Making Big Money From Goverment Contracts

[M&A]

I have found a government contract worth $15,000 to supply a government agency with some household materials.

All that is listed is the contract value and a contact email/phone.

How exactly do goverment contracts work as I have heard it can quite lucrative, Lockheed Martin and Boeing make billions doing this. There are contracts listed anywhere from $10,000 - $5 billion.

When you win a contract do they give you the sum of the contract value in this case $15,000 and you go out and then you take care of your end of the contract in this case to supply and deliver household construction supplies.

Or do you have to fulfil your end first then they pay you.

You profit on the difference (contract value - cost to supply and deliver goods = profit)

I would like to hear from someone who has experience in this field as I will act on this contract once I have sufficient knowledge.

 

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[theag]

I think there was an INSIDERS call about this...

Yup: https://www.thefastlaneforum.com/co...services-to-the-u-s-federal-government.44769/

Havent listened to it yet though..

 

[TTG SS]

We deal with all sorts of government contracts. You need to start building connections with the guys who write the BPA's. You can also try networking with GSA(General Service Admin), they are your best bet IMO if you are just starting out, but be warned they can be a pain in the a$$. There are also many trade shows government guys go to. Just got back from one today, actually.

Who specifically are you trying to sell to? The government is a massive entity.

They do NOT give you the amount upfront, at least in the instances I've dealt with. They cut a Blanket Purchase Agreement, and then will generally send in purchase orders throughout the time that contract is good for. We also deal with many other multi-national corporations, and they function the same way.

 

[Change]

I have experience with government contracts for the construction industry and supplying them with vehicles.

A little for both- the real barriers to entry are the insurance needs/the documentation that is needed to be filled as well- and "finding" the projects to bid on.

But aside from that -(which many people can't comply with) there is the capital needed- the government will often times warrant a bond from 10-20% of the full contractual value, they also pay you 1 month after rendered services. For the great majority of it all- you must self-fund the project and only be paid after things are rendered.

This is all merely pertaining to the construction industry and the procurement of tangibles. Try this instead- find what you want to offer, for example mulch for landscaping, (I knew someone who would supply mulch to the Teterboro airport every year and made tens of thousands of dollars a year (profit) by just being the middle man). Then look around for procurement sites and download their bid-packages. In the packages it would usually note the quantities/specifications of what is needed, the terms of the contact (especially that of payments and licensing and qualifications). Find the bid due date.

THEN---- find suppliers for the product- get them to sign a firm proposal to render those goods at that stated price upon your will for at least 2 years....go around online bidding on all procurements for -in this case Mulch- at 20% $ more per ton of what it costs to buy it...No way in hell you won't get some contractual acceptances.

The need is there- its easy to find suppliers- all you need to do is 'bid and be accepted'...have it delivered and collect your cash.

 

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