Top 3 Reasons Businesses Fail in Government Contracting

Government Contracting Tips
Government Contracting Tips
Government Contracting Tips

There are a number of reasons why a business would be unsuccessful in government contracting.  However, their 3 main reasons why most businesses fail in government contracting.  Here are the 3 main reasons why businesses fail in government contracting:

#1) Not Registered properly in System for Award Management (SAM).

#2) Once they are registered they do not know how to navigate the federal marketplace.

#3) Not being proactive about winning contracts.


So lets start with #1, not being properly registered in SAM.  Many businesses believe they can conduct the SAM registration on their own without any help.  Is it possible…yes.  Is it advised…no.  There are a number of resources here on that help businesses register on SAM or migrate from CCR to SAM.  However, just because you think you may have performed the registration correctly does not mean you actually did it right. There have been so many cases of errors that Senators, PTAC studies and even US Federal Contractor Registration Case Managers have openly stated that contractors must keep in mind the importance of registering properly.


For example, Georgia Tech PTAC office “estimates that a high percentage of the 600,000 firms presently registered in SAM have errors in their records. The mistakes range from misspelled words to empty data fields, to incomplete entries, to selection of incorrect procurement codes, and other flaws. As a result, these vendors miss-out on government contract opportunities either because they are screened out for not exhibiting attention to detail or because of incomplete information they cannot be identified by government buyers.”

Senator McCaskill even stated that since the merger of PPIR and FAPIIS into SAM her staff found that the contractor database, “had very little information, ” contained “self-reported contractor data not verified,” and was “riddled with confusing names and typos, with variations of names, some quite silly,” that make it “impossible for a contract officer to draw conclusions.”
Aside from all of the outspoken studies and comments the Federal Government even states in the 2,200 page FAR manual under FAR 31 1352-(C) that if your business files the SAM registration and files incorrect financial information  (located in the the Reps & Certs section) the business can receive a fine between $10,000 to $100,000 depending on the severity of the error.  This is a factor that most businesses won’t even want to consider risking because their business can not afford a fine this large.
The second is businesses do not know how to navigate the federal marketplace.  Our website provides great resources like our free ‘Government Marketing Roadmap‘ and our free ‘How to Find & Bid on Available Government Contracts‘ packet to help businesses establish themselves in the federal marketplace.  It really comes down to marketing yourself and creating accounts in federal databases and profiles in government websites. Some of these resources include DSBS, FBO, GSA and more.
Create footholds in federal websites to be noticed and get the name of your company in federal circulation.  These resources will help you be noticed by federal procurement officers and agencies. These databases help your business win small business simplified acquisition contracts. FBO also shows more than a 1/3 of all the currently active solicitations in government contracting.
The final reason is that contractors are not proactive enough for government contracting. Contractors need to track down procurement officers and contact them about their business. Contractors need to distribute their capability statement to procurement officers and agencies across the country. Wide spread promotion and federal branding is the best way to get procurement officers and prime contractors to hire you. Find government marketing solutions and strategies to help make your business stand out in the federal marketplace.
Make sure your business takes into account the 3 reasons why businesses fail in government contracting and does exactly the opposite to win contracts and create lucrative relationships with federal officers.
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