Veterans Business Resources

a portal for all Veterans and SDV Small Business Owners

Three Simple Truths

  • Government Contracting is HARD WORK!
  • Government Contracting takes TIME!
  • Government Contracting is WORTH IT! 

In the last 2 blog posts we proved 2 Simple Truths about Government Contracting; the first being that Government Contracting is Hard Work and the second truth that Government Contracting takes Time.  Now, we are going to prove the third Simple Truth, Government Contracting is WORTH IT! 

Each year the Small Business Administration (SBA) negotiates federal contracting goals with all federal agencies concerning the award of prime and subcontracts.  These goals, established at 23% say that the Small Business community will receive 23% of all federal contracts awarded by federal agencies.  The portion of that goal established for the Veteran Small Business community is 3%.  In fact, Public Law 106-50 (P.L. 106-50), sets as a goal that 3% of the value of all federal contracts and subcontracts shall be awarded to Service-Disabled Veteran-Owned Small Businesses.  While this 3% may seem small at first glance, it represents a sizeable amount of money.  In fiscal year 2008, (the latest year data is available from the SBA) that 3% of federal procurements directed to the Veteran Small Business community represented $6.4 Billion!  That’s right, Billion with a capital “B,” and the bitter sweet irony of that number is that it only represents 1.5% of the actual 3% goal.  Yes, you’re right; the amount that SHOULD/COULD be awarded to the Veteran Small Business community under the outdated 23% goal is actually $12.8 Billion!  When we start to look at other potential contracting opportunities at the state and local levels that could go to the Veteran Small Business community, some put that number well north of $33 Billion!  Unfortunately most states don’t have contracting goals for the Veteran Small Business community, but working together we can change that.  Visit the Vetrepreneur Magazine to find out how we, working together can effectively cause change to happen.  You can also see which states include Veteran-Owned Businesses in their small business program.  The Vetrepreneur is also an excellent source of information on Veteran issues and concerns.  The Vetrepreneur, the official magazine of the National Veteran-Owned Business Association (NaVOBA) is an excellent tool to keep in your tool kit.  

The federal goal of 23% of contracts and subcontracts being awarded to the small business community is, in my opinion, long overdue for revision, upward.  That and other concerns of the SBA are better left for discussion at another time.  With that being said, I believe you will still agree that having the opportunity to compete for an achieved $6.4 Billion and a statutorily mandated $12.8 Billion makes Government Contracting WORTH IT!  As we continue to go through this process together, you will discover there are Three Simple Truths about Government Contracting.  You have been introduced to the third and final truth today.

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4 Responses

  1. Hardy Stone says:

    Major–

    The Shall/May debate has existed since 106-50…Current language is ‘may’ award contracts to SDVOSB. If this were ‘shall’ award contracts to SDVOSB, agencies would be forced to meet the goal of 3% of all contracts to SDVOSB.

    • Hardy-

      Good afternoon. Thank you for your observation and response to my comments. You are absolutely correct and I imagine the Shall vs May debate will continue until Congress decides to do the right thing and correct the language. Our goal at VBR is to make Veterans successful in Government Contracting in spite of any languaging oversights. I strongly encourage you to direct Veterans to this site for help, guidance and tips to make that goal a reality.

      • Hardy Stone says:

        I publish a monthly online newsletter called VetLikeMe. I delve into the vacillating world of service disabled veteran owned business regulations, political opinion, etc.

        email me directly and I’ll add you to the mailing list, which now is more than 1500. Soon to be embedded on the web…

        Join groups on Linked In and Facebook…good views there…

        -hardy

      • Hardy-

        Are you going to the Veterans conference in Vegas this year? If so, I would like to meet you. In the meantime, I’ll research other Veteran groups on Linked In and Facebook.

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