Business Certifications
Business Certifications
Before your company can start doing business with the government, it must obtain the appropriate certifications. Much like professional certifications, small business certification establishes a special status or capability that gives your organization a competitive edge in the marketplace. Unlike licenses and permits, certifications are not necessary to operate legally. However, certifications are necessary to take full advantage of business opportunities like government contracts.
Government contracts are opportunities for businesses to sell millions, or even billions of dollars worth of products and services. Most government agencies require that a certain portion of procurements are set aside for small businesses. Certifying your business in different special groups can help when you successfully compete for government contracts. ContractWise can help your small business navigate the certification process to optimize your chances of procuring government contracts.
Why Get A Small Business Certification
- 23% of all federal contracts must go to small businesses
- Being able to bid on small business set-aside solicitations
- Puts you in the running for no-bid contracts under $150,000
There are many benefits that come with getting your small business certification, but the registration process is often time-consuming and annoying. Work with ContractWise for a higher rate of success.
When registering for a small business certification, you need to enter information about your company in the System for Award Management (SAM) database. You can self-certify yourself as a small business in SAM, but there are federal government stipulations about what defines a small business. The U.S. Small Business Administration defines a “small business” based on the amount of employees they’ve had over the past year or average annual receipts over the last three years, with size standards varying by industry. To be eligible as a small business, it:
- Must have listed the appropriate NAICS codes in SAM Registration
- Needs to be considered a small business by SBA standards
- Needs to be under the number of employees NAICS codes dictate
- Needs to be under the average annual revenue based on NAICS codes
Becoming Small Business Certified
23% of Federal Contracts must be awarded to a Certified Small Business, and Federal Contracts under $150,000 are set aside for businesses with SBAs. Since Federal contracts below $25,000 are not posted to the public, it can be difficult for inexperienced businesses to secure profitable contracts. There are different state and federal regulations in various categories, and contracting officers also have annual quotas for specific set-aside categories. Small businesses need to hold an Official Certification from the appropriate certifying agency for the specific category, and multiple agencies are involved. After a business is certified, Contracting Officers also need to be made aware of it.
Other Certifications:
- Woman Owned Small Business
- Economically Disadvantaged Woman Owned Small Business
- Veteran Owned Small Business
- Service Disabled Veteran Owned Small Business
- HUBZone Certification (Historically Underutilized Business Zone)
- 8(a) Program (Minority Owned Small Business)
Contact Us Today
With so many regulations to go through, it can be easy to feel lost. ContractWise is here to help small businesses secure the certifications necessary to nab lucrative government contracts. They also offer comprehensive government contract consulting services for any size organization. Call ContractWise for your government contract queries today.