Federal Opportunities for Small Business
Copyright (c) 2011 Jack Quinn Solutions, LLC
The Business-to-Government market is about strategic positioning to take advantage of opportunity. Small businesses must be prepared to take advantage of the opportunities because contracts between $3,000-100,000 must be awarded to small businesses. However, small businesses MUST RESPOND or allow the government to compete the opportunity without restriction. Without restriction enables large prime contractors to secure federal business, then subcontract the business to small businesses for a large percentage of the profits.
In April 2010, the President issued the Interagency Task Force on Federal Contracting Opportunities for Small Business Presidential Memorandum that commissioned the task force to develop innovative strategies, remove barriers, expand outreach, and establish policy to help small business participate in federal contracting. Federal contracting is a $500 billion dollar market that purchases goods and services of all types to help the government function. Government agencies are required by law to fill at least 23% of all purchases with small businesses; as a result over 30% of federal contracts are designated as small business set asides, where only small business is allow to compete.
The federal market has potential for those willing to endure the process and play by the rules. The benefits of this market are the following reasons: • Government spends every year, during good times and bad • Government pays its bills within 30 days • Government purchasing process is transparent • Federal opportunities are available to all businesses in the United States • Business can sell to federal agencies in any state • Prime Contractors have small business goals
The top spenders in the federal government are the Department of Defense (DOD), Department of Energy (DOE), Health and Human Services (HHS), General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA). Together, these agencies obligated over $450 billion dollars in federal funds. The top vendors were large prime contractors, who secured over $50 billion in funding.
Congress has mandated small business contracting goals for all federal agencies According to the Small Business Administration, the following small business contracting goals have been set by Congress: • 23 % of prime contracts for small businesses • 5 % of prime and subcontracts for women-owned small businesses • 3 % of prime contracts for HUB Zone small businesses • 3 % of prime and subcontracts for service-disabled veteran-owned small businesses
If contracting officers do not achieve these goals, a report must be submitted explaining why; thus it is easier to meet or exceed the goals. Set aside status provides an advantage, but procurement officials are more focused on ensuring contract performance, so they follow a methodical process that not only identifies capable vendors, but also qualified vendors with the appropriate infrastructure and experience to fill the requirements of the contract. For small businesses, teaming becomes a critical part of the proposal process to ensure all aspects of performance are covered with a capable vendor. Federal spending spikes between July and September, so make sure the team is in place to take advantage of contracting officers need to make quick decisions. During this time, a business wants to make the decision to award a contract easy for federal procurement officicals by demonstrating capabilities.
The government uses five methods to purchase goods and services: micro-purchasing, simplified acquisition process, sealed bidding, negotiated contracts, and consolidated purchasing. Each method is based on a dollar threshold and the details of the requirement. Micro-purchases include anything less than $3,000 and are purchased with a credit card from authorized card holders. Simplified Acquisitions cover all purchases $3,000 - $100,000 and must be set aside for small business (so long as small business shows the capability to fill the requirement). Sealed Bidding usually involves products, not services, and competes on price. Negotiated contracts are valued over $100,000 for all types of goods and services. The final category is Consolidated Purchasing where the government pre-negotiates prices with a vendor that government officials can use to buy goods and services without competition.
The key to competing in any of these categories is understanding the federal procurement process and following a simple and repeatable process that enables a business to rapidly achieve success.
About the Author
For more information visit, http://www.jackquinnsolutions.com Jack Quinn Solutions, LLC helps businesses determine market position in the B2G arena and analyzes business operations to position resources for success as a government contractor. Government opportunities are available for businesses that understand the process and understand the importance of strategic business.
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