Exploring Government Contracting Opportunities for Small Businesses in 2023

U.S. Federal Government is directed to spend at least 23% of its approximately $600 billion annual procurement budget on small businesses. In 2023, small businesses have a unique opportunity to gain access to this lucrative market by exploring government contracting.

The world of government contracting is an ever-evolving landscape. As new technologies and markets emerge, so too do fresh opportunities for businesses to tap into the significant economic benefits offered by servicing government contracts.

Government contracts can provide small businesses several distinct advantages, including access to larger markets and greater visibility. By taking advantage of these opportunities, small business owners can increase their customer base by accessing a wide variety of federal, state, and local agencies, departments, and services. Additionally, since billions of dollars are spent annually on government contracts, there is a great deal of potential for growth within this market.

Government contracts typically also guarantee payment regardless of economic conditions. If the government has already secured funding for a contract service or product, then they are obligated to pay for it regardless of external factors like market downturns or recessions. This gives businesses greater assurance that they will receive payment for their services and products on time and in full.

In order to take advantage of these federal government opportunities in 2023, small businesses must first understand how the government registration process works.

To begin with, all prospective federal contractors must register in the System for Award Management (“SAM”) and should have their business listed with the Small Business Administration (“SBA”) in their Dynamic Small Business Search (“DSBS”).

SAM is an online system used by the federal government to track information about entities registered to do business with the government, often referred to as your ‘business or accounting record’.

The DSBS is an SBA database of business information for companies registered to do business with the government, often referred to as your ‘marketing record’.

Once registered in SAM, you can then search for new bid opportunities, expiring contracts, and requests from various agencies looking for contractors to provide goods or services that match their criteria. In addition a good starting point is looking for subcontracting opportunities with an established prime government vendor.

If you’re new to federal contracting, we recommend using a registration specialist like the ones at FedBiz Access. If you’ve already registered, the FedBiz Connect portal is a great starting point for browsing other vendors and searching bid and award history on federal contracts. Working with professionals can streamline the process and provide you with support from government contracting specialists.

Government contracting offers a wealth of opportunity to small businesses looking to expand their presence in 2023 and beyond. With careful planning and research into available opportunities at federal agencies, as well as state and local-level governments, your business can leverage its resources to take full advantage of what this booming market has to offer.

This new year be sure you take the time necessary to understand the government contracting process. You want to maximize your time and focus to get the most out of any opportunity – good luck!