Search for Contracts
Knowing how to search for a contract and choose the best one can take you far. If you are a small business concern, you may be interested in finding contracts that are set-aside for you.
While it may seem like a good idea to only search by your set-aside and choose those that are required only for that specific concern, it can sometimes backfire if you have a set-aside certification like Service-Disabled Veteran-Owned Small Business (SDVOSB).
Aside from being properly registered in System for Award Management, finding out which federal set-aside contracts that are currently available to your business would be a useful aspect of government contracting to a small business. It is time to find which set-aside contracts are available, make sure your business qualifies, and bid on the contract.
When looking for potential contracts, if you only search by or use your set-aside, you will be limiting all your potential choices. This also makes your award powerless, because you will be competing with companies who may be more specialized than you and also have the same certification.
Use your set-aside to bid on more items. If a solicitation does not have a set-aside or is only for small business concerns, any small business concern can apply.
Limitations on Subcontracting
There is a Federal Acquisition Regulation (FAR) that helps small businesses that are specialized. It is FAR 52.219-14 Limitations on Subcontracting.
This FAR was made so that the specified small business concerns benefit the most from a contract. Its intention was so that small businesses would perform a specified amount. This FAR needs the prime to be the small business concern and for them or like vendors, to be paid a portion of the total contract based on what they are performing. This sends the money straight to whoever needs it.
Here are the services and their percentages if this clause is listed:
- Services (except construction) - The small business concern is required to be paid at least 50% of the contract.
- Supplies (other than procurement from a nonmanufacturer of such supplies) - The small business concern is required to be paid at least 50% of the contract.
- General construction - The small business concern is required to be paid at least 15% of the contract.
- Construction by specialty trade contractors - The small business concern is required to be paid at least 25% of the contract.
Remember that contracting officers must hit their small business acquisition goals and 23% of all government contracts are devoted to small businesses.