The United States Government is the world's largest purchaser of goods and services to the tune of over $225 BILLION dollars annually. Virtually everything you can think of is purchased in both large and small quantities. So, have no doubt that whatever service or product your business is selling it is being sought by this prolific buyer! Also, get the idea out of your head that the Government only deals in large purchases. Sure, they buy airplanes and submarines for billions of dollars but in fact this level of buying accounts for less than 5% of all Government purchases. The majority of purchases are for $5,000 or less.

Furthermore, and equally important, the U.S. Small Business Administration (SBA) has a mandate to make sure small businesses obtain a certain percentage of everything the government buys. Because of this nearly all government agencies have special small business programs that are designed to ensure this mandate is met. The SBA also operates electronic bulletin boards as well as a page on the Internet. Don't overlook them as a source of information and assistance.

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There are a lot of misconceptions about doing business with the U.S. Government. The following question and answer format will clarify some of these notions.

Q: I thought only large corporations could successfully sell to the government?

A: On the contrary, over 90% of all purchases made by the U.S. Government are less than $25,000. The really big contracts get the publicity so the perception is that all the contracts are big ones.

Q: Why should I consider the U.S. Government as a customer?

A: Because of size and volume. The U.S. Government is the largest customer in the world for supplies and services. You really should not ignore a customer like that!

Q: Isn't the paperwork required in selling to the government so complex that the effort is not worth the reward?

A: Yes, the paperwork can be daunting, but only for the really big contracts. Many small businesses will only deal within the "small purchases" programs (explained later) and for the most part, the government simply issues your business a purchase order or uses a credit card just like any other customer!

Q: I thought the government was a poor customer in that it takes forever to get paid. Right?

A: Once again, the only time this sort of information gets publicized is when a lot of money and a good story is involved. In fact, it is rare that the government does not pay within 30 days. And, if they pay later than 30 days, the law requires that you get paid interest.

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(Excerpted from "United States Government - New Customer!" by Robert Sullivan)
Check out this informative new title!

The United States Government is the world's largest purchaser of goods and services to the tune of over $225 BILLION dollars annually. Virtually everything you can think of is purchased in both large and small quantities. So, have no doubt that whatever service or product your business is selling it is being sought by this prolific buyer! Also, get the idea out of your head that the Government only deals in large purchases. Sure, they buy airplanes and submarines for billions of dollars but in fact this level of buying accounts for less than 5% of all Government purchases. The majority of purchases are for $5,000 or less.

Furthermore, and equally important, the U.S. Small Business Administration (SBA) has a mandate to make sure small businesses obtain a certain percentage of everything the government buys. Because of this, nearly all government agencies have special small business programs that are designed to ensure this mandate is met. The SBA also operates electronic bulletin boards as well as a page on the Internet. Don't overlook them as a source of information and assistance.

Now then, how can you possibly pass up a customer like this? So what's the catch? None, really. There is a perception that doing business with Uncle Sam is so hard that the trouble is not worth it. The secret to selling to the government is to be knowledgeable about the process. Here are a dozen initial steps you can take that will put you on the road to making the largest customer in the world yours!

A Dozen Steps to Success!

ONE. Determine the Standard Industrial Code (SIC) code for your products or services. This code is used by many agencies when purchasing and you will need it when filling out various forms. SIC codes are listed in "The Standard Industrial Classification Manual" (700 pages!) which is available at most larger libraries. Check the reference section. You can also purchase your own copy from the Government Printing Office for $29. Call them at 202 512 1800.

TWO. Get a CAGE code. This is an alpha-numeric identifier assigned by the Defense Logistics Services Center and identifies your business. CAGE numbers are used by many government purchasing activities to identify the firms with which they do business. This code is especially important if you want to sell to any of the Defense Agencies.

To get your code, visit the Central Contractor Registration (CCR) site, http://www.ccr.gov/ and register with the CCR. When registration is complete, your organization will be issued a CAGE Code. You will need your DUNS number in order to register so have it handy.

THREE. Ensure that each agency with whom you might do business has a copy of your SF-129 (Solicitation Mailing List Form) so that you will receive copies of any solicitation from that agency. Copies of this form may be obtained from virtually any government agency. Simply call and ask for the "Small Business Representative." Review the U.S. Government section of your local telephone directory for numbers. You can also get copies from the General Services Administration Business Service Center in your area. Call 202 708 5804 for the office nearest you.

Also check with the SBA who can assist you with determining which agencies may be interested in your product of service. Call them at 1 800 827 5722.

FOUR. Visit or call the office of any government agency in your area and talk with the small business representative about selling to their agency.

FIVE. Register with the SBA's new PRO-Net program (this program is replacing the PASS database). You can register online for PRO-Net. Simply visit http://www.sba.gov and click on PRO-Net.

If you are a minority owned business, get listed in ABELS (Automated Business Enterprise Locator System), another important database. Get an application by calling the Minority Business Development Agency at 202 482 1958.

SIX. Review the Commerce Business Daily (CBD) for contract awards to determine sub-contracting opportunities and to check which agencies are purchasing your product or services. You may find copies of the CBD at most large libraries, you may subscribe at a cost of $260/year by contacting the Government Printing Office at 202 512 1800, or best of all you may view the current issue for free on the Internet at: http://www.cos.gdb.org

SEVEN. Share ideas with local companies doing business with Federal government agencies. Most newspapers carry listings of companies that have won government contracts.

EIGHT. Market directly to other contractors, state and local agencies who receive Federal contracts. Find who they are by reviewing the CBD.

NINE. Pursue micro & small purchases. Most agencies purchase millions of dollars of products in amounts of $5,000 or less. Make sure that you indicate you are interested in these small purchases when you talk with the various agencies.

TEN. Ensure that your company brochure is in the hands of every procurement agency you can locate. Try to get it into the hands of the small business representative for each agency that purchases your product or service. The small business representative can be located by calling various agencies (local numbers if a facility is near you) or their Washington, DC headquarters. Simply ask. Additionally, your local SBA office may have lists of contacts.

ELEVEN. Visit or call your local SBA office and ask for assistance and ideas. This will be time well spent!

TWELVE. Obtain a merchant card account (accept credit cards for payment). Most agencies are now using credit cards for purchases less than $2,500.

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The Central Contractor Registry (CCR) provides a "single face" to a vendor for registering to do business with the Government. The contractor is responsible for ensuring the accuracy of the data and is the only one authorized to change their data. The government uses the CCR data internally to expedite the exchange of information among the various Agencies looking for business sources.

The advantage of CCR is that your small business is on equal footing with the big guys. You no longer have to register with every local procurement office to gain bid access to possible contracts of interest.

To register your company into the CCR, visit their website at http://www.ccr.gov/. Registration will require that you have a DUNS number. You may obtain a DUNS number from Dun & Bradstreet at 1 (800) 333 0505.

This is a great free service. Use it.

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If you do business with the U.S. Government (or are planning to), now is the time to get familiar with FACNET, or Federal Acquisition Computer NETwork.

First, a little history. An Executive Order was issued in 1993 which laid out a "vision" for electronic commerce. In 1994, the Federal Acquisition Streamlining Act mandated a strategy for a government-wide "single face to industry." Electronic commerce is the use of Electronic Data Interchange, or EDI, rather than paper for exchanges of information. FACNET was formulated to provide an order processing facility through which the government may electronically transmit their requirements directly to registered vendors.

As an incentive for agencies to move forward with FACNET, the simplified acquisition threshold (that value of purchase in which a government agency may buy goods or services using very simple procedures without the need for a competitive bidding process) is raised from $50,000 to $100,000. In return the agency must, by 1999, conduct three-quarters of their acquisitions through FACNET. This is good news for small businesses.

The Federal Acquisition Regulations (FAR), the governments' rule book for all official government contracting regulations and procedures, details (in Part 13) "simplified acquisition procedures." The objective of these simplified procedures is to reduce costs and improve opportunities for small businesses in obtaining a fair proportion of government contracts. Furthermore, FACNET will be the preferred method for these.

The use of Electronic Data Interchange (EDI) is the basis for FACNET and allows organizations to generate, receive and process data with minimum human intervention. EDI networks will automatically update inventories, invoice customers, pay suppliers, advertise Federal Government requirements and many other tasks that previously have been labor and paper intensive. It is estimated that electronic purchasing can cut Federal procurement costs by 10% by 1997 and speed delivery times by a third.

Most small businesses can take advantage of this technology with a small personal computer, a modem, and some specialized communications capability available from Value Added Network (VAN) providers.

A VAN provider is an entity that provides electronic mailboxing and other communications services for EDI transmissions.

As of December 31, 1995, Federal agencies that are FACNET-Capable include the following: (For an agency to be FACNET capable requires that 75% of their acquisitions above $2,500 and below $100,000 are conducted through EDI)

• Department of Commerce
• Consumer Product Safety Commission
• Department of Defense
• Department of Energy
• U.S. Information Agency
• Department of the Interior
• U.S. International Trade Commission
• Department of Justice
• Office of Personnel Management (OPM)
• Department of State
• Department of Transportation
• Department of the Treasury
• General Services Administration

The best way to select a VAN provider is to call a few and ask a lot of questions. Prices, software, and support vary widely. EDS, for example, provides easy-to-use Windows-based software called "QuoteAble."