Business Strategy

Federal small business rules can sometimes seem counterintuitive and contrary to normal business practices.  Your strategies need to be aligned with the regulatory requirements of federal small business programs. GovContractPros has extensive knowledge to help small businesses avoid the pitfalls that can result in high costs or loss of revenues.

For example, the business structure of your firm, the ownership and investment structure, common management, investors, owners and resources can all result in affiliation, which may jeopardize your small business standing and result in the loss of your small business set-aside contracts.  If you intend to represent your firm as small to the federal government and pursue small business set-aside contracts, it is critical that you structure your firm and business relationships in a way that clearly demonstrates your size, status, and ownership. GovContractPros can advise on these requirements, as you establish your firm, create partnerships and pursue teaming opportunities.

Furthermore, mergers and acquisitions for small business government contractors are complicated by the federal size regulations. The acquiring firm is required to maintain both size and status if it intends to continue performing on the set-aside contracts of the target firm.  Additionally,transfer of the contracts may require waivers and approvals from the SBA or the contracting agency. Buyers need to be prepared to do the requisite due diligence to ensure they can perform on the assets they are acquiring. GovContractPros’ team has extensive experience managing this process, both from within the federal government and as advisors to federal contractors.

The recent expansion of the Mentor Protégé program to include all small businesses, not just 8(a)firms, has created opportunities and challenges for small businesses competing in the set-aside marketplace.  All small businesses can now team up with experienced mentors to receive assistance and to pursue set-aside contracts. However, selecting the right mentor is critical, as protégés are limited to two mentors for the life of their firm.  Establishing the right structure in the mentor protege relationship is also critical as any undue influence by the mentor could result in a loss of contracts. GovContractPros can assist in identifying both mentors and proteges and developing mentor protege agreements.

As your company grows and you look to graduate from the small business set-aside programs, it is critical to build a business plan and strategy that leverages federal contracting tools to build a runway that will successfully carry your firm beyond small and into the mid-size category. Small businesses need to understand how to leverage long-term government wide indefinite quantity contracts, like schedules GWACS, IDIQS, MACs, etc,. to sustain their growth and graduate from set-aside programs successfully. GovContractPros can assist firms in conducting market research to identify the best vehicles to attain, either through direct bidding or acquisition.