Government Spending: Contracts For Businesses Big And Small -part 1-

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What's New in Princeton & Central New Jersey? by Karen Hodges Miller

The U.S. government is the largest buyer in the world. It is estimated the government will spend $1.2 trillion in 2010, and it purchases almost every type of product or service available.

Don't think that your service is too obscure or too unusual for the federal government not to need it, says Michelle Hermelee, an expert on obtaining government contracts for businesses and owner of BH Sky Associates at 3490 Route 1. The government is looking for people to provide solutions on anything from software to medical equipment to construction to janitorial services, and even martial arts training, said Michelle Hermelee.

Hermelee will hold a seminar on government contracting on Thursday, September 23, at 10 a.m. at BH Sky. Cost: $20. Call 866-468-7420.

Hermelee did not expect to open her own consulting business, particularly in the area of government contract assistance. Her original interest was in public health, and she received her bachelor's from Rutgers in that field in 1999.

She originally worked in the health ...
... industry, where her job involved developing government contracts. In 2005 she opened her own firm so that she could use her expertise to help more small businesses identify, secure, negotiate, manage, and market contracts with the government, she says. She recently moved from Quakerbridge Plaza in Hamilton into a larger office and hired her first employee.

Small businesses have an excellent opportunity to obtain contracts with the government, Hemerlee says. In fact, in 2009 the feds awarded $96.8 billion in contracts to small businesses. Businesses that are classified as economically or socially disadvantaged, including businesses owned by disabled veterans or women, or companies located in a Historically Underutilized Business, or HUB, zone, have an edge in obtaining contracts from the federal government.

Don't forget local government. State and local governments spend money daily. One of the best reasons to consider doing business with the government is that it never slows down, Hermelee says. No matter what else is happening in the rest of the economy, the government is writing purchase orders every day.

A government contract can also bring stability to a small business because it is usually a long-term contract (at least a year), rather than a one-time order.

Let's say you own an HVAC repair company, Hermelee says. Instead of waiting around for one client to need your services, by working with the government you could have a contract to handle maintenance and repairs on a building, or several buildings, for an entire year.

The government needs everything that other business needs — basic office supplies, food services, maintenance. It also contracts for more specialized services, such as surveying, and has a few growth areas to take advantage of — biometrics, cyber security, healthcare, logistics, and energy efficient and green products.

Getting registered. Before even looking for a government contract, the first step for a business owner is to obtain a nine-digit identification number, or Duns Number, from Dun and Bradstreet. Registration is free and is available at dnb.com, Hermelee mentions.

Next the business must register with Central Contractor Registration, the primary supplier database for the federal government, at ccr.gov. The CCR is a central database that collects information from suppliers, validates and stores the data, and distributes it to government agencies. A business must have a Duns Number before registering with the CCR.

For more resources about government contract consulting or about GSA schedule contracts or even about GSA consultants, please review these links.