How to Improve Small Business Set Asides
The Small Business Set-Aside Program helps small businesses get contracts, usually from the federal government. Congress enacted this program to make small businesses, often owned and operated by women and minorities, more competitive. This is intended to help release the stronghold that “Goliath-type” companies have over certain marketplaces.
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Instructions
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Know what kind of contract you want to acquire. You have to generally meet some basic requirements depending on the type of set-aside, contract or business project you want to perform. Minority-owned companies often get preferential considerations.
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Do some research. There is a lot of money to be had if you know where to look. In 2006 alone, the U.S. government awarded more than $20 million set-asides.
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Be sure your company is classified appropriately. The U.S. government has been known to award set-asides to larger companies even though they do not technically meet legal requirements to do so. There are rules as to what legally constitutes a “small business.” Mammoth companies sometimes divide their business entities to finagle legal set-aside restrictions. Local business-licensing offices and the Internal Revenue Service may be able to provide assistance if you are unsure how you should be categorized.
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Register and certify for the rights to given contracts. The U.S. General Services Administration may require formal applications as well. Companies must formally compete for contracts. The U.S. government will not know you want a contract if you do not ask. Registering is one way to let them know of your intentions.
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Tips & Warnings
Even if your company expands beyond what legally constitutes a “small business,” you may be regarded as a small business for the duration of your contract. Simply, if you get a contract as a small business, you are allowed to finish your contract to term no matter what.
Companies who operate overseas are often restricted from getting set-asides. Other restrictions may apply, depending on where your business is located within the United States.
