE
code by first contacting the agency with whom you are interested
in doing business or an authorized Procurement Technical
Assistance Center (PTAC) who will complete a portion of Form
"DD 2051." You then complete the form and submit it
to:
Defense Logistics Services Center
ATTN: DLSC-FBA
Federal Center
74 North Washington
Battle Creek, MI 49017-3084
There are too many PTAC's to list but here are a couple. Contact
one nearest you and ask for the contact information of the PTAC
that serves your area:
Economic Development Council of Snohomish County
Contact: Teena Kennedy
Manager / Procurement Technical Assistance Program
917 - 134th Street, Southwest, Suite 103
Everett, WA 98204
Phone: 206-743-4567
Fax: 206-745-5563
University of Nebraska at Omaha (NBDC)
Board
of Regents
Contact: Gerald D. Dalton
1313 Farnam-On-The-Mall
Omaha, NE 68182-0248
Phone: 402-595-2381
Fax: 402-595-2385
Long Island Development Corp
Contact: Sol Soskin
Director, Procurement Technical Assistance Program
255 Executive Drive
Plainview, Long Island, NY 11803
Phone: 516-349-7800
Fax: 516-349-7881
THREE. Ensure that each agency with whom you might do
business has a copy of your SF-129 (Solicitation Mailing List
Form) so that you will receive copies of any solicitation from
that agency. Copies of this form may be obtained from virtually
any government agency. Simply call and ask for the "Small
Business Representative." Review the U.S. Government
section of your local telephone directory for numbers. You can
also get copies from the General Services Administration
Business Service Center in your area. Call 202 708 5804 for the
office nearest you.
Also check with the SBA who can assist you with determining
which agencies may be interested in your product of service.
Call them at 1 800 827 5722.
FOUR. Visit or call the office of any government
agency in your area and talk with the small business
representative about selling to their agency.
FIVE. Get registered with PRO-Net which is
administered by the SBA. The process is easy - visit the SBA
website at http://www.sba.gov
and navigate to PRO-Net (or go directly to http://www.pro-net.sba.gov).
PRO-Net has recently replaced the PASS (Procurement Automated
Source System) central referral system. Getting listed in
PRO-Net
can bring you business with almost no effort at all and it's
free!
If you are a minority owned business, get listed in ABELS
(Automated Business Enterprise Locator System), another
important database. Get an application by calling the Minority
Business Development Agency at 202 482 1958.
SIX. Review the Commerce Business Daily (CBD) for
contract awards to determine sub-contracting opportunities and
to check which agencies are purchasing your product or services.
You may find copies of the CBD at most large libraries, you may
subscribe at a cost of $260/year by contacting the Government
Printing Office at 202 512 1800, or best of all you may view the
current issue for free on the Internet at: http://cbdnet.access.gpo.gov
SEVEN. Share ideas with local companies doing business
with Federal government agencies. Most newspapers carry listings
of companies that have won government contracts.
EIGHT. Market directly to other contractors, state and
local agencies who receive Federal contracts. Find who they are
by reviewing the CBD.
NINE. Pursue micro & small purchases. Most
agencies purchase millions of dollars of products in amounts of
$5,000 or less. Make sure that you indicate you are interested
in these small purchases when you talk with the various
agencies.
TEN. Ensure that your company brochure is in the hands
of every procurement agency you can locate. Try to get it into
the hands of the small business representative for each agency
that purchases your product or service. The small business
representative can be located by calling various agencies (local
numbers if a facility is near you) or their Washington, DC
headquarters. Simply ask. Additionally, your local SBA office
may have lists of contacts.
ELEVEN. Visit or call your local SBA office and ask
for assistance and ideas. This will be time well spent!
TWELVE. Obtain a merchant card account (accept credit
cards for payment). Most agencies are now using credit cards for
purchases less than $2,500.
This article is an excerpt from "United States
Government-New Customer! (540pgs) by Robert Sullivan. It is
available from the publisher, Information International. Call
toll-free: 1 (800) 375 8439. Robert is also the author of the
best selling "The Small Business Start-Up
Guide."
Visit http://www.isquare.com