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How small businesses can get a piece of the government procurement pie: Here are some ideas

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Editor’s note: Steve S. Rao is a Council Member At Large and Former Mayor Pro Tem for the Town of Morrisville and an Opinion Writer for WRAL Tech Wire.  He served on the Board of the New American Economy, now the American Immigration Council, and on the NC League of Municipalities Race and Equity Task Force. He is a regular contributor to WRAL TechWire.

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MORRISVILLE – A few weeks ago, I wrote on the importance of leveling the playing field, for minority and disadvantaged businesses.   Increasing their fair share of government procurement contracts is a great way to achieve that goal.   Remember, last year, the Biden-Harris Administration announced its strategy for increasing the share of federal procurement dollars that go to socially disadvantaged businesses by 50% by 2025 and to increase the number of set aside contracts for minority firms.

In JulyThe SBA kicked off its Build America, Buy American Day of Action to highlight the Administration’s delivery on its continued commitments to America’s small businesses, entrepreneurs and startups and also highlight the benefits of President Biden’s Bipartisan Infrastructure Law (BIL) that will create opportunities for American small businesses, manufacturers and contractors.

Steve Rao

After attending the North Carolina Veteran Business Association (NV Vet Biz)  Annual Procurement Conference at NC State a few weeks ago, I was convinced that there has never been a better time for small, disadvantaged businesses, to get a piece of the government procurement pie.

Veteran owned companies top that list.

Let me say from the outset, I am grateful to serve on the Board of NC Vet Biz, an outstanding organization, dedicated to supporting the growth of Veteran owned businesses.  Our mission to connect educate and support veterans and commerce in North Carolina.   This annual procurement summit brought together Veteran business owners, buyers, subject matter experts, and top Triangle employers, to share insights with these companies on how to increase their business with the Federal Government, along with providing guidance strategies for these companies.    The Match Making Sessions with top employers and networking provided a number of opportunities for these companies to develop relationships and establish connections with top employers in the Triangle.

INSIGHTS FROM SBA DIRECTOR ALLEN THOMAS

The highlight of the Conference  was to hear from my good friend, Allen Thomas,  Southeast Regional Administrator for the United States Small Business Administration.   Thomas, the former three term Mayor of Greenville, was appointed to this position by President Biden and the White House on Dec. 6, 2021.

Allen oversees SBA programs, offices, and operations in the SBA’s Southeast region, serving AlabamaFloridaGeorgiaKentuckyMississippiNorth CarolinaSouth Carolina, and Tennessee.

Thomas, passionately revealed the innovative funding opportunities for not only Veteran owned companies, but also for small and disadvantaged businesses. During his remarks, he reminded us of the unprecedented once-in-a-generation level of investment in United States infrastructure and global competitiveness and that small businesses were  more aware of how to get a piece of the pie.

Significant federal investments are being made to level the playing field for all of these companies.

Now is the time for small businesses to get their piece of the procurement pie.

Now is the Time to Do Business with the Government!

Astounding amounts of federal dollars are coming into North Carolina for infrastructure and government contracts.   Small Businesses received $1.8 billion in government contracting last fiscal year. Small Disadvantaged Businesses received $672.8 million.

In North Carolina alone, $2.2 billion in Bipartisan Infrastructure Law funding has been announced with over 100 specific projects identified for funding. North Carolina will receive this money for transportation to invest in roads, bridges, public transit, ports and airports and $200 million for clean water projects. There will be plenty of opportunities for our small business community to partner with others agencies to win these contracts.

Businesses  can also reach out to the SBA North Carolina District Office or work with SBA resource partners to learn more about these opportunities and how you can compete for these dollars.

In 2020, small businesses received over 26% or roughly $145 billion in government spend dollars. This number represents  3% over the annual required threshold of 23%. In Fiscal Year 21, the federal government purchased $154.2 billion worth of goods and services from small businesses.   This reflects an $8 billion dollar increase from the prior year.

Our 8(a) firms received over 253 contracts valued at over $241.7 million.

Veteran-owned small businesses received $648.4 million in contracts. Service-Disabled Veteran Owned Small Businesses received $572.9 million. Woman-Owned Small Businesses received $259.1 million and our HUBZone firms received $232.6 million in government contracts.

Advice for Veteran Owned and SMD Companies

Thomas shared practical advice to small businesses  on the  steps that can be taken to put your business in the best position possible to increase your business with the government.

  1. Considering set-aside contracts for businesses certified in certain categories.
  2. Consider adding some certifications for your company.
  3. Every veteran that wants to sell in the government should also look at other certifications such as the veteran-owned business and Service-Disabled Veteran owned business. These certifications are additional tools as you market yourself. If you talk to other successful government contractors, then you will hear a consistent thread of advice saying there is no such thing as an overnight success story. You need to be resourceful and put yourself in the best position to succeed. It is a matter of being resourceful and having access to resources.
  4. If you are already in the 8(a) portfolio, then you are already steps ahead of those that are not. But, perhaps you need to look at some other certifications like HUBZone or our woman-owned certifications.

Conference insights

Finally, let me share my final insights from the conference.

Over the years, I have spoken to other successful government contractors, who have all shared with me that there is no such thing as an overnight success story.  Small businesses  must  be resourceful and put themselves in the best position to succeed.

At the end of the day, I encourage our entire small business community to reach out to the SBA district office point of contacts, the Procurement Technical Assistance Centers, the Veterans Business Outreach Center, and the Small Business Development Centers to help you navigate through the world of government contracting.   Allen Thomas also encouraged all attendees to feel free to email him at allen.thomas@sba.gov for any questions.    I am also working on bringing him back to the Triangle for a Small Business Town Hall in the late fall.

Leverage the strong network of other business owners in the community.    Use these resources and network as much as you can to grow your business. As you know, being a part of the 8(a) portfolio means you have access to training and resources, but you still must be able to market yourself. 5.

In Fiscal Year 2021, the federal government purchased $154.2 billion worth of goods and services from small businesses, an $8 billion dollar increase from the prior year.   In North Carolina, small businesses received $1.8 billion in government contracting last fiscal year. Small Disadvantaged Businesses received $672.8 million.  North Carolina  8(a) firms received over 253 contracts valued at over $241.7 million. Veteran-owned small businesses received $648.4 million in contracts. Service-Disabled Veteran Owned Small Businesses received $572.9 million. Woman-Owned Small Businesses received $259.1 million and our HUBZone firms received $232.6 million in government contracts.

The truth is that there are opportunities for you to get into government contracting, but ultimately, you have to be the one to take advantage of these opportunities. The SBA and our resource partners are here to help you along the way .

One government contract can change the entire course for a small business and can be life-changing for the business owner.

When opportunity knocks, open the door.

The time is now, to grab that one government opportunity, which can be the trigger for continued growth of your company, and more jobs in our region and state.

Lets get to work.

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