01/ 27/ 2005
Take a look at the role small business plays in the federal government marketplace.
Of the more than $235 billion federal contract dollars awarded in fiscal 2002, almost one-fourth, or $53.25 billion, went to small businesses. In terms of the actual number of contracts awarded, half went to small businesses.
Looking at these statistics, it’s obvious that small business plays a huge role in the federal marketplace. By law, the federal government has to award 23 percent of all contracts to small businesses. And that’s just a starting point.
The Department of Veterans Affairs, which awarded almost 15 percent of all federal contracts in 2002, awarded at least 27 percent of them to small businesses. At least 43 percent of all contracts at the General Services Administration, which comprises about 2 percent of all federal contracts, are awarded to small businesses.
Other agencies like the Department of Commerce, the Consumer Product Safety Commission and the Department of the Interior, which each make up less than 1 percent of all federal contracts, have even higher goals for small business. The Commerce Department sets aside 45 percent of its contracts for small business, the CPSC awards at least 48 percent of its contracts to small businesses, while the Department of the Interior apportions 56 percent of its contracts to small business.
In short, it’s no longer a big-box world in the government marketplace. Government agencies want small businesses making their products and performing their services. And it’s no wonder – small businesses, which make up two-thirds of our economy, are among the most innovative and responsible employers in the country. So if you haven’t already delved into the government marketplace, what’s stopping you?
Surely it’s not the bidding process. A common misperception of winning government contracts are the reams of paperwork you think you’ll have to fill out in order to be a government contractor. In fact, according to John DiGiacomo, director of the Procurement Technical Assistance Center at Rock Valley College in Rockford, Ill., in 90 percent of the cases, small businesses do not have to prepare a proposal, but just give a price.
This is called an invitation to bid or a quotation, in which the agency has already settled the base terms of the contract and is only looking for how much it will cost them for your business to carry out the terms of the contract.
None of this means your small business will be a shoo-in for any contract. Whether it’s a request for proposal that you’re responding to or simply submitting a dollar value, it’s important to do your homework, figuring out if the contract is a good fit for your business, determining and factoring in the costs to your business, and reviewing your bid proposal to make sure it’s complete.
