Don’t Compete with the Big Guys, Government Set-Asides

Quite often companies don’t consider doing business with the government because they don’t think that they have the capabilities to compete with the large businesses getting all the work. I’m here to tell you that isn’t true. The government has a mandated goal that 23% of business is set-aside for small businesses. This means that only small businesses can competitively bid on these contracts and win

            In addition to the small business set-aside there are several other set-asides that are guaranteed a percentage of the total business.

8a- This set-aside is for economically and socially disadvantaged business and can be awarded sole source contracts without any competition. This is a certification issued by the Small Business Administration.

Veteran Owned- This is a self-certification for former or current military members who own at least 51% of their business.

Small Disadvantaged Business- This is for companies owned 51% or more by African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans and Native Americans. This is a self-certifying designation through your SAM registration.

HUBZone- This designation is for companies who’s employees and business is located in a high unemployment, low income area. This is an application process and 3% of business is set-aside for these companies. In addition to this companies may receive a 10% price preference on bids.

Woman Owned Business- this is a self-certifying designation through SAM with a contracting goal of 5%.

Service Disabled Veteran Owned Small Business- This set-aside is for former military members injured in the line of duty that own 51% or greater of their business. The government wide contracting goal on this category is 3%.

Are you registered in SAM (System for Award Management)?

SAM, or System for Award Management, is the combined U.S. Government system of CCR/FedReg, ORCA, and EPLS. SAM is completely free of charge for registrants and users. Current and potential government vendors are required to register in SAM if they wish to have a contract with the government. If your organization is applying for the GSA must be fully registered in SAM in order to be awarded

The registration can take anywhere from 15 minutes to one hour, depending on if the information requested is readily available. A vendor must provide basic information relevant to procurement and financial transactions. A SAM registration is good for one year and must be updated annually.

Before registering for SAM a company must have the following:

·         DUNS or D-U-N-S Number

o    Data Universal Numbering System

o    A proprietary system developed and regulated by Dun & Bradstreet (D&B) that assigns a unique numeric identifier to a single business entity

·         TIN

o    Taxpayer Identification Number and then name associated with that TIN

·         CAGE CODE

o    Commercial and Government Entity code is a five-character ID number that is used extensively within the federal government.

o    If the organization is migrating over from any old systems (CCR, ORCA, etc.) than it will already have this code. If not the organization will be assigned one once you are fully registered in SAM

·         EFT Information

o    Electronic Funds Transfer information such as the ABA Routing Number and bank account number

SAM also allows Government agencies and contractors to search for your organizations based on your ability, size, location, experience, and more. Since SAM incorporated the ORCA system agencies and other companies can see if a firm meets certain Federal requirements (ex: complies with equal opportunity legislation).

Government Contract Services specializes in SAM registrations and updates. Please look for the Government Contract Services SAM eBook which will contain helpful step by step instructions on how to efficiently and successfully register your company in SAM.