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DEPARTAMENt of economic

DEVELOPMENT

AND COMMERCE

Sello oficial del Gobierno de Puerto Rico
DEPARTMENT of economic

DEVELOPMENT

AND COMMERCE
government of PUERTO RICO

The information on this website, including guides, presentations and related material, is for informational purposes only and does not constitute professional advice. While we strive to ensure the accuracy of this information, we make no warranties regarding its accuracy or completeness and are not liable for any reliance on this information.

Resources

Tool Kit

This section offers a collection of practical resources to support your government’s contracting efforts. These tools can help you streamline your processes, improve your proposals, and increase your chances of winning contracts.

Capability Statement: A Capability Statement introduces your company to the federal marketplace. This concise, one-to-two-page document summarizes your expertise, experience, and resources, showcasing your ability to perform on potential government contracts for agencies and prime contractors.

Bid protest: Businesses may protest a bid if they believe the government's procurement process was flawed, for example, due to an unclear solicitation, unfairly applied evaluation criteria, or a biased award decision.  A protest allows businesses to challenge these perceived injustices and ensure fair competition for government contracts.  Adhering to the Federal Acquisition Regulation (FAR) is essential, as it outlines the specific procedures, timelines, and requirements for filing a protest.

Compliance checklist: This tool helps businesses comply with the complex regulations and requirements of government contracts, including areas like procurement procedures, labor standards, accounting practices, and ethical conduct, as outlined in regulations such as the Federal Acquisition Regulation (FAR). This checklist provides a general overview and is not exhaustive.  Specific requirements may vary depending on the contract type and agency. Always consult the specific contract terms and applicable FAR clauses.

SAM registration checklist: Gathering all required information and supporting documents before starting SAM registration is crucial for a smooth and efficient process. This preparation minimizes errors, prevents delays from incomplete submissions, and ensures accurate representation of your business to the government, ultimately expediting your pursuit of federal contracting opportunities.

CMMC self-assessment:  A CMMC self-assessment is a contractor's initial evaluation of their organization's cybersecurity maturity level against the requirements outlined in the Cybersecurity Maturity Model Certification (CMMC) framework.  It involves a thorough review of their existing security controls and practices to determine their alignment with the specific CMMC level they are targeting.  While a self-assessment doesn't result in a formal CMMC certification (which requires a third-party assessment for certain levels), it's a crucial first step.  It helps organizations identify gaps in their cybersecurity posture, prioritize remediation efforts, and prepare for a potential future third-party assessment.  

Bid or No Bid assessment: The bid/no-bid decision is a critical juncture for any business pursuing government contracts. This strategic assessment determines whether a company should invest resources in preparing a proposal for a specific opportunity. A well-informed decision, based on factors such as alignment with core competencies, the competitive landscape, potential profitability, and a thorough risk assessment, maximizes resource allocation. Bidding on unsuitable opportunities can waste time, effort, and money, while declining potentially lucrative contracts can hinder growth. Therefore, a robust bid/no-bid process is essential for optimizing business development efforts.

Buyers Directory: In federal contracting, connections can be as valuable as expertise. Building strong relationships with key personnel in government agencies and prime contracting firms is crucial for accessing opportunities and navigating the often-complex procurement process.

This guide provides a practical roadmap for developing a comprehensive federal contracting directory—a valuable tool for building these essential connections. By following these steps, you'll improve your chances of connecting with decision-makers, streamline communication, facilitate networking, and ultimately increase your chances of securing contracts and subcontracts.

How to download the SAM registration evidence: This guide provides step-by-step instructions on how to download evidence of your System for Award Management (SAM) registration. This proof of registration may be required by entities such as the Puerto Rico General Services Administration or other organizations requesting verification of your active SAM status. Having this documentation readily available can streamline procurement processes and facilitate your participation in contracting opportunities.

Buyers Directory

Every company interested in selling to the federal government should develop a continuously expanding directory of potential buyers. This Buyers Directory is an essential tool for building the connections you need to win federal contracts and subcontracts.

A Buyers Directory serves several critical purposes:

  • Identify Decision-Makers: Knowing who makes procurement decisions within your target agencies is crucial for effective communication and outreach.
  • Streamline Communication: A centralized directory allows you to easily find and connect with the right people at the right time.
  • Facilitate Networking: By fostering connections with key personnel, you can build relationships and increase your visibility within your target agencies.
  • Increase Contract Opportunities: A comprehensive Buyers Directory empowers you to find and pursue relevant contracting opportunities that align with your company's capabilities.

Buyers Directory Guide

By following the steps outlined in our Buyers Directory Guide (English), or Spanish version you'll gain a roadmap to success in federal contracting. This guide covers essential aspects of building your directory, including:

  • Preparing Your Business: Learn how to effectively position your company for federal contracting opportunities.
  • Targeting Specific Agencies: Identify the federal agencies most likely to require the goods and services you provide.
  • Building Your Contact Directory: Discover practical strategies for finding and collecting contact information for key personnel.

Get Started Today!

The Buyers Directory Guide provides a practical, hands-on approach to developing your essential contracting connections. If you have any questions or require assistance with any of the topics covered in the guide, please don't hesitate to contact us at fecc@ddec.pr.gov.

Certifications

The U.S. Small Business Administration (SBA) offers several socioeconomic certifications designed to help small businesses owned by socially and economically disadvantaged individuals compete for federal contracts. These certifications provide access to set-aside contracts and other preferential treatment, creating valuable opportunities for growth.

What are Socioeconomic Certifications?

These certifications are designed to level the playing field for small businesses that have historically faced barriers to accessing federal contracting opportunities. By obtaining a certification, your business can demonstrate its eligibility for specific set-aside programs and increase its chances of winning government contracts.

Key SBA Socioeconomic Certifications:

  • 8(a) Business Development Program: This program helps small, disadvantaged businesses compete in the federal marketplace. It provides business development assistance, training, and exclusive access to set-aside and sole-source contracts. Eligibility is based on factors such as social disadvantage (e.g., race, ethnicity) and economic disadvantage.
  • HUBZone (Historically Underutilized Business Zone) Program: This program encourages federal contracting with small businesses located in designated HUBZones. These are areas with low income and high unemployment. Businesses must meet specific residency and location requirements to qualify.
  • Women-Owned Small Business (WOSB) Federal Contracting Program: This program helps women-owned small businesses access federal contracting opportunities. There are two categories:
    • WOSB: Women-owned small businesses.
    • Economically Disadvantaged Women-Owned Small Business (EDWOSB): WOSBs that also meet specific economic disadvantage criteria.
  • Service-Disabled Veteran-Owned Small Business (SDVOSB) Program: This program provides contracting preferences to small businesses owned and controlled by service-disabled veterans.

Benefits of Obtaining a Socioeconomic Certification:

Set-Aside Contracts: Access to exclusive contracting opportunities reserved for certified businesses.

  • Set-Aside Contracts: Access to exclusive contracting opportunities reserved for certified businesses.
  • Reduced Competition: Compete with a smaller pool of businesses, increasing your chances of winning contracts.
  • Business Development Assistance: Access to training, counseling, and other resources to help you grow your business.
  • Enhanced Visibility: Increased visibility to government agencies seeking to meet their small business contracting goals.

Eligibility Requirements:

Each certification has specific eligibility requirements related to business size, ownership, control, and other factors. It's crucial to review the requirements for each program on the SBA website to determine your eligibility.

How to Apply:

The SBA has streamlined the certification process through the My SBA Certifications portal. This unified system allows applicants to submit a single application to assess eligibility for multiple SBA certifications, simplifying what was previously a more complex process involving multiple platforms.

To apply for SBA socioeconomic certifications:

  • Visit the My SBA Certifications platform: https://certifications.sba.gov/
  • Create an account or log in: Follow the instructions to create an account or log in if you already have one.
  • Complete the application: Provide the required information about your business, including ownership, finances, and operations.
  • Submit your application: Review your application carefully before submitting it.

By exploring and potentially obtaining one or more of these socioeconomic certifications, your small business can significantly enhance its opportunities in the federal contracting arena.

Marketing

Marketing to the federal government is significantly different from marketing to commercial clients. It requires a specialized approach that focuses on demonstrating value, meeting specific requirements, and building relationships. This section provides key strategies for effectively marketing your products and services to federal agencies.

Key Principles of Federal Marketing:

  • Focus on Value and Solutions: Government agencies prioritize solutions that address their specific needs and mission objectives. Your marketing materials should clearly articulate how your offerings solve their challenges and provide tangible benefits.
  • Compliance and Regulations: Federal procurement is governed by strict regulations, most notably the Federal Acquisition Regulation (FAR). Ensure your marketing efforts are compliant with these regulations.
  • Relationship Building: Building strong relationships with government buyers and program managers is crucial. Networking, attending industry events, and engaging in targeted outreach can be highly effective.
  • Transparency and Trust: Honesty and transparency are paramount. Clearly and accurately represent your capabilities, experience, and past performance.

Effective Marketing Strategies:

  • Capability Statements: Develop concise and compelling capability statements that highlight your company's expertise, experience, and relevant past performance. Tailor these statements to specific agencies and opportunities.
  • Website Optimization: Ensure your website is easily navigable and contains relevant keywords that government buyers might use in their searches. Include information about your experience with government contracts, certifications, and NAICS codes. While a dedicated website is ideal, we understand that not all small businesses have the resources to develop one immediately. If your business is just starting out and doesn't yet have a website, you can still establish an online presence and market to the government using SAM and DSBS.
  • SAM.gov Profile: Maintain an accurate and up-to-date profile in the System for Award Management (SAM.gov). This is the primary database used by government agencies to find potential contractors.
  • Dynamic Small Business Search (DSBS): A valuable tool that allows contracting officers to search for small businesses that meet their specific needs. It's crucial to optimize your DSBS profile to increase your visibility.
  • Networking and Events: Attend industry conferences, trade shows, and government-sponsored events to network with agency representatives and learn about upcoming opportunities.
  • Targeted Outreach: Identify specific agencies and programs that align with your offerings and conduct targeted outreach to program managers and contracting officers.
  • GSA Schedules: If applicable, consider obtaining a GSA Schedule contract. This can streamline the procurement process for government agencies and provide you with pre-approved access to a wide range of buyers.
  • Small Business Programs: Leverage small business set-aside programs and certifications (e.g., 8(a), HUBZone, SDVOSB, WOSB) to increase your visibility and competitiveness.
  • Content Marketing: Create valuable content (e.g., white papers, case studies, blog posts) that demonstrates your expertise and addresses the needs of government agencies.
  • Subcontracting: Explore subcontracting opportunities with prime contractors. This can be a valuable way to gain experience and build relationships within the federal market.

Dos and Don'ts of Federal Marketing:

Do:

  • Thoroughly research agency needs and priorities.
  • Highlight relevant past performance and experience.
  • Maintain accurate and up-to-date registrations and certifications.
  • Follow all applicable regulations and guidelines.
  • Build relationships with government buyers.

Don't:

  • Use overly aggressive or high-pressure sales tactics.
  • Misrepresent your capabilities or experience.
  • Ignore compliance requirements.
  • Neglect follow-up and relationship maintenance.

By implementing these strategies, you can effectively market your products and services to the federal government and increase your chances of securing valuable contracts.

Useful Links

This section provides a collection of Useful Links related to federal contracting. These resources can help you navigate the complexities of doing business with the federal government.

Please note: These links are external and may change over time. While we make every effort to keep this list current and accurate, we appreciate you letting us know if you encounter any broken or outdated links.

Acquisition.gov

Acquisition.gov is a comprehensive online platform developed by the General Services Administration (GSA) that serves as a central hub for acquisition-related information, policies, and tools. The platform provides critical resources to federal acquisition professionals, including contracting officers, program managers, and industry partners.

Forecast of Contracting Opportunities

Information on planned federal contracting opportunities. It is important to learn about potential contracting opportunities as far in advance as possible. This way you will be able to plan and start your proposal strategy early in the process. Most Federal Agencies publish their forecast in the Agency Recurring Procurement Forecasts.

Federal Acquisition Regulations (FAR)

The Federal Acquisition Regulations System consists of the Federal Acquisition Regulation (FAR), which is the primary document, and agency acquisition regulations that implement or supplement the FAR.  

FAR Supplemental Regulations

Many Federal Agencies have their own set of rules that supplement the FAR. It is important that you become also familiar with the supplements regulations of the agencies that you are targeting. Click here to access the FAR Supplements.

DoD Office of Small Business Programs

If you're a business looking to sell to the federal government, the Department of Defense (DoD) Office of Small Business Programs (OSBP) website is your essential starting point. It provides resources, guidance, and opportunities specifically tailored for small businesses seeking to navigate the DoD procurement process.

DoD Acquisition Forecasts

Future acquisition forecasts are prepared by a number of organizations within DoD. Forecasting methodologies vary by service and constitute the best estimate of each. Forecast information is provided for planning purposes and is subject to change.

Guide to DoD Contracting Opportunities

The Defense Pricing, Contracting, and Acquisition Policy (DPCAP) Contract Policy (CP) Directorate is the focal point for developing new, innovative acquisition tools and practices and improving existing DoD acquisition policies.

Small Business Innovation Research and Technology Transfer (SBIR /STTR)

Federal innovation, scientific achievement, and diverse entrepreneurship through small business innovation and research. Through the SBIR and STTR programs, America’s Seed Fund awards non-dilutive funding to develop your technology and chart a path toward commercialization.

Small Business Size Standards

Certain government programs, such as SBA loan programs and contracting opportunities, are reserved for small businesses. In order to qualify, businesses must satisfy SBA's definition of a small business concern, along with the size standards for small business.

North American Industry Classification (NAICS)

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

Federal Supply Codes and Product Service Codes

The Product and Service Code (PSC) Manual is essential for anyone wanting to sell to the federal government because it provides the standardized language used to classify all products, services, and research and development purchased by federal agencies.

Frequently Asked Questions

We've compiled a list of frequently asked questions to provide you with quick solutions and helpful information. If you can't find the answer you're looking for, please don't hesitate to contact us.

Am I a small business?

The SBA’s size standards determine whether or not your business qualifies as small. Size standards define the largest size a business can be to participate in government contracting programs and compete for contracts reserved or set aside for small businesses. Size standards vary by industry, and are generally based on the number of employees or the amount of annual receipts the business has. You can find small business size regulations in Title 13 Part 121 of the Code of Federal Regulations (CFR). You may also use SBA's table of small business size standards to help you assess your business size.

How do I register as a federal contractor?

To participate in government contracting, you must register your business in the federal government’s System for Award Management (SAM). SAM is a database that government agencies search to find contractors. Using SAM, you’ll able to certify that your business is eligible for contracts that are reserved for small businesses. There is NO cost to register.

What is a NAICS Code?

The North American Industry Classification System (NAICS) code classify businesses based on the particular product or service they supply. A business will generally have a primary NAICS code, but it can also have multiple NAICS codes if it sells multiple products and services. To find your NAICS code, view the NAICS code list at the U.S. Census Bureau.

Where do I find federal contracts to bid on?

Federal contract opportunities for contractors are listed at SAM.Gov. Government agencies are required to use SAM to advertise all solicitations over $25,000.

You will also find opportunities in: UNISON (FedBid); DLA Internet Bid Board System (DIBBS), FedConnect, among others.

Can I bid on opportunities that reference a NAICS Code that it is not in my SAM registration?

Yes, you can bid and make an offer, so long as you meet the procurement’s size standard and can provide the goods and/or services. However, to avoid potential conflicts, we strongly recommend updating your SAM registration to include the solicitation's NAICS code before submitting your offer, or immediately afterward if you've already submitted. Be aware that it can take 10 to 15 days for SAM to reflect these changes.

Where can I go to learn about the SBA's socioeconomic certifications, such as 8(a), HUBZone, Women-Owned Small Business (WOSB), and Service-Disabled Veteran-Owned Small Business (SDVOSB)?

The U.S. Small Business Administration (SBA) website is the best place to learn about their various socioeconomic certification programs. Visit MySBA Certifications to find detailed information on eligibility requirements, application processes, and benefits.

What is a General Services Administration (GSA) Schedule?

A GSA Schedule, also referred to as a Multiple Award Schedule (MAS), is a streamlined procurement vehicle that simplifies the process for government agencies to purchase commercial products and services.

It's essentially a pre-negotiated contract between the GSA and commercial vendors, offering pre-determined pricing, terms, and conditions. This allows agencies to buy directly from schedule holders without going through the full competitive bidding process each time.

Where do I find subcontracting opportunities?

SubNet is a database of subcontracting opportunities posted by large contractors looking for small businesses to serve as subcontractors. The SBA also maintains a directory of federal government prime contractors with subcontracting plans.

The GSA publishes a subcontracting directory for small businesses that are looking for subcontracting opportunities with prime contractors. The directory lists large business prime contractors that are required to establish plans and goals for subcontracting with small businesses.

How do I market to the Federal Government?

Marketing to the federal government is different than marketing to commercial clients. It requires a strategic approach focused on demonstrating your capabilities and meeting their specific requirements. Here are some key steps:
1. Register in SAM.gov: This is the first and most crucial step. You must be registered in the System for Award Management (SAM) to do business with the government.
2. Research Agencies: Identify agencies whose missions align with your products or services. Understand their needs, budgets, and procurement methods.
3. Market Research: Use resources like USAspending.gov to research past contracts and identify potential opportunities.
4. Networking: Attend industry events, conferences, and matchmaking events to connect with government buyers and prime contractors.
5. Respond to Solicitations: Actively search for and respond to Requests for Proposals (RFPs), Requests for Quotes (RFQs), and other solicitations on SAM.gov.
6. Develop a Capability Statement: Create a concise document that highlights your company's capabilities, experience, and past performance.
7. Consider Certifications: Explore relevant certifications like 8(a), HUBZone, WOSB, or SDVOSB, which can provide a competitive advantage.

What is the Office of Small and Disadvantaged Business Utilization (OSDBU)?

The Office of Small and Disadvantaged Business Utilization (OSDBU) is a dedicated office within each federal agency responsible for maximizing opportunities for small businesses, including small disadvantaged businesses, women-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone businesses, in federal contracting. You can find the contact information for each OSDBU Director by searching "OSDBU" plus the agency name (e.g., "OSDBU Department of Defense").

Does the Government set-aside contracts for small businesses?

Yes, To help provide a level playing field for small businesses, the government limits competition for certain contracts to small businesses. Those contracts are called “small business set-asides,” and they help small businesses compete for and win federal contracts. There are two kinds of set-aside contracts: competitive set-asides and sole-source set-asides.

Competitive set-aside contracts: When at least two small businesses could perform the work or provide the products being purchased, the government sets aside the contract exclusively for small businesses. With few exceptions, this happens automatically for all government contracts under the Simplified Acquisition Threshold. The threshold is adjusted periodically to account for inflation and other economic factors. The current threshold as of January 2025 is $250,000.

Sole-source set-aside contracts: Most contracts are competitive, but sometimes there are exceptions to this rule. Sole-source contracts are a kind of contract that can be issued without a competitive bidding process. This usually happens in situations where only a single business can fulfill the requirements of a contract. Some set-asides are for small businesses in certain socio-economic categories. You can bid on these set-aside contracts by participating in any of the SBA's contracting assistance programs.

If I get a federal contract, can I subcontract the work?

Yes, subcontracting is often a part of federal contracts. However, the Federal Acquisition Regulation (FAR) includes limitations on subcontracting, particularly for small business set-aside contracts, to ensure that small businesses perform a significant portion of the work. Generally:
- For service contracts (except construction), the prime contractor must perform at least 50% of the cost of the contract incurred for personnel.
- For supply contracts, the prime contractor must perform at least 50% of the cost of manufacturing the supplies (not including the cost of materials).
- For general construction contracts, the prime contractor must perform at least 15% of the cost of the contract with its own employees.
- For special trade construction contracts, the prime contractor must perform at least 25% of the cost of the contract with its own employees.

These limitations may change, so you visit the Federal Acquisition Regulation (FAR) for the latest information.

What is a solicitation?

A solicitation is a formal request for bids or proposals from the government. Common types include Requests for Proposals (RFPs), Requests for Quotes (RFQs), and Invitations for Bids (IFBs).

What is the FAR?

The Federal Acquisition Regulation (FAR) is the primary regulation for federal government procurement. It governs how federal agencies acquire goods and services.

What are small business set-asides?

These are contracting opportunities reserved exclusively for small businesses, helping them compete with larger companies.

What is a Capability Statement?

A Capability Statement is a concise summary of your company’s qualifications, experience, and expertise, tailored to specific government needs.

What is CMMC?

CMMC (Cybersecurity Maturity Model Certification) is a unified cybersecurity standard for DoD contractors designed to protect sensitive unclassified information. It has three levels:

Level 1 (Foundational): Focuses on protecting Federal Contract Information (FCI), which is government-provided or generated information not intended for public release.

Level 2 (Advanced): Focuses on protecting Controlled Unclassified Information (CUI), which requires safeguarding or dissemination controls according to laws, regulations, or government-wide policies.

Level 3 (Expert): Focuses on protecting CUI and mitigating risks from Advanced Persistent Threats (APTs), which are sophisticated, persistent cyberattacks often conducted by nation-states or well-funded groups.

Who needs to be CMMC certified?

Any DoD contractor handling Federal Contract Information (FCI) or Controlled Unclassified Information (CUI) needs to achieve a specific CMMC level, depending on the sensitivity of the information involved in the contract. However, there are exceptions for contracts exclusively for Commercially Off-The-Shelf (COTS) items, as defined in the FAR, or for purchases at or below the micro-purchase threshold (currently $10,000).

What is FOCI?

FOCI refers to foreign ownership, control, or influence over a U.S. company, which can raise national security concerns when the company is involved in government contracting. The government may require mitigation measures, such as a Security Control Agreement (SCA), Special Security Agreement (SSA), or Voting Trust Agreement (VTA), to address FOCI concerns.

What are some DoD innovation programs?

Examples include the Small Business Innovation Research (SBIR) program, Small Business Technology Transfer (STTR) program, and Defense Advanced Research Projects Agency (DARPA) programs. The SBIR program encourages small businesses to engage in federal research and development (R&D) with the potential for commercialization. The STTR program is similar to SBIR but requires collaboration between small businesses and research institutions.

What is the Defense Production Act (DPA)?

The Defense Production Act (DPA) empowers the U.S. government to boost domestic industrial production for national defense and critical needs. To encourage participation, the government may offer financial incentives, including loans and loan guarantees, purchase agreements, and direct investments.