It’s interesting how much money the government spends contracting with businesses. In 2004, for example, the government spent about $300 billion. With the Recovery Act and stimulus programs this number will likely rise in the next few years.

Additionally, 23% of all federal procurement contracts are supposed to go to small businesses.

As you can see, there’s a lot of opportunity in government contracting today. But it is one thing to want one of these contracts and another to successfully land one.

Here are five steps to landing a government contract:

1. Be prepared: The federal procurement process is not an easy process to navigate. The first thing to understand is that federal procurement has its own unique set of rules and regulations which you must learn, called the Federal Acquisition Regulations (FAR). Under the FAR, selling to the government is not simply a matter of offering a fair price for good products to the right person. Instead, the government acquisition process is an animal unto itself, likely consisting of competitive (or sealed) bidding, among other buying procedures. So you need to learn about this process in considerable detail.

It is also a good idea to study the agency you may be targeting, and figure out how your product or service might fit into its needs. Realize that the agency will look critically at your business, especially your financial status, staffing, history and track record.

2. Select a niche: Government agencies are required to meet various small business procurement objectives. For instance, an agency may be looking to contract with a minority-owned business to help it meet its federally-mandated goals. Note, however, that any small business can bid on government contracts, but the ones below are given a special leg-up. They are:

* Women-owned businesses: A woman-owned business is one that is owned and controlled 51% or more by a woman or women.

* A small disadvantaged business: A small disadvantaged business is one that is 51% or more owned, controlled and operated by a person who is socially and economically disadvantaged. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to meet this standard. Other entrepreneurs can qualify by showing, via a “preponderance of the evidence,” that they are disadvantaged.

* A veteran-owned business: This is a business that is owned 51% by a veteran.

* A service-disabled veteran-owned business: This business is owned 51% by one or more service-disabled veterans. The Veterans Administration confirms the disability.

3. Set up a CCR profile: To bid on government contracts, you need to register with the Central Contractor Registry (CCR). To register, you prepare a profile of your business explaining what it is you offer and what makes you unique. This “elevator pitch” needs to sell you in a short amount of time, so make it concise (and be sure to mention your website).

4. Locate relevant contracting opportunities: For many small businesses, this is the hard part, but I have two great tips to make the search easier. First, contact the small-business liaison within each agency; each has one. If you meet with the agency’s small business specialist, understand that he or she is not the buyer but rather, a person who will point you in the right direction.

Second, consider attending a “Business Matchmaking” event. Business Matchmaking is a United States Small Business Administration program that is sort of like speed dating; it is a place where small business can have quick get-to-know-you meetings with government and corporate procurement officers.

Business Matchmaking is the brainstorm of Hector Barreto, the administrator of the SBA who recently resigned. According to Barreto, traditionally most of these government contracts went to small businesses “inside the beltway” (in and near Washington, D.C.) Barreto figured that other small business people around the country might like to earn some of these contracts, so he teamed up with Hewlett Packard and created Business Matchmaking, a sort of traveling road show of procurement opportunities.

5. Sell: In the end, it is still business we are talking about. The steps above will get you in front of the right government contact with a possible contract, but then it is up to you to create rapport, explain why your business is better and different, and get them excited about what you have to offer.

The government is required to award 23% of its contracts to small businesses. However getting a foot in the door and navigating the federal bureaucracy to land one of these deals can be daunting. Bidding for government contracts is a highly competitive process that is typically done online through the GSA schedules. Buyers will typically only reach out to the most responsive and responsible vendors who offer the lowest prices.

This is why Hector Barreto, a former administrator of the Small Business Administration has organized networking events to introduce the government and large corporations to small business. Business Matchmaking hosts events throughout the country to educate small business owners and put them in front of buyers. The events typically target minority, women, veteran and disabled veteran owned firms who are limited in their ability to gain exposure to contracts.

While the event is free, participating small businesses have to meet certain eligibility criteria. You must have a DUNS number and register with the Central Contractor Registration, the government’s primary vendor database. Event organizers pair small businesses with buyers based on the services offered and needed. When a business signs up, they get prepped so they can take advantage of every minute of face time. If there is not a strong fit between vendor and buyer, Business Matchmaking can suggest where to go at another agency.

Business Matchmaking is sponsored by SCORE and several major corporations (e.g., American Airlines, Microsoft). Organizers estimate that $7 billion to $8 billion in contracts have been purchased over the past three years from connections made at the networking events. And they have helped organize over 75,000 meetings.

This can be a strong lead generation tool for your business, so why not attend one of these events? At the least you can gain a list of relevant government contacts to follow up with after only several hours of attending.

The weak economy has impacted most businesses but the government has to keep operating and has to purchase new products or services. The government also purchases a variety of products from transportation to security guard services and janitorial services – and they pay on time!

You can find out about upcoming events in your area here. If you are a buyer, you can access the Portal for Buyers to get started. If you cannot attend one of these events, you can join the Business Matchmaking online network to connect with buyers and learn about program updates.