Over the past few years, spending cuts along with budget uncertainties forced government agencies to yield on contracts. In January, Congress approved a $1.1 trillion spending bill. With a new budget in place, agencies are starting to spend money again and are looking towards small businesses to help fulfill their contracting goals.
Government contracting can be a lucrative growth opportunity for small business owners as the government buys everything from products to services. However, the process isn’t always easy for first time contractors and business owners often have questions about how to get their foot in the door. A good first step is for small business owners to visit www.USASpending.gov to find out what the federal government is purchasing and which agency is purchasing your product or service.
There are many free resources for small business owners looking to grow their business through government contracting. For example, the American Express OPEN for Government Contracts program offers events and content for small business owners to learn more about procurement opportunities. The program also provides small business owners with direct access to government agencies through one-on-one meetings and targeted agency events.
This year, the government plans to spend approximately $83 billion with small businesses contractors so the time is ripe to get started. Here are a few insider tips and competitive strategies to help small business owners get a leg up on the competition.
Network. Get out from behind the computer and meet other firms across industries. Connect with possible teaming partners and stay in communication with all connections.
Don’t be afraid of the competition. Getting to know competitors as a possible teaming partner will allow small businesses to stretch their resources.
Team with other certified contractors. Find certified Service-Disabled Veteran-Owned Small Businesses (SDVOSB), Women Owned Small Businesses (WOSB), 8(a) Small Disadvantaged Businesses or those operating in areas designated as Historically Underutilized Business zones (HUBZone) within related industries and connect with them to pursue contract awards within these categories.
Introduce your company’s products and services to other certified firms. Most 8(a) certified firms have a certification lifecycle of 9 years, teaming with 8(a)’s can become a very lucrative move. They are the only certification program having the capabilities of being awarded sole source (no bid) contracts based on their capabilities.
With the recent launching of the WOSB/EDWOSB program, American Express OPEN, Women Impacting Public Policy (WIPP) and the Small Business Administration (SBA) partnered to create ChallengeHER in 2013 for women business owners to learn about contracting opportunities under the WOSB Federal Contract Program. These events are great ways to meet other WOSB contractors for potential teaming partnerships.
Look into Subcontracting. Being a subcontractor on a larger contract has become a beneficial way for small businesses to explore government contracting. The new SBA subcontracting rules have strengthened opportunities for small businesses. If a contract awarded to a large corporation has a value greater than $650,000 for products and services or $1.5 million in construction, large firms must seek small business teaming partners to help them fulfill these subcontractor requirements.
According to the SBA Goaling Program, recent updates are increasing contracting opportunities to small businesses. Although the federal government’s small business contracting goal is 23 percent, other agencies have greater goals for 2014 for both prime and subcontracts. Visit: smallbusiness.data.gov to learn more.
Get on a General Services Administration (GSA) Schedule contract. Agencies are utilizing this contracting vehicle more each day because it simplifies the proposal process and allows government agencies to select from small business socioeconomic categories on GSA Schedules. This process helps agencies achieve contract goals more quickly and is a great entry point for small businesses.
The GSA’s Government-Wide Acquisition Contract (GWAC) STARS II has proven to be extremely rewarding for small businesses generating $978 million in the first three years of the program.
STARS II allows agencies to easily create task orders for qualified government contractors in orders less than $4 million. This contract specializes in IT services, network/data programming and computer programming.
Respond to RFI Notices. Sources Sought or Request for Information (RFI) Notices, one of the first stages of the proposal contract development, determine if there are small businesses with particular expertise on an open contract the government is seeking to fulfill. Small businesses should respond to Sources Sought notices and RFI notices the government is posting on FBO.gov. This will give contractors the ammunition they need to set contracts aside to small businesses.
Pick up the phone and call your friendly small business competitor and ask them to submit responses as well. Remember to follow up after submitting your sources sought response. Patience and persistence will pay off.
Explore Agency Procurement Forecast for already designated upcoming small business set aside opportunities. Visit Acquisition.gov to learn more.
Watch for all opportunities. Small businesses are quick to pursue work in new areas and sometimes forget to tap local and state governments and current agency clients. State and local governments are doing their best to improve local economies by increasing contract opportunities for small, minority and women-owned businesses.
Explore your local municipality’s small business certification program. Getting your firm certified will always give you a competitive edge.
Find out about networking opportunities sponsored by local state and government agencies. American Express OPEN also hosts numerous conferences providing small business owners with free resources and direct access to government contracting officials.
Opportunities for contractors have been worthwhile despite challenges in recent years. For instance, Fed Biz Opps (www.fbo.gov), the federal government portal for purchases over $25,000, already experienced an uptick in contracting posts, notices for wanted sources and indefinite delivery/indefinite quantities (IDIQs), contracts for an indefinite quantity, in this year. With a large budget and the government now ready to spend, small business owners should utilize the opportunity to start bidding on contracts.
About the Author
Lourdes Martin-Rosa is the American Express OPEN Advisor on Government Contracting and has 20 years of experience in the federal procurement arena. She helps small businesses get contract ready and achieve contract success. For more information, visit the American Express OPEN for Government Contracts website.
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