Federal Government Contract
Facts about Federal Government Contracts
Did you know that Ross Perot the billionaire made his fortune with federal government contracts? He started his company with a $1,000 loan. He later sold EDS to General Motors for $2.5 billion.
Donald Trump got his start renting apartments to military families in the Norfolk, Virginia area and branch into leasing office space to the federal government? To this day Trump still leases office space to the General Services Administration (GSA).
In 1978, President Jimmy Carter (a former peanut farmer) signed Public Law 95-507. This law opened the door for small businesses and entrepreneurs by requiring that a certain percentage of government contracts go to small businesses.
Major corporations with government contracts are now required to dole out 23% of their government contracts in the form of sub-contracts to small businesses and entrepreneurs.
Prime government contractors who have not met their quotas for sub-contracting work out are subject to massive fines and the possibility of losing the contract all together.
These sub-contracts are available to any small business owner or entrepreneur. But 99% of all small business owners will never land a single sub-contract, while 1% of small business owners will repeatedly land juicy government contracts.
When you start landing a few of these lucrative sub-contracts of prime government contracts every month, cash-flow is no longer a concern.
Recent hurricanes caused over $100 Billion dollars in property damage… and the US Government is awarding contracts left and right in order to repair the damage.
The prime government contractors still have to spend 23% of their government contract on sub-contractors and they’re desperate to pass out these juicy sub-contracts to small business owners.