Military contracts are the cream of the crop when it comes to landing lucrative manufacturing deals. However, while the Department of Defense (DoD) awards billions of dollars to various operations each year, it’s not a walk in the park. Small businesses and private contractors can participate and win those contracts, but it takes a lot to get there.
Getting ready for a military contract, including bidding for one, looks something like this:
- Registration
- Thorough research
- Learn and meet military standards
- Understand military contract specifications
- Present a proposal
Each of these steps is laid out in more detail below.
1. Register With the Appropriate Parties
Companies need to register through the relevant programs before the DoD will even consider proposals. They’ll need a Data Universal Numbering System (DUNS) assignment and must also file with the System for Award Management (SAM).
The DUNS number is a unique assigned or nine-digit identification number provided by Dun & Bradstreet. All applicants that want to work with the federal government, including the DoD, must have a DUNS. After companies receive this number, they can register in the System for Award Management, which allows them to browse and apply for government contracts.
The system is free to use and offers a host of options outside of contract claims. SAM can be used to update or renew registration and company details, check the status of actions in the system, or search for other registered entities and exclusion records.
U.S.-based vendors must also have a Contractor and Government Entity Code, but one will be assigned when registering with SAM for the first time.
2. Conduct Thorough Research
Companies could dive in right away and start bidding on contracts, but they’d be ill-equipped, especially if this is their first time doing so. It’s best to stall the first proposal and instead spend some time getting the lay of the land. For example, businesses should review some of the contracts already awarded and what companies have earned them. This will help them discern what kinds of updates or changes will need to be made, as well as what standards and specifications must be matched.
Applicants also need to understand how Federal Product Service Codes (PSCs) work, including Federal Supply Class or Service codes (FSC/SVC). What’s more, they’ll need to familiarize themselves with the North American Industry Classification System, or NAICS. The official Federal Procurement Data System Product and Service Codes Manual is a great start.
The federally operated SAM.gov is the next stop. Companies can access available procurement opportunities, browse military contracts and review additional resources. They’ll need to register first to access all those resources, but it’s free.
Also, businesses should take some time to research and review how the federal arm handles procurement and expenditures. The USA Spending site is an excellent resource for marketing proposals later on.
3. Learn and Associate Military Standards
Businesses need to be up to date on military and federal standards to earn and complete a military contract. MIL-STD, or military standards, and MIL-SPEC, military specifications, have strict requirements for products and services that must be followed. There are also specific testing procedures that are required to meet the DoD’s needs. Each standard or specification addresses an individual element of manufacturing, handling and even shipping.
The MIL-STD-129 standard deals with marking and labeling requirements for military equipment or supplies. It exists to create and govern a more consistent labeling process for the handling and transport of federal goods. MIL-SPEC is important as it ensures the equipment or goods supplied to the federal government meet industry standards for quality and testing.
Some additional and common standards include:
- MIL-STD-109: quality assurance
- MIL-STD-129: military marking for shipment and storage
- MIL-STD-130: ID marking of U.S. military property
- MIL-STD-202: uniform testing for electronic and electrical components
- MIL-STD-2165: testability program for electronic systems and equipment
- MIL-STD-810G: material acquisition and environmental engineering considerations
4. Dig Into Contract Specifications
While researching potential contracts to pursue, companies can see the specifications and standards specific to that project. Overhauling manufacturing operations to meet those specifications is not necessarily recommended, especially because companies don’t know whether the contract will be awarded or not. However, it is an opportunity to ensure the resources and capabilities to meet those project requirements are in place.
Businesses must consider what kind of updates or upgrades are needed. There is a bevy of manufacturing and inventory management techniques that must be acknowledged and potentially adopted. What new equipment or processes must be invested in and implemented? Will companies need to scale up their workforce? Will they need to procure additional resources and supplies?
Businesses need to understand the contract requirements and be sure what they’re proposing is feasible.
5. Present the Proposal
After registering with the appropriate parties, researching the current and past contracts, digging into the broad world of military standards and specifications, and reviewing contract opportunities, it’s time to develop and present a proposal.
This is where the new SAM.gov portal will come in handy. Companies can seek DoD contracts, both federal and private, that they can target with their products or services. The U.S. Small Business Administration has a fantastic guidebook on preparing government contract proposals for companies that are not sure where to start or how to proceed.
Landing That Contract
Securing a military contract is a complex and challenging process, even for big businesses, so it’s especially intimidating for smaller operations. By getting everything in order and following the steps discussed here, companies can be more prepared and likely to earn those big-ticket contracts.
Emily Newton is the Editor-in-Chief of Revolutionized, an online magazine discussing the latest technologies changing our world.