Are you considering doing business with the federal government but fear you may not stand a chance against bigger companies? It’s not uncommon for small businesses to question how they’re going to compete with the big players and stand out to government agencies when they tend to have more resources and exposure, but don’t let that turn you away from bidding. Today we’re going to debunk this myth and show you that you do stand a chance and can win many lucrative contracts for your business.
Doing Business with Federal Government Agencies
The federal government wants to work with smaller businesses and encourages them to bid on opportunities. Every year the federal government awards at least 23% of all contracting dollars to small businesses and establishes set-aside goals to ensure small businesses get a fair chance at winning contracts. In fact, according to the SBA (Small Business Administration), every federal government contract value between $10,000 and $250,000 is automatically set aside for small businesses, and contract values of $250,000 or more are also set aside as long as there are at least two or more small businesses that can do the work at a fair price. The federal government also puts some of these set-asides specifically towards small businesses in certain socio-economic categories. They’ll typically try and award:
- At least 5% of federal contracting dollars to 8a small, disadvantaged businesses
- At least 5% of federal contracting dollars to women-owned small businesses
- At least 3% of federal contracting dollars to HUBZone-certified small businesses
- At least 3% of federal contracting dollars to service-disabled veteran-owned small businesses
If you’re not already certified as a small business, you can check out this guide we’ve created on what requirements you’ll need to meet to certify your business and become eligible to bid on set-aside contracts. You can also visit the Small Business Administrations’ site for further resources.
Federal Government Spending
The federal government spends billions of dollars a year on contracts all throughout the U.S. In fiscal year 2022, $158.7 billion was awarded to small businesses, an increase of around 3% from the prior year, and the highest level of spending recorded. Over 58,000 small businesses received these contracts. Many federal government agencies want to work with small businesses and are interested in the products and services they can provide.
Finding Small Business Opportunities on Bidnet Direct
On Bidnet Direct, we find thousands of federal, state, and local government bidding opportunities every month, in a variety of different locations and categories. As a registered vendor, you can easily filter your bid search by going to the “General Requirements” advanced search section to include certain requirements such as small business set-aside, service-disabled veteran owned, women-owned participation, and more. Then you will be able to see all the open, closed, and awarded solicitations that have those requirements attached to the bid. Right now, there are over 6,000 open federal bids on Bidnet Direct, and over 3,000 of those bids have some form of small business requirement attached to them, meaning that your business has the chance to bid on and win these contracts.
As a registered vendor on Bidnet Direct you can also receive bid notifications anytime we find an opportunity that matches the products or services your business sells. You’ll be able to see all the documents and specifications, along with whether there’s a small business requirement or not. When bidding on set-aside contracts, you’ll have to make sure to upload all your certifications to prove you are eligible for the job.
Updating Your Profile
On Bidnet Direct, it’s important to include your business type in your profile. If you head to the “My Organization” tab you’ll see a section to add your business type, where you can select options like small, minority, women, veteran-owned business, and more. This is important to add because there are many times when government agencies are seeking out specific suppliers for a contract, and by adding your business type to your Bidnet Direct profile, agencies can easily find your business and reach out to you directly if they’re interested in working with your business specifically.
It's Just a Myth
The federal government wants to work with small businesses and continues to provide opportunities for businesses like yours to have a fair chance at winning contracts. Hopefully you now see that you DO stand a chance against bigger companies and that the idea that the federal government avoids contracts with small businesses is just a myth. If you follow the requirements to get your business certified as a small business and utilize a government bidding solution like Bidnet Direct, you can be notified daily of all the opportunities we find at the federal level that have set-aside contracts for businesses just like yours to bid on. Register with our federal package today and start taking advantage of these opportunities.
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