US Federal Contractor Registration is reporting ample federal contracting opportunities for small businesses in the face of difficulties caused by sequestration. US Federal Contractor RegistrationSequestration refers to the automatic budget cuts resulting from the Budget Control Act of 2011, which originally went into effect in March 2013.
DoD officials and contractors alike have been facing difficulties due to the arbitrary budget cuts, making the future uncertain for contractors. An annual study released by Bloomberg of the top 200 federal contractors indicated that Defense Department spending has dropped 15% this past fiscal year. Since the cuts are across the board and are not tied to an overall goal other than reduced spending, it has caused both federal agencies and contractors trouble in planning for the future.
However, despite these setbacks many contractors are finding success. According to the Washington Post, financial reports recently released by major defense contractors including Lockheed Martin, General Dynamics, and Northrop Grumman show these firms have seen increased profits even as they experienced reduced sales during the first quarter of 2014.
Opportunities are not only available for large companies such as these. Nearly 25% of the over 67,000 new prime solicitations posted on FedBizOpps in the last 90 days were labeled as set asides for small businesses. Legislation introduced in Congress earlier this year, including the 2014 Contracting Data and Bundling Accountability Act, are hoped to further increase opportunities for small business contractors. Federal agency representatives at the April 24th ACT-IAC’s 2014 Small Business Conference also commented that the perception that small businesses cannot compete against larger firms is simply untrue. Out of 14,000 vendors contracting with the Department of Homeland Security in fiscal year 2013, 10,000 were small businesses and 1,700 of those were fulfilling their very first contract with DHS, according to Kevin Boshears, director of DHS’s office of small business and disadvantaged business utilization staff.