The Role of the SBA in Government Contracts for Small Businesses
SBA has a central function of supporting and strengthening SMBs including guaranteeing the businesses access to a fair share of contracts tendered by the federal government. Government Expenditure on Contracts for Small Business The SBA goal is to have small businesses obtain about 25% of all the total procurement dollars.
In FY 2022, the federal government spent $614.7 billion on procurement of which $162.9 billion or 26.5% was given to small business contracts out of the set goal of 23% set by the SBA. Instead of waiting for some big corporations to monopolize the market, the SBA level the playing field to make it easier for small businesses to secure government contracts. This makes the SBA a highly recommended champion of small business in government procurement.
SBA: Forcing Small Businesses for Contracts The SBA has reserved some contracts for businesses with specific socio-economic status such as disadvantaged businesses. The SBA also guides these businesses through the process of tendering for government contracts and advocates on behalf of small businesses with policymakers to ensure that they create enabling environments for the small businesses to clinch these contracts.
SBA Resources for Small Business Contracts If you have ever asked yourself how competitors obtain government contracts, they did it with help. SBA provides many tools for the small business to begin and thrive in the challenging realm of government procurement. It is thus important to establish a good rapport with the SBA in order to get direction at this stage.
Office of Government Contracting The SBA Office of Government Contracting (GC)–headed by John Shorotsky-and Contracting Area Directors (CADs) continue to address prime contracting and supplied subcontracts, to attain the maximum participation of small, disadvantaged, and women-owned businesses in governmental contracts.
Procurement Center Representatives (PCRs) PCRs assist businesses in securing government contracts. They collaborate with federal agencies to review procurement strategies before they are made public, helping to set aside more contracts for small businesses. They also offer market research and guidance on the contracting process.
Commercial Market Representatives (CMRs) CMRs ensure that small businesses have opportunities to subcontract on large contracts that can’t be directly awarded to them. If a contract exceeds $750,000 (or $1.5 million for construction), large contractors are required to subcontract a portion of the work to small businesses, provided that qualified small businesses are available.
SBA Learning Center The SBA Learning Center offers free online courses that educate small businesses about government contracting.
Additional Free Resources for Small Businesses
- SCORE is a nonprofit that provides free mentoring and educational workshops for small business owners, both online and in person.
- Small Business Development Centers (SBDCs) provide initial consultation at no charge and are usually a relatively inexpensive service to assist business entities with contracting services, market analysis, and other services.
- APEX Accelerators (formerly PTAC) provides the client with information on their eligibility in obtaining government contracts, database listing, and contract opportunity identification.
- Office of Small and Disadvantaged Business Utilization (OSDBU): almost all federal agencies have an OSDBU office that is responsible for making sure that the small businesses are eligible for bids and that the agencies set small business goals.
As for the SBA resources themselves, as mentioned, they don’t cost a dime; however, the SBA points out that it may cost a company between $80,000 and $130,000 to win its first government contract. Thus, it can be easier for external consultants and paid sources to steer businesses through the process faster as they are likely to experience a lot of trouble with bureaucratic procedures in an effort to expand their businesses. To sum up, many possibilities are available at the SBA site when small businesses go in for getting a government contract. Relationships with the SBA and other federal agencies as well as the effective use of these tools will drastically improve the chances of small businesses acquiring contracts.
