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Small Business

SBA aims to boost Black Business Dollars

The U.S. Small Business Administration (SBA) aims to boost federal contracting dollars for Black businesses through an upgraded government contract training program and other initiatives. The agency is revitalizing its SBA 7(j) Training Program, now known as Empower to Grow (E2G), to enhance small, disadvantaged businesses’ readiness for federal contracting, as stated in a recent SBA press release. (Black Enterprise February 5, 2024)

This revamped program coincides with the release of new data from fiscal years 2022 and 2021, indicating record-breaking federal contracting dollars for small businesses across various demographics, including an uptick in contracting dollars for Small Disadvantaged Businesses. (ibid)

In line with these efforts, the Biden-Harris administration has announced measures to broaden small business access to federal contracts, recognizing the federal government’s significant purchasing power globally. The White House specifically acknowledges the E2G program when discussing strategies to bolster support for small businesses and ultimately building wealth in underserved communities. (ibid)

President Joe Biden has set an ambitious goal of allocating 15% of federal prime contracting to small, disadvantaged businesses (SDB) by fiscal year 2025, potentially injecting $100 billion into minority-owned and underserved businesses. (ibid)

The SBA underscores that the E2G program represents just one facet of comprehensive efforts by the Biden-Harris administration and the SBA to achieve the SDB goal. Already, these efforts have resulted in a half-billion-dollar increase in federal contracts awarded to Black-owned small businesses in 2023. (ibid)

SBA Administrator Isabel Casillas Guzman emphasizes the role of small business growth in job creation and community strengthening, highlighting the administration’s commitment to equity and a level playing field for all small business owners. (ibid)

Despite progress, disparities persist, with Black-owned small businesses receiving $9.5 billion from federal contracts in 2022, up $490 million from 2021, while Native Americans captured $19 billion, up $1.62 billion from the previous year. However, these figures pale in comparison to the almost $163 billion spent on all federal contracts that year.(ibid)

Acknowledging these disparities, the SBA is actively addressing barriers to entry for Black businesses in securing government contracts. Additional resources are being allocated to assist more disadvantaged business owners, including Black firms, in overcoming these barriers. (ibid)

Program enhancements to E2G include customizable one-on-one coaching and expanded offerings tailored to the needs of Black-owned firms, with the aim of facilitating connections with state and local contracting opportunities.(ibid)

E2G will introduce new tools to access $2 trillion in state and local bid opportunities, further bridging the gap for Black-owned firms seeking state and local contracting opportunities. (ibid)

The SBA emphasizes that the program’s impact on contracting dollars for Black-owned businesses hinges on participation, with the bid win rate expected to rise due to the heightened emphasis on added E2G resources. (ibid)

Would you like to know more about the program enhancements, one-on-one coaching and expanded offerings of E2G? Give us a call.

Small businesses must get strategic for maximum impact and growth

How can a small business with limited resources get strategic about growth? Even with limited monetary, time, and personnel outlay, those resources may be leveraged and lead to growth, by doing these three things:

Association Involvement: In the relationship-driven market, actively engage with associations like AFCEA or ACT-IAC to establish a strong market presence. Increase visibility by volunteering, selecting associations wisely based on your goals. Take advantage of tiered membership fees offered by major associations, enabling affordable entry for smaller companies. Set milestones for partnerships, contracts, and market intelligence. (Washington Technology December 21, 2023)

Deeper and Stronger Differentiation: Go beyond generic labels like “cyber” by specifying your focus, such as network security or data security. Highlight key staff, subject matter experts (SMEs), and socio-economic status for a unique position. Clearly articulate your expertise, substantiating claims with content and past performance. Effective differentiation is crucial in a competitive market. (ibid)

LinkedIn Strategy: Harness the power of LinkedIn for agency-based marketing, content distribution, and branding. Research company pages and actively connect with the federal government and contracting community. Utilize LinkedIn for positioning, vetting, recruiting, and highlighting subject matter experts. Integrate LinkedIn into your overall growth strategy for comprehensive results. (ibid)

By implementing these tactics in tandem, your company can achieve impactful results without excessively tapping into limited resources. (ibid)

Trying to determine the first steps? Give us a call.

Navigating FY 2024: Top Federal Opportunities for Government Contractors

As FY 2023 is behind us, the government contracting market breathes a sigh of relief, marking the end of a busy period. As our attention turns to FY 2024, many companies do a “reset” refocusing on growth and strategically pursuing major procurements that lay the groundwork for future success.

At this crucial juncture, GovWin’s analyst team releases comprehensive reports and webinars spotlighting the top opportunities in the federal government for the upcoming fiscal year. This year’s insights cover the top 20 unrestricted opportunities, the top 10 set-aside opportunities, the top 10 professional services opportunities, and the top 10 architecture, engineering, and construction (AEC) opportunities. (GOVCONWIRE November 20, 2023)

What sets this year apart in terms of federal opportunities?

Despite overall growth in contracting, industry participation is consolidating, a trend noted last year influencing the top opportunities for FY 2023. The decline in the number of firms receiving federal awards, despite increased federal spending, is driven by factors such as agencies adopting IDIQ contracts and rising barriers to entry due to stringent compliance requirements. (ibid)

Another notable factor shaping this year’s top opportunities is the rapid and consistent growth in small business contracting, outpacing larger businesses since 2011. Small business contracting exhibits not only a 49% growth rate but also greater stability compared to ‘other than small’ businesses. (ibid)

A high-level overview of the top opportunities for FY 2024

  1. Unrestricted Federal Opportunities: These opportunities, available to all government contractors, offer access to complex but lucrative procurements. Top opportunities, like CCN NEXT GEN, SEWP VI, and ALLIANT 3, promise task order opportunities worth billions of dollars.
  2. Federal Set-Aside Opportunities: Reserved for small businesses, set-aside opportunities provide participation avenues for various socioeconomic categories.
  3. Architecture, Engineering, and Construction Opportunities: AEC opportunities span diverse projects, from advising on capital requirements to major construction undertakings.
  4. Professional Services Opportunities: Covering business operations, management consulting, personnel and HR services, marketing, legal, and accounting services, professional services opportunities abound. (ibid)

Guidance for proactive government contractors

Having identified these top opportunities, proactive government contractors gearing up for success should focus on strategic teaming initiatives, and increasing business development investments, to increase relevant opportunities and enhance their pipelines. (ibid)

If your company targets federal unrestricted, AEC, professional services, or set-aside opportunities and is gearing up to pursue these in FY 2024, arm yourself with critical information:

  • Understand spending trends within your target markets.
  • Anticipate procurement patterns for the coming year among agencies utilizing these contracts.
  • Leverage detailed intelligence to fortify your pipeline. (ibid)

For a deeper dive into how these trends and opportunities may impact your business, give us a call.

The 2023 GUAGE Report: Illuminating GovCon Industry Best Practices

For government contracting companies, keeping pace with industry trends and best practices is crucial. How do other companies in your sector operate? What strategies lead to success? How can you ensure project success, compliance, and business growth? Fortunately, a recently unveiled report can provide the answers. (GovCon Wire September 12, 2023)

For seven consecutive years, Unanet and CohnReznick LLP have collaborated to gather insights from GovCon organizations across the industry. The result is the GAUGE Report, and the 2023 edition is now available for free download. (ibid)

Understanding the GAUGE Report

The GAUGE Report serves as an annual industry roadmap, offering benchmarks, trends, and insights tailored to GovCon companies and executives. This comprehensive guide provides a window into the current market landscape, best practices, and forecasting techniques. (ibid)

Each year, Unanet conducts surveys involving GovCon organizations of various sizes and missions. In the 2023 edition, responses from over 1,100 GovCon executives and management were analyzed to uncover prevailing trends and best practices. The report’s name is derived from an acronym representing key focus areas for government contractors: Government contract compliance, Accounting, Utilization, Growth, and Efficiencies. (ibid)

Leveraging Benchmarking and Best Practices

The GAUGE Report serves as a valuable yardstick for GovCon businesses. It allows companies to establish relevant benchmarks for evaluating their performance and progress. By comparing their practices against peers, organizations gain insights into how they measure up and where improvements may be needed. (ibid)

The report also provides an overarching view of the current GovCon market and business environment. This perspective enables companies to align their strategies with industry trends effectively. (ibid)

The Key Takeaway: Leading Through Forecasting

The central theme of the 2023 GAUGE Report is the pivotal role of accurate forecasting and planning for GovCon firms’ success. It underscores the importance of precise forecasting, resource efficiency, service/product diversity, and contract versatility. (ibid)

For small and medium-sized GovCon companies, strengthening long-term planning by investing in infrastructure, understanding their pipeline, embracing technology, and seeking expert guidance is essential. The report also highlights the significance of indirect rate and return on investment forecasting. It addresses challenges in timekeeping and billing for SMBs compared to larger revenue companies and advocates for the adoption of a formal capture process for federal proposals. (ibid)

Key Insights from the GAUGE Report

Here are some noteworthy findings from each of the GAUGE Report’s topic areas:

Government Contract Compliance

  • 51% of respondents reported stable government oversight, while 46% noted an increase in oversight in the past five years.
  • Indirect rates were identified as a common audit challenge for government contractors.
  • Business systems, particularly accounting systems, played a crucial role in winning solicitations. (ibid)

Accounting

  • The most common days sales outstanding (DSO) range among respondents was 31 to 45 days.
  • Smaller GovCon firms had shorter invoice cycles.
  • Mergers and acquisitions remained active, with 36% of respondents prioritizing M&A in 2023. (ibid)

Utilization

  • 61% of GovCon executives reported mature resource management disciplines.
  • Centralized project management offices (PMOs) gained popularity, reflecting the trend toward standardizing project management practices.
  • Projects were typically delivered on time and on budget. (ibid)

Growth

  • Personal relationships and market intel tools were the preferred avenues for discovering new opportunities.
  • Firms with a formalized capture/gate process had a competitive advantage in pursuing suitable opportunities. (ibid)

Efficiencies

  • 41% of GovCons changed their indirect rate structure in the past 12 months.
  • Fluctuating indirect costs emerged as a challenge for many firms. (ibid)

Using the GAUGE Report Findings

Understanding the latest trends in your industry is valuable, but what’s next? To capitalize on this knowledge and enhance your business:

  1. Download and Review: Access the full 2023 GAUGE Report to gain in-depth insights that can serve as a roadmap to success. The report offers a wealth of data to inform your strategies. (ibid)
  2. Benchmark and Apply: Use the GAUGE Report for benchmarking against industry standards and applying best practices. This knowledge empowers your GovCon business to excel in various areas. (ibid)

Would you like to use insights from the GAUGE Report, to gain a competitive edge and achieve higher performance? Give us a call.