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Writer's pictureKen Larson

Tools To Help Grow Your Small Business Federal Government Contracting


SBA

“The U.S. government is the world’s largest customer. It buys all types of products and services — in both large and small quantities — and it’s required by law to consider buying from small businesses.

Learn about government contracting assistance programs to help small businesses sell products and services to federal agencies.”

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Contracting assistance program benefits

The SBA provides several programs to help small businesses win federal contracts. Participating in these programs helps small businesses:

  • Win a fair share of federal contracts

  • Qualify for exclusive set-aside and sole-source contracts

  • Partner with established contractors to win contracts

  • Get business mentoring and education to learn how federal contracting works

Register to contract with the government as a Small Disadvantaged Business.

The federal government’s goal is to award at least 5% of all federal contracting dollars to women-owned small businesses each year.

Learn about federal programs that help veteran-owned small businesses access federal contract awards and surplus personal property.

The federal government’s goal is to award at least 5% of all federal contracting dollars to small disadvantaged businesses each year.

Your small business can learn from an experienced government contractor through SBA’s Mentor-Protégé program.

Joint ventures allow certain businesses to compete together for government contracts reserved for small businesses.

SBA’s goal is to provide high-quality assistance to eligible businesses to help them be competitive for federal, state, and local government contracts.

The HUBZone program fuels small business growth in historically underutilized business zones with a goal of awarding at least 3% of federal contract dollars to HUBZone-certified companies each year.

The government sells large amounts of natural resources and surplus property. SBA works with federal agencies to channel a fair share to small businesses.

Program structure

Small business contracting goals

The government works to make sure small businesses get at least 23 percent of all federal contracting dollars.

Additionally, the government tries to award a certain percentage of all federal prime contracting dollars to small businesses that meet certain socio-economic conditions.


Women-owned small business5%

Small disadvantaged business5%

Service-disabled veteran-owned small business3%

Small business in a HUBZone3%


For some large contracts that can’t be awarded directly to small businesses, the government requires a small business subcontracting plan as part of the award. A small business subcontracting plan directs the prime contractor to subcontract out parts of the award to small businesses. A subcontracting plan is required when these conditions are met:

  • The contract is worth more than $700,000 (or, more than $1.5 million if it’s for construction)

  • There are capable small businesses who could do subcontract work at a fair market value, without significantly disrupting performance

The rules that govern subcontracting plans are set forth in Subpart 19.7 of the Federal Acquisition Regulation (FAR).

Set-asides

To help provide a level playing field for small businesses, the government limits competition for certain contracts to small businesses. Those contracts are called “small business set-asides,” and they help small businesses compete for and win federal contracts.

Some set-asides are open to any small business, but some are open only to small businesses who participate in SBA contracting assistance programs.

How to participate in contracting assistance programs

To participate in any of the SBA’s small business contracting assistance programs, you’ll first need to qualify as a small business. The SBA’s size standards determine whether or not your business qualifies as small.

Most of the socio-economic programs require some form of certification. Many programs use the certify.SBA.gov website to let you certify or do a preliminary check to see if you’re qualified.

However, each program has its own standards and process for certification, so make sure to read carefully.

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