Billions of dollars in government contracts are awarded to construction businesses annually. Whether it’s federal, state, or local projects worth millions of dollars or much less, every year the government develops projects that create jobs within the construction sector and help support the economy.
In this six-part article, our Miami construction lawyers are discussing everything you need to know about bidding on and winning government contracts. From registering your business to finding the right opportunities for your company to developing winning bids complete with technical and legal paperwork, when it comes to the bidding process, a knowledgeable and experienced Miami construction lawyer is here to assist you.
Small Businesses Can Apply
There’s a common misconception that procuring government contract work is only for massively successful construction companies working on multimillion-dollar projects. Although in many cases this is true, regardless of the size of your business, there are always opportunities out there to land extremely valuable government contracts that can maximize your company’s profit margin. In fact, over 20 percent of government construction project funding is granted to small businesses. Government contracts can be beneficial for huge construction companies and startups alike.
What’s the Bidding Process Like?
The federal government utilizes a sealed bidding process to award projects to companies. The government determines the winning bid by selecting the proposal considered to be the best overall value. In other words, if the contractor meets the qualifications to perform the work, the fiscally lowest bid is typically selected for procurement; however, the agency may select a slightly higher priced bid that provides more overall value.
During the selection process, government officials evaluate each bid in regard to the bid’s technical specs and price points. As we will discuss more throughout this series, other aspects of the bid package are also evaluated during the selection process as well. This includes everything from the reputation of the business to how well the application was completed.
How to Register
Although the process for contractors is slightly different than for architects or engineers, in order to be eligible to win a bid, your business must first be registered in the government database system. You can register to become a government contractor through the System for Award Management (SAM) website. Registration requires permitting government access to personal, tax, banking, and business entity information. Once you are registered, you can begin bidding on government projects.
If you are interested in learning more about winning government contracts, Cotney Construction Law is here to assist you. Our Miami construction lawyers can help you throughout all stages of the bidding process and ensure your bid qualifies for selection.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.