Why the Small Business/Large Contractor Union is a Good Thing

The Biden Administration continues to focus on small businesses providing services to the federal government. This benefits not only small businesses but large contractors, as well. When large contractors partner up with a small business, it’s a win-win for both.

Federal agencies have stepped up their focus on contracting with small businesses to meet their small business contracting goals. The Small Business Administration recently reported $154 billion spent on contracts with small businesses in fiscal year 2021. In 2021, 27.2 percent of total federal contracting awards were to small businesses. This surpassed the 23 percent White House goal. (Washington Technology February 2, 2023)

Unfortunately, the past several years have seen the number of actual small businesses trend downward. The good news, there is more money for fewer small businesses that can serve as prime contractors due to limitations on the services these small businesses can offer. (ibid)

Large government contractors working with small businesses are looking like the future of federal contracting. These partnerships, which are built on mutual trust, allow for increased skills and innovative thinking. Additionally, when large contractors bring in small businesses, new jobs are created, entrepreneurship is expanded and innovation is at the forefront. (ibid)

According to Thomas A. Duckenfield III, CEO of TDB Communications, a service-disabled, veteran-owned small business, and an 8a firm, “the best partnerships between small business and large contractors are based on a shared culture and alignment. There is no one-size-fits-all approach to these relationships. It’s about developing partnerships that benefit both parties while establishing trust between the two companies to better serve federal agencies and their constituents.” (ibid)

When large businesses work with small businesses it creates opportunities, cultivates new ideas, and introduces the latest technologies. For these partnerships to work both parties must understand what each brings to the “communal table.” Skills and capabilities must provide complimentary support and additional capacity for federal agencies. (ibid)

There is no set formula for partnership success. Companies that support each other’s business and goals as well as those of the federal agencies they serve should work well together.

Are you looking to partner with a small or large business on a federal agency contract? Give us a call.