Getting government manufacturing contracts is a strategic move that can propel your company’s growth. It doesn’t only expand your portfolio. It also provides a stable revenue stream and boosts your firm’s credibility in the long run.

Whether you’re a novice or experienced contractor, here’s how to get government contracts effectively for sustained success.

Why Does My Company Need to Be CMMC Compliant for Government Contracts?

For your company to qualify for a government contract, you must be CMMC Compliant. According to the US Department of Defense, the sole purpose of the CMMC complaint process is to verify that a company can meet the information security requirements needed as you processes and store information as a government manufacturing contractor.

If you are working on a government contract, want to work on a government contract, or even want to be a subcontractor to a prime contractor, you must be CMMC Compliant. Failure to do so can cost you millions in fees.

Man signing a contract

What are Government Manufacturing Contracts?

Government manufacturing contracts are lucrative opportunities for businesses to supply goods and services to federal agencies. These contracts are available through a competitive bidding process. Business owners seeking to expand their market presence and secure stable income can leverage these government contracts for bid.

Businesses participate in the procurement process by submitting proposals that outline their capabilities and resources for the project. However, they can’t simply submit proposals right away and expect success. To up their chances, they must first register with relevant government databases. They need to qualify for specific certifications or set-aside programs.

We’ll review a few contract samples to illustrate how this process works in practice.

Common Examples of Government Contracts

Different types of contracts tailor your approach to specific procurement scenarios. Each comes with its set of rules, regulations, and requirements. By understanding these differences, you can easily craft precise proposals for more successful contract acquisitions.

  • Fixed-Price Contracts. This contract sets a predetermined, stable price for goods or services. The Department of Defense (DoD) has stringent budgetary considerations and the need for clarity in financial planning. So often, they opt for fixed-price contracts.
  • Cost-Reimbursement Contracts. Unforeseen expenses may arise during project execution. Instead of adhering to a predetermined fee, these contracts allow the contractor to be reimbursed for any costs incurred. Its flexibility makes it suitable for construction projects and other research and development initiatives.
  • Time-and-Materials Contracts. Varying demands and unforeseen circumstances are inevitable. Thus, this structure calculates payment based on the time spent and materials used to maintain financial transparency and accountability. It’s advantageous in industries with changing scopes of services, such as healthcare and utilities.
  • Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts. Government agencies use IDIQ contracts to acquire goods or services over an indefinite period. For example, the General Services Administration (GSA) relies on these contracts to obtain office supplies and services as needed.

The more you get the hang of these contract types, the more government contract opportunities you’ll have. The following section will show you where to find them.

Best Places to Find Government Contracts

While government agencies are the principal government contract providers, they aren’t the sole avenues to explore. Diversify your approach and consider the following channels.

  • Government Subcontractors. Prime contractors, who have secured direct contracts, often subcontract portions of the work to smaller businesses. Connect with potential subcontractors by searching online directories and attending networking events and conferences.
  • Online Procurement Platforms. Explore online platforms like SAM.gov for posted federal opportunities. Note: State and local governments may have their separate procurement platforms where you can find more contracts.
  • Industry-Specific Associations. Does your business operate in a niche sector? Join industry-specific associations and networks to access valuable information about upcoming contracts. Companies in the healthcare sector, for instance, may affiliate with organizations like the American Hospital Association (AHA).
  • Consulting Firms and Advisers. These entities often have the latest insights into upcoming opportunities. Leverage your existing network to get in touch with them. Otherwise, attend the workshops and webinars they host.

The defense and aerospace industry have continuously received the highest percentage of government contracts. Companies in aerospace, defense technology, and related industries receive substantial contract awards from military and defense agency branches. Other sectors with significant contracts include information technology, healthcare, construction, and professional services.

How to Bid on Government Contracts

Contract bidding doesn’t have to be an arduous task. This section breaks down the process into clear steps to help you prepare and submit winning proposals.

  1. Register Your Business. Start by registering your business on official platforms to increase your visibility and credibility. These include the Small Business Administration (SBA) and other industry-specific databases.
  2. Optimize Your Business Profile. Highlight your cybersecurity measures, compliance adherence, and prior achievements in meeting industry-specific regulations.
  3. Stay Informed. Regularly monitor federal contracting opportunities, Requests for Proposals (RFPs), and industry news to stay ahead of the competition.
  4. Build Relationships. Establish connections with contracting officers and prime contractors to position your company as a reliable government contractor.
  5. Tailor Your Proposals. Don’t send generic proposals. Identify key requirements, deliverables, and any specific criteria outlined by the government buyers.

For each requirement, provide detailed examples from your company’s relevant experience. The examples should demonstrate your ability to meet or exceed those criteria.

That’s how to secure government contracts with confidence! Get more contracts awarded by optimizing cybersecurity and compliance, which are now mandatory, particularly for DoD contracts. Secure your future with 7tech’s CMMC compliance solutions today.