When companies decide to go after government contracts, they all experience a similar phenomenon: a bunch companies (often trying very hard to look like a government agency on their websites) start coming out of the woodwork purporting to have (for a fee, of course), the “inside knowledge” that you must have in order to do business with the government. “We’ll get you registered (for a fee) in the (ultra-secret) database of companies that the government deals with.” Or, “We can provide you inside knowledge about upcoming government bids.” Or my favorite: “You must have a GSA Schedule to do business with the government.” None of these are necessary, of course. These websites are trying to part you from your money and sell you information that they obtained absolutely free of charge from the federal government. If they gave you the real answer, they’d all be out of business.
Really, the only requirement that there is for doing business with the government is that you be legally in business. For example, if you’ve incorporated, then you have to legally meet your state’s requirements for registering and maintaining your company in good standing within the state you are incorporated in. This means you’ve registered your company properly, paid your fees, paid all of your taxes, updated your corporate information as required by your state, and complied with other legal requirements that are unique to each state. That’s it. Be legally in business and you can legally do business with the government.
There are, however, a few additional things you will need to do prior to getting a contract awarded to you.
- Get a Data Universal Numbering System (DUNS) number. This is assigned and managed by Dun & Bradstreet for the government and is absolutely free to you. You can get one by logging onto dnb.com and filling in your legal business address. Make sure it is absolutely correct and identical to the address on your business tax returns. The website says it will take a few days to obtain one and Dun & Bradstreet will try to sell you stuff but my experience is that you’ll have your DUNS number in a day, and you do NOT need to buy anything from Dun & Bradstreet to get it.
- Next, you need to identify the NAICS codes that apply to your company. The North American Industrial Classification System (NAICS) is the federal government’s method for classifying industries and assigning size standards for each NAICS code. For example: stores providing janitorial equipment and supplies are under NAICS code 453998, while providers of janitorial services are under 561720. Businesses under 453998, All Other Miscellaneous Store Retailers (except Tobacco Stores), with revenue under $7.5 million per year are classified as a “small business.” Those under 561720, Janitorial Services, who gross $18 million or less, are also classified as a “small business.” Go to https://www.census.gov/eos/www/naics/ and identify which NAICS code applies to your primary source of income. Most companies provide products or services that fall under more than one NAICS, so you’ll want to identify those as well. (Keep in mind, these codes are for those products and services you actually can and do perform. It is not a “wish list” of codes that you think you can or want to perform. If you identify a laundry list of codes it may look like your company really doesn’t know what it’s all about.)
Once you’ve got your DUNS number and have identified your NAICS, go to www.sam.gov. I’ll cover getting registered in this important database in Part 2 of this blog. While not required for you to pursue opportunities with the federal government, it is required in order to receive a contract – and to get paid!