How much opportunity is there in doing business with the government? Maybe these fiscal year 2002 statistics will begin to give you some idea of the magnitude.
In fiscal year 2002, the federal government wrote 8.6 million "actions," commonly referred to as "contracts," for products and services that it needed during the year. Of those 8.6 million contracts, 92 percent, or 7.9 million, were between $2,500 and $100,000 in value.
Since any contracts that fall between $2,500 and $100,000 are reserved for small, small disadvantaged, small women-owned, and small veteran-owned businesses, that means that almost 8 million contracts were reserved for small businesses in just one year! Only 8 percent of all contracts were for more than $100,000 in value, and many of those were for major weapon systems, information management services, or large construction projects.
Government Prime Contract Goals
The government has the following designated goals* for awarding prime contracts to small businesses:
- 23% to small businesses
- 5% to small disadvantaged businesses for prime and subcontracts
- 5% to small women-owned businesses for prime and subcontracts
- 5% to HUBZone small businesses
- 3% to small service-disabled, veteran-owned businesses for prime and subcontracts
What Are the Opportunities?
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