Yet Another Contracting Vehicle
From GOVSALESWIKI
Installment [ 53 ] Yet Another Contracting Vehicle By Richard White
In a previous installment, we discussed the wide range of contracting vehicles used to close federal sales. We define the term in its broadest sense; a contract vehicle is a method under which a company may pursue and close a sale. Examples of contract vehicles include GSA schedule contracts and multiple award schedule contracts. This discussion will focus on vehicles available to small businesses. A list of such vehicles includes:
- Women-owned Small Businesses
- Veteran-owned Businesses
- Businesses located within a HUBZone
- Small Socially and Economically Disadvantaged Businesses
- Socially & Economically Disadvantaged Businesses Certified Under the 8(a) Program
- Small Disadvantaged Businesses (SDB)
It takes a lawyer or accountant (or both) to keep track of the qualification and certification requirements for all of the aforementioned programs. Generally speaking, those vehicles with the most strict qualification standards also offer qualified businesses the greatest protection from competition. The federal government, in passing a recent interim rule, added service-disabled veteran-owned businesses (SDV’s) to the list of available vehicles. Key provisions of this interim rule allow a contracting officer to:
- Restrict competition to SDV-owned businesses if there is a reasonable expectation that two or more SDV’s will submit offers.
- Make a sole-source award if the anticipated contract value will not exceed $5 million for manufacturing or $3 million for non-manufacturing.
- SDV qualification requirements are similar to those under the other small disadvantaged business programs.
- Service-disabled veterans must own 51 percent of the stock of the qualifying company.
- A service-disabled veteran must control and operate the company or the company must be controlled and operated by the spouse or permanent caregiver of a service-disabled veteran.
Your company should strongly consider applying for certification if it meets the qualifications for a service-disabled veteran-owned business. In doing so, you will have significantly increased your likelihood for winning federal business. Not only should your company be calling on federal customers on its own, it should also consider establishing a formal or informal partnership with one or more prime contractors. The prime contractors need your company to assist them in becoming more dominant. The prime contractors will be more than happy to work with your business if you have already lined up a sales opportunity or if their current stable of SDV’s is not large enough. Although developing federal business is a long and arduous process, those who take advantage of the programs the federal government offers to small businesses will reap the rewards in long run.