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Instead of gazing out over the 'cliff' let's turn our attention to $500M in simplified spending.

Sunday, November 18, 2012   (0 Comments)
Posted by: Guy Timberlake (theasbc.org/visionary)
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Yes. It appears we are sitting on the edge of the fiscal cliff with [more] bad things bound to happen to federal contractors and the agencies themselves. That doesn't mean, however, the U.S. Government has stopped spending contract dollars.

In fact, as of this past weekend (about one and one-half months into the fiscal year), the government shows more than 93,000 contract actions valued over $17 billion dollars being processed since the start of FY13. Of that amount, nearly $557 million has been processed using the Simplified Acquisition Procedures. Those would be the special purchasing rules that allows government to reduce its administrative burden (and yours) so requirements can be expedited in support of end-users.

According to FPDS-NG, small business has realized just shy of $361 million of these simplified acquisition purchases YTD. Keep in mind the numbers reported are actually much higher but are not visible to Industry yet due to the 90-day delay in being able to see DoD transactions due to operational security concerns.

The amount of these streamlined purchases awarded to small business, however, is lackluster for more than one reason.

First, it means the guidance issued by OFPP and SBA in their June memo that included the section Maximizing Opportunities for Small Businesses Under the Simplified Acquisition Threshold is not yet having a noticeable and positive effect.

Second, it means small federal contractors are not yet doing their part to "help" agencies utilize the "rule of two" to their own benefit. The benefit of small federal contractors, that is.

It seems folks are still aiming at the large multi-year and multi-million (and billion) dollar opportunities and hunting licenses, versus capitalizing on an area of spending that has increased dramatically since FY2003. After all, these procedures were created in part to "Improve opportunities for small, small disadvantaged, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small business concerns to obtain a fair proportion of Government contracts." I just blogged the other day about the $1B opportunity that has literally fallen in the laps of SDVOSBs at VA (might as well take that opportunity since not much else seems to be going the way of our Service Disabled Veteran-Owned Small Businesses at VA).

What are we as small businesses doing to help ourselves in this area?

Will you be one of the companies that increases your awareness and adjusts your radar to include this area of opportunity that amounted to over $12B (so far) in government spending during FY12?

Peace.

The Chief Visionary

www.theasbc.org/visionary

"The person who says it cannot be done should not interrupt the person doing it."

 
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