A Complete Guide to Become a Federal Contractor Of The United States

Many business owners want to do business in the public sector instead of doing business in the private sector. It is possible to have a private company and do business in the federal market of the United States. However, there are certain requirements that you need to fulfill and eligibility criteria that you need to meet. 

If you want to do business in the federal market then you need to understand all the important factors that will make you a federal contractor. The federal market of the United States is highly competitive because there are numerous established commercial companies or federal contractors in this space. It is because the government of the United States is considered the largest buyer in the whole world.

You can become a federal contractor if you go through a definite systematic process. The government of the United States has set certain rules and regulations to prevent any sort of uncertainty and biased approach. Doing business in the federal market is different from doing business in the private sector. There are strict laws that all federal contractors follow to sell their products and services.

In this blog, we are here to let you know about all the steps which will help you become a federal contractor of the United States. In the very beginning, you will need to understand federal contractors.

Who Is Considered a Federal Contractor?

Some readers must be wondering who is considered a federal contractor. Well, a federal contractor or a federal contractor company is an entity that engages with federal agencies of the U.S. government. Federal contractors obtain different sorts of government contracts from the federal, state, and local government agencies to sell their products and services in the government market.

In order to become a federal government contractor, you will need to make your business meet certain eligibility criteria. Your business must have suitable products and services that the government agencies procure for getting supplies. So make sure to fulfill all the requirements to become a federal government contractor.

So now you know who is considered a federal contractor, especially in the United States, it is time to know about the steps that will make you a federal government contractor to obtain government contracts.

Steps To Become a Federal Contractor in the United States

In this section, we have mentioned all the federal contractor requirements that you must fulfill. We have also broken down the process of becoming a federal government contractor into a couple of steps.

Evaluate the products and services of your business - The government of the United States comprises numerous government agencies, offices, and organizations that require specific types of products and services. So make sure to have suitable products and services that the government agencies procure from the federal contractors. Check which products and services are in high demand in the federal market of the United States.

·    Register your business for government contracting services – Before you begin your journey in obtaining government contracts, you need to get your business registered. For that, you need to complete a series of paperwork. So go through the registration process for registering your entity to do business in the federal market.

·       Apply for your federal and sales tax ID numbers – After registering your business and your business name, you will need to apply for a federal tax ID and Employer Identification Number (EIN). You can get your federal tax ID by applying on the official website of the IRS.

·       Request for your DUNS number – After all these, you will need to get a DUNS number. For that, you will have to request your DUNS number through a definite online process. File your application at the official website of Dun & Bradstreet. You will need to prepare and mention the necessary information about your business to get the DUNS number.

·       Know your NAICS code – You will need to visit the official website to get your NAICS codes. Identify your products and services then select the NAICS code. If you offer more than one product or service then you will have multiple NAICS codes.

·       Confirm your business size – Understand the size of your business to get into a suitable program of the government of the United States.

·       Register your business with SAM – Sign up your business with the System for Award Management. It is necessary to start bidding on government contracts. Go through the application process from the official website of SAM.

So these are the most basics federal contractor requirements that you need to fulfill in a systematic manner. If you have a small business then you will need to be a part of the Small Business Administration to gain competitive advantages in the federal market.

Conclusion

Once you are done with the process of becoming a federal contractor, you will get multiple government contracting opportunities. You can work as a prime contractor or a sub-contractor in the federal market.