Government Contracts: Opportunities For Small Businesses

Government agencies provide an array of services and often contract with private business to deliver those services. The most obvious of these are the road construction projects we have all seen on the highways, with notices giving thanks to the various contractors working on the project. But government, especially in these days of hiring freezes, contract out many other tasks, from airport concession stands to landscape restoration projects with a wonderful variety in between.

The annual Regional Contracting Forum is designed to introduce small business owners to both government agency staff and contracting opportunities. The event has grown steadily since the first was held eight years ago at Union Station in Seattle. This year’s event, on March 30, was large enough to require a move to the Washington State Convention Center. It was hosted by Sound Transit and co-sponsored by King County; other sponsors included the City of Seattle, the University of Washington and the US General Services Administration. It is described as a “reverse trade show,” where buyers set up tables, giving potential vendors an opportunity to find out what government agencies are buying and how they buy it. Staff from more than fifty local, state and federal government agencies manned tables, talked to participants and gave presentations. Almost seventeen hundred small business owners interested in selling their services to government attended this year’s event, ranging from armored car vendors to videographers.

The day began with presentations from the host and sponsors. In her opening address, Ms. Lisa Villegas Bremer, Director of the Washington Department of General Administration, said that government dollars should go back to local communities. To that end, state and local governments are stepping up their efforts to reach out to and contract with small businesses, as well as minority and women business owners. A new bill (HB1096), now awaiting Governor Gregoire’s signature, will require state agencies to increase the number of contracts issued to small businesses by 50% by 2012 and 100% by 2014. A “small business” is so defined by the Small Business Administration, either by revenue or number of employees—size standards for various industries are listed on its web site.

Ray Moser, the Economic Development Manager for King County explained that the county is in the midst of reforming its contracting process, under Executive Order CON 7-12 (AEO) from County Executive Dow Constantine. This executive order also sets out goals for small and disadvantaged businesses, including giving 50% of no-bid contracts (under $5,000) to certified small businesses and receiving at least one quote for larger contracts from small businesses.

In 2008, King County issued contracts worth a total of $27 million to 136 small businesses, a further $13.8 million went to businesses owned by women, $12 million to minority owned businesses, and $9.8 million to disadvantaged businesses.

King County’s ranking system for contract bids includes extra points for small businesses registered with the county. These points can also accrue to contractors who subcontract with small businesses.

Throughout the day there were presentations from various agencies on available contracts and how to work with government, as well as plenty of time to talk with government staff. Many government agencies, and most of those that regularly contract with private businesses, have centralized web portals to advertize contracting opportunities. Business owners were encouraged to visit those sites and register for announcements. Many agencies also have rosters of contractors that can be used as sources for small no-bid contracts—on-line sign up is usually available for those rosters.

While small business owners might not want to, or might not be in a position to, bid on large government contracts, they can often partner or subcontract with larger businesses. Lists of successful bidders for past projects provided on agency web sites are useful sources of potential business partnerships and sub contracts. Business owners may also attend pre-submittal meetings to meet with potential partners.

Government contracts are an underused resource for small businesses. The Regional Contract Forum and government outreach efforts seek to increase the utilization of that resource. The rest is up to us, the small business owners.