The Federal Government is the #1 purchaser of goods and services in the United States.
The primary benefit of working with the federal government is that the federal government is the number one purchaser of goods and services in the United States. So, there is going to be plenty of opportunity for you to grow your revenue, income, and business.
There are many other benefits of working with the federal government. One of which is the ability to obtain contracts, especially for companies that are just starting out. To assist in making things competitive for all companies, especially for small business, the government will limit the competition among certain contracts. This empowers other companies, that maybe aren’t as established, the ability to compete with those other larger, more established companies. Those contracts are called “set-asides.” Some of those set-asides include, but are not limited to:
- Service-Disabled-Veteran Owned Businesses
- Women-Owned Small Businesses
- 8(a) Business Development
- Historically Under-Utilized Business Zones (HUB)
- Minority-Owned Businesses
In addition to having those set-asides, companies benefit from working with the federal government by having consistent work and reliable income. Contracts with the federal government can range from a number of different years, with a lot of them ranging within a one-to-three-year time frame. This gives companies the ability to project their revenues over a defined time frame and position themselves to make financial decisions at the company level. When companies have that ability of knowing what some of their income is going to be consistently over time, it gives them the ability to focus on growing their business in other areas.
Lastly, because there is a binding contract with the federal government, you generally don’t have to worry about collection issues on work performed. You can typically expect to receive the income that you’re billing out to the government, and in a timely manner. Under the Prompt Payment Act, which was enacted in the mid-1980s, the federal government is required to make payments to small businesses within 30 days of receiving an approval of an invoice. Those are just some of the many benefits that you can achieve when working with the federal government. I’d be more than happy to discuss anything further with you.
Next Up: GovCon FAQ #2: What are the difficulties of working with the Federal Government?
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