Veterans and Entrepreneurship: Securing Government Contracts for Your Business

For veterans entering the world of entrepreneurship, securing government contracts can be a game-changing opportunity. The federal government is the largest purchaser of goods and services in the U.S., spending billions of dollars annually through contracts with private businesses. As a veteran, you may be eligible for certain advantages in the government procurement process, which can provide you with a competitive edge.

In this blog, we’ll explore how veteran-owned businesses can secure government contracts, including the steps to get certified, navigate the federal procurement process, and access resources to help along the way. Organizations like Warrior Allegiance can offer essential guidance to help veteran entrepreneurs succeed in securing these valuable opportunities.

1. Why Government Contracts Are Ideal for Veteran-Owned Businesses

Government contracts provide consistent, reliable revenue, making them an attractive option for businesses. For veteran-owned businesses, there are additional benefits:

• Set-Aside Contracts: The federal government has specific goals for contracting with Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Each year, the government aims to award at least 3% of its contracts to SDVOSBs, creating significant opportunities for veteran entrepreneurs.
• Stability: Government contracts tend to offer longer terms and are backed by the federal government, providing stability and security for small businesses.
• Preferred Status: Veteran-owned businesses may receive preferential treatment during the bidding process, especially if they hold certifications as SDVOSBs or VOSBs.

2. Getting Certified as a Veteran-Owned Business

To compete for set-aside contracts reserved for veteran-owned businesses, you’ll need to obtain the appropriate certification. Certification ensures that your business is recognized by the government as a Veteran-Owned Small Business (VOSB) or a Service-Disabled Veteran-Owned Small Business (SDVOSB).

Steps to Getting Certified:

1. Register Your Business with SAM: The first step in the certification process is registering your business with the System for Award Management (SAM), the government’s official contractor database. SAM registration is required for all businesses that wish to compete for federal contracts.

• Action Step: Visit the SAM.gov website to register your business. You’ll need to provide details about your business, including your DUNS number, which can be obtained for free through the Dun & Bradstreet website.

2. Obtain Your Certification: To qualify for government contracts set aside for veteran-owned businesses, you’ll need to be certified through the Veteran Small Business Certification (VetCert) program, managed by the VA. VetCert validates that your business is at least 51% owned and controlled by a veteran or service-disabled veteran.

• Action Step: Apply for certification through the Veteran Small Business Certification program at vet.certify.sba.gov. This process involves submitting documentation of your military service (e.g., DD-214 form) and proof of ownership and control of your business.

3. Self-Certify on SAM.gov: After obtaining VetCert certification, update your SAM.gov registration to reflect your veteran-owned status. This ensures that government agencies and contractors can identify your business as a VOSB or SDVOSB when searching for vendors.

Action Step:

Complete your VetCert application as soon as possible to gain access to federal contracts. Be sure to gather all required documentation ahead of time to avoid delays in the certification process.

3. Navigating the Federal Procurement Process

Once your business is certified, the next step is to navigate the federal procurement process. Understanding how the federal government buys goods and services is key to successfully securing contracts.

Identify Opportunities on SAM.gov

Most federal contract opportunities are listed on SAM.gov, the official government contracting website. Here, you can search for open solicitations, review contract requirements, and submit bids.

• Tips for Searching: Use keywords related to your industry, and filter opportunities by location, contract size, or type (set-asides for SDVOSBs or VOSBs). You can also set up alerts for new opportunities in your business sector.

Understand Contract Types

Federal contracts can take various forms, including fixed-price contracts, cost-reimbursement contracts, and time-and-materials contracts. Each type has its own payment structure and terms, so it’s important to understand which types of contracts best suit your business.

• Fixed-Price Contracts: The government pays a set amount for the product or service, regardless of actual costs incurred.
• Cost-Reimbursement Contracts: The government reimburses the contractor for allowable expenses, up to a limit.
• Time-and-Materials Contracts: Payment is based on the contractor’s time and materials used to complete the work.

Respond to Solicitations

When you find an opportunity that fits your business, you’ll need to submit a bid or proposal in response to the solicitation. Bids must follow the specific requirements outlined in the solicitation and typically include pricing, delivery schedules, and details on how your business will meet the contract’s objectives.

• Action Step: Carefully read each solicitation and ensure your proposal aligns with the contract requirements. Provide clear, concise information on how your business can deliver the requested goods or services efficiently and cost-effectively.

Action Step:

Set up alerts on SAM.gov to notify you of opportunities that match your business’s capabilities. Respond promptly to solicitations and ensure your proposals meet all requirements.

4. Leveraging Set-Asides and Contracting Programs

The federal government is committed to supporting small businesses, especially those owned by veterans. There are several contracting programs that provide additional advantages to veteran-owned businesses.

Set-Aside Contracts

A portion of federal contracts are set aside for specific types of small businesses, including SDVOSBs. These contracts are reserved for businesses that meet the program’s criteria, giving veteran-owned businesses a competitive edge.

• SDVOSB Set-Asides: These contracts are reserved exclusively for service-disabled veteran-owned small businesses. Government agencies are required to award a certain percentage of contracts to SDVOSBs, providing a valuable opportunity for veteran entrepreneurs.

Subcontracting Opportunities

If you’re not yet ready to compete for prime contracts, consider seeking subcontracting opportunities with larger companies that hold government contracts. Many large contractors are required to subcontract a portion of their work to small businesses, including veteran-owned businesses.

• Action Step: Reach out to large contractors and inquire about subcontracting opportunities. This can be a great way to build experience and relationships in the government contracting space.

Mentor-Protégé Program

The VA’s Mentor-Protégé Program helps small, veteran-owned businesses gain experience in government contracting by partnering them with larger, more experienced businesses. This program provides mentorship, training, and networking opportunities to help veteran entrepreneurs succeed.

• Action Step: Apply for the VA’s Mentor-Protégé Program to receive guidance from established contractors and improve your chances of securing future contracts.

5. How Warrior Allegiance Supports Veteran Entrepreneurs

Warrior Allegiance is dedicated to helping veteran-owned businesses succeed in securing government contracts. The organization offers a range of services to support veterans at every stage of the contracting process, including:

• Certification Assistance: Warrior Allegiance helps veterans navigate the certification process for VOSB and SDVOSB status, ensuring they meet all requirements to compete for set-aside contracts.
• Procurement Guidance: The organization provides guidance on how to navigate SAM.gov, respond to solicitations, and submit winning proposals for government contracts.
• Mentorship and Resources: Warrior Allegiance connects veteran entrepreneurs with mentorship opportunities, training programs, and additional resources to help them grow their businesses and thrive in the government contracting space.

Conclusion

For veteran entrepreneurs, securing government contracts offers a pathway to stable, long-term business growth. By obtaining VOSB or SDVOSB certification, understanding the federal procurement process, and taking advantage of set-aside contracts, veteran-owned businesses can compete for valuable opportunities in the government market.

With the support of organizations like Warrior Allegiance, veteran entrepreneurs can confidently navigate the complex world of government contracting and position their businesses for success. If you’re a veteran looking to grow your business through government contracts, now is the time to get certified, start bidding, and unlock the potential of this lucrative market.