Types of Government Contracts for Small Businesses

Defining a Small Business

To understand the different types of US government contracts for small businesses, we must first define what a small business is.  A small business is organized for profit, has a business, and operates primarily in the United States or makes a significant contribution to the U.S. economy. The business must be independently owned, and operated, and cannot be dominant in its field on a national basis. It may be a sole ownership, partnership, corporation, or any other legal form. The CDC states that the main types of small businesses include small disadvantaged business, women owned, service disabled veteran, and HUBZone.

To meet the evaluation criteria for government contracts reserved for small businesses your business must reach the requirements set by the Small Business Administration (SBA). The size standards set by the SBA define the maximum size that a business and any affiliates can be to qualify as a small business and be able to obtain a certain contract. Most manufacturing companies with 500 employees or less, and most non-manufacturing businesses with average annual receipts under $7.5 million, will be considered a small business according to the SBA themselves.


Set-Aside Contracts

To help provide a fairer field for smaller businesses, the government puts a limit on competition for certain government contracts. These contracts are called “small business set-asides” and they aid in helping small businesses compete for and win contracts on the federal level. The two kinds of set-aside contracts include competitive and sole source.

The government sets aside a competitive contract when at least two small businesses can perform the work or provide the products that are being purchased. With very few exceptions, this process automatically happens for government contracts under $150,000.

Most contracts are competitive, but sometimes there are exceptions to this rule. Sole-source contracts are a kind of contract that can be issued without a competitive bidding process. This usually happens when only a single business can fulfill the requirements of a contract.

Certain set-aside contracts are for small businesses in specific socio-economic categories and can be bid on by participating in a contracting assistance program. These can include 8(a) business development which is small, disadvantaged businesses, HUBZone certified small businesses, women-owned, and service-disabled owned. Participating in these SBA programs typically results in having less competitions for contracts.


Joint Ventures

A joint venture is also an option for small businesses to compete for government contracts. Joint ventures have benefits such as collective representation of past performance, shared costs, and resources, and leveraging the other partner’s experience and market share. A small business with a mentor-protégé relationship can form a joint venture with a large business mentor if their qualifications fit the SBA requirements.

These joint ventures can compete for government contracts that are only available to small businesses. “Aside from that, if the joint venture meets the SBA requirements, it can also compete on set-asides for service-disabled veteran-owned, HUBZone, or women-owned small businesses”.  Govconwire


How Complete Contract Consulting Can Help Your Small Business

When it comes to contracting, the government is very particular about how it purchases products and services. It aims to ensure that competition is fair and open, prices are competitive, proper services are rendered, and all laws are followed. Securing a bid on a government contract can be a lengthy and exhausting process. At Complete Contract Consulting (CCC), we help you get your proposal response in a timely and efficient manner.

We have over thirty years of experience assisting small businesses owners in gaining government certifications and have successfully acquired government contracts for hundreds of businesses with a 98.5% success rate. We complete the entire bid response on your behalf and submit it to the government agency of your choice.

You may be wondering if your small business even needs a government contract. According to Govconwire, “the government contracting industry offers one of the best growth opportunities, whether you run a small business or a large enterprise”. Our consulting services team goes the extra mile to help you access your contract opportunities and assist you in winning government contracts to help your business grow.

CCC also offers contract sourcing services in the event that you don’t have the resources to research the right government  bid for your business. We match the business owner with the government bid request for the product or service that the business owner provides. Our contract sourcing guarantees that any bid sent to you has a 99.9% chance of being pursued.

Contact Complete Contract Consulting today for a free consultation at https://completecontractconsulting.com/contact/


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