Government Contracting Basics

Are you currently bidding on contracts or looking to get into the game of bidding on contracts? Perhaps, you are not interested in government contracts?

Well below are a few reasons why being certified and bidding on contracts is essential.

Business who don’t bid on contracts:

During time of uncertainty, consumers are looking to do business with people they can trust. Money is scarce nowadays, and people are weary about spending as frequently as before. Gaining a new customer is the most difficult business activity. This is because you as the service provider must convince the consumer that not only are you trustworthy, bur rather you can get the job done at a reasonable price.

What makes someone choose one service over another? Most of you would say price is a key deciding factor, which is true, but people are willing to pay a little more for quality. For instance, a friend of mine owns an Insurance company. He mostly sells Business and personal insurance. After having multiple discussions with him regarding his business, he always tells me that he is not the cheapest price in town. The reason for his success has been due to the LEGITAMACY he has been able to establish within his peers. People are willing to pay a little extra for his knowledge, knowing that they will get service unmatched by even a cheaper competitor.

Imagine for instance that you need to purchase a custom made machine from a manufacturer. You have two options: 1. a company that has been in business for 5 years or 2: a company that has been in business for 5 years but is Federally Certified.

Being designated as a certified business with the State or Federal Government gives you LEGITAMCY.

Businesses who do bid on contracts:

Those businesses who do bid on contracts will find that becoming certified by the State or the Federal Government will allow them to bid on new opportunities not available to them before. Both the State and Federal Government has set aside funds for certified companies. State and Federal agencies are required by to designate a percentage of their contracts to certified agencies. This not only increases your chances of getting new contracts, but it allows you to do it with less competition increasing your chances of winning the bid.

For Example: If there are 1000 machinists in the city, they would all be able to bid on a particular contract that the Government makes available. Some are larger then others giving them the advantage of underbidding their smaller competitors and winning the bid. What if from those 1000 machinists only 100 were certified with the Government as a Small Business? You will only be competing against 100 competitors rather then 1000, significantly increasing your chances to compete in a fairer playing field.

As Small Business owners we all need help to get ahead, and become certified with the State or Federal Government will allow you to significantly increase future revenues.

Visit our Certifications page HERE.

Paul Mazbanian (2011 SBA Young Entrepreneur of the Year – Los Angeles District Office)
SBC Lending

Is price a determining factor when hiring a Consultant to assist with your Government Certifications?

As a Business owner, I understand the importance of keeping costs down to maintain the highest amount of profits within company. When I realize I need someones services, I do my research to find who the best person is to take on the task. Pricing is always an issue and I want to get the best price I can for what I’m paying for. However, there are boundaries that I do not cross.

Here are some thoughts on how to hire a consultant:

  1. What is your budget?
  • Hiring a consultant costs money. Although you want the best price, we do need to get paid. That is how we stay in business.
  • Research the certification(s) you aspire on getting, talking to different consultants on their process and how long it takes to complete, it must be within your budget?
  • Example: If you are looking to purchase a new computer and your budget is $1,000, do you look at computers worth more than that?

2. What Certifications are you seeking?

  • Not all Certifications are created equal. Certifications vary in complexity. Some take less time while others like the 8a are complex and require lots of work.
  • As consultants we have a threshold on what we can charge to make the work worth our while.

I received a call from a prospective client last week seeking the 8a certification. Mind you, it takes anywhere between 20-60 hours to complete depending on owners, affiliate businesses etc. The client wanted to pay the same price as the Women Owned Small Business Certification program.

Every week ,we receive phone calls from prospective clients seeking our services. We are always eager to help other Small Businesses achieve greater success. We typically give more information than we need to in order to gain more confidence from them. There are times, however, that realizing your request and the expertise involved, will come at a price.

Last week I received a call from a client calling me to compare prices. That of course in itself is fine, but knowing the experience and expertise involved, you need to respect the person on the other end. I never compromise my skills and experience. I am always looking to learn new things, but when someone is an expert in their field, with proven results, you need to respect that.

There is no

2014 In Review and Looking Ahead to 2015

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2014 was a great year for us. Since our services are geared toward Small Businesses, we have seen them thriving more this year than the previous 7 years. Perhaps it is due to the change in the Economy or perhaps people are understanding the benefits of obtaining their Certifications more than before. What ever the reason may be, Small Business Community Consultants, Inc. has helped more businesses this year in obtaining their Federal, State and Local Certifications than ever before.

You may have read our National Press Release for the first half of the year (click here to read), which outlined our accomplishments of 13 approved certifications, including:

  • 8(a) Certification————————————– 1
  • DBE Certifications———————————— 2
  • WOSB Certifications——————————— 4
  • SB Certifications————————————– 3
  • DVBE Certifications———————————- 1
  • WBE Certifications———————————– 2

TOTAL:                                                          13

We are happy to announce that we were able to approved 17 more Certifications for the remainder of the year giving us a total of 30 approved Certifications. Our total numbers for the year are as follows:

  • 8(a) Certifications———————————– 2
  • DBE Certifications———————————- 5
  • SBE Certifications———————————- 4
  • WOSB Certifications——————————- 7
  • WBE Certifications——————————— 2
  • SB Certifications———————————– 9
  • DVBE Certifications——————————- 1

TOTAL:                                                          30

As we head in to 2015, we have 28 certifications that are either submitted waiting for approval, or are in the process of being submitted. Below is a list of our “in process” Certifications heading in to next year.

  • 8(a) Certifications———————————– 5
  • DBE Certifications———————————- 9
  • SBE Certifications———————————- 8
  • WOSB Certifications——————————-1
  • WBE Certifications——————————— 2
  • SB Certifications———————————– 1
  • MBE Certification———————————- 2

TOTAL:                                                          28

In 2015, we are looking to offer new and exciting services to our clients, including but not limited to, access to local, State and Federal Contracting opportunities as well as Seminars. We will also be launching a new website which will be more user friendly and will give our clients the ability to learn and educate themselves prior to starting the Certification process.

Paul Mazbanian SBC Consultants, Inc. 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.

Applying for 8(a) Social Disadvantage Waiver

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(818) 551-9400

In the article published on March 26, 2014, I wrote about the Social Disadvantage Requirements by the SBA to become an 8(a) participant. But what if you are not a member of one of the presumed socially Disadvantaged groups? Can you still apply? The simple answer is YES, but there are a few extra steps which need to be explained to the SBA.

The SBA presumes that African Americans, Asians, Hispanics and Native Americans are socially disadvantaged. However, other individuals may similarly be found socially disadvantaged and eligible for the program on a case-by-case basis.

An individual who is not a member of one of the presumed groups can be admitted into the 8(a) Business Development program.  To do so, the business must prove to SBA that the individual(s) meeting SBA’s ownership and control requirements is socially disadvantaged. This process includes showing personal experiences where applicable in education, employment, and business history.

The individual must provide evidence to SBA proving one’s individual social disadvantage.

Evidence of individual social disadvantage must include:

  • At least one distinguishing feature such as race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged.
  • Personal experiences of social disadvantage in American society, not in other countries.
  • Negative impact on the individual’s entrance into the business world or advancement in the business world because of the stated disadvantage(s).

* A detailed description of each of the bullet points must be given along with proof of examples and documents such as letters from reputable sources. To prove social disadvantage, the individual(s) owners must ultimately show that such personal experiences had a negative impact on entry into or advancement in the business world.

Paul Mazbanian SBC Consultants, Inc. 818-551-9400

Paul Mazbanian
SBC Consultants, Inc.