1. The U.S. Small Business Administration (SBA) has an extensive section of its website with provides business with information and details on how to start and manage a small business, as well as how to bid and get government contracts for work. The goal of the SBA’s Office of Government Contracting & Business Development, is to award a minimum of 23 percent of prime government contract dollars to small businesses. This division of the SBA also works to help federal agencies to meet statutory goals for businesses owned by disabled veterans and women; small disadvantaged businesses and businesses in historically underutilized zones, also called HUBZones. Ensuring that a minimum of contract dollars is awarded to small businesses not only provides support, and helps to create jobs, the SBA has resources to help make small businesses more successful with training, counseling, and federal buying matchup.
2. The SBA definition of a small business changes and is different for different sectors. New standards will take effect July 22, 2013. How a business is categorized includes its annual receipts and number of employees. As a business grows, it will need to stay abreast of the changes the SBA makes to the code, in order to remain within the SBA size parameters. After growth beyond the SBA status, the business would then compete for RFPs as a standard business, which does not mean that they would not receive the contract. Twenty-three percent of all contract dollars are meant for small businesses, which means that there are other contracts that would go to small businesses and not hurt the chances of other businesses.
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3. The purpose of the government contract small business allocations is to help businesses grow and be able to hire more workers. To that end, in order to continue to support employment, it is logical for the small business parameters to shift in order to make sure that these businesses can continue to support employment. The government could support businesses, or it can dispense unemployment.
4. Contracts between $2,500 and $100,000 are automatically set aside for small businesses, when at least two businesses apply for the contract. Contracts over $100,000 can also be set aside when the Contracting officer has reasonable expectation that at least two responsible small business which will offer the products at fair market value. The set aside can be a single or class of acquisitions. One example is a rework of a particular agency’s manuals and standards, this $10,000- $15,000 project would be a ideal for a small writing agency. Another example would be a new contract for the cleaning of uniforms, and a small business would have a chance to grow its business and gain exposure to other agencies (Business Owner’s Toolkit).
5. Government set-asides for small business provides a convenient avenue for very small business, even self-employed individuals who are looking to support themselves after being laid off and unable to find employment. This person can utilize their skill and vast knowledge to start a business and use past knowledge to create a business, which could also help employ others who are unable to secure employment after an extended period of time. The set asides, especially for very small firms, provide the opportunity to for government work, expand experience, while handling smaller projects in boutique-sized businesses .
- Business Owner’s Toolkit. “Small Business Government contracting initiatives can give you an edge.” Web. Biz Filings: Business Owner’s Toolkit. 24 May 2012.
- U.S. Small Business Administration. “Small Business Website.” Web. 2013.
