There are many benefits to working with the federal government, such as guaranteed payment and no shortage of work, but it is not always easy to get started. So how should your trucking company go about obtaining government contracts?
We know that the government requires the services of transportation companies to haul a multitude of specialist items, from tanks to vital supplies and everything in between. Some of these items need security clearance, so bear in mind that if you are not already cleared to carry weapons and ammunition the process for this specific type of transportation work can be long and involve plenty of paperwork.
Melissa Conn, blogger for Truck It Smart explains that many contracts can be found through two government departments, the General Services Administration, which organizes much of the shipping for the executive branch, and the Department of Defense. Not all of the contracts listed are relevant to transportation, but a quick look can determine those that fit the bill.
When it comes to winning bids from the Department of Defense, it helps to have a solid understanding of military procedures and terminology. Many companies consider hiring an expert to help with the process, or employing someone with a military background. The DPAP or Defense Procurement and Acquisition Policy site explains clearly the necessary rules, procedures and qualifications needed to work with the Department of Defense.
There is a great deal of competition in the trucking industry in general, so the ability to outbid the competition and clearly decipher the specific requirements of any contract is extremely important. A firm understanding of your costs, and how to write up a bid is also essential. An article by Danny Donahue in the Houston Chronicle lays out the foundation when it comes to obtaining a trucking business contract bid, breaking down the steps to follow when making those all important calculations.
FedBizOpps.Gov is part of the General Services Administration, and enables a search of active federal opportunities. In addition, one of our recent blogs explains how to obtain government contracts in manufacturing, distribution and wholesale. Much of this advice can also be applied to federal contracts in transportation.
When it comes to billing the government, make sure your invoices are accurate, as payment will generally take some time even with no errors. The government will always pay eventually, but slow payment can create a cash flow problem for smaller businesses. Bay View Funding specializes in providing financing for government contracts and for the trucking industry. The team of experts has experience in navigating through the process of government contracting. Contact Bay View Funding to find out about a unique way to keep your cash flow flowing as well as great advice when it comes to working with the government.