Archives for July 12

Jul 17, 2012
Small businesses are the primary job creators in this country, making up greater than two-thirds of all new jobs created.

In FY2011, the Federal Government awarded more than $91.5 billion in federal contracts to small businesses, representing 21.64 percent of small business eligible federal contract dollars.  During the first three years of the Obama Administration, the federal government awarded $286.3 billion, or 22.07 percent in federal contracting dollars to small businesses.  This is a $32 billion increase over the three preceding years even as contracting spending overall has declined across the federal government. Even with these increases, however, the government has still failed to meet the statutory goals it has set for small businesses.

According to the Small Business Administration, the dollars and percentages for four of the five statutory goals have actually declined between 2010 and 2011:

1. SDB - 2010: 7.95%, $34.4 billion; 2011: 7.67%, $32.4 billion
2. Women-owned - 2010: 4.04%, $17.5 billion; 2011: 3.98%, $16.8 billion
3. Service-disabled Veteran-Owned - 2010: 2.5%, $10.8 billion; 2011: 2.65%, $11.2 billion
4. HUBZone - 2010: 2.77%, $12 billion; 2011: 2.35%, $9.9 billion

There are three possible reasons for the decline in total dollar amounts. 

1)  The decline in funding due to a shrinking budget/ new austerity measures.
2)  The expiration of many of the provisions of the American Recovery and Reinvestment Act, of which over 30 percent were allocated to small businesses.
3)  The emerging trend of Contract Bundling - even if the resulting contract is a small business set aside, only large smaller firms or joint ventures can compete, instead of smaller firms going after the individual contracts.

Rep. Sam Graves (R-Mo.), chairman of the Small Business Committee, is sponsoring the Government Efficiency Through Small Business Contract Act of 2012 (H.R. 3850).
If this bill is approved, it will raise the small business contracting goal to 25 percent from the original 23 percent.  It would also seek to make senior leadership in each agency accountable in attaining those goals. Rep. Graves has attached this bill to the 2013 Defense Authorization bill.

By:  Ira Evangelista, GovPartners Market Analyst

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Jul 17, 2012
Sequestration - the automatic across-the-board cuts that will occur if an agreement cannot be reached regarding the nation's deficit.  These cuts would go into effect on January 1, 2012.  These defense cuts would take place over the span of a decade, amounting to $500 billion.

Prime Contractors in the defense industry are warning of massive layoffs, with Lockheed Martin threatening to layoff up to 123,000 personnel should sequestration occur.  Meanwhile, lobbying expenses from military contractors has increased by 11.5%, for a total of $15.9 million, in the first quarter of 2012 compared to the same quarter in 2011.  Northrop Grumman and Lockheed Martin increased their spending by 51% and 25% respectively.

Defense Secretary Leon Panetta made a plea to Congress in the end of June urging Congress to prevent sequestration budget cuts from threatening "the programs critical to our nation's security." 

Acting Office of Management and Budget (OMB) Director Jeffrey Zients has agreed to testify before his committee on the looming defense cuts.  This hearing will occur two weeks after the scheduled July 18 hearing in which members of the defense industry will discuss the impact of sequestration cuts on U.S. companies.

A majority of Democrats and Republicans (which includes the Obama administration) are opposed to the sequestration cuts, but both parties have so far failed to reach an agreement on the alternatives they could implement to replace the cuts.

By: Ira Evangelista, GovPartners Market Analyst


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Jul 17, 2012

GovPartners, LLC (GovPartners), a leading provider of government business development and management services, is pleased to announced the company’s recent General Services Administration (GSA) contract award # GS-10F-0369Y , approval for the company to offer acquisition support services to the government. GovPartners has placed management and professional services on the government's electronic ordering system, GSA Advantage!®.

“Our GSA Schedule Award will enable GovPartners to offer complete acquisition and program management solutions to the government market worldwide,” stated Cynthia Karnik, President.  Our convenient location in the Washington, DC metro area has enabled us to indirectly provide government support services as a subcontractor and service provider for over three (3) years, and with our recently awarded GSA Schedule; we look forward to working directly with numerous government agencies and their customers.”

GovPartners has successfully provided quality business development and management services to commercial and government clients, which continues to translate into quality contract acquisitions/ management, with an end result in market growth and expansion.  

About GovPartners

Founded in 2009, GovPartners, LLC, a certified small woman and minority-owned (SWaM) company, provides services to facilitate connections with qualified government business through direct and teaming opportunities. We were formed to support the needs of small and large businesses requiring assistance with business development, proposal writing, acquisition and procurement management, program management, contract administration, quality assurance evaluations, asset deployment assistance, staffing support, and contract compliance monitoring.
For more information please contact:
GovPartners, LLC

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Jul 20, 2012

Alaska Native Corporations (ANC's) are receiving fewer awards this year than in the past years. The reduction is attributed to the sharp drop to new measures installed last year to minimize the volume and size of sole-source contracts to ANCs.
ANCs received $4.4 billion in contracts in 2011. About $2.5 billion of that (57%) was awarded through sole-source contracts valued at $20 million or more each, according to federal contract data.
This year, the numbers are dramatically lower: $1.8 billion in total obligations for the first three quarters of fiscal 2012. Sole-source contracts valued at $20 million or more each accounted for $587 million, or about 33% vs. 57% in 2011.

Reference Article.

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