For small companies, federal government contracting can be big. The federal government is the largest
purchaser of goods and services in the world; we spend in excess of $500B annually. Thanks to special
rules, 23% of that amount must go to small businesses. Contracting with the feds can be very lucrative, but
if you don’t know the rules and regulations, it can be risky.

Joint venturing provides an avenue to compete on larger and more complex acquisitions. A properly
conformed Joint Venture can be very attractive to federal buyers, as the JV can bring expertise, past
performance and the right size and status to the procurement strategy being considered.

 

There are multiple potential reasons to bid and perform with other parties, such as:
• Need to supplement lack of corporate experience and/or personnel, including security clearances
• Requirement for specific geographic coverage
• Formal and/or informal small business and other subcontracting goals
• Spreading the costs and risks of the contract
• Channel marketing strategies
• Agency and/or program-specific knowledge