How to Bid on Government Contracts

Many small businesses bid on government contracts not for the money, but for the consistent work. The profit from landing a government contract is usually not more then 15 percent. The good thing about a government contract is knowing that you will have work and you will get paid. Follow these steps to bid on a government contract.

Difficulty: Challenging

Instructions

1. Get to know the policies and procedures of bidding on government contracts. Log on to the Small Business Administration website to learn this information. Check in your area to see if they offer classes on this information.

2. Realize that you will have to bid competitively. There is a small chance that some work may be handed out but it's not likely. A good rule of thumb is to expect to make approximately 15 percent profit, so bid accordingly to be competitive.

3. Register with the Central Contractor Registry or CCR. All businesses who want to work with the government must register here. Submit a profile that outlines your business capabilities and any unique equipment and services.

4. Create a website if you don't already have one. The government will not give you any work without a website.

5. Learn how the bidding process works. The government will release an "Invitation to Bid." You have a short period to bid so it's a good idea to get your paperwork in order.

6. Sell the stability of your business. Government departments want to know about your experience, your company's capabilities and your long-range prospects.

[TheDon]

on 8/6/2008 Thank you for this information. My small business needed this information. Keep me updated with your new articles in the future.