Federal Agencies Too, Face Trucker and Transporter Shortage

If you’re a trucking company, the federal government is an important partner for you, especially with the $1 Trillion Infrastructure bill recently passed. The Federal Government offers many opportunities to work with them on logistics contracts and other programs that will provide your business with new revenue streams and growth potential. While our economy faces an over 80k truck driver shortage, demands are higher than ever.

The trucking industry is a billion-dollar industry and the Federal Government contracts with trucking companies to transport goods all over the country. In addition, since the federal government can’t declare bankruptcy, they are not likely to default on payments, unlike other private companies which will secure ongoing revenue and essentially recession-proof your small trucking company or courier service. The government also offers benefits such as protection from risks associated with late or non-payment from customers and an increase in your customer base by including government agencies, federal, state, and local alike especially during times of disaster relief.

Let’s dive in a little further on ways small businesses can participate, as disaster relief season doesn’t seem to be letting up much on the United States. Historically around May, we’re currently in December and seeing the central U.S. being leveled by natural disaster.

How Do I Win a Government Contract as a Transportation Company?

There is not just ONE way to win a contract – there are many! Here are some of the top methods for a trucking firm to obtain federal contracts:

• The SBA mentor protégé program allows small businesses to work with larger, more established businesses and gain access to federal contract opportunities through them – This is done by a large company (the mentor) working with a small business to help them grow and gain access to new contracts This can be beneficial as it is free for the smaller company, allows them opportunities they wouldn’t normally have on their own and provides more stability by having another established company watching out for you.
• A joint venture involves at least two companies working together to win a contract – This is beneficial for smaller companies that have trouble working on their own or don’t have the resources of larger companies, but can be an effective way for both parties involved to benefit greatly from each other.
• A teaming/ subcontracting agreement involves two or more companies pitching in and working as one towards winning a contract – These have been done in the past with companies that have already contracted with the government and are a great way to get your foot in the door, as a new and emerging small business in the federal market.
• Selling transportation services through an integrated program allows you to provide a service for larger, established companies who contract with other entities such as construction or information technology – This is beneficial because it can expose you to a large number of companies and contracts that you may not have been able to access otherwise.
• Participating in the Small Business Administration (SBA) SDB program gives smaller companies a chance to receive federal contracts that may otherwise go to larger, more established companies – This is beneficial because it allows for increased competition and access to opportunities by providing additional support from the SBA.

The federal government purchases transportation and courier services in the following codes (dollar amounts based on data from usaspending.gov):

• 484230 – Specialized Freight (except used goods) Trucking, Long-Distance ($82.9 M)
• 484210 – Used Household and Office Goods Moving ($55 M)
• 484220 – Specialized Freight (except used goods) Trucking, Local ($27.5 M)
• 484110 – General Freight Trucking, Local ($11.4 M)
• 484121 – General Freight Trucking, Long-Distance, Truckload ($2.9 M)

If you’re interested in learning how you can become involved with disaster relief efforts as a transportation company, CLICK HERE for a complimentary consultation with a Procurement Specialist.