Dr. Robert Sullivan is an entrepreneur, author,
and consultant who has started numerous successful businesses on two
continents. He frequently lectures on starting small businesses and
entrepreneurialship and has appeared on CNBC's "Minding Your Business" as
a small business expert. Robert has spent some of his career in the
corporate world and part in government, but his first love remains being
involved in activities that assist and energize the new entrepreneur.
This article is an excerpt from Dr. Sullivan's soon-to-be-released book, United States Government-New Customer!. He is also the author of the best selling The Small Business Start-Up Guide which is available in many libraries and bookstores or may be purchased from the publisher, Information International, Box 579, Great Falls, VA 22066, at $15.95 plus $3.50 s/h. Toll-free: 1 (800) 375 8439.
Visit The Small Business Advisor for more information about both of these books.
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Sell Your Product or Service to the U.S. Government
by Dr. Robert SullivanThe 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!
1) 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.
2) 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. You obtain a CAGE code by completing and submitting Form "DD 2051." Copies of this form may be obtained from:
Defense Logistics Services Center
ATTN: DLSC-FBA
Federal Center
74 North Washington
Battle Creek, MI 49017-3084
3) 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.
4) Visit or call the office of any government agency in your area and talk with the small business representative about selling to their agency.
5) Get listed in PASS.
This is the Procurement Automated Source System which provides a central referral system of small businesses interested in selling to the government. This can bring you business with almost no effort at all and it's free! Get a PASS application form by calling the PASS hotline at 1 800 231 7277.
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.
6) 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
7) Share ideas with local companies doing business with Federal government agencies.
Most newspapers carry listings of companies that have won government contracts.
8) Market directly to other contractors, state and local agencies who receive Federal contracts.
Find who they are by reviewing the CBD.
9) 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.
10) 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.
11) Visit or call your local SBA office and ask for assistance and ideas.
This will be time well spent!
12) Obtain a merchant card account (accept credit cards for payment).
Most agencies are now using credit cards for purchases less than $2,500.
Copyright © 1996 Dr. Robert Sullivan
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