Loading

Grow Smart Business


teaserInfographic
Close

Search Articles

Most liked posts



Recent Articles

Popular Tags

accounting and taxes blogging blogs Branding Business Development business travel Capital Access Compliance Customer Service ecommerce Email marketing entrepreneur entrepreneurship Facebook Generational Marketing GrowSmartBiz Conference Grow Smart Business lead generation LinkedIn Marketing michael dougherty mobile marketing networking online marketing Raising Capital Resources retail sales sales process SBSI Search Marketing seo small business small business accounting small business hiring small business loans small business marketing small business resources small business technology Small Business Trends social media Technology Twitter Web Design Workforce

Categories

Posts Tagged ‘government contracting’


Women Business Owners Lose Out in Race for Government Contracts

February 13th, 2013 ::

By Rieva Lesonsky

In spite of years of governmental efforts to help women-owned small businesses obtain government contracts, new data from Bloomberg show that in 2012, the percentage of U.S. government contracts awarded to women-owned small businesses actually dropped for the second year in a row.

While awards of contracts to men-owned firms have declined as well, the awards to women decreased at a faster rate. The percentage of contracts awarded to women-owned small businesses decreased 5.5 percent to $16.4 billion in the fiscal year ending September 30, 2012. Meanwhile, the percentage of contracts awarded to men-owned small businesses declined by 4.1 percent, dropping to $80.9 billion.

Women-owned businesses have long faced challenges in obtaining government contracts. During the Clinton administration, in 1994, the federal government set a goal that at least 5 percent of the total value of eligible contracts must be awarded to women-owned businesses; however, that target has never been met. Last year, Bloomberg says, women-owned small businesses accounted for about 3.2 percent of government contracts overall.

The irony is that just two years ago, the U.S. government launched a new effort to expand women’s access to government contracts. In February 2011, the Small Business Administration published its final rule regarding the Women-Owned Small Business (WOSB) Federal Contract program. This program authorizes federal contracting officers to set aside certain federal contracts for eligible women-owned small businesses (WOSBs) or economically disadvantaged women-owned small businesses (EDWOSBs).

What can you do if you’re a woman small business owner interested in landing federal government contracts? First, don’t give up hope. Here are some places to start learning about government contracting opportunities and making your firm more attractive to contracting officers:

  • You can self-certify as a WOSB or EDWOSB, or use a third-party certifier to help you through the process (since it can get pretty complex). Visit the SBA’s website to learn more about the WOSB and EDWOSB certification programs.
  • American Express and the nonprofit organization Women Impacting Public Policy have launched a program called “Give Me Five,” which offers education and resources to help more women business owners access federal contracting opportunities.
  • The U.S. General Services Administration (GSA) has programs and training to help small businesses, including women-owned businesses, successfully land government contracts. Learn more at the GSA website.

Image by Flickr user cometstar (Creative Commons)

 

 

Tags: , , , ,
Posted in Business Development, Marketing, Sales Process, sales process, Small Business, small business | No Comments »

What Helps Small Businesses Win Federal Contracts?

July 4th, 2012 ::

By Maria Valdez Haubrich

On Independence Day, it seems appropriate to take a look at how well small businesses are succeeding when they pursue federal government procurement opportunities. A new survey of 740 active small contractors by American Express OPEN found that subcontracting to prime contractors and teaming with other small firms to bid on projects are two key tools for small businesses seeking to land federal contracts.

Almost half (48 percent) of small companies surveyed have contributed products and services as a subcontractor. On average, these businesses get an average of 25 percent of their procurement revenue from subcontracts. Teaming, or partnering with other small businesses to pursue federal prime contracts, was used less often: 27 percent of active small contractors have used teaming, and on average it accounts for 9 percent of their procurement revenue. Minority-owned businesses were more likely than the average business to use teaming.

However, subcontracting isn’t without its problems. Almost one-third (29 percent) of active small business contractors in the study say they have been “shut out”—in other words, they contributed as a subcontractor to a bid that won, only to have the prime contractor fail to use them when it came time to fulfill the contract.

Subcontracting clearly leads to bigger things. Almost one-quarter (22 percent) of small firms in the study say they have landed more subcontracting opportunities after successfully completing a subcontract and getting recommended to others by a large prime contractor.

Some industries are more likely than others to use subcontracting. Companies in the information (software, data processing) and professional/scientific/ technical services (computer systems design, engineering, research) sectors are more likely than businesses in any other industry to be subcontractors (62 percent and 65 percent, respectively, compared to the average of 48 percent).

Overall, companies that not only pursue prime contracts on their own, but also pursue subcontracting opportunities and use teaming are much more likely to be successful—not only at procurement, but at business in general. Consider:

  • Companies that participate in subcontracting won 21 percent more prime contracts than average (4.7 versus 3.9 over the past three years). Companies involved in teaming 
won 54 percent more prime contracts (6.0 vs. 3.9 over the past three years).
  • These companies also earned more revenue from contracting. Although 24 percent of all active federal contractors have won
$5 million or more in federal contracts since they began pursuing federal contracting, 31 percent of those who are active in subcontracting and 40 percent of those who have pursued teaming have reached that amount.

Image by Flickr user mrsdkrebs (Creative Commons)

 

 

Tags: , , ,
Posted in Business Development, Marketing, Sales Process, sales process, Small Business, small business | No Comments »

Veteran-Owned Businesses Face Crackdown

September 7th, 2011 ::

By Rieva Lesonsky

Are you a military veteran whose business does work for the government? Then you need to be aware of a new crackdown that’s occurring due to recently discovered fraud. The federal Veterans Affairs Department recently discovered during an internal audit that more than 30 businesses to which it had awarded contracts set aside for veteran-owned businesses were actually ineligible for the contracts, The Los Angeles Times reports.

Thirty-two of the 42 companies the department audited should never have received contracts, the investigation found. In some cases, legitimately vet-owned businesses landed contracts, but then subcontracted the work to non-veteran-owned companies.

 

Service-disabled veterans, in particular, will face scrutiny because these companies get preferential treatment when seeking contracts from Veterans Affairs as well as other federal and state government agencies, the Times notes.

What does this news mean to your business? If you are trying to land a government contract, here’s what you can expect:

  • You will need to prove your company is legitimately veteran-owned by sending in copies of your tax returns, bank account signature cards and other documents. In the past, agencies just required businesses to vouch that they had those documents available.
  • You might have to provide copies of canceled checks from your business’s bank accounts.
  • You are more likely to be visited on-site by an auditor from an agency. For example, the Department of Veterans Affairs increased site visits from under 150 in 2010 to more than 750 this year alone.

On the plus side, the Times notes, companies that do make the cut will face less competition for contracts. Since the Department of Veterans Affairs began tightening standards late last year, half of the companies on its database have been eliminated because they didn’t make the cut in some way or another.

Will this new crackdown spread to other government agencies and/or other types of specialized businesses, such as those owned by women or minorities? It remains to be seen. On the one hand, government agencies are dealing with budget and staff cuts that could hamper their ability to vet (no pun intended) businesses. On the other, calls for greater transparency could prompt more investigations. One thing is certain: If you’re trying to land government contracts of any kind, be sure you have all your ducks in a row.

Image by Flickr user Keith Burtis (Creative Commons)

 

Tags: , ,
Posted in Business Law, Compliance, Small Business, small business, Uncategorized | No Comments »

Small Biz Resource Tip: Recovery.org

January 20th, 2011 ::

Recovery.org

Yes, there is still stimulus recovery money out there for the taking–just in case you were wondering. At the moment, more than 84,000 active recovery projects have been awarded, totaling over $225 billion, according to Recovery.org, an Onvia website created to provide businesses with information on government spending. If your business is looking to do business with the government and you want to get your share of the economic stimulus pie you can search on city and state to see who is getting the funds and what they are using them for. You can also sign up to get updates sent to your email address.

Tags: ,
Posted in Business Development, Resources, Sales Process, Uncategorized | No Comments »

New WOSB Rule Expands Women’s Access to Federal Contracts

October 22nd, 2010 ::

By Rieva Lesonsky

Women-owned small businesses have long been struggling to get their share of federal government contracting opportunities. With the recent finalization of the SBA’s Women-Owned Small Business (WOSB) rule, they will get a much-needed boost.

It has long been a goal, but never achieved, that 5 percent of federal contracting dollars should go to women-owned small businesses. To help reach that goal, a rule to help women get greater access to federal contracts was first authorized by Congress back in 2000. The SBA proposed various draft rules over the years, but many met with controversy and outrage on the part of women entrepreneurs.

When President Obama took office, his administration started fresh and the SBA drafted a brand-new rule that took into account all the studies, public comments and research that had gone before.

The final rule identifies 83 industries where WOSBs are underrepresented or substantially underrepresented in federal procurement. It also eliminates a requirement included in a prior proposed rule that would have prevented federal agencies from participating unless each agency certified it had formerly discriminated against women-owned small businesses. Finally, it established a $5 million ceiling for manufacturing-related contracts and a $3 million ceiling for other products and services. (You can read more details of the final rule at the SBA’s website.)

According to SBA Administrator Karen Mills, “Women-owned businesses are one of the fastest growing sectors of our nation’s economy, and even during the economic downturn of the last few years, have been one of the key job creation engines in communities across the country. Despite their growth and the fact that women lead some of the strongest and most innovative companies, women-owned firms continue to be under-represented in the federal contracting marketplace. This rule will be a platform for changing that by providing greater opportunities for women-owned small businesses to compete for and win federal contracts.”

The next stage in the process is implementation. The SBA and the Federal Acquisition Regulatory Council have 120 days to create the technology and program infrastructure needed. The SBA estimates contracts will become available to WOSBs early next year.

Tags: , ,
Posted in small business | 2 Comments »