While it’s not a cakewalk for small businesses to win a government contract, there is good news: it is getting easier. The U. S Government, as of November 2, 2011, has modified its FAR (Federal Acquisition Regulation) rules and now requires contracting agencies to consider setting aside a portion of their task and delivery order specifically for small and disadvantaged businesses. Now, now, I know what you’re thinking: “It requires them to consider placing a portion of their orders aside? What kind of weak ruling is that?” Well, fortunately, trends in contracting show that more and more contracts actually are being awarded to small businesses.
For example, in 2009 the U.S. Government awarded 21.9% of contracts to small businesses, whereas in 2010 that number rose to 22.7%. The difference resulted in a 1.1 billion dollar increase in the funds given to small business contractors. Further, the government exceeded its goal of allocating 5% of its contracting dollars, settling around an actual allocation of approximately 8%. In short, the trend toward awarding contracts to small businesses is steadily rising.
So what does this mean for your business? Well, if you have been on the fence about going for a contract, or if you think you have a product or service that the government regularly needs, then there has never been a better time than now. Not that you need to rush into this, but if you can determine that your company has the capability to pursue one of these opportunities, it could result in massive profits.
If you are intrigued by the possibility of acting as a government contractor and want to learn more, check out our webinar, “How to Win and Successfully Execute on Defense Contracts”, for in-depth information on entering the field of government contracting. Good luck!