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Five myths about doing business with the Federal Government

Myth #1 – “Only Big Companies Win Contracts”

Fact – Preferential treatment is actually given to small, minority, woman, handicapped and service disabled owned business. Small businesses get awarded close to 25% of all federal contracts.

Between 1/1/2017 through 10/1/2019: 8(a) firms were awarded $34.5 billion in federal contracts. Of that amount, these 8(a) firms were awarded $14.65 billion through 8(a) competitive set-asides and $19.87 billion through sole-source contracts. Hubzone firms were awarded $2.75  billion through set-asides and $161.15 million through sole-source contracts..

Myth #2 “The Federal Government Does Not Buy My Product or Service”

Fact – The federal government buys nearly every product and service you can imagine.

Between 1/1/2017 through 10/1/2019 the federal government awarded 26,346 contracts totaling more than $4.6 billion dollars just for Commercial Construction (NAICS code 236220) projects in the 8(a) and Hubzone Programs. For IT companies, they awarded 15,409 contracts totaling more than $11 billion dollars just for IT projects (NAICS Code 541511 and 541512. If you would like to know exactly how much the federal government spent on your products or services, visit https://www.fpds.gov

Myth #3 “There Is Too Much Red Tape To Do Business With The Federal Government”

Fact – The federal government has procurement methods such as the SBA 8(a) Program which actually shorten the time it takes to be awarded a contract and the amount of paperwork and red-tape required to do so.

An 8(a) contract typically takes about 1/10 the time to be awarded vs. a full and open competition contract. You can even help in writing the actual statement of work and 8(a) Contracts are not subject to protests.

Myth #4 ” I Am Not Located In Washington, DC Or Near A Military Base So I Can’t Do Business With Them”

Fact – There are federal facilities located in every state, city and country. This being said, you are not limited by your geographical location.

Myth #5 “It’s Difficult To Get Started Doing Business With The Federal Government”

Fact – Again, the federal government has procurement programs that simplify the processes of doing business with them, such as the SBA 8(a) Program, if you meet the  8(a) eligibility requirements or the Hubzone Program, if meet the Hubzone eligibility requirements.

If you are looking for a company to assist in the process of getting your business 8(a) Certified or Hubzone Certified, contact us to discover what Cloveer can do for you.

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