Do Business With the Federal Government

Man with newspaper and Do business with federal governments text

Do Business With the Federal Government

Image Credits: 
Adeolu Eletu / Unsplash

UPDATED: May 20, 2021

The federal government procures and awards contracts for nearly every type of product and service your business can offer.

Key steps to do business with the federal government are:

Step 1 - Obtain A DUNS Number

Step 2 - Identify Your Products and Services Supply Codes

Step 3 - Gather Your Pre-Registration Information for SAM and DSBS

Step 4 - Register Your Business with SAM

Step 5 - Certify Your Business with SBA’s DSBS Profile Registration inside SAM

Step 6 - Determine if Your Business Qualifies for a SBA Certificate Program

Step 7 - Identify Federal Government Procurement Opportunities

 

Step 1 - Obtain A DUNS Number

A Dun & Bradstreet (D&B) or D-U-N-S Number is a unique nine-digit identification code that is assigned for each business’s physical office location.

The DUNS number assignment is free and required for all businesses that want to do business with the federal government, sell goods or services, or obtain grants or contracts.

Obtain a DUNS Number
https://govonestop.com/service/us/obtain-duns-number

 

Step 2 - Identify Your Products and Services Supply Codes

Before registering with SAM, determine your products and services supply codes.

The federal government uses the following code systems procurement and contracting:

Federal Procurement Data System Product and Service Codes (PSC)

PSC codes are used by the federal government to classify and describe products and services.

Product and Service Code Manual
https://www.acquisition.gov/Psc-manual

North American Industry Classification System (NAICS) Codes

NAICS codes are numerical codes used to classify business activities in various economic sectors and industries. A NAICS code has six digits.

North American Industry Classification System
https://www.census.gov/naics/

CAGE Codes - Commercial and Government Entity Codes

CAGE codes are used by the U.S. Department of Defense (DOD) Logistics Agency (DLA). CAGE codes are a five-character alpha numeric ID.

CAGE codes are assigned within the SAM registration process. For CAGE code assignments outside of SAM see
https://cage.dla.mil/Home/UsageAgree

Tips

The federal government uses code systems like PSC and NAICS, while state and local governments may also use code systems like NIGP.

 

Step 3 - Gather Your Pre-Registration Information for SAM and DSBS

Before registering your business with SAM, collect your pertinent business, legal and tax documents and information required for registration, such as:

  • Email address
  • Email username & password
  • SAM username & password (if you already have an account)
  • DUNS number
  • Legal business name on file with Dun & Bradstreet
  • Legal business name on file with the IRS
  • Taxpayer name - Review your tax documents from the IRS (such as a 1099 or W-2 form) to find your Taxpayer Name.
  • Type of Legal Entity registered with your state’s Secretary of State’s Office
  • Physical Address
  • Business start date
  • Taxpayer ID # (EIN, TIN, or SSN) - Your Taxpayer Identification Number (TIN) and Taxpayer Name associated with your TIN.
  • Annual gross receipts (3-year average)
  • Number of employees
  • Contact information for any of your principle employees (first, last, phone, email)
  • Banking information - Your bank's routing number, your bank account number, and your bank account type, i.e. checking or savings, to set up Electronic Funds Transfer (EFT). Your bank’s address and phone number
  • NAICS Codes - North American Industry Classification System Codes (see Step 2)
  • PSC Codes - Federal Procurement Data System Product and Service Codes (See Step 2)
  • CAGE Codes - Commercial and Government Entity Codes for defense contracts (see step 2)

 

For DSBS

  • Capabilities statement narrative
  • Identify keywords
  • Past performance

 

International Registrants

Your NATO Commercial And Government Entity (NCAGE) Code from the NATO Support and Procurement Agency (NSPA).

- If you don't have one, you can request an NCAGE Code online for free from NSPA

Your DUNS Number, Legal Business Name, and Physical Address for your Entity. Make sure your DUNS information and NCAGE information match.

- If you don't have one, you can request a DUNS Number for free from D&B

 

Step 4 - Register Your Business with SAM

The federal government uses the System for Award Management (SAM) and Dynamic Small Business Search (DSBS) Database for procuring all types of goods and services.

Businesses must be registered in SAM to be awarded a federal contract and to receive payment by the government.

Businesses must register their business and list their products and services with SAM.  

SAM registration and registration assistance are free. There is no cost to register your business with SAM. Registration information, training, and assistance are also available at no cost.

SAM is the main procurement registration and validation system for the U.S. Federal government. It collects, validates, and stores business and procurement data from suppliers and then makes that data available to federal government agencies.

Additionally, military agencies, civilians, and some state and local governments use the SAM for procurement.

Once you have registered in SAM and are determined to be a small business by your NAICS code(s), you will be invited to submit additional information for your SBA Profile.

If you do not have a CAGE Code, one will be assigned within the SAM registration process. CAGE Codes are a unique ID assigned to your business, similar to a DUNS number. CAGE Codes are used for defense, space, and other federal government procurement and acquisition processes.

Register as a Vender With the Federal Government

https://govonestop.com/service/us/register-vendor-federal-government

 

Tips

  • Before registering with SAM, gather your business information (see Step 3)
  • Set aside time. It takes first-time applicants about 2-3 hours or more to complete the SAM registration.
  • Make sure to write down and safeguard your MPIN.
  • Check the status of your SAM entity registration at any time.
  • Treat your SAM registration as you would treat your resume. Review and update regularly.
  • Active SAM registrations are valid for 365 days. You MUST log into SAM, review and update with 365 days - or your record will expire.
  • Review SAM’s Quick-User Guide and demonstration videos for assistance.
  • It’s FREE to register in SAM
  • it’s FREE to get help with your SAM registration.

 

Step 5 - Certify Your Business with SBA’s DSBS Profile Registration inside SAM

The Dynamic Small Business Search (DSBS) system is a Small Business Administration’s (SBA) procurement marketing and access system inside SAM.

It contains SBA Profiles of small businesses, including a firm’s products and services, history, business references, certifications, and more.

DSBS Registration can only be accessed via SAM.

The DSBS is a marketing tool. Your DSBS profile:

  • Asserts your eligibility for small business set asides
  • Establishes your business is small and/or owned by a minority group
  • Gives information about your company to prime vendors looking for subcontractors
  • Distinguishes government certifications
  • Identifies bonding levels
  • quality assurance standards
  • Makes clear your firm’s nature of business, and
  • Provides a capabilities narrative

 

Step 6 - Determine if Your Business Qualifies for a SBA Certificate Program

Most all federal government procurement opportunities and contracts are reserved for and awarded to a percentage of certified small businesses.

Qualifying as a “small business" may allow your business to take advantage of valuable government contracting opportunities reserved for small businesses.

Formal certifications by small business concerns are not required to bid on federal contracts. Firms self-certify that they are small at the time of bid/proposal submission.

Currently, the SBA offers contracts-related certification programs like:

  • 8(a) - Assists eligible small businesses to compete for federal contracts by providing them with business development assistance.
  • HUBZone - Gives qualified and certified firms to special bidding benefits; including set-asides, sole-source awards and a price evaluation preference for unrestricted requirements, in the federal contracting arena.
  • Women-Owned Small Business (WOSB) - Ensures WOSBs and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) have an equal opportunity to participate in federal contracting and expands the number of industries where WOSB/EDWOSB is able to compete for business with the Federal Government
  • Service-Disabled Veteran-Owned Small Business (SDVOSB) - Increases contracting opportunities for SDVOSBs.

 

Step 7 - Identify Federal Government Procurement Opportunities

Once your business is registered in SAM, it’s time to seek federal government procurement opportunities for your goods and services.

The Federal Biz Ops is the Official U.S. Government System for

  • Federal Contract Opportunities
  • Contract Data
  • Wage Determination
  • Federal Hierarchy
  • Assistance Listings

Tips

  • Get your small business certifications at the federal, and state/local government levels.
  • For federal procurement,  small business certification is awarded through the SBA
  • For state and local procurement, small business certification is awarded through state organizations
  • Official U.S. Government websites, including SAM.gov and FedBizOps are free.

 

Sponsored Links