The question of the day is, “Can you and are you ready to dive into government contracts?”

I know you probably want to scream “yes!” But keep reading, because although we will be focusing on those wanting to become the prime contractors, we have a few points to cover first.

The truth is, not every company is ready to go into federal contracting as a prime contractor. A small business who wants to work on government contracts absolutely can and will, if they follow the tips across our blog. However, that doesn’t necessarily mean via the route of a prime contractor. There is also the route of becoming a subcontractor.

In every company, there are key differences between a prime and a sub which are important for you to know. Once you are well-versed on these differences, it will be easier for you to determine which route you are ready for.

While you might not be ready to be a prime, the good news is, there are thousands of companies looking to hire subcontractors who want to buy your products and services.

However, if you are adamant or even thinking about being the prime contractor and having the direct contract with the government, this post is for you. First things first, you must assure you are ready.

DIVING INTO FEDERAL CONTRACTS

There are ways of quantifying and evaluating the potential success of your organization before you dive into federal contracting. Below is a list of key performance indicators, KPI’s, or questions to ask yourself when determining if your company is ready to jump into the federal marketplace.

1. Do you have any supplier credit?
2. Do you have any work history?
3. Does your firm have money, capital or access to money and resources?
4. Do you have a team that can perform consistently?
5. Do you have an organization to handle the barrage of paperwork to facilitate a RFP, RFQ, or even take a project from start to finish?

Remember, as a prime contractor, you will not get paid until your product or service is delivered and as subcontractor, you are most likely working on a “pay-when-paid” basis. This is why it is crucial to review these questions to ensure success for your company and everyone else involved.

The following chart helps you see if you are ready to take on and peruse government contracts.

If you score a below a three, you are not viable and success is not likely yet. At this point in time, you are not ready to pursue federal contracts.

However, if you scored a three or above, you are a strong container for success.

If you scored below a three, do not get discouraged. Be patient, wait and build up your organization a little bit more before jumping into getting an 8(a)certification or into federal contracts.

In the meantime, working as a subcontractor IS viable. Every company in America can and should be doing federal contracts whether it’s as a prime or a subcontractor. It is a fantastic way to add additional revenue streams to your business. You can learn more about how to win these contracts here.

Overall, whichever route you decide to take, whether it is becoming a prime or a sub, we wish you all the success!

To find out more about federal contract readiness watch the video below. To learn more, visit our YouTube Channel.