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 AREAS OF INTEREST
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Federal Contracting
State and Local Contracting
Corporate Contracting
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How Big is the Opportunity?
Procurement programs are Big Business for Small Businesses.
According to the 3/23/04 press release by the Small Business Administration, the federal government awarded more than a quarter of its prime contracting
dollars to small businesses in fiscal year 2003. The FY 2003 data indicate that small businesses did $62.7 billion of business with the federal government
as prime contractors. The dollars awarded in these contracts created or retained approximately 469,632 jobs.
According to Fortune magazine, minority owned businesses sold over $50 billion in goods and services to Corporate America.
In 2000, 10 of the largest corporation collectively purchase more than $18 billion in products and services from minoirty and women-owned suppliers.
Source: Billion Dollar Roundtable
Where is your company in the Supply Chain???
The U.S. government is the world's largest buyer of products and services. Purchases by military
and civilian installations amount to nearly $200 billion a year, and include everything from
complex space vehicles to janitorial services to cancer research. In short, the government buys
just about every category of commodity and service available.
By law, federal agencies are required to establish contracting goals, such that 23% of all
government buys are intended to go to small businesses. In addition, contract goals are
established for women-owned businesses, small disadvantaged businesses, firms located in
HUBZones and service disabled veteran-owned businesses. These government-wide goals, which are
not always achieved, are 5%, 5%, 3% and 3%, respectively. They are important, however, because
federal agencies have a statutory obligation to reach-out and consider small businesses for
procurement opportunities. It is up to you to market and match your business products and
services to the buying needs of federal agencies.
Selling to the federal government is, in some ways, similar to selling to the private sector.
While federal procurement procedures may have a different set of rules and regulations, many of
the same marketing techniques and strategies you already employ may work here. Use your common
business sense.
Some tips: Get to know the agency and understand the context in which your
product or service could be used. Obtain available information on past awards, quantities,
costs and awarders.
Become known to potential purchasers. Before going forward, take a moment to think about your
company's products and services. Take a close look at your company and consider what the
government will look for when considering your company for a contract award. Financial status,
staff capabilities and track record are all of interest to the government.
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