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An Overview of Government Contracting When small businesses hear about federal government contracting they fear as it is a complex environment to them. High risks will be placed on the financial prosperity of small businesses if they do not seek expert assistance in this field. The rewards will be worth it in the end. Very few companies in the U.S do business with the government. The new opportunities available for bidding by private business for government contracting was worth 1 billion. Bidding services available were food services, janitorial services and the development of complex space flight systems. A couple of companies are winning such tenders and get awarded these contracts on a daily basis. Small business should therefore venture in the government contracting market as it is a multi- billion dollar marketplace. The government utilizes two means of procuring products and services with values of over 25,000 dollars per year. The two means are Invitation for bids (IFB’s) and request for proposal (RFP’s). A procurement advertisement that will be awarded to the lowest priced bidder is the IFB. According to performance and delivery of the bid IFB has standards that must be met. On the other hand, the RFP will require a full scope of work that is, the how the project will be done, time and by whom. In addition the main people to carry out the project and the qualifications of the company are needed. The government keeps changing the way they process this contracts. President Bill Clinton targeted two major areas which were keeping low deficits and long term investment in economic growth, fighting crime and the children and workers skills. Over the years new trends have come up that affects the small business sector. The first trend is the procurement reform. To ensure cost efficiency and effectiveness of the governments operations, the reform entailed streamlining of the procurement process. The national performance review (NPR), involved outsourcing support services and purchasing IT systems to increase the ability of the federal force to be productive and effective.
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Health care reforms such as imaging, data entry technologies, multimedia, ID cards and business process re- engineering are the initiatives to be implemented. Small businesses will be able to get a share in government contracting. The proposal quality involves the quality of the proposal and the work that the contractor will do. You should get involved in government contracting as soon as now. Businesses that started with small contracts are now getting big contracts. Government contracting enables business make hefty profit through long term contracts.5 Key Takeaways on the Road to Dominating Professionals