For the second consecutive year, the federal government has failed to meet its goal for awarding contracts to small businesses. And while there is some debate as to whether that failure is the fault of the government or the small businesses themselves, what is not up for debate is the fact that lucrative opportunities are being lost.
In the past four years the number of federal contracts awarded to small businesses has declined by nearly 23 percent. As a result, according to Congresswoman Nydia M. Velazquez, a New York Democrat, small businesses lost out on $9 billion in work.
"That is capital small businesses could have invested in creating more jobs in communities across the country," she said.
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What is especially troubling is that it appears at least one significant reason for the missed opportunity is a matter of perception. That is, small businesses are convinced that the road to federal contracts is a long one, is cumbersome – and is simply not worth the aggravation.
But small business owners may want to give the government a second look.
That’s the advice of Charles Reade, of Reade Advanced Material in East Providence, a company that has been doing government contract work for the National Aeronautic and Space Administration (NASA) for two decades. Reade counters the perception that government work is not worth the trouble.
"It’s uncomplicated," he said. "Today, the government bends over backwards to help you…About once a day I get an e-mail message that has all of the U.S. government contracts that contain any key work that may pertain to my business."
The government does not escape blame for failing to meet its federal contacting goal. For example, the "bundling" of federal contracts has become commonplace – and the result has been fewer opportunities for small business. Government work that might have been split by two 50-employee companies in the past, may now be handled under a single contract – awarded to one company of 100 employees.
If the practice of bundling contracts is contributing to the government’s failure to meet its small business goals, then the system needs to be re-examined. At the same time, small businesses should approach government work with an open mind. By capitalizing on the Internet, businesses should be able to keep abreast of federal work – and in most cases apply for it without an overwhelming investment of time.
Developing basic
skill sets
Last month we used this space to call for the General Assembly to significantly increase its commitment to adult literacy programs. We pointed out that 20 percent of Rhode Island adults over 25 lack a high school diploma or equivalent certificate – representing a total of 134,000 people. We noted that the current adult education programming capacity in Rhode Island serves 8,000 adults.
That’s less than 5 percent of the adults functioning at less than a high school literacy standard.
Now comes a report that further demonstrates just how serious the adult literacy problem is here in Rhode Island, and throughout New England. According to Jobs for the Future, 90 percent of Rhode Islanders who want to improve their literacy skills are not being served. The report, co-sponsored by the Nellie Mae Education Foundation, also found that 41 percent of all adults in New England lack the skills necessary to succeed in today’s knowledge-based society.
"New England faces a major skills crisis that both limits the ability to meet their families’ basic needs and threatens the entire region’s long-term economic health," said Marlene B. Seltzer, president of Jobs for the Future. "Clearly, something needs to be done when more than 4.2 million adults lack the literacy skills needed to succeed as workers, parents, and citizens in today’s society."
Among the more disturbing conclusions of the report is one that suggests that the adult basic education system in Rhode Island and throughout New England "has remained practically unchanged for over a century."
That is simply unacceptable.
