Thursday, April 07, 2005

Advice for Sale In Battle for Federal Contracts

Ellen McCarthy, Washington Post (reg. req.)

The impetus for the growth is clear. While local companies collected $42.5 billion in federal-contract revenue in 2003, $19 billion of that went to 1 percent of the firms, about 60 companies, according to a study released by the Greater Washington Initiative this week. The industry has ballooned, but not everyone is getting an equal share of the business.

Small firms have long complained that it is expensive to become a qualified government vendor and tough to compete against large companies that offer more services and seem to know every federal procurement official on a first-name basis.

Even though the Federal government has requirements that a certain amount of business go to small firms, the reality is that the big firms get almost everything. This is partly because of the we need to go with an established firm mentality.

The best advice I can offer any small business is get involved with the trade associations and user groups. That is why I have many of them linked on my sidebar.

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