To say the odds are stacked against small businesses targeting federal government contracts can be an understatement. At times, it can resemble a storybook version of David vs. Goliath.

Some of the standard challenges that pester all government contractors are lack of education and understanding of small business programs, lack of time and resources, extended long sales cycles and procurement red tape. So when small businesses manage to beat these odds, they definitely deserve recognition.

It can be challenging for small businesses to understand how to compete for a slice of the federal contracting pie and win, especially as government budget constraints are generating intense competitive pressures on even the bet positioned firms.

Fortunately, there are a number of programs and events that are available to help small businesses get a leg up on government contracting. For instance, federal agencies are hosting more and more Industry Days to help educate the public about their upcoming contracts and small business set aside requirements.

But if small businesses are unaware of these programs and events or unsure of how to take advantage of them, new rules and regulations aimed at increasing small business contracting goals won’t be as powerful.

From my perspective, as an advisor in government contracting for American Express OPEN program, I’ve had the opportunity to provide one-on-one mentoring to a number of small businesses interested in exploring growth with federal contracts.

What’s their biggest challenge? Lack of knowledge.

As a mentor, I always start at the root of the small firm’s government marketing framework. Some of these initial steps include:

Properly registering on the Central Contractor Registration (CCR) and Dynamic Small Business Search (DSBS)– many firms overlook listing their direct contact information on the CCR and don’t know about registering in the DSBS.

Adding and broadening their North American Classification System (NAICS) codes– a majority of the firms that I mentored had just a few NAICS codes. By broadening their NAICS codes, small businesses can access more opportunities to bid.

Exploring if they qualify for any of the SBA’s small business programs, such as 8(a) Business Development Program, Women-Owned Small Business Program, Service-Disabled Veteran-Owned Small Business (SDVOSB) Program and Hub-Zone Small Business Program. Qualifying small firms are sometimes daunted by the application process for the 8(a) program or even the SDVOSB program.

But how can we demystify this process and make it more approachable for small businesses?
Here are some additional thoughts on tackling this question that are essential to ensure small businesses are fully benefitting from these programs.

Look at contracting vehicles such as the GSA Schedule program. Obtaining a GSA contract (or “getting on the schedule”) can be a lengthy and involved process for small businesses. But in the wake of tightened federal spending, a GSA contract becomes timelier than ever as it streamlines the acquisition process.

According to the 2010 American Express OPEN survey of small business contractors, 80% of contractors who are on the GSA Schedule have annual revenues of $1 million or more and derive almost half of their annual revenues (at least $500,000 per year) from their federal contracts.

Consider teaming with other firms. Another challenge small businesses face today is getting through security clearance processes since they can’t work on projects until the process is complete. Teaming with an experienced “past performer” is key for businesses who are newer to government contracting as it will make the contracting process easier.

Small business past performers have the ability to excel through the procurement process quicker and are capable of winning contracts at a faster pace. Yet they also face challenges, such as personnel, capital and other resources required to fulfill an agency’s demands. Teaming, again, can offer a solution — facilitating experienced past performers to team with viable new small businesses entering SBA programs, such as the 8(a) and HUB-Zone program, would bring greater innovation, increase job growth opportunities and enable agencies to fulfill their small business procurement goals. Many of the current programs only offer growth opportunities for new small business government contractors.

Be persistent. According to the 2011 American Express OPEN survey, active small business contractors took 1.3 years and an average of 4.4 bids before they won their first prime federal contract. They also spent an average of $103,827 seeking federal contracting opportunities in 2010.

Small businesses don’t have the time or the money to spare so programs to help experienced small business contractors would help to bring these numbers down while allowing the agencies to hit their procurement goals. It’s a win-win.

Lourdes Martin-Rosa is the American Express OPEN Advisor on Government Contracting and has 20 years of experience in the federal procurement arena. She helps small businesses get contract ready and achieve contract success. For more information, visit www.openforum.com/governmentcontracts.