Newsletter 19: Don’t Get Caught Up in Red Tape
By Richard White

Outsider Perception: Red tape is the biggest barrier to entering the federal market.

Reality: The red tape is not as bad as it seems from the outside.

Lesson: Don’t let the red tape deter you from cracking the federal market.

Background:
Encountering mountains of red tape is an inevitable consequence of doing business with the federal government.  You will be required to register with various federal web sites (such as www.ccr.gov) and will be asked to provide company certifications in government databases. Keep in mind that in completing these tasks, you aren’t making any actual progress towards making a sale. Government buyers don’t use databases to find vendors. Instead, the vendors find the buyers.

As much as they would love to ignore it, federal contractors are forced to comply with the government’s red-tape requirements in order to do business with the government. A newly-hired college graduate or someone in your accounting organization should be able to wade through the red tape. The task may appear daunting at first but, with patience and tenacity, the person assigned the task will find out that it is not rocket science. Complying with the government’s requirements becomes second nature after the first time through the process.

Your designated person should tackle the following tasks first:

Obtain a DUNS number
http://www.dnb.com/US/duns_update/

Register at the Central Contractor Registration (CCR) web site
http://www.ccr.gov/

Register at the ORCA web site
https://orca.bpn.gov/

Sign up for e-mails from the Federal Business Opportunities site
http://www.fedbizopps.gov/

Do companies need to enlist the services of an attorney when they do business in the federal market? Lawyers have a role to play in the federal market just as they do in the commercial market. The trick is to realize when you need one and when you don't. Don't assume you need one for every little thing you don’t understand.

Are special accounting systems required when doing business with the federal government? Yes, you will most likely need one at some point in time but not at the time of market entry. A somewhat generalized accounting package, such as QuickBooks, will do to start. Your business will need to invest in a more specialized accounting system as your involvement in the federal market grows and your revenue increases.