A defense contractor is a person or a business entity that supplies services or products to the government for the defense forces. It may appear scary at first but becoming a defense contractor is possible for any person or business.
Like any other department, the defense department requires varying supplies every day. They get these supplies from ordinary suppliers. With proper documentation and planning, therefore, a person can grow their business to be a defense contractor. Even small businesses qualify to be defense contractors.
For you to be a defense contractor, your business should be eligible. A business is defined by law depending on its size. The size of a business is mainly measured by its annual revenue and number of employees. To become a defense contractor, review your business classification using the available classification codes. This guides you on how you qualify and what your business is eligible for.
Meet the required standards
Also, ensure that your business satisfies the size standards of the particular industry. The business should also be an independent entity that is well operated. It should be a transparent entity with great importance to the economy in terms of its contribution.
Businesses need credentials such as legal registration. Different countries mainly require the businesses registered for easy revenue collection. A business that is not registered cannot be categorized as a legal entity.
This is because a lack of registration means that the business pays no revenue. In becoming a defense contractor, it is important to have revenue payment clearance. The revenue collection bodies are mandated to offer that clearance. The clearance is given to those who adhere to all set requirements and standards. To be a defense contractor, create a profile with the Federal Contractor Registry system for Award Management. This is the official platform for entities that wish to get into business with the government. Upon creation of a profile, you view opportunities and bid.
Stay updated on procurement news
Federal procurement opportunities are posted publicly on the government opportunities website. There are also other platforms to gather information on procurement opportunities. Review available openings and identify the ones your business is eligible for. This is one of the toughest stages of being a defense contractor.
It is not enough to know the procurement process. It is not enough to have the necessary documents and prerequisites. As a business, have a person who has expert knowledge on the management of contracts.
Contracts differ and defense contracts require expert understanding of federal guidelines. Your documentation needs to be reviewed by the expert right from the start. Contract management is very important in defense contracting.
History and success profile
Proposals to the government need to indicate the capabilities and success of the business so far. The proposals are reviewed based on the price, technical capabilities, and previous performance.
Have a detailed brief of your previous contracts. Show your achievements in these contracts and why you won the contracts as compared to others. Attach any awarded certificates if any. The federal government needs to see your success history for you to be a defense contractor.
Knowledge on defense contracting
Research on the requirements needed and focus on knowing as much as you can about it. Sites such as the National Defense Industrial Association are helpful. Research on the defense market and understand the greatest demand.
Networking is also important in defense contracting. Socialize with existing contractors and others to widen your knowledge of the process. For instance, it helps you know what goods or services are basic for the department of defense. The defense department for instance requires to buy lithium tri-borate (lbo) crystals often. Make a point of socializing more to learn more about what will help you to become a defense contractor.