Opinion: Small firms increase federal procurement share

This is due, in part, to increased efforts by federal agencies to reach a target percentage of contracts to small businesses – an effort that has increased in strength due to an executive order by President Bush strengthening the Small Business Administration’s oversight of the federal agencies’ procurement process.

Additionally, SBA has taken steps itself to help the buyers for federal agencies and prime contractors who want small business subcontractors to have more direct contact with small businesses.

Last year, SBA partnered with the Hewlett Packard Foundation to present four Business Matchmaking Conferences, and more are planned for 2005.

The initiative couples procurement training with a business contract matchmaking event on site and actually sets appointments for small business owners to talk with buyers in over 200 federal, state and local governments, as well as major corporations.

More than 7,000 small business owners have participated so far and been trained on how to conduct business with these buyers, netting more than $20 million in contracts.

Additionally, SBA and HP are launching a new online matchmaking program to allow small-business owners to conduct their training online and obtain appointments online.

This 24/7 online initiative will roll out in five pilot markets in January and Kansas City is one of the pilot locations.

Today, 8(a) applications are online, which will save small businesses a tremendous amount of time and frustration.

More than 7,000 8(a) firms are being mentored by SBA to market their goods and services to the government and large contractors. Procurement for SBA’s 8(a) program participants is up over last year as well – by $4 billion to just over $10 billion total. Contracts doubled for historically underused business zone firms last year, going from $1.7 billion to $3.4 billion.

Today there are more than 10,000 firms located in HUBzones that are signed up with the SBA for procurement opportunities. Small and Disadvantaged Businesses received about $19.5 billion dollars in contracts.

Matchmaking has been the key to the rising contract dollars and many district SBA offices are setting up forums where area small businesspersons present their products and services to local buyers.

Tony Johnson took advantage of one such matchmaking event sponsored by the SBA in Wichita while laid off from Cessna Aircraft during a slowdown after the 9/11 terrorist attacks. He found time to devote to his part-time, family-owned business, Toolworxx, Inc.

Earlier this year, with a new tool invention in hand, Tony marketed the SabrrMark & Cut, a multifunctional measuring tape for professional craftsmen and do-it-yourself homeowners, to a room full of contracting officers and buyers.

He was successful at selling some of the Sabrrs on the spot.

Now, not only will his product “change the way you mark and cut forever” as his brochures state, but his new business, with a leg up, will change his and his family’s lives forever.

For more information on the dates and locations of matchmaking sessions and online training opportunities, please visit www.businessmatchmaking.com.

Sam Jones is Region VII SBA administrator.

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