Checklist for Local Government Contracting
by Retta Parsons | September 26, 2025
Many factors need to be considered before a business engages in government contracting. It is a complex system that requires much research, monitoring, diligence and time. The following are questions to ask yourself before seeking government contracting opportunities.
- Does your business have well-defined product or service lines? Have you been in business for at least two years and making sales during that time?
- Do you have an established clientele with successful completion of projects of similar scope and budget? Can you list those companies as references? Do you have current contact information for those companies that you have verified?
- Does your business have the capacity to successfully complete contracts on time and on budget? Will you be able to successfully service both your current clientele and the governmental entity should you be awarded the contract?
- Do you have all required licenses, insurances, bonding, etc., in place? Have you scanned and digitized those documents (generally saved in .pdf form) so that they can be easily uploaded if requested. Keep in mind that, generally, pictures of the documents will not be accepted.
- Have you secured relevant codes such as DUNS, Cage, NAICS, NIGP, etc.?
- Have you prepared a capability statement? This is an important one as it is like your ‘resume’ which will be reviewed and evaluated.
- Do you have time to attend various “Vendor Connect” events throughout the year to network and build relationships with procurement staff and large prime contractors?
- Are you registered as a vendor with any municipality with whom you would like to submit a bid? Have you secured all relevant certifications offered by them?
- Do you have the ability to check emails and vendor portal accounts every day? Frequently, changes (amendments) are made to bids and require a response of receipt from interested parties.
- Do you have quick access to operating capital? Governments have a reputation for paying outside of their contracted reimbursement time limits. Also, invoice submission processes and procedures are known to be difficult with some entities not contacting a business should they need additional information or to make corrections. However, your business still must make payroll and buy supplies. The business is expected to be timely and within budget on all deliverables no matter the circumstances.
- Does your company have a formal accounting system? Are the financial statements prepared by someone educated and experienced in accounting/bookkeeping? Has that professional done at least a sample review of postings to ensure accuracy?
Government contracting is complicated at best and requires a good deal of time for success. It should be seen as a supplemental, diversified income stream and not as a sole source. Remember the adage, “Government contracting is in addition to and not instead of,” so focus on creating a business that does not need to depend only on that. Always seek guidance from an experienced government contracting consultant and keep your head in the game. It is possible, you just need to be determined and work towards achieving it.
![Local Government Contracting 101]](https://enwqtxc9es4.exactdn.com/wp-content/uploads/2025/09/Local-Government-Contracting-101-80x80.jpg?strip=all&lossy=1&ssl=1)
Retta Parsons
Consultants, Hillsborough, ParsonsFlorida SBDC at Hillsborough County
Specialty: Start-up, Bookkeeping
Retta Parsons brings a wealth of knowledge and experience in business management and public administration to her role as a business consultant. She previously served as CEO of Shiawassee United Way. In that position, she provided leadership to ensure the construction of a $26 million county medical care facility. She also led the change process and alliance establishment that resulted in the implementation of United Way 2-1-1 in Shiawassee County. Parsons also served as a training director for Girl Scouts, where each year she managed the delivery of approximately 124 trainings for more than 700 attendees. Parsons enjoys being active in the community. Past roles include chairperson for the State of Michigan, Department of Health & Human Services, Shiawassee County, board; chairperson of the Shiawassee Human Services Council; and ambassador for the Shiawassee Regional Chamber of Commerce. She earned a Master of Public Administration degree from Western Michigan University and a Bachelor of Arts degree in Human Resources Management from Spring Arbor College. She is a certified Child Care Facility Inspector, Instructor of Trainers, and Bridges Out of Poverty Trainer. In her spare time, Parsons enjoys bike riding with her husband, Roger, and spoiling her children and granddaughter.