For fiscal year 2013, this is the best graphical summation of the competitive federal procurement landscape that we could put together; no matter how you scratch it, Smalls will need to dive into the deep end to survive. Here’s why…
During FY 2012, civilian opportunities were valued at $12.8 billion and defense opportunities accounted for $5.6 billion. For FY 2013 these numbers have changed dramatically with defense opportunities valued at $9.5 billion and civilian opportunities totaling $2.5 billion.
Also, federal agencies are continuing to procure their requirements through small business set-asides more often than through other small business categories, such as 8(a) and Service Disabled Veteran-Owned Small Businesses (SDVOSBs).
- Small business prime contracting spending has been on the decline.
- Small businesses are being disproportionately affected by spending cuts.
- The majority of this year’s top Small business opportunities will be procured by defense agencies.
AGENCY PROCURMENT STRATEGY
By utilizing small business set-asides, agencies can not only get credit toward their small business goals, but it also gives them leeway to award contracts to any category of small business for maximum control over meeting goals.
SMALL BUSINESS COUNTER-MEASURE
The net-effect to Smalls is fewer but larger opportunities, with more varying capability needs. To aggressively adjust to this shift, Smalls must form solution focused joint ventures – maintaining membership in a multiple simultaneously.