Survey finds persistent firms get more results
| By Simon Brody August 20th, 2013 |
Stricter agency budgets are requiring smaller businesses to work even harder to win federal contracts. A survey conducted by American Express OPEN has found that -- despite a reduction in overall bidding activity over the past five years -- smaller firms willing to compete are getting results.
Of the companies surveyed, many owned by women and minorities, increased investments of time and money in federal contracting are becoming the norm.
Data gathered found the average number of prime contracting bids declined from 19.5 in 2007-2009 to only 5.5 during 2010-2012. Small business contractors on average invested $128,638 in time and resources seeking government contracting opportunities in 2012, a 49 percent increase from 2010.
The figures did find some encouraging news, these harder working smaller companies are showing improved rates of success. Analyzing contracts won versus number of bids, the survey found “with fewer bidding opportunities, active small business contractors are bidding smarter."
The prime contracting success rate is now 55 percent, up from 41 percent three years earlier. The subcontracting success rate is 86 percent, dipping slightly from the 90 percent reported in 2007-2009.
American Express OPEN based their findings on an online questionnaire completed in February and March by 684 small business owners active in federal contracting.
This information is intended to be
educational and should not be considered legal advice on any specific matter.
