The potential of a small business in the federal market depends on many different factors. Let’s talk about how those components come together.

First keep in mind how large the federal market is. The discretionary budget for 2022 was $1.688 Trillion. $388 Billion, or 23% of the total, was set aside for small businesses. Despite these significant numbers, less than 1% of small enterprises actively pursue opportunities to collaborate with the federal government.

Contributing Elements for Success

Industry

Is your business in a sector where the federal government buys your products and services? This should be the first thing a company looks at. What geographical area can you also offer your products and services? Although the government often purchases the majority of goods, there are benefits to being local.

Eligible for a Certification

Your businesses will be given preference if you are certified. Certain certifications have greater weight with some agencies than others. Yet early in the process, you should check to see what your company is qualified for, and then submit an application for all federal certifications that fall within your makeup.

-8(a) – Minority Owned Business Certification

-HUBZone – Historically Underutilized Business Zone

-WOSB – Woman Owned Small Business Firm 

-SDVOSB – Service-Disabled Veteran Owned Small Business Firm

GSA Schedule and other GWACS

Government purchasers can easily acquire from your company thanks to GSA Schedules and other Governmentwide Acquisition Contracts. Going with the flow, like everything else in life, typically produces better outcomes than going against it.

GSA Schedule also gives your company more visibility since GSA Advantage is the web portal that federal buyers utilize to find suppliers of goods and services when they do not already have a relationship with an incumbent.

Subcontracting

Compared to the size of the small business direct to government market, the federal subcontracting market is sizable and accounts for around 70% of it. A company can get experience with an agency by working for significant federal contractors. Since most small businesses only interact with one or two agencies, working as a sub can help you gain insight into how an agency operates, what resources it requires, and who to contact.

Am I in a Niche Market

Niche markets can also be beneficial. I once had a job with a company that produced specialized shovels for putting out forest fires. Finding the proper person was difficult, but once they did, business flourished.

Contract Size

The Simplified Acquisition Procedures apply to contracts worth up to $250,000. In the absence of a suitable small company supplier, these contracts should go to small businesses, unless otherwise noted by the procurement officer. Companies in sectors where this level of contract is frequently awarded have an edge in the federal market.

If you have an interest in contracting with the federal government, and every company should consider this, then I always recommend contacting an industry expert such as ez8a, Advance GSA and/or Fedvital. None charge for an initial consultation.