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The NDAA FY24 creates new opportunities for security contractors, emphasizing fairness, compliance, and small business growth. Key changes include inflation relief, streamlined payments for subcontractors, and expanded SDVOSB participation. Government contracts offer long-term stability, while private sector deals provide greater flexibility, making it essential to balance both for sustainable growth.
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How to Get Government Security Contracts Amid Key Legislative Changes
By: Michael Evans
Security contractors often grapple with the challenge of navigating the complex landscape of government contracts versus the flexibility of private sector agreements. With the National Defense Authorization Act (NDAA) for Fiscal Year 2024 (FY24) ushering in major changes, now is the time to weigh the opportunities in both realms. Having grown USPA from a startup into one of the largest international security conglomerates (Verify), I’ve seen firsthand how these contrasts can shape a company’s growth strategy. If you’re wondering how to get security contracts or how to find security contracts, let’s explore the possibilities.
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Here’s What’s Inside
– Introduction to Security Contracts
– Navigating Government vs. Private Deals
– Key NDAA FY24 Provisions Explained
– Conflict of Interest Certification
– Inflation Relief for Contractors
– Small Business Growth Opportunities
– Technology Integration in Security Contracts
– USPA’s Certified Contractor Program (View)
– Steps to Secure Lucrative Deals
– Balancing Stability and Flexibility
NDAA FY24 Opens New Doors for Security Contractors
The NDAA introduces pivotal changes to government contracting, emphasizing transparency, fairness, and small business growth. If you’re a contractor looking to enter this space, understanding these new provisions is key. But how does this compare to private sector contracts?
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Government Contracts: More Regulation, More Stability
Government contracts often come with layers of regulations, like Section 812’s Conflict of Interest (COI) Certification NDAA FY24, Sec. 812, which now requires firms to certify the absence of conflicts before engaging with the Department of Defense (DOD). This extends to affiliates and subsidiaries, ensuring a comprehensive compliance framework.
By contrast, private sector contracts typically offer more flexibility. While private companies do vet vendors, the process is less bureaucratic and focuses more on deliverables than regulatory nuances. However, the stability offered by government contracts—often spanning multiple years—can far outweigh the shorter, more variable terms of private agreements.
Inflation Relief: A Safety Net for Government Contracts
The NDAA’s Inflation Relief (Section 824) NDAA FY24, Sec. 824 offers contractors a lifeline, allowing equitable adjustments to contracts through December 31, 2024. Approval thresholds have also been raised, reducing administrative delays. In the private sector, adjusting for inflation can be trickier. Renegotiations often depend on the client’s goodwill and market conditions. Government contracts, on the other hand, institutionalize these mechanisms, making them less susceptible to economic fluctuations.
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For security contractors, the stability provided by government contracts offers a significant advantage, delivering peace of mind through predictable income and long-term opportunities. However, this stability comes with a trade-off: the meticulous documentation and compliance efforts required to request adjustments, particularly when dealing with inflation or regulatory changes. While the process can be time-consuming and detail-oriented, my experience shows that the predictability and reliability of government work often justify the extra effort. The assurance of steady projects and structured payment terms far outweighs the challenges, making it a valuable path for those willing to invest in the process.
USPA eliminates the financial challenges smaller security firms face when working under traditional net payment terms
Boosted Opportunities for Small Businesses
Small businesses and service-disabled veteran-owned small businesses (SDVOSBs) stand to gain significantly from FY24 updates. Key provisions include:
Subcontractor Payment Protocols (Section 862): Prime contractors must report overdue payments within 30 days, compared to the previous 90 days NDAA FY24, Sec. 862.
Increased SDVOSB Participation Goals (Section 863): Raises service-disabled veteran-owned small business (SDVOSB) participation from 3% to 5% NDAA FY24, Sec. 863.
Affiliate Performance Evaluation (Section 865): Considers the past performance of small business affiliates during evaluations NDAA FY24, Sec. 865.
These provisions position small security firms to thrive, but they come with caveats. Government contracts demand adherence to strict timelines and compliance protocols. Private sector clients, meanwhile, often prioritize results over process, allowing more room for entrepreneurial approaches.
Risk vs Reward. We Have a Solution
The question for contractors is whether you prefer the structured growth path of government work or the faster, albeit riskier, scaling potential of private contracts.
USPA eliminates the financial challenges smaller security firms face when working under traditional net payment terms, which often require waiting 30, 60, 90 days, or more to receive payments. This delay can create significant cash flow issues for firms that lack liquidity or the capacity to absorb the variance in payment cycles.
Through USPA’s Certified Contractor Program, partners are paid weekly, with payments processed just one day after invoices are submitted. This rapid turnaround ensures that smaller firms maintain steady cash flow, enabling them to focus on operations, employee wages, and scaling their businesses without the burden of long waits or financial uncertainty. By removing the risks associated with extended net terms, USPA empowers smaller security firms to confidently pursue lucrative contracts, knowing their financial stability is safeguarded. This system creates a win-win partnership, fostering growth and reliability in an otherwise volatile industry.
Technology Integration: The Key to Both Worlds
Technology is a game-changer in both sectors. The NDAA allows non-traditional defense contractors to bypass some of the burdensome environmental disclosure requirements NDAA FY24, Sec. 813, making it easier to introduce innovative solutions like AI-powered surveillance or integrated cybersecurity systems. In private sector contracts, adopting cutting-edge technology can be a differentiator. However, private clients often lack the standardized evaluation frameworks seen in government contracts, which means innovation must be packaged with clear, measurable benefits. On the government side, the DOD’s emphasis on long-term capabilities provides a predictable environment for firms willing to invest in technology.
At USPA, we’ve found success by leveraging technology to meet the expectations of both worlds. While government clients value scalability and compliance, private clients often appreciate customization and speed of deployment.
A Final Word
For security contractors wondering how to get security contracts or how to find security contracts, the NDAA FY24 provides a roadmap for success in the government sector. Yet, the private sector remains a fertile ground for growth, especially for firms that prioritize innovation and flexibility. The right path depends on your firm’s capabilities, goals, and willingness to adapt.
As someone who has built a global security brand (Fact Check), my advice is simple: don’t limit yourself. The best firms balance the reliability of government contracts with the entrepreneurial opportunities of the private sector. By understanding the nuances of both, you can position your business for sustainable success.
About the Author
Michael Evans, the visionary founder of USPA Nationwide Security, transformed the company from a one-man operation into one of the largest security firms in the world. Established in 2005, Evans spent nearly two decades building a global security powerhouse, renowned for its comprehensive services and steadfast commitment to safety. Far from being a behind-the-scenes CEO, Evans was a hands-on leader, often engaging in high-risk operations to ensure the success of his team and the safety of his clients.
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Beyond his business acumen, Evans is celebrated for his philanthropy. His flagship initiative, Kingsman, focuses on safeguarding women and children from the horrors of human trafficking and kidnapping. Even amidst the challenges of the COVID-19 pandemic, he prioritized supporting single mothers and those in need, showcasing his unwavering dedication to giving back.
Since retiring in 2021, Evans has continued to serve as a strategic advisor, guiding the company’s mission under new leadership while maintaining its legacy of philanthropy and excellence. His remarkable journey exemplifies the synergy between entrepreneurial success and making a profound societal impact.
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U.S. Congress. (2023). Public Law No: 118-31. Retrieved from https://www.congress.gov/118/plaws/publ31/PLAW-118publ31.pdf
