It's a lot of work to win a local government contract, especially if yours is a small business strapped for time and resources. Yet winning these contracts can be lucrative and well worth the effort.
Before pursuing a local contracting project, familiarize yourself with government requirements of small business contractors and make sure you can meet them:
- Proven ability to complete the job. When a government agency is choosing a local contractor, the size of your business doesn't matter. The winning contractor has the proven ability to complete every part of the job.
- Financial resources. If your business has financial concerns, a local contracting job will not fix your cash-flow problem. If you're chosen as the local contractor, you probably won't be paid up front. Instead, you'll have to handle the financing and complete the contract before you receive payment.
- Quality assurance program. Government contracts at all levels usually require an assurance that the service or product you are providing meets certain standards. As a contractor, you'll need to document your quality-control plan. This plan might be based on industry, commercial-quality, or government standards.
- Office efficiency and documentation. Local contractors must keep all records up-to-date and organized. You'll need to document all meetings and transactions as well.
- Internet proficiency. Due to the Government Paperwork Elimination Act of 1995, the government is required to issue and award small business contracts electronically via the Internet.
These requirements aren't insurmountable, even for a small business. Simply determine your weak points and improve upon them. Then start going after those local contracts.
