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Bill H.R. 3850 – Government Efficiency through Small Business Contracting Act of 2012 has some very promising outcomes for small business who work with the federal government.

The first provision would raise the small business contracting goal from 23% to 25%. While 2% doesn’t sound like a lot, it translates into prime contract revenue adjustments of $10 or $11 billion.

The second provision applies to small businesses who work as subcontractors to larger businesses or larger projects. In these larger contracts, the goal would raise from 35.9% to 40%. That translates to $25 or $50 billion dollars of business that would be mandated to small business.

The third provision relates to the bonuses awarded to the 13 top agencies with cabinet-level functions as well as 15-18 independent agencies. As you know, if you want to make someone do something, hit them in the pocketbook. In this case, no bonuses will be awarded if small business goals aren’t met. This makes it clear that the top agency-level officials are as equally responsible for small business success as they are for running the operations of their particular agency.

Bonuses are now awarded based on the agency’s PAR – Performance Accountability Report – a scorecard system initiated by Al Gore. Making the small business community part of each agency’s goals puts real teeth into small business contracting; if small business success becomes part of their portfolio, subcontracting to small business becomes much more important to top-level officials – a very good thing for the small business community.

This bill was sponsored by Small Business Committee Chairman Rep. Sam Graves (R-MO).

  1. I started my business 3 years ago, and thus far I haven’t been able to get any contracts or subcontracts.
    My Business focus is Technical Support or all kinds, and my personal background and knowledge base is “Database Management, Software Support, Testing, Technical Writing, Formal Training and On-Site Instructions, Website Design & Support, Network & IT Support and Trainng, Military Aviation Technical Support, and Logistics.

    I Supported the V-22 Osprey Program for Raytheon Technical Services for 7 years, providing on site Management and Support.

    My Skills and knowledge is very valuable, but, without business history, it’s impossible to get a contract or subcontract, especially with the task associates with database support, software support or military aviation support.

    Any help would be appreciated.

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