MASSACHUSETTS
— The Federal Government is the largest consumer of products and
services in the country, and a market just ripe to be tapped if small
businesses know the steps they need to take.
That’s where the Massachusetts Small
Business Development Center (SBDC) comes in. As part of its Government
Procurement Technical Assistance Center, businesses are taught the ins
and outs of how to sell their products to the government and be
successful doing it.
"It (government procurement) opens up
enormous markets to these businesses that allows them to dive into a
customer base that will allow them a more predictable income stream,"
said Melinda Ailes, SBDC senior counselor.
SBDC Procurement Specialist Dan Lilly
suggested there is a lot that businesses need to know before getting
involved with the federal government, starting with how time-consuming
it is.
"Never enter the government market
without knowing if it’s the right market for you," said Lilly. "You must
know why you are doing it, if you are the right market for it and that
you will be able to do it."
Lilly said many businesses that get
into the government procurement business don’t realize how much
paperwork is involved in the process and how much time that paperwork
takes to complete. One government contract alone can average between
70-80 pages, he said.
"It’s a lot of boiler plate
information, but it’s so important that the businesses read the whole
thing," Lilly said, who knew of a number of businesses who under-bid a
project because they didn’t read a contract thoroughly.
At the SBDC procurement office, Lilly
helps guide businesses through the pitfalls of dealing with the
government, where they need to go to seek out contracts, plus who to
contact and other assistance. But each company still must do its own
legwork.
"We can give advice or help businesses
understand if they have the right market, if they have the staff or the
market space for their product, but we won’t do the work for them," said
Lilly. "If they have the time and are capable of doing that kind of
work, they can give us a call."
Lilly said he’s seen everything from
brownies being sold to the Army to guidance systems for tanks on
procurement contracts, and just about everything in between.
In fiscal year 2005, the federal
government signed more than two million contracts with small businesses
who had 500 or less employees across the nation for products and
services totaling $79.6 billion, according to Federal Procurement Data
System Web site.
Although government procurement is
still a widely-unknown industry in the area for small businesses, Ailes
said one such example of a company making government procurement work is
Fall River’s Mikel Inc., a company which provides technological
solutions for undersea warfare for the Navy and other businesses.
"We do 100 percent of our business
with the Department of Defense, and as a small woman-owned company, the
SBDC has been our biggest cheerleader," said Kelly Mendell [photo],
president of Mikel Inc., a former business incubator that has grown out
of the UMass Dartmouth Advanced Technology and Manufacturing Center.
"While Dan Lilly came at it from the government side, Melinda Ailes
helped me with my business plan and strategic vision, and they were both
big complements for my business, a good combination."
Despite the amount of work needed in
the field, Mendell said she is still surprised to hear that more
businesses are not tapping into the unlimited knowledge that can be
furnished at the SBDC and its procurement specialist.
"Unfortunately, many people don’t know
about this place and they are missing out, especially since it’s free
and their knowledge is worth so much," added Mendell. "We will continue
to seek out their knowledge and advice. We’re not done yet."