5 Ways Government Contracting Grows Your Business
The general perception towards Government contracting is that it puts businesses, especially small businesses in a very complicated and intimidating environment. This perception is not a completely misguided one. Without the expertise and assistance of people who are knowledgeable in the field of Government contracting, small businesses can lose their way and end up with a truck load of problems to deal with. Government contracting can be particularly dangerous to the fiscal property of small businesses, but with that being said the rewards on offer of Government contracting are too lucrative to be dismissed by any small business.
Most of the small businesses do not have a clear understanding of how Government contracting can actually benefit their company. Much of this confusion can be blamed on a lack of sufficient knowledge about the effects of Government contracting on the small business sector. Once you are acquainted with impact that Government contracting has on your industry, you will find it easier to be receptive to the idea of bringing your company under the fold of Government contracting. Here are 5 notable ways in which Government contracting influences the small business sector in the United States of America.
1) Procurement Reform
Facilitating Federal procurement was one of the key objectives of Vice President Gore’s National Performance Review Report that was revealed approximately 20 years ago. The main focus of the Vice President was to form a government that works more efficiently and requires less money to be operational. Almost 400 recommendations were made by the report to improve the state of the Federal Government while uplifting the quality of the Government services to the citizens of the nation. This eventually led to the procurement form legislation that will alter the Federal procurement process once and for all.
Currently, plenty of changes are being anticipated in the current Senate Procurement bill. One change in particular is aimed specifically at small business provisions in an attempt to encourage bids by small companies who are at a clear disadvantage from the big hounds in the industry.
2) National Performance Review (NPR)
Government contracting will have a massive impact on Information Technology. The National Performance Review is expected to generate more than $10 billion in new business opportunities. This provides small businesses with a golden opportunity to climb up the ranks by making use of the new funds that are allocated for them. The reason why the Government is so interested in outsourcing its services through small businesses is because they believe that small business can greatly contribute to increasing the productivity and effectiveness of Federal workforce.
3) Health Care Reform
Regardless of which Administration is at the helm, a health care reform is almost always around the corner. Although the details are hardly ever revealed in their entirety, but there is still enough information for marketing research firms to predict that a window of opportunity will be opened that will benefit businesses involved in imaging, data entry technologies, ID cards/smart cards, multimedia and business process re-engineering.
4) Proposal Quality
There is good news for entrepreneurs who are worried about the disparity between the quality of the proposal and the quality of the work performed by the contractor. A RFP that was published a few years ago stated the following in section M “Selection Criteria”, “”The offeror’s ability to follow the proposal instructions set forth in the solicitation will also be considered to be an indication of the offeror’s ability to follow instructions should they be awarded a contract as a result of this solicitation” . In simple words, if you are willing to live by the words you mentioned in the proposal during your application as a contractor, then the Government will definitely look after you in the best way possible.
5) Quicker and Shorter Technology Equipment Buys
The internal policy document of the Government states that the time-frame of performance of Indefinite Delivery/Indefinite Quantity (IDIQ) hardware buys has been shortened considerably. The duration of 5 years before, has been altered to 2 years now. Furthermore the size of the contracts has been noticeably reduced as well. On paper this may smell like trouble, but in reality, it creates far more opportunities for small businesses than ever before. There will now be more room for solicitations and potential contract negotiations which will put your small company in the driving seat during Government contracting.
Now is a better time than ever to get involved in Government contracting. Seize the opportunity before time runs out in this ever changing global economy.