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Tag: small business

Stephen Ehikian’s vision for GSA

Last week, Stephen Ehikian shared his vision for GSA with more than 8,000 employees, and today, he wants to share it more broadly. Ehikian aims to return GSA to its founding mission—streamlining federal operations, consolidating resources, and efficiently delivering essential services that allow agencies to focus on their core missions. According to Ehikian, GSA leads by example, helping agencies cut wasteful contract spending, right-size the federal real estate portfolio, and deploy software that drives efficiency and productivity. (gsa.gov/blog March 25, 2025)

Path Forward

GSA focuses on serving our customers, congressional partners, and communities by:

  • Optimizing the federal buildings portfolio
  • Streamlining and centralizing procurement under the new Executive Order
  • Rationalizing IT infrastructure and software as a Shared Service
  • Applying GSA’s efficiency model to itself (ibid)

Optimizing the Federal Buildings Portfolio

Eliminate years of deferred maintenance liabilities, which now exceed $17 billion, up from $5 billion a decade ago. In many cases, these liabilities outweigh the value of the properties we own. For example, selling the long-vacant Webster School in Washington, D.C., reduced our liabilities by $24 million and revitalized a historic neighborhood. (ibid)

Increase office occupancy above 80% by selling underutilized assets and terminating cancellable leases. With occupancy averaging 31%, we collaborate with tenant agencies to assess space needs and support the return to office while adjusting for a downsized federal workforce. (ibid)

We foster greater collaboration between agencies, breaking down silos in real estate, IT, and facility operations to reduce redundancy and inefficiency. (ibid)

Streamlining and Centralizing Procurement

Maximize the government’s negotiating power by centralizing procurement for common goods and services, securing better prices for taxpayers. We have already launched this initiative with four agencies and continue building strong partnerships to meet specialized procurement needs. (ibid)

Simplify procurement and reduce compliance burdens to increase competition and ensure contracts go to vendors best suited to serve government needs. By modernizing compliance standards, we help both large and small businesses compete for government contracts. (ibid)

Enhance procurement technology to streamline vendor onboarding, reduce paper-based workflows, and improve vendor management and data-driven decision-making. (ibid)

Rationalizing IT Infrastructure and Software as a Shared Service

Consolidate systems by reimagining business processes and automation, improving employee and taxpayer experiences while eliminating redundant solutions. (ibid)

Drive innovation by piloting Generative AI to boost productivity. Early use cases include AI-powered acquisition policy searches for contracting officers, directive searches for policy teams, and code generation for engineers. (ibid)

Centralize data across teams to increase collaboration and prepare for AI-driven efficiencies by breaking down data silos and improving system interoperability. (ibid)

Accelerate adoption of best-in-class technologies by reimagining the FedRAMP authorization process, modernizing aging IT infrastructure, and enhancing security. (ibid)

Optimize cloud and software spending through a line-by-line review of technology solutions, ensuring we only pay for necessary licenses and eliminate redundant systems. (ibid)

Applying GSA’s Efficiency Model to Itself

Ehikian’s goal is to guide other agencies to consolidate and centralize shared services while GSA reviews its own operations to maximize efficiencies. (ibid)

GSA plays a critical role in reducing the federal deficit while enabling agencies to move faster toward their goals. As the backbone of federal operations, we have a unique opportunity to drive innovation in procurement, real estate, and technology. (ibid)

The American people deserve a commonsense government that respects tax dollars, prioritizes efficiency, and delivers results. At GSA, we commit to making that vision a reality and pushing government forward. (ibid)

Need additional information on your specific contract and how the new streamlining and effeciencies affect your contract? Give us a call.

New SBA Recertification Rule Brings Major Changes for Small Business Contracting

On December 17, 2024, the Small Business Administration (SBA) implemented significant changes to its recertification rules, affecting small businesses and larger companies involved in mergers and acquisitions (M&A). These changes directly impact eligibility for new contracts and existing work under recertified business size or program statuses. Below are key highlights. (Pillsbury December 23, 2024)

New Terminology Clarifies Certification Status
The SBA’s new rule introduces disqualifying and qualifying recertifications and places them in the new section 13 C.F.R. 125.12. (ibid)

  • Disqualifying recertification occurs when a contractor certifies it is no longer small or eligible for specific small business programs. (ibid)
  • Qualifying recertification confirms that a business remains eligible for set-aside awards. (ibid)

A qualifying recertification allows businesses to compete for new set-aside orders for up to five years unless a disqualifying event follows. (ibid)

Timing for Size Determinations
The Small Business Administration’s (SBA) rule reiterates that size is determined at proposal submission, not at contract award. However, for most unrestricted multiple-award contracts (MACs), size is set at proposal submission for individual orders, except under the Federal Supply Schedule (FSS), where size depends on the latest recertification. (ibid)

Recertification Events (exceptions to the general rule)
Certain events trigger mandatory recertifications:

  • Mergers, acquisitions, or novations require recertification within 30 days of the event. (ibid)
  • Long-term contracts exceeding five years require recertification before the fifth year and each option period. (ibid)
  • Contracting officers may request recertification for specific orders or agreements. (ibid)

Impact on Set-Aside MACs

The new rule will prevent agencies from awarding new set-aside task orders or options after a disqualifying recertification under MACs. However, this prohibition will not take effect until January 17, 2026, giving businesses time to adjust. (ibid)

Transactions Between Small Businesses
If a merger or acquisition involves two small businesses, the contractor remains eligible for set-aside awards and options, though the contract terms may impose additional limitations. (ibid)

New Size Protest Rights
SBA now permits size protests for recertifications under MACs, empowering other contract holders to challenge competitors’ size status. (ibid)

Could you use some guidance navigating the new recertification rule? Give us a call.

The Army’s end of year checklist for Small Businesses

Prepare for success in 2025 by reviewing your business strategy and making key updates. Use this checklist to stay on track and position your business for growth.

  • Update Legal Documents and Certifications Keep your licenses, permits, and registrations current. Apply for SBA certifications at Certify.SBA.gov, and refine your Capability Statements to highlight past performance. (Army Office of Small Business December 23, 2024)
  • Explore New Contracting Opportunities Check Acquisition.gov and the GSA Forecast Tool to discover upcoming federal contracts. Use SubNet to find subcontracting opportunities posted by large prime contractors. (ibid)
  • Tap Into Mentorship and Support Connect with your local APEX Accelerator for personalized advice and free resources. SCORE Mentors offer expert insights on strategy, marketing, and operations. (ibid)
  • Plan Your Finances Review financial statements, gather tax documents, and visit IRS.gov for updates. Consider working with a tax professional to maximize deductions and stay compliant. (ibid)

Action taken today can lead to big successes in the year ahead. Find more information at army.mil/osbp. (ibid)

If you would like assistance updating licenses and permits, crafting a capabilities statement, or exploring new opportunities, give us a call.

The Bad, the Ugly and some Good

Small businesses experienced a mixed bag in their pursuit of federal contracts during fiscal year 2023. On one hand, the government allocated a record-breaking $178.6 billion to small businesses, marking a significant increase from previous years. However, this surge in funding was accompanied by a concerning trend: a decline in the number of small businesses securing prime government contracts, dropping by 2.2 percent compared to the previous fiscal year. (INC. May 1, 2024)

Despite receiving a larger share of federal contracting dollars, small businesses faced formidable challenges in competing for contracts. The competitive landscape remains dominated by larger, more established players, placing smaller enterprises at a disadvantage due to their limited resources. Contract bundling further exacerbates the issue by consolidating contracts into larger, more complex opportunities that are often inaccessible to smaller firms. (ibid)

Another hurdle for small businesses is the complexity of federal contracts, which can be daunting to navigate. The House of Representatives recently passed a bill aimed at simplifying the language within federal contracts to make them more accessible and comprehensible to small businesses. This initiative seeks to level the playing field and enhance the competitiveness of smaller players in the federal contracting arena. (ibid)

Despite these challenges, the Small Business Administration (SBA) under Administrator Isabel Guzman has implemented initiatives to expand contracting opportunities for small businesses. This includes revising size standards to broaden access to agency programs, benefitting thousands of entrepreneurs across various industries. While progress has been made in meeting procurement spending targets for certain small-business categories, there is still work to be done to ensure that all small businesses have equitable access to federal contracting opportunities. (ibid)

Do you have questions about size standards or a particular upcoming opportunity? Please give us a call.

The Power of Small Businesses in Driving Government Innovation

Small businesses are more than just contractors for government agencies; they are the driving force behind innovation. While federal requirements mandate that a significant portion of contracts go to small businesses, their true value lies beyond meeting quotas. Small businesses bring agility, niche expertise, and a culture of innovation that can transform how government agencies operate. (Federal News Network September 4, 2023)

Innovation Sparks Progress

Small businesses, by their nature, thrive on innovation. They operate in highly competitive environments where differentiation is key to survival. This drive to innovate often leads to groundbreaking ideas that can revolutionize government operations. (ibid)

Consider how large disruptors like Uber, Airbnb, and Spotify revolutionized their respective industries. They didn’t just replicate existing services; they introduced entirely new approaches. Small businesses have the same potential to reshape government operations. (ibid)

Agility and Flexibility Matter

Small businesses are unburdened by bureaucratic red tape and the pressure of quarterly growth targets, that large corporations often must cope with. This freedom allows them to make quick decisions and engage in iterative development. Government agencies can leverage this agility to explore innovative ideas, respond rapidly to emerging needs, and adapt to changing technology requirements. (ibid)

Specialized Knowledge

Many small businesses focus on a single area, cultivating specialized expertise. This niche knowledge often results in groundbreaking solutions. Government agencies can harness this expertise through partnerships, driving transformative solutions and advancing their tech agendas. (ibid)

Cost-Efficiency and Value

Small businesses are often more cost-effective than large corporations. They operate with lower overheads and capital investments, making them suitable partners for government agencies with budgetary constraints. Small businesses provide innovative technology and services without imposing excessive financial burdens. (ibid)

The Path to Innovation

In the realm of IT communications, small businesses have driven breakthroughs that eventually found their way into federal agencies. Technologies like SD-WAN, which initially outperformed traditional MPLS, were adopted by small businesses before gaining momentum in federal agencies. These innovations often start in the commercial sector, proving their effectiveness before being embraced by government entities. (ibid)

Inviting Innovation

To become more innovative, government agencies should engage with small businesses actively. Listening to their ideas and embracing their culture of innovation provides agencies with a glimpse into the future. By recognizing the immense value that small businesses bring to the table, agencies can benefit from disruptive technologies rather than being disrupted by them. (ibid)

Innovation is not a matter of chance; it’s a deliberate choice. Government agencies can make this choice by fostering partnerships with small businesses, thus paving the way for transformative advancements.

Does your small business need guidance navigating the federal government arena? Give us a call.