Small Business Contracting
How the times have changed. Ten years ago small business contracting
was a hot area of government contracting. Agencies sought out
companies certified to participate in the Small Business Administrations
8(a) program for socially and economically disadvantaged businesses
because it was much easier and faster to procure goods and services
through an SBA 8(a) company than using full and open competition.
Agencies would often direct large businesses to use small disadvantaged
business partners. The dollar and percentage of federal business
awarded to small businesses grew.
Things began to change when some non-disadvantaged small businesses
challenged the constitutionality of the SBA 8(a) program and similar
affirmative action programs. Agencies became wary that an award
to an SBA 8(a) contractor could be held up in court. Suddenly,
using an SBA 8(a) contractor became less attractive. When the
GSA Schedule programs Price Reductions clause and the Maximum
Order were relaxed and the program was enlarged to included services,
small business contracting fell even more out of favor.
Congressional reports now show the dollar and percentage awards
to small, woman owned, and small disadvantaged businesses is down.
And outside of the relative shelter of small business programs,
its become even harder for small businesses to compete with
large businesses when the size of your marketing budget has become
so important.
All that being said, small business contracting (and subcontracting)
is not about to go away. Large contractors still need to know
how and when to contract and subcontract with small businesses.
Agencies still set aside procurements in whole or in part for
small businesses, and certainly push large prime contractors to
subcontract with as many small businesses as possible. Small businesses
able to use their nimbleness to their advantage can succeed in
the federal marketplace.