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Government Contractor: What is a Government Contractor?

A government contractor is a private company that produces goods and services for public government agencies. Contractors become employed by the government by winning contracts that are out for bid. Government contractors are able to win contracts by submitting the lowest cost bid in response to a proposal, which is required by law. Just like government agencies, government contractors come in all different sizes.

Larger companies will seek out government contracts in the tens of millions of dollars. These larger corporations will usually bid on federal projects, but they are also interested in state and local contracts. Smaller companies generally seek out smaller contracts that best match their business qualifications and scope of work. With more limited resources, smaller companies will tend to seek out state and more localized contracts.

So how does one go about becoming a government contractor? The process can differ for every company depending on what state the company is located. Each state has varying processes and procedures to becoming a registered vendor, so checking first with your state, county and city procurement office is the first step. Once you are a registered vendor it becomes a matter of being aware that a government contract is out there. For most purchases above $25,000, the Government publishes what they are going to purchase and the bidding is open to the public. If you see a project that is right in your wheelhouse, it is best to put forth your best proposals and give it a shot. While there are many procedural elements that need to be considered, getting your foot in the door is the major first step.


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