Government Contracts

There are three basic types of Government contracts based on dollar thresholds. Small government contracts are the easiest to obtain because you would not have to make big presentations or compete with other contractors. Just being in the right place at the right time can land you small government contracts.

Small government contracts

For all contracts under the micro purchase threshold or $3,000, use the Federal government purchase card (MasterCard or Visa). For small contracts, the procedure is short and it is much easier to get the government contract than larger contracts. You could land a government contract by meeting someone from the government agency at a trade show or networking event. The government could even find you in the Yellowpages and call you.

Medium sized government contracts

For contracts between $3,000 - $25,000 must prepare a statement of work (for services), look at three price lists and make a best value selection. If your contract is not small enough, then you will have to prove that your contract has the best value for service. The government is not looking for the cheapest deal but the best value deal. The government will also seek two more prices because they must have at least three prices to compare and they will make a selection based on the best value.

Many small contractors and small businesses ask how they can compete for best value with big corporation such as home depot. While it is very difficult to show the government that they can offer better values than giant corporations, the government must use their contracting dollars on small businesses so while that commitment is being fulfilled, small contractors will not have to compete with big corporations that can cut prices much more than they could.

Large government contracts

For contracts over the maximum order threshold or $25,000, must release an RFQ.