Selling to the Feds: Selling to the US Federal Government
In the true spirit of a market driven economy, the US Federal Government believes that economic growth can be achieved if private business and industry are provided with an opportunity to produce and sell in a competitive environment. You too can claim a piece of the action by selling to the Feds. The US procurement policy and the mechanism adopted to support it is one of the most transparent procurement systems in the world and has been effectively purchasing for the US Government for over two hundred years. Today, almost all of it happens online and through electronic document transfer which is a fancy word for e-mail. As an online entrepreneur you have a few advantages which you should leverage. First, your familiarity with the online space is well above average because you are already using an Internet commerce model to generate results. Secondly, you just might be selling something on the Internet which the Feds have been buying for long. Here is how to find out.
General Services Administration
The General Services Administration or the GSA for short is the Us Government’s procurement arm. Although some federal agencies have their own procurement systems for reasons related to security and other issues, a bulk of the purchasing is conducted by the GSA. Any product or service valued at more than $25,000 is notified to the public. We will tell you how to access this information in a moment but first a few other relevant factors that you should consider.
Preparing to Sell to the US Government
In order to become a Federal Procurement Vendor, you have to be registered and verified first by the US Government. The procedure to achieve Federal Vendor Status is entirely online. You will need to obtain a few documents.
State Business License
A business license is an official sanction to buy or sell in the US. City governments, county governments and in some cases the business license office in your state capital can help you procure a business license. You do not have to set up a corporation such as an LLC or a Sub Chapter S corporation to sell to the US government. You should renew your business license regularly once you are approved. If you happen to live outside the US, write to us and we will send you our special report on Federal Procurement for non-US Companies absolutely free!
Business Checking Account
A Business Checking Account is something you probably have already. Get one if you are just getting started with your own Internet venture.
Federal Tax ID Number
Call the IRS toll free number at 1-800 TAX 1040 and obtain a tax number if you do not have one already. You can also ask for an Employer Identification Number or EIN if the way in which your business is structured requires it. An IRS Business Taxation Specialist will help you determine exactly what it is that you need. After all, Uncle Sam wants your money!
DUNS Account Number
The DUNS number is issued by Dun and Bradstreet which is the premier business credit rating agency in the US. If you are an Internet start up, you can apply for the DUNS number that doesn’t have a credit rating associated with it. The process to obtain this number is automatic. We have listed all the websites you will need at the end of this article.
CAGE code
The CAGE code is your ticket to success and lots of online federal business. It is the Federal Procurement ID number you will need to do business with Uncle Sam. It is five characters long and is exclusive to your Internet business. You should display it prominently on your website once you get this number because it tells the Feds that you are all set up to sell to them. Be sure to get the DUNS number and the Federal Tax ID number before you start to apply. You will need this information to obtain your CAGE code. By the way CAGE stands for 'Commercial And Government Entity.' We figured you will eventually ask us and so we are telling you before you begin to wonder! When applying for your CAGE code, you will also need to submit information such as your business address, phone number, type of business and the addresses of any business partners you might have. If you happen to belong to a recognized minority group such as women entrepreneurs, ethnic minority or disabled veterans, be sure to enter this information because many juicy federal contracts are reserved for minority contractors. At the end of the day, it is a good idea to visit your local Federal Procurement Specialist and develop a positive working relationship with him or her. Call your local public library for the phone number and address of the GSA office that has jurisdiction over your region. We have spoken to them and find them to be extremely knowledgeable and courteous.
Selling to the US Government isn’t as easy as 1-2-3. Since we have provided merely an overview of the process involved, consider devoting a reasonable amount of time to the learning curve by researching the subject on the Internet and meeting with a Federal Procurement Specialist. Moreover, procedures and guidelines are amended regularly. Happy Federal Contracting!
Verified Online Resources
General Services Administration: http://www.gsa.gov
For women entrepreneurs: http://www.womenbiz.gov
List of federal agencies looking for you: Http://osdbu.gov/offices.html
To obtain your DUNS number, D&B Customer Resource Center: Call 1-866-705-5711
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