FedBid Empowers Small Business Set-Aside Success For Buyers And Sellers
Directing contracting dollars to companies of a specific socio-economic set-aside classification is a central component to federal contracting. In 1953, Congress passed the Small Business Act which declared “the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small-business concerns," in order to "insure that a fair proportion of the total sales of Government property be made to such enterprises, and to maintain and strengthen the overall economy of the Nation". This directive serves to support a healthy and diverse supplier base of small-businesses, which are the backbone of the American economy and job creators in communities across the country.
FedBid supports this initiative by giving Buyers access to thousands of qualified Sellers in every federally recognized set-aside category. The marketplace has always been geared towards promoting small business utilization and in FY16 83 percent of the dollar volume and over 90 percent of all contracts were awarded to small-businesses!
With a registered Seller base of more than 90,000 companies, the vast majority of
which are small-businesses, FedBid is a great way for Buyers to achieve high
competition on small-business solicitations. The marketplace also helps Sellers
access real opportunities in their areas of expertise. Small businesses often
offer innovative product and service solutions that Buyers might not have been
aware existed. As a result, even when a Buyer posts an opportunity with no
set-aside requirements, meaning large-businesses can compete, 70 percent of those solicitations are still
awarded to small-businesses. When given a fair and level playing field, small business Sellers have proven they can compete and win on the government solicitations on FedBid.
The Small Business Administration (SBA) works with every federal agency to establish goals for awarding their contract spending among the multiple set-aside classifications during each fiscal year. The following chart details the federal goals for FY16 compared to the spend which was allocated through FedBid.
Solicitations that were competed and awarded through FedBid
far surpassed agency goals last fiscal year. A great example of the advantage that set-aside designated Sellers can achieve on FedBid is in the Women-Owned Small Business (WOSB)
classification. In FY15 the government reported that for the first time it met the 5 percent goal for contracting dollars to WOSB. In that same time frame FedBid saw 15 percent of award dollars going to WOSBs, and that number rose to 18 percent in FY16. This success is repeated across our marketplace. Small-Disadvantaged, HUBZone, and Service-Disabled Veteran-Owned Small Businesses all outperformed the federal goals on FedBid.
Part of this success is due to the fact that the products and services typically procured on FedBid tend to have many suppliers at the small
business level. With Buyers spread across the country, it is often local small businesses
that can best respond to the government’s needs. Additionally, with the ability for Sellers to
list their set-aside qualifications, and the types of goods and services they
are interested in, Buyers know they can turn to FedBid when they need to contract
with a group of qualified vendors in a specific set-aside category.
With no cost to register and automated opportunity filters,
FedBid is a low-maintenance procurement tool that every Seller looking to do
business with the government should consider. By leveraging the power of their
company’s set-aside, Sellers can find and connect with opportunities that are
specifically designated for their classification. At the same time, Buyers
benefit from being able to easily direct more contracting dollars to each
set-aside, helping them contribute towards meeting their agency goals.
FedBid is proud of the role we play in supporting American small businesses. Whether you are a Buyer or Seller, FedBid is the marketplace that lets you best leverage set-asides to your advantage. Get started today to see how our opportunities can benefit you.
Publisher: FedBid, Inc.
Released: March 16, 2017