The Biden administration has announced a new initiative of "increasing the share of contracts going to small disadvantaged businesses by 50 percent by 2026 - translating to an additional $100 billion to small disadvantaged businesses (SDBs) over the 5 year period." These plans were announced on June 1, 2021, the 100 year anniversary of the Black Wall Street massacre in Tulsa, Ok. The increase in set-aside contracting is one part of a platform of steps the administration is taking to address the racial wealth gap by providing additional opportunities to small minority businesses. Click here for full details
What does this mean for you as a contractor?
The Biden administration is "launching an all-of-government effort to expand contracting opportunities for underserved small businesses across the country." Contractors need to begin positioning themselves for the new or increased opportunities.
It is time to work on your small business certifications. These will be important to qualify for any new set-aside contracts. There will surely be new opportunities made part of the 8(a) BD program, but there may be opportunities for companies with other small business certifications through partnerships and subcontracting. 8(a) firms may want to expand their capabilities through new partnerships. Non-8(a) firms should consider more Mentor-Protege relationships with 8(a) firms.
Your preparation should continue beyond relationships. Consider getting CMMC certified if you plan to target DOD contracts. Will you need additional funding for potentially larger contracts? Do you need additional bonding capacity? Learn new Capture Management strategies. Monitor any announcements from various federal agencies announcing new contracting opportunities as a result of this new initiative. Happy hunting!