There’s never been a better time for small businesses looking to sell products and services to the federal government. A backlash over the federal government’s reliance on sole-source (no-bid) contracts with big companies in Iraq and the Hurricane Katrina cleanup has produced a growing multibillion-dollar bonanza for small companies.
Opportunities are particularly abundant for small firms owned by veterans, women and minorities.
The key is to plug into the process early. “Just because the opportunities exist doesn’t mean everybody begins the race at the same starting line,” says Tim Walsh, CEO of ePipeline, a Web site listing contracting opportunities. “The smartest small businesses know that their best shot is in the critical pre-proposal time frame. It’s like being in a hot real estate market. If you only look at what’s advertised in the newspaper, you’re already too late.”
A few years ago, the share of contracting opportunities for small business was about 40 percent. This year, the share has jumped to 52 percent, representing billions of contracting dollars.
Here are five trends in federal contracting for small business:
1. The demise of “sole-source” contracting means there will be more bidding opportunities accessible to small businesses.
2. Big contracts are being deliberately “unbundled” and made available for small contractors – a reversal of recent trends.
3. Big contractors are seeking more women- and minority-owned firms as partners to meet new federal rules.
4. Vet-owned businesses are moving to the front of the line.
5. Changes in the definition of “small contractor” will allow fast-growing contractors to stay in the “small” category longer. Small companies need to know where they stand in relation to the standards so they can “size up” the competition.
These government and corporate contracting resources can help get you into this lucrative small business marketplace:
• DiversityBusiness.com helps match buyers and suppliers.
• Business Matchmaking Online Network, at www.BusinessMatchmaking.com.
• Synchris Inc., at www.synchris.com, supplies bid management software.
• ePipeline, at www.ePipeline.com.
• Set-Aside Alert, at www.setasidealert.com, is a contracting information service for small, minority- and woman-owned businesses.
Daniel Kehrer can be reached at editor@business.com.
