Each of us has a story of how we got into the wonderful world of government contracting. In this month’s blog post, I reflect on how lucky I am to be in the government marketplace. Follow me as I share my encounter and romance with this multi-trillion dollar industry.
Subcontracting is an excellent pathway for businesses to enter the government contracting arena. Did you know that when a large prime contractor wins a contract over $750,000, or $1.5 million in construction, they are required to award 35% of that contract to small businesses? This
The government market is a vast and complex landscape, offering lucrative opportunities for
businesses of all sizes. However, winning government contracts is not as straightforward as
submitting a proposal and hoping for the best.
Relief for DoD contractors due to inflation may be on the way. The proposed National Defense Authorization Act (NDAA) for 2023, which is Congress' annual budget for the Department of Defense (DoD), includes a provision that would grant the DoD more discretion to allow inflation relief for DoD contractors. The NDAA would amend 50 U.S.C. § 1431 to give the DoD more discretion in allowing adjustments to contracts to account for inflation, although this allowance would only be temporary, lasting from when the NDAA is signed by the President until December 31, 2023.
The White House plans to significantly increase the share of federal contracts awarded to Small Disadvantaged Businesses (SDBs) by 50% by 2025. This ambitious goal translates to awarding an additional $100 billion to SDBs over the next five years. Currently, the target for SDBs is set at 5% of federal contracting dollars, but recent data shows that federal agencies have been exceeding this goal, awarding an average of 9.8%. The new goal aims to raise this share to nearly 15% by 2025.
Teaming and joint venture agreements are powerful tools often utilized by successful businesses in the government market. Although each agreement may seem straightforward, there are significant differences between them. The SBA has recently implemented new rules applicable to both agreements, so contractors should be aware of these essential differences.
When a company launches its business, many professional advisors suggest that entrepreneurs find a need and focus on that one niche, offering a solution to fill that demand. They are sought after when they are considered specialists in that one vertical*. This strategy works well, especially when there aren't many competitors and they can capture a larger market share.
In the realm of government contracting, goal setting is not just a strategic advantage—it's a necessity. Whether you're navigating federal procurement or bidding on local city contracts, establishing clear, achievable goals is crucial for success. This article explores why goal setting is so vital in government contracting and the broader business landscape, covering regulations, reliability, and the potential pitfalls of failing to meet commitments.
Does your client base primarily consist of companies in the private sector? Are you considering expanding your reach into the public sector with a focus on securing government contracts?
Working with the government can be a rewarding opportunity. If you invest the time to learn the "ins & outs" of what it takes to be successful, it will be worth it. Many articles highlight the benefits of bidding on government contracts and may make it look easy. However, only after being fully prepared will the process become less confusing, allowing you to operate with a more straightforward approach.
Are you currently working with the government or considering joining the ranks of successful businesses that do? In both scenarios, you're likely curious about how much the agencies spend and how much of that "spending pie" is allocated to your area of service. After all, if there isn’t enough funding for contractors in your category, it’s best not to waste time pursuing those contracts.
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Only 22% of federal contracting dollars are awarded to small businesses. Our goal is to be an agent of change by helping businesses owned by women, minorities, and veterans to get their fair share of the opportunities in the government market.
