Strategic Consulting Solutions, Inc.

Government Contracting: Does Your Small Business Qualify?

Contracting with the federal government as a small business can be beneficial — in fact, 23 percent of all prime government contract funds are set aside for small businesses. The Small Business Administration (SBA) supports businesses that wish to work with the government, and if your business qualifies, you will have access to helpful resources. If you wish to register for government contracting as a small business, you need to self-certify that your business is small. Learn whether or not contracting with the federal government as a small business is an option for you:

Does Your Business Qualify as Small?

The SBA defines a small business by either the average number of employees in the previous 12 months or the average annual receipts in the last three years. It is important to consider that when working with the Small Business Administration, there are standards to meet. First, you will need to make sure that your business adheres to industry size standards. This is the largest size a business may be to remain classified as a small business. This number can vary by industry — try the SBA’s Size Standards Tool for a shortcut to finding out your number.

In addition, here are some other factors that the SBA uses to define small business:

  • Organized for profit
  • Has a place of business in the United States
  • Operates primarily within the United States
  • Independently owned and operated
  • Not dominant in its field on a national basis

Which Types of Small Businesses Can Qualify?

Your business can be a sole proprietorship, partnership, corporation, or any other legal form as long as it meets the qualifications listed above. You may also be eligible for certain advantages if your business is one of the following:

  • Women-Owned Small Business (WOSB)
  • Service-Disabled Veteran-Owned Small Business (SDVOSB)
  • Historically Underutilized Business Zones (HUBZone)

Also, the SBA provides support and resources for eligible socially and economically disadvantaged individuals to help them build and grow their business. For more information, visit this page.

I Think My Business Qualifies…Now What?

Once you have determined that your business is small, according to size standards and other qualifications, you can take the next step and register as a government contractor. Here is a list of prerequisites to check off before registering:

  • Obtain a D-U-N-S number (a nine-digit identification number for the physical location of your business)
  • Register with the System of Award Management (a database of vendors contracting with the federal government)
  • Find the NAICS codes for your business (codes that classify the economic sector, industry, and country of your business)
  • Obtain Past Performance Evaluations

Begin the Registration Process

Registering with the federal government as a small business can be advantageous, but there are many prerequisites and qualifications to meet in order to be considered. If you check all the boxes, you are ready to begin the registration process and start bidding on government proposals. For more information about the registration process and other items you need prior to registering, reference this page.

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