This just in: The U.S. Small Business Administration announced that the federal government exceeded its small business federal contracting goal for the sixth consecutive year in 2018, awarding 25.05% in federal contract dollars to small businesses. That totaled $120.8 billion, an increase from the previous fiscal year of nearly $15 billion, and the first time more than $120 billion in prime contracts has been awarded to small businesses.
So the federal government awarded more than $120 billion in contracts to small businesses in 2018. Think about that. The federal government is a $500 billion-a-year federal marketplace — the largest buyer of products and services in the U.S. – purchasing everything from pencils to construction services to aircraft. And it goes out of its way to award the contracts to small entrepreneurs across the country. Why?
“Through these businesses, we strengthen the economy, and support the American workforce in the process. For example, the federal prime and subcontract awarded to small businesses in FY18 equate to more than one million jobs created, said the SBA’s Acting Administrator Chris Pilkerton. “Every contract that gets in the hands of a small business is a win-win for our nation, the entrepreneurs, their employees and the communities they support all across the country.”
The Small Business Administration’s goals look to also address the needs of small businesses owned by women, small disadvantaged businesses, service-disabled veteran-owned small businesses and small businesses located in Historically Underutilized Business Zones (HUBZones) with goals for each category.
In FY18, the federal government exceeded the service-disabled veteran-owned small business and small disadvantaged business goals and the prime contract dollar awards in all small business categories increased from previous years. The federal government also exceeded its subcontract goals for awards to small businesses and women-owned small businesses, and awarded more than $79 billion in subcontracts to all small businesses, the agency said in its press release.
The prime contract goal achievements by dollars and percentages for all categories are as follows:
| Category | Goal | 2014 $(B) |
2014 %SB |
2015 $(B) |
2015 %SB |
2016 $(B) |
2016 %SB |
2017 $(B) |
2017 %SB |
2018 $(B) |
2018 %SB |
| Small Business | 23% | $91.7 | 24.9% | $90.7 | 25.7% | $99.7 | 24.4% | $105.7 | 23.8% | $120.8 | 25.05% |
| Small Disadvantaged Business | 5% | $34.7 | 9.5% | $35.4 | 10.1% | $39.1 | 9.4% | $40.2 | 9.1% | $46.5 | 9.65% |
| Service Disabled Veteran Owned Small Business | 3% | $13.5 | 3.7% | $13.8 | 3.9% | $16.3 | 4.0% | $17.9 | 4.1% | $20.6 | 4.27% |
| Women Owned Small Business | 5% | $17.2 | 4.7% | $17.8 | 5.1% | $19.7 | 4.8% | $20.8 | 4.7% | $22.9 | 4.75% |
| HUBZone | 3% | $6.7 | 1.8% | $6.4 | 1.8% | $6.9 | 1.7% | $7.3 | 1.7% | $9.9 | 2.05% |
While in the past the getting a federal contract was cumbersome, it is getting easier. Two legislative bills (H.R. 226 and H.R. 227) that passed in January now simplify the process for small businesses going after federal contracts, Small Business Trends reported. Still, it’s a process and more very different from pursuing commercial contracts.
TIPS FOR SUCCESS
How can a small business get in on the action? We encourage you to read GrowBiz’s ongoing series on contracting – HERE and HERE and HERE – for advice on determining if contracting is right for your business, finding opportunities and getting your foot in the door, plus plenty of resources. You can also attend a free seminar this month for the lowdown (see below).
But first, here are some more tips shared by Alan DuBrow, a consultant for the Florida Procurement Technical Assistance Centers (PTAC), at the Small Business Leadership Conference in Orlando last week. The annual conference was produced by the Jim Moran Institute and the Florida SBDC Network.
- After identifying an opportunity you want to pursue, review and analyze the proposal requirements in detail and get to know the Procurement and Contracting Offices in your district, which can answer your questions.
- To begin preparing your proposal, research your segment and review all competitors’ data. Do SWAT’s on the competition. Look at the company from your competitor’s standpoint – how do you stack up? Make sure you make your differentiator clear.
- Be customer focused. As with commercial contracts, you need to fully understand your customer’s wants and needs – all issues, challenges and preferences – and meet them. As with on the commercial side, it’s all about relationship building.
- Exercise market focus and discipline – use a laser approach, not a shotgun approach, in going after opportunities.
- If the opportunity exceeds your bandwidth, consider teaming with a prime contractor.
FREE SEMINAR
Last but not least, if you are in the Miami area, register for a free seminar later this month given by PTAC and Florida SBDC at FIU, the small business development center within FIU’s College of Business.
The free seminar, “Finding and Winning Federal Contracts,” will be held from 9 am to 11 am July 24 at Cambridge Innovation Center, 1951 NW 7th Ave. in Miami.
- This workshop will aim to teach small business owners:
- How to properly search for federal contracts
- How to pull together an actionable game plan
- How to identify key federal agency contacts
- How to market themselves to federal buyers and ensure successful follow up.
It’s co-sponsored by the U.S. Spain Chamber, PTAC and Florida SBDC at FIU in association Pino Global Entrepreneurship Center.
REGISTER FOR THE SEMINAR HERE.
READ MORE IN GROWBIZ SERIES ON CONTRACTING
Is your business ready for federal contracting?
How to find federal contracting opportunities
Federal contracting – getting your foot in the door
Please send GrowBiz topic suggestions and feedback to GrowBiz@FIU.EDU.