Small Businesses Scrambling More for Federal Contracts

Nonwarit/Shutterstock.com

Tighter agency budgets have forced small businesses to step up their efforts to win federal contracts, though overall bidding activity over the past five years has dropped, according to a survey by American Express OPEN.

Though the companies surveyed -- many of them owned by women and minorities -- have boosted their investments of time and money in federal contracting, their average number of prime contracting bids has declined from 19.5 in 2007-2009 to only 5.5 during 2010-2012, the analysis found. Small business contractors on average invested $128,638 in time and resources seeking government contracting opportunities in 2012, a 49 percent increase from 2010.

At the same time, small companies have improved their “batting averages” when looking at contracts won versus number of bids. “With fewer bidding opportunities, active small business contractors are bidding smarter,” the analysis stated.

The prime contracting success rate is now 55 percent, up from 41 percent three years earlier. The subcontracting success rate is 86 percent, down just slightly from the 90 percent reported in 2007-2009.

The analysis is based on an online questionnaire completed in February and March by 684 small business owners active in federal contracting.

(Image via Nonwarit/Shutterstock.com)

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.