Being a contractor for the United States Government is an excellent showcase for your company. It will be the best cover letter to obtain better and greater benefits. This is why it is necessary to know how to become a federal contractor. In Hispanic Entrepreneurs We give you all the clues to achieve it.
What is a contractor?
The private company that produces goods and services for another organization or individual is called a contractor. This assumes the responsibility for carrying out an activity and generally must use a professional who is outside of their activity who is called a subcontractor.
You can carry out all or part of the work. Provide the materials, equipment, tools, and labor necessary to complete the project. The contractor can be of the Government, that is to say that it works under contract with this and independent.
When it comes to government contractors, they have to comply with a series of rules to ensure that competition is fair and open to all. In the United States, a percentage of recruitment funds are awarded to women-owned companies, so-called disadvantaged companies. As well as those owned by disabled veterans in service and participants in the HUBZone program. The latter groups together companies located in underutilized areas.
How to become a federal contractor
The United States Government is required to give small businesses the opportunity to become a federal contractor. Before you sign up for the lcontractor license You should know that the company must be at least 2 years old. Also with annual income of $ 25.
In addition, there are two categories of government contractor. The first is primary, which intervenes in bids and obtains contracts directly with government agencies. The second is the subcontractors who participate in the teams of the primary contractors to supply a product or provide a capacity.
The registration process is simpler than many think, you just have to meet certain requirements to compete for federal contracts.
The first step is to formally establish the company at the state and local level. Then get a number in the Data Universal Numbering System (DUNS). That's a nine-digit ID for each physical business location. The assignment of this number is free.
At the time of registration on the website, they will ask you for a legal name, name and address of the central offices, address, city, state and zip code. In addition to, phone number, name and title of contact, number of employees and if it works in your home.
Next, request the North American Industry Classification System (NAICS) codes.. These serve to classify the products and services offered by the company according to the type of economic activity.
With these codes you can verify if it is qualified as a small business on the Small Business Administration page.
The next step is to register the business with the Federal Government through the Assignment Administration System (SAM). This is a database in which government agencies search for contractors. You must create an attractive profile to attract attention because it works like a kind of resume.
Compliance with standards
What remains to be done to become a federal contractor is to comply with the laws and regulations included in the Federal Procurement Regulations (FAR). You also need to market what you offer to attract the customer, in this case it would be government agencies.
Other information that may be requested is the employer number EIN or Taxpayer Identification Number (TIN), the Industrial Standard Classification (SIC). Also the codes of the products if necessary and the code of Federal Classification of Suppliers.
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