Why keep competing for government contracts?

Small businesses still account for a massive portion of federal contracting 28.8% of dollars $183 billion in fiscal 2024, up from 26.5% $162.9 billion in 2022. The government remains the world’s largest buyer, spending over $700 billion annually on goods and services. The SBA’s statutory goal of 23% for small business contracts hasn’t been scrapped, and early indications suggest bipartisan support for small businesses will continue. The pool of small firms competing has decreased from 82,000 in 2017 to fewer in recent years, but those in the game keep winning bigger slices of the pie, suggesting opportunities amid less competition. (Source: www.usaspending.gov)

When considering if you should pursue Federal contracts, remember:

• The money’s still there! Even with cuts, the sheer volume of government needs in; construction, tech, logistics, you name it, means contracts will not stop anytime soon.
• Set-aside programs like 8(a), WOSB, SDVOSB or HUBZone are still alive and well with set-aside contracts % allocations back to their original levels. Past data backs this: in 2023, SBA’s Empower to Grow program saw participants snag a 60% contract win rate and 45% revenue growth (Source: https://www.sba.gov/article/2024/01/30/business-leaders-applaud-sbas-improved-empower-grow-e2g-program).

The government is not abandoning small businesses, they’re just changing the rules of doing business to a more merit-based approach.  Contracts will continue to be awarded to small businesses that can provide a value-based solution to the needs of the government. Here are three actionable steps small businesses can take to continue to successfully bid on government contracts:

1. Leverage SBA tools and certifications for competitive advantage

Get your federal certifications through MySBA Certifications, a streamlined process to obtaining or renewing certifications such as 8(a), WOSB, SDVOSB, or HUBZone. These certifications provide access to set-aside contracts, which have returned to their original allocation levels. Regularly update your SAM.gov profile to reflect these certifications and ensure compliance with eligibility requirements.

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You can visit MySBA.gov to check certification status and apply for relevant programs for FY2025, to align with upcoming federal procurement cycles to include GSA Schedules.

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2. Engage with APEX Accelerators for proposal and market insights

Connect with your local APEX Accelerator center to receive free guidance on navigating the government contracting process, including proposal development and market research. Your APEX Accelerator center can help you identify high-value solicitations and tailor proposals to emphasize value-based solutions.

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Find your local APEX Accelerator center and apply for services to get help with reviewing upcoming opportunities in your industry.

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3. Diversify offerings and monitor federal priorities

Research agency-specific needs through tools like SAM.gov’s contract opportunities or the forecast of contracting opportunities in Acquisitions.gov to align your offerings with current demands (e.g., technology or logistics solutions).

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Diversify your service or product portfolio to appeal to multiple agencies, reducing reliance on a single contract type, and ensure you conduct a quarterly review of your capabilities statement and update it to reflect emerging federal needs based on agency procurement forecasts to include DSBS SBA profile.

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So, yes, keep competing. The system’s not dead, it’s just going through some major restructuring. If you can navigate the changes, diversify your offering, and lean on SBA tools like MySBA Certifications or APEX Accelerators, the odds tilt in your favor. The data says small businesses are still winning, and the largest customer in the world still needs small businesses. All of the changes happening can make it feel daunting, but you don’t have to navigate this alone. Your APEX Accelerator Counselors are here to help. Please reach out to your Norcal APEX Accelerator counselor for assistance or apply for services today!

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