What is Government Contracting?


SBA Federal Contracting Visit Site

Did you know that the US government is the world’s biggest customer?

In 2020 alone, it spent more than $600 billion on contracts, representing over one third of all spending in the US. The best part is that among the main benefactors of this spending were US small businesses! Would you like to explore the possibilities of government contracting? Keep reading for the basics of government contracting and some tips on how to get started.

What is Government Contracting?

Government contracting, also known as government procurement, is the process of government seeking to buy goods and services from private businesses. Products and services that are purchased by the government are everything from cleaning and food services to IT, telecommunication, and construction contracts. Government Contracting is a great way to extend your customer base and increase your sales!

There are 3 main types of contracts that you can bid for: Federal, State And Local.

State and Local Government Contracting

State and Local Government Contracting is an easier place to start if you are exploring the market for government procurement for the first time. These contracts may be smaller in size, but usually government officials want to support local businesses which sometimes makes it easier to bid and win contracts. Furthermore, state and local contracts can help you gain the necessary experience needed to become a federal prime contractor in the future.

Federal Government Contracting

Federal Government Contracting is like the NFL of government contracting. Here you can bid on multimillion dollar contracts. The competition is very tough and the expectations are high which is why this tends to be the market for more experienced businesses in the field of government contracting.

Federal Contracting is divided into two categories of contract opportunities.

  • Prime contractors
    • A Prime Contractor is usually a large company with a lot of experience in government contracting. They bid for contracts directly from government agencies.
  • Subcontractors
    • As a beginner, subcontracts are an easier way to enter the market for federal contracts. A Subcontractor is usually a small business that joins with a prime contractor and provides them with specific goods or services that they need, such as special parts, specific manufacturing, or a particular service.

Why is Government Contracting Important?

Government contracting is a great way for small businesses to increase their sales and revenue. It is more than just gaining an additional customer – you will be entering a completely new market.

The main reason small businesses don’t enter this market is usually because they don’t know it exists, or because the process seems too overwhelming. While it is true that there are some initial steps to take before your business is ready to enter the market of government procurement, your local APEX Accelerators is here to make this process easier for you.

Your local Ohio APEX Accelerator at YSU will support the economic growth of your existing business as you enter the government contracting markets by providing excellent consulting services and training programs. In addition to consulting and training programs, The Ohio APEX Accelerator at YSU connects small business owners in Trumbull, Mahoning, and Columbiana counties that can provide business opportunities to the federal government.

Not Sure Where to Start?

If you want to find new opportunities to expand your business and haven’t checked out government contracting before, we encourage you to do so! Contact the Ohio APEX Accelerator at YSU or your local APEX for help, and they can walk you through all the initial steps needed to enter the market of government contracting!

How to Get Your Business Ready to Contract

How to Get Your Business Ready to Contract

Government contracting can be a great way to increase your profits, but it can also feel a little like navigating an obstacle course. Your local Ohio APEX Accelerator at YSU can walk you through the whole process.