How to get on Approved Vendor Lists and Preferred Vendor Lists

Getting on an approved vendor list can be your ticket to winning more government contract work. Nearly all businesses and prime contractors have preferred vendor lists, which work as a qualifying test, listing approved vendors and subcontractors for quality, timeliness, and other variables. Many businesses work diligently to get on these approved vendor lists because they can put you one step closer to being awarded a government contract.

To get set up on an approved vendor list, there are two things you need to do. First, fill out the approved or preferred vendor evaluation form. Second, submit to an inspection.

Filling out an Approved Vendor List or Preferred Vendor List Application Form

Each company has its own preferred vendor list, which is why there is no standard form to fill out. You can get a hold of these forms by contacting the prime’s purchasing department or small business liaison. The information requested in the approved vendor list applications will vary from one prime to another, according to the work specified in the government contract.

When you are filling out your government vendor approval form, be sure to fill it out carefully and thoroughly – you’re not just filling it out as a formality or for documentation purposes. If you forget to fill out a bit of information or leave out numbers, it could cut your chances of being awarded a government contract. Work diligently and have someone else check the form for mistakes before you submit it.

Even if you are already on a few approved vendor lists, it is still a good idea to get on multiple prime lists. Not only will it give you chances of winning more government contract work, but it’s a good safeguard in case your sales take an unexpected dip.

You may also want to look into different industries and expanding your government contract work into different areas. This way, you can expand on your approved vendor list base and generate more contract revenue.

If you have further questions when filling out your government vendor approval form, your local Procurement Technical Assistance Center (PTAC) can help you. Don’t hesitate to ask questions, since you want to put your best foot forward and make sure you fill in the preferred vendor list application form correctly.

What Will Help me Pass an Inspection or Evaluation? How do I Prepare?

After submitting your approved government vendor form to a prime contractor, the next step you need to take is to prepare for and pass an inspection or evaluation. The purpose of this inspection or evaluation helps assure the company in question that you are qualified and will comply with the requirements for subcontracting.

The evaluation and inspection process following your approved vendor form can range from a desk review to a top-to-bottom inspection of your facility. The type of inspection chosen depends on the company policy or the details of the government contract work. For example, if the work at hand has a requirement that appears to be auxiliary, your company may only go through a desk review. This is when a prime contractor reviews your company’s records, in addition to financial records and other documentation. However, if your company’s government contract work has long-term business potential or is a critical component of the end service or product, they will probably want to do a full site review. You will need to have all your documentation, look very presentable and address all questions.

Checklist to Help you Pass an Evaluation or Inspection

To prepare for your evaluation, you will want to have the following information ready:

• Manpower – Provide detailed information on the technical and supervisory personnel, along with their qualifications.
• Facilities and Equipment – List the equipment you will use and the additional equipment and facilities you have arranged for, if needed.
• Quality Assurance – Indicate the systems you use for assuring job accuracy and if your systems have been approved by other primes or government agencies.
  Production and Scheduling – Detail how you plan to execute the job and work strictly with the prime’s schedule.
• Schedule of Total Workload – Record any backlog in dollars, as well as any anticipated or repeat work.
  Bill of Materials – Describe the products you will need and the ones you will need to outsource.
• Inventory – Check your products on hand and identify the products you will need to reorder and which ones you have on hand.
• Materials, suppliers, and/or subcontractors – Provide confirmation of critical item delivery dates.
• Cost Breakdown Analysis – Detail cost with enough information to allow cash flow spreadsheet evaluation.
• Cash Flow Spreadsheets – List the total workload for the contract and include sheets. Reconcile this cash flow documentation with the company’s production schedule commitments for materials, and other financial commitments.
• Financial Statements – If necessary, include the company’s most recent balance, with a profit and loss statement.