“The number of companies registered to do business with the federal government has dropped by over 100,000 from 2012, so that only 273,072 small businesses are still registered to compete for federal contract,” Chabot wrote in the fact sheet. “This speaks to a greater problem in the industrial base — a declining participation rate. SBA’s Office of Advocacy recently highlighted this small business participation problem. Specifically, advocacy identified 23 industries in which the government spends over $500 million per year, but where less than 10 percent of procurements are awarded to small businesses. These are areas important to the industrial base where small businesses are not participating, but this is not reflected in the current scorecard process.”
Mid-Tier Advocacy, Inc. is greatly concerned about the industrial base and continue to raise awareness about the lack of data on small and mid-size firms who are providing goods and services to the federal government.
At issue: Although the federal government provides a variety of contracting vehicles for small businesses, currently no program exists to support small companies that have achieved growth beyond the small business size standards but are still not large enough to compete with America’s largest corporations.
In fact, many of the companies that grow past the small size standard succumb to one of the following scenarios. Currently, they:
· are relegated to the perpetual role of subcontractor;
· shrink due to inability to win larger contract opportunities;
· are acquired by a larger company; or
· go out of business.
Mid-Tier Advocacy is urging the Department of Defense to release the report that is over 2 years past due!