Myths you will hear, and what is true

People new to government contracting hear a lot of advice. Some of it is wrong or out of date. Here are common claims and what is true, with sources you can check.

"Register in SAM.gov and the contracts will come." Registration only lets buyers consider you. It earns nothing by itself. SAM.gov registration is free, and the work starts after it: finding bids, answering them well and following up.

"You have to pay to register." No. SAM.gov is free to use, including registration and renewal. A company that charges you to register is selling a service. It is not the government.

"The micro-purchase line is $10,000 and the simplified line is $250,000." Out of date. The federal micro-purchase threshold is now $15,000 and the simplified acquisition threshold is $350,000, with some exceptions.

"Break a big job into small pieces so each one is easier to buy." Buyers may not split a requirement to get under a dollar line. Never suggest it.

"Bid on sealed bids first, until you have past performance." There is no required ladder. In negotiated buys, a company with no record of relevant past performance gets a neutral rating, not a bad one. Commercial work can count. Choose bids by fit, not by type.

"An RFQ is always decided on price alone." Not always. A request for quotations can weigh other factors, so read how quotes will be judged. On some state portals, "RFQ" even means request for qualifications.

"Only a few pages of a solicitation matter." Read all of it: the instructions, the evaluation, the work statement, the clauses, every attachment and every amendment. One missed form can get an offer rejected.

"Posted RFPs are already decided." There is no evidence that posted competitions are fixed in general. Judge each one on its fit with your business.

"Win the contract, then hand all the work to subcontractors." On small business set-asides, the prime must do a real share of the work. For services, the prime may pay no more than half of what the government pays it to subcontractors that are not similarly situated. Most 1099 contractors count as subcontractors.

"A multiple-award contract means years of assured work." Contract vehicles such as IDIQs and BPAs are licenses to compete for orders. Orders are often competed, and minimums can be small.

"The government always pays in 15 days." Federal buyers generally pay within 30 days after they receive a proper invoice, and they owe interest when they pay late. Faster payment to small businesses is a goal, not a right.

"Offer a 2% discount for fast payment and the award is yours." On sealed bids, prompt payment discounts are not counted when bids are compared, and the buyer takes the discount when it pays on time. Default to Net 30.

"Keep every contract record for 10 years." The FAR generally requires keeping records for three years after final payment, with shorter periods for some records. Your contract may add more.

"Prices always rise 3 to 6% a year, so bid above the last award." There is no automatic increase. Past awards are context. Price from the work in front of you.

"A certification brings work by itself." A certification opens some set-aside bids. It does not replace the ability to do the job, insurance or experience. Most first bids need no certification.