The 5 Steps Necessary for Successful Military Bidding
The process of successfully submitting military manufacturing bids can be long and daunting. But it doesn’t have to be. Ultimately, the entire procedure can be summarized in five simple steps that we will detail below.
The Need for Military Manufacturing
The United States defense industry relies heavily on US companies for military manufacturing. And this is one area of manufacturing in the US that is booming. In fact, military manufacturing is running an impressive $100 billion trade surplus. Nations around the world purchase arms and weapons technology from the United States. Even China is currently running a trade deficit with the US in the aerospace and defense sector. And US military manufacturing exports alone typically run over $140 billion annually.
There is a significant opportunity for US manufacturing companies to meet this demand. However, many fall prey to various myths about the process. In fact, many companies are hesitant to apply because they believe the process is too complicated, that government only works with massive companies, or the complexity of the federal government makes it too difficult to identify manufacturing opportunities. But this couldn’t be further from the truth.
The Simple 5 Steps to Participate in Military Manufacturing Work
If you believe your company might benefit from participating in military manufacturing, pay attention. The defense industry requires manufacturing contracts for nearly everything, and chances are, your company makes something they need. Follow this roadmap to successfully bid on that work.
- Obtain a D-U-N-S Number
The first step to bidding on military manufacturing work is to obtain a 9-digit Dun & Bradstreet number for each location of business involved in manufacturing for the contract. This application is free.
- Obtain an NAICS Code
In order to identify your location and industry sector, all government manufacturing contractors are required to apply for and obtain a 6-digit North American Industry Classification System code. The application process takes approximately two weeks.
- Register on the SAM Website
The System for Award Management website is the hub for bidding on military manufacturing contracts. Your profile registration should include a detailed capability statement listing your company’s details such as ownership, location, and capacity.
- Analyze Contract Opportunities
Begin analyzing contract opportunities, which are typically found as either Simplified Acquisition Procedure (SAP) contracts or Formal or Large contracts. SAPs listed are typically $25,000 and $150,000 and found on FedBizOpps (FBO). Contracts larger than $150,000 are called Formal contracts, and are found either on FBO or through a government purchasing agent invitation.
- Prepare Detailed Bid
After identifying a desirable contract, carefully ensure your company meets all requirements and has all necessary certifications, and prepare all requested information in your bid. Next, provide detailed information about how your company can and will provide the required services and products, and explain all costs in tangible terms.