Selling to

the Government

8 steps to doing business with the government

1. Look locally. Contact your city and county public works departments to find out how they publish bid opportunities. Ask what projects they have submitted for federal stimulus money. Some local agencies post their bid opportunities at http://www.govbids.com/scripts/NM1/public/home1.asp.
   
2. For state and national bid opportunities, get your business certified.
• Self-certifications: The federal government recognizes small businesses (SBE), women-owned (WBE), and disadvantaged (i.e. minority) businesses (SDB). The SBA has established two widely used size standards for small business:
1. Fewer than 500 employees for most manufacturing and mining industries, and
2. Less than $7 million in average annual receipts for most nonmanufacturing industries.

There is no formal certification process, but on request, you need to provide proof that you satisfy the size and for WBE and SDB’s the ownership requirement.

• HUB zone businesses. If your business is located in a low-income area, you may be eligible for preferential bidding on federal projects. Go to https://eweb1.sba.gov/hubzone/internet/index.cfm to see if you are in a HUB zone.
• SBA 8(a) program for minority businesses. The SBA 8(a) program provides direct help in obtaining federal contracts. Participants must have been in business at least 2 years and have assets less than $750,000. For more information, visit http://www.sba.gov/aboutsba/sbaprograms/
  8abd/index.html. To apply, visit http://www.sba.gov/aboutsba/sbaprograms/
  8abd/application/index.html.
• US Department of Transportation recognizes veteran-owned small businesses. For more information, visit http://osdbu.dot.gov/about/customers.cfm#VOSB.
• The New Mexico Department of Transportation recognizes Disadvantaged Business Enterprises (DBE) for federally funded projects. For information and the application forms, visit http://www.nmshtd.state.nm.us/main.asp?secid=11175.
  
3. Even if you are not certified, register on CCR and with the State of New Mexico. The federal government uses CCR (Central Contractor Registration). You can register at http://www.ccr.gov. You can do a search on existing registered businesses at http://web.sba.gov/pro-net/search/dsp_dsbs.cfm.
   
   To register as a vendor with the State of New Mexico, visit http://www.generalservices.state.nm.us/spd/vendapp.pdf. There is a $75 annual fee.
   
4. Look for large opportunities and sign up for email notifications. Federal opportunities for $25,000 and more can be found at https://www.fbo.gov.

State bid opportunities for $20,000 or more are posted at http://www.generalservices.state.nm.us/spd/spd_itb.html .

5. Look for sub-contracting opportunities. The government bid process can take six months. It is often faster to find sub-contracting opportunities with companies that have already received a government contract. You can find federal sub-contracting opportunities at http://web.sba.gov/subnet/search/dsp_search_option.cfm.
   
6. Network and market your business to find opportunities under $25,000. All purchases under $100,000 are supposed to go to small business. Federal agencies use credit cards for purchases of $2,500 or less. For purchases between $2,500 and $25,000, they must obtain quotes from at least three vendors.
   
   In New Mexico, state purchases under $10,000 do not need bids. State purchases between $10,000 and $20,000 require 3 written or oral quotations (called Informal Quotes). Purchases above $20,000 ($50,000 for professional services) require sealed bids with legal advertisement in three newspapers.
   
7. Use small business liaisons. Federal agencies have small business liaisons who help small businesses with the procurement process.
   
8. Get help through your SBDC. Contact your local SBDC (Small Business Development Center) for free assistance with government contracting. Visit http://dabcc-www.nmsu.edu/sbdc/.

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