The federal government spends more than $500 billion annually. And the good news for businesses is that a significant chunk of that money goes to independent contractors for products and services the government needs yet doesn't produce itself. Nevertheless, many businesses steer clear of government contracts because of the horror stories they've heard - continuous reporting, endless red tape, and just the overall hassle experienced satisfying a government contract. Though many of those stories I'm sure are true, that hasn't been my experience. So I ask, "With a customer base of that magnitude, can your business really afford to ignore it?"

A few years ago, we were fortunate enough to bid on a contract for the EPA, Region 8, covering Colorado, Wyoming, Montana, Utah, North Dakota, and South Dakota. We were one of a dozen women or minority-owned firms that were invited to bid on the contract.

Observation #1 - The government looks favorably upon women- and minority-owned businesses. In some cases it may even restrict the bidding to just these businesses. For those of you who have your own business, this can be a great competitive advantage.

After a phone conversation with our prospect to determine HER needs, we submitted a proposal to be reviewed by the contracting team.

Observation #2 - Government contracts aren't necessarily long, tedious undertakings.

Our proposal was three pages which included the different phases of the project, an estimate of the resources it required, and a working agreement that included payment terms and the fine print.After a couple weeks, we received a call notifying us that we made the short list. We were asked to schedule an appointment to present the proposal to the contracting team and was told after all four presentations were seen, the team was prepared to make their decision.

Observation #3 - Unlike some of the stories we had heard and what we had experienced with some of our other clients, the decision process was not long and cumbersome.

Within a month from the time we first talked, we were notified that we had won the contract. The project proceeded like any of our other projects. There were a few blips along the way, but we hadn't had a project that didn't have their share. We did have to alter our reimbursement schedule, however, to accomodate the EPA's payment policy. Typically, we require one-third of the project's revenues upfront as earnest money. The government doesn't do business that way. You get paid when you deliver. But no problem. We divided the project up into phases with distinct deliverables for each and were paid upon completion of each of the deliverables.

Observation #4 - The government pays you!

Unlike other customers we've all had the misfortune of working for, the government pays their bills. They have huge bureacracies (the ones we like) that make sure their bills are paid. And on the off chance that they are late with a payment, they pay interest! And you don't wait for months before you're paid, either. Our terms are net 20! And we get an electronic deposit - no paper checks to deposit. The money is sitting in our checking account when we need it.

Since that first project a few years ago, we were awarded a dozen others - and we didn't have to compete with any other firms for the contracts. Why? The EPA was happy with our work, and it was just easier (and cost effective) for everyone involved. In fact, because of other needs of the EPA, we were able to provide assistance which consequently expanded our product and service offerings.

Observation #4 - The downsizing of government has opened up all kinds of opportunities for small businesses, women-owned businesses, and minority-owned businesses. In fact, there is an explosion of entrepreneurial businesses in and around the Washington, D.C. area servicing the federal government's needs. And we haven't even talked about state and local government opportunities!

We love the EPA! We love the federal government! And we love our government checks! Now when was the last time you heard that from anyone?

When was the last time you were offered one billion dollars?

The U.S. Air Force has invited women to participate in it's small business initiatives, such as 1BI2K ($1 billion dollars in contracts in the year 2000 to women-owned businesses). The Air Force Office of Small and Disadvantaged Business Utilization has a web site which aids in finding these opportunities. This site is a vital link for women-owned businesses who want to do business with the Air Force.

Of particular interest is the Long Range Acquisition Estimate, a procurement forecast tool that projects opportunities for Fiscal Year 2000 and beyond. To use this tool, go to the AFOSDBU home page (www.selltoairforce.org) and click on Procurement Forecast. You will be presented with a live database that is updated daily. Type in any search criteria to fit the needs of your business and click search.

You'll also find news, subcontracting information, current opportunities, an electronic posting service plus much more.