The Small Business Administration (SBA) plays an important role in supporting and empowering small businesses. This includes making sure small businesses win their fair share of government contracts.
Government Small Business Contracts Award Spending
The SBA’s mandated goal is for government small business contracts to account for approximately a quarter of all federal government procurement spending. The federal government awarded $614.7 Billion in total procurement spending in fiscal year 2022. Of that total, government small business contracts were $162.9 Billion or 26.5%, exceeding the goal of 23%.
Rather than large corporations monopolizing the government contracts marketplace, the SBA safeguards the market so small business can win their fair share of contract awards. In other words, the SBA champions the cause of government small business contracts.
The SBA is Your Advocate to the Government
To ensure that government contracts are equitably distributed, the SBA has mandated allocations for certain socio-economic categories for disadvantaged businesses (set-aside contracts) and provides resources to help them navigate the complexities of government procurement. The SBA also serves as an advocate for small businesses by representing them before policymakers and government agencies to create a favorable business environment for the award of government small business contracts.
SBA Resources for Government Small Business Contracts
Have you ever wondered why a competitor was able to win a government small business contract, and you’re not sure where to begin? They probably got some outside help to get started.
The SBA can be an invaluable resource to help you get started and navigate the complexities of government small business contracts. It’s important to build a relationship with the SBA and related organizations to utilize the resources they make available to help guide you through the contracting process.
Office of Government Contracting
SBA Office of Government Contracting (GC) and SBA Contracting Area Directors (CADs) work to create an environment for maximum participation by small, disadvantaged, and woman-owned businesses in federal government small business contract awards and large prime subcontract awards.
Procurement Center Representatives
SBA Procurement Center Representatives’ (PCRs) role is to help companies win government contracts. PCRs work with federal agencies to preview acquisition and procurement strategies before they are announced. This enables them to influence opportunities that should be set aside for government small business contracts. They also conduct market research and provide counseling on the contracting process.
Commercial Market Representatives
SBA Commercial Market Representatives work to ensure that small businesses are receiving the maximum practicable opportunity to participate as federal subcontractors for large contracts that can’t be awarded directly to small businesses.
Small business subcontracting plan requires large prime contractors to subcontract out parts of their award to small businesses when the contract is expected to exceed $750,000 ($1.5 million for construction), and there are qualified small businesses who can do subcontract work at a fair market value.
SBA Learning Center
SBA Learning Center offers free online courses to help small businesses understand government small business contracting.
Other Free Resources for Government Small Business Contracts
SCORE (Service Corp of Retired Executives) is a nonprofit association of thousands of volunteer business counselors around the country who help educate small business owners. SCORE provides free in-person and online counseling, as well as educational workshops.
Small Business Development Centers
Small Business Development Centers (SBDCs) offer free, one-on-one counseling and low-cost training services. Business owners can go to SBDCs for help with procurement and contracting, market research, 8(a) program support, and more.
APEX Accelerators
APEX Accelerators (formerly known as Procurement Technical Assistance Centers or PTAC) help small businesses that are interested in government contracting. APEX Accelerators can help determine if your business is ready for government contracting, register in the proper databases, and identify government small business contracts.
Office of Small and Disadvantaged Business Utilization (OSDBU)
Most large federal agencies have what’s called an Office of Small and Disadvantaged Business Utilization (OSDBU). These offices work to identify eligible government small business contacts within their agency. Each agency OSDBU is a great resource to get to know, and they work directly with contacting officials to make sure they are meeting the mandated small business contracting goals.
The SBA is a proven resource to help you win government small business contracts, as well as other free resources publicly available. While their help is free, the SBA website discloses some businesses spend between $80,000 to $130,000 to earn their first contract.
It can also be good to utilize outside experts and data sources that can complement the publicly available information. This can help you shortcut the red tape and learning curve to begin winning government small business contracts and keep your primary focus on growing your business.
