Government Contracts for Small Businesses

Presented by Joseph McDevitt, Marketing Director, SBA Philadelphia Distinct Office

The U.S. Government is the largest procurer of goods and services in the world.  It spends more than $300 billion each year.  Small businesses are often at a disadvantage when trying to win federal contracts.  That’s why the U.S. Small Business Administration (SBA) has programs to help overcome the barriers.  

Working closely with federal agencies and the nation’s leading large contractors, the SBA works to ensure that small businesses obtain a fair share of government contracts and subcontracts. The SBA has a number of programs to help small firms to do business with the federal government. 

Through the Prime Contracts Program, the SBA helps to increase the small business share of government contracts.  It also advocates for the breakout of items purchased through full and open competition.  SBA Procurement Center Representatives (PCRs) across the country work to expand contracting opportunities for small businesses.  PCRs review contracting actions at major federal procurement centers, review subcontracting plans, and recommend contracting sources. 

There are two types of PCRs: traditional and breakout.  Traditional PCRs work to increase the number of procurements set aside for small businesses.  Breakout PCRs work to remove components or spare parts from sole-source to procurements through open competition, which generates savings for the federal government. 

Visit the SBA’s Office of Government Contracting home page at www.sba.gov/gc for a listing of PCRs and buying installations nationwide.  

The Subcontracting Assistance Program promotes the full utilization of small businesses by the nation’s major prime contractors.  The SBA’s Commercial Marketing Representatives (CMRs) concentrate on large businesses that have one or more federal contracts in excess of $500,000.  The CMRs review these large companies’ subcontracting plans in order to identify small business sources to satisfy specific needs of the prime contractor. 

The Certificate of Competency Program (CoC) helps small businesses secure federal contacts by providing an appeal process to low-bidder firms denied federal contracts for a perceived lack of ability of financial resources to perform the work.  A small firm may apply to the SBA for a (CoC) when it is the low bidder on such a contract but are considered by the contracting agency to be unable to complete the work.   

The CoC is a document indicating that the firm with the lowest bid has the plant or financial capacity to complete the contract.  A plant survey and financial analysis of the firm is performed by SBA personnel.  Within 15 workdays of receipt of the referral, the firm and contracting officer are notified of SBA’s decision regarding the CoC.  Issuances of the CoC to the successful low bidder usually results in savings to the government over the next low bid. 

The newest SBA procurement program is Business Matchmaking.  It is a public-private sector contracting initiative made possible through a cooperative agreement between the SBA and HP (Hewlett-Packard).  Business Matchmaking has emerged as one of the most successful initiatives ever undertaken by the SBA.

Matchmaking events provide a unique opportunity for small businesses to present product and service solutions to buyers through prescheduled one-on-one appointments with procurement

managers. The events are not just an opportunity to trade business cards, as is the case with traditional trade shows. Instead it is a real chance for small businesses to meet with public and private organizations for procurement opportunities.

A Regional Business Matchmaking event is scheduled for Philadelphia on September 22, 2006 at the Convention Center. Additional information can be found at www.businessmatchmaking.com.

The SBA also participates in the Chamber’s Supplier Network.  The Supplier Network is a series of instructional courses, taught by leading business experts.  Participating small businesses receive a certificate of completion and have the opportunity to build relationships with purchasing executives of large corporations and government agencies/associations.

Since its founding more than a half-century ago, the U.S. Small Business Administration has delivered about 20 million loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses.  In the Small Business Act of July 30, 1953, Congress created the U.S. Small Business Administration, whose function is to "aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns."  The charter also stipulated that the SBA would ensure small businesses a "fair proportion" of government contracts and sales of surplus property. For more information about the SBA online, go to www.sba.gov.

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