Advantages of Being a Government Contractor

Government contracting is a great mechanism that helps small businesses increase their operations, grow their business, and maintain a stable presence in the market. The U.S. Federal Government is the biggest buyer in the world. There are approximately 4.8 million persons engaged in the Federal workforce in a civilian, military, or contractor capacity. And Government needs are enormous. To meet their demands, they rely on services and products that are provided by the private sector companies.

What are some of the best advantages of doing business with the Government?

Payment Compensation

Government contractors have a higher income than people working in Government institutions or offices. However, they can’t enjoy the benefits that full-time government workforce is eligible for. If you’re a small business owner and provide services that match with Government demands, you have the chance of winning a large amount of money in exchange for your services. Finding a contract opportunity that fits your business strategy can bring you many benefits, especially financial ones.

The Government is a reliable customer. There are many regulations, terms, and conditions you need to meet in order to secure the contract. Nevertheless, you should be aware that the competition is fierce and you have to prove to the contracting officials that you’re the one that deserves the job against all other candidates.  To do this you need to submit an awesome proposal.

The government is a serious partner with a high credit rating, and it’s punctual in paying its bills. This is a great advantage for small businesses providing reliable cash flow.

Easy to Get

When you think of all the eligibility requirements you have to meet, regulation and the process you have to go through to compete for a federal contract – you might find this sub-headline ridiculous. But it’s not that difficult! Although the process can be lengthy, once you follow all the instructions described in the request for proposal everything will be a lot easier. In general, Federal contracting officials are quick in selecting their candidates.


The flexibility of government contracting, compared to full-time government employment, lets you test the waters of performing government work, with relatively little risk.

Contracting is a great way of working with the Government without being a full-time employer. You’re only duty-bound until the end of the contract, and then it’s up to you if you want to part ways or re-compete for another federal contract award. Many businesses find government procurements very profitable and claim to have helped them become more established businesses.

There are different programs, especially for small businesses (SB), that encourage competition and participation for many categories of SBs. A specially designed program for small business concerns, the Small Business Administration set-aside, includes several categories which have many benefits from participating in the Federal Market:

  • Small Disadvantaged Businesses (Socially and Economically)
  • Woman-Owned-Small-Businesses (Economically Disadvantaged)
  • Historically-Underutilized-Business-Zone
  • Veteran-Owned-Small-Businesses (Service Disabled)
  • 8 (a) Program

As you can see, there are plenty of opportunities for special designation businesses that can qualify your business for favored consideration when competing for prime federal contracts.

Online Resources

The Government strives to improve the process of Federal Contracting. There are many online resources that allow potential contractors easily access information about new bid opportunities, get further knowledge about an RFP such as Federal Business Opportunities. Furthermore, there are many firms that provide professional consulting services and can help you with an effective capture strategy and unique proposal development.

By |2018-04-19T09:47:35+00:00April 23rd, 2018|Federal Government Contracting, Government Procurement|Comments Off on Advantages of Being a Government Contractor

About the Author:

With over 26 years of sales and business development experience, Maron possesses excellent interpersonal and creative thinking abilities. He has been a sales and business development professional offering extensive experience in client relationship management, strategy, and bid as well as capture management for decades.