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How to Use Federal Resources the Right Way

The Shred

We all know federal contracting is hard for small businesses to navigate – barriers to entry, learning curves, and slow sales cycles are enough to frustrate even the most intrepid entrepreneur. Even worse, countless opportunistic private companies prey on unsuspecting contractors.

The government provides several free resources, but those new to the industry may have unrealistic expectations and inflated notions of outcomes. We want to bring to your attention these four federally-provided resources that may not be on your radar, and how to leverage them effectively.

1. Minority Business Development Agency (MBDA)

There are nearly 11 million minority-owned businesses in the United States, employing more than 6.3 million people and generating $1.8 trillion in revenue annually.

With more than 75 Business and Specialty Centers and Programs across the United States, MBDA is the only federal agency solely dedicated to the growth and global competitiveness of Minority Business Enterprises (MBEs). This includes businesses owned and operated by socially or economically disadvantaged individuals, including African Americans, Asian Americans, Hasidic Jews, Hispanic Americans, Native Americans, and Pacific Islanders.

Using their Business and Specialty Centers and Programs, MBDA provides access not only to capital and contracts, but also to high growth industries, emerging markets, and global supply chains, through technical assistance in the following areas:

  • Business development
  • Capacity building
  • Navigation

Accomplishments

  • In FY23, MBDA’s efforts saw $3.8 billion in contract awards for minority-owned businesses, and over 19,000 in either generated or protected jobs in minority-owned businesses.
  • In FY22, MBDA facilitated access to more than $1.5 billion in capital.

2. Small Business Administration (SBA)

The SBA is a federal agency dedicated to aiding small businesses by providing access to capital, entrepreneurial development, government contracting, and advocacy. It offers loans, grants, counseling, and training programs. Additionally, SBA provides:

  • Certification Programs: The SBA administers several certification programs that can enhance a small business’s competitiveness in government contracting. These include the 8(a) Business Development program for socially and economically disadvantaged businesses, the Women-Owned Small Business (WOSB) program, the Service-Disabled Veteran-Owned Small Business (SDVOSB) program, and the Historically Underutilized Business Zone (HUBZone) program. Certification in these programs can provide preferential access to certain government contracts.
  • Contracting Assistance: The SBA provides guidance and assistance to small businesses seeking government contracts. This includes helping small businesses identify contracting opportunities, understand the bidding process, and navigate the requirements for submitting proposals and complying with contract terms.
  • Surety Bond Guarantee Program: Many government contracts require surety bonds to ensure performance and payment obligations. The SBA’s Surety Bond Guarantee Program helps small businesses obtain bonding by providing guarantees to surety companies, which can otherwise be difficult for small businesses to obtain.
  • Training and counseling: The SBA offers training, counseling, and mentorship programs through its network of Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), Veterans Business Outreach Centers (VBOCs), and SCORE chapters. These resources help small businesses build the capacity to compete effectively in government contracting.
  • Access to capital: The SBA offers loan programs to help small businesses access financing when they might not qualify for traditional bank loans. These programs include the 7(a) Loan Program, the Microloan Program, and the CDC/504 Loan Program.
  • Contracting assistance: The SBA helps small businesses compete for government contracts through various programs and initiatives. This includes contracting assistance, subcontracting opportunities, and certifications for disadvantaged businesses such as the 8(a) Business Development program, HUBZone program, Women-Owned Small Business (WOSB) program, and Service-Disabled Veteran-Owned Small Business (SDVOSB) program.
  • Entrepreneurial development: The SBA provides counseling, training, and mentorship services to entrepreneurs and small business owners through its network of Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), SCORE chapters (formerly known as the Service Corps of Retired Executives), and Veterans Business Outreach Centers (VBOCs).
  • Advocacy and policy: The SBA advocates on behalf of small businesses in policy discussions and government regulations. It provides research and analysis on small business issues to policymakers and works to ensure that small businesses have a voice in the legislative and regulatory process.

SBA is also affiliated with programs SCORE and Ascent that can provide further assistance.

a. SCORE

SCORE is a nonprofit organization affiliated with the SBA that provides small business owners and entrepreneurs with free mentoring, workshops, and online resources. Since 1964, SCORE has helped more than 11 million entrepreneurs start, grow, or successfully exit a business.

SCORE’s 10,000 volunteers provide free, expert mentoring, resources, and education in all 50 U.S. states and territories.

  • Free mentoring
  • Training webinars and courses on demand
  • Library of online resources
  • Local webinars and workshops

Accomplishments

  • In FY22, SCORE assisted in the creation of more than 30,000 new small businesses.
  • In FY22, SCORE helped add 112,570 total jobs to the American economy. 90% of SCORE’s ‘in business’ clients were still in business at the end of 2022, and 55% also reported an increase in revenue.

SCORE also brings local and global sponsors such as Meta, Office Depot, Progressive, NFLPA, DELL, and Google.

b. Ascent

Women entrepreneurs start and own 45% of all businesses in the United States, employ 9.4 million workers, generate $1.9 trillion in revenue, and represent all industries.

In late 2022, SBA launched a free learning platform for Women Entrepreneurs, Ascent. SBA partnered with the White House, the U.S. Department of Labor’s Women’s Bureau, and the U.S. Department of the Treasury to develop the new tool.

Ascent is divided into significant topics called “Journeys, which was developed by experts in women’s entrepreneurship. Some of the areas covered by these excursions are:

  • Exercise and tools – Learn and apply growth practices to your business.
  • Fireside chats – Learn from experts about how women grow their businesses.
  • Infographics – Gain a snapshot view of growth concepts.
  • Success stories – Be inspired by stories from real-world entrepreneurs.
  • Discussion guides – Use questions to stimulate thinking for you, your advisors or team.
  • Videos – Grasp key concepts in just minutes.
  • Key insights – Understand key topics to support your business growth.
  • Self-assessments – Benchmark your current practices through self-focused inventories.

For government contractors, Ascent identifies opportunities and prepares businesses to pursue those prospects. These Journeys have six components or excursions:

  • Government As Your Customers – helps the user understand the government as a customer.
  • Government Contracting Opportunities – evaluates contracting opportunities with local, state, and federal governments.
  • Government Subcontracting Opportunities – helps to identify subcontracting opportunities. S
  • et-Aside Certifications – guides the business through what is needed to plan and pursue federal government contracting certifications.
  • Federal Solicitations – analyzes the components of the federal solicitation process
  • General Services Administration (GSA) Contracts – analyzes opportunities for GSA contracts.

Ascent is part of a larger effort to support female-run businesses. Along with a plan to launch 20 new Women’s Business Centers in 2021, the initiative was “the SBA’s largest single expansion of resources specifically tailored for women in more than 30 years,” said SBA administrator Jovita Carranza, when it was announced in 2021.

3. Veteran Institute for Procurement (VIP)

VIP began with a question in 2009: “Why has the federal government not met its veteran small business goal – and what can be done to fix it?”

With the support of SBA, the State of Maryland, and corporate partners and donors, VIP was developed to accelerate the success of veteran-owned small businesses in the federal market.

Today, VIP has expanded its programs to include five different curriculums, with over 250 industry leaders and government experts generously volunteering their time to deliver classroom instruction.

VIP is offered at no cost to participants. The Montgomery County Chamber Community Foundation (MCCCF) funds this program through public and private partnerships, made up of grants from the SBA, the State of Maryland, and other corporate sponsorships.

Graduates of VIP are:

  • 80% SDVOSB
  • 60% Minority-Owned 3
  • 0% 8(a)
  • 22% Woman-Owned 1
  • 5% HUBZone

VIP grads have been awarded over $33 billion in federal prime contracts since 2010, and 38 VIP grad-owned companies have been recognized as some of the fastest-growing companies in the US.

4. PTACs (APEXs) / OSDBUs

Procurement Technical Assistance Centers (PTACs) help small businesses compete for and win government contracts. They offer training, counseling, and assistance with the government contracting process. To find one near you, reference the PTACs locator: aptac-us.org. PTACs offer the following services:

  • Attend Workshops and Training Sessions: PTACs often conduct workshops, seminars, and training sessions on various aspects of government contracting. Companies can attend these events to learn about the procurement process, regulations, certifications, and other relevant topics.
  • One-on-One Counseling: PTAC counselors provide personalized assistance to companies. Businesses can schedule appointments with PTAC counselors to discuss their specific needs, such as understanding procurement opportunities, preparing proposals, or navigating contract requirements.
  • Bid Matching Services: PTACs can help companies identify relevant government contracting opportunities by providing bid matching services. They can assist in searching for contracts that match a company’s capabilities and interests.
  • Assistance with Registrations and Certifications: PTACs help companies navigate the process of registering in government databases such as the System for Award Management (SAM) and obtaining certifications such as the Small Business Administration’s 8(a) program, Woman-Owned Small Business (WOSB), or Service-Disabled Veteran-Owned Small Business (SDVOSB) certifications.
  • Proposal Review: PTAC counselors can review companies’ proposals before submission, providing feedback and suggestions to improve competitiveness and compliance with government requirements.
  • Networking Opportunities: PTACs often host networking events, matchmaking sessions, and industry-specific forums where companies can connect with government agencies, prime contractors, and other businesses in the government contracting ecosystem.

a. OSDBUs

Offices of Small and Disadvantaged Business Utilization (OSDBUs) are offices or divisions within a federal agency or department responsible for promoting the use of small businesses, including those owned by minorities, women, veterans, and other disadvantaged groups in the agency’s procurement processes. The primary role of an OSDBU is to ensure that small businesses have fair and equitable access to federal contracting opportunities. They do this by:

  • Advocacy and Outreach: OSDBUs advocate for small businesses within their respective agencies and promote awareness of contracting opportunities through outreach events, workshops, and networking sessions.
  • Assistance and Guidance: They provide assistance and guidance to small businesses seeking to do business with the agency. This can include helping businesses navigate the procurement process, understand contracting requirements, and identify opportunities for subcontracting.
  • Compliance and Reporting: OSDBUs monitor the agency’s compliance with small business contracting goals and requirements mandated by federal regulations. They also collect data and prepare reports on small business utilization within the agency.
  • Training and Education: OSDBUs may offer training programs, webinars, and educational resources to help small businesses improve their capabilities, enhance their competitiveness, and understand the intricacies of federal contracting.
  • Collaboration and Partnership: They collaborate with other agencies, industry associations, and advocacy groups to support small business development initiatives and share best practices for

OSDBUs play a critical role in fostering a diverse and competitive supplier base, while also ensuring that federal agencies meet their small business contracting goals and obligations.

No matter your business’s background or past performance experience, it is possible to get a leg up going into the federal contracting market as a small business with these federal resources available to you. These resources, which are targeted to different areas of need in the market, have proven their worth in helping small businesses succeed. With these under your belt as a small business interested in federal contracting, you can gain access to valuable capital, training programs, collaborations, and more.