The future for small government contractors in 2023 is still pretty unclear. The federal government has been getting pickier about which contractors they work with. In response, the Biden administration is focusing on making federal contracting more accessible for small businesses.
A big issue for many small businesses missing out on contracts is that they’re lagging behind in updating their tech. They’re hesitant to upgrade their technology because of supply chain problems, rising labor costs, and worries about compliance costs. However, government agencies are generally cautious when assessing partners, and outdated tech presents a big roadblock in securing contracts.
Small contractors need to upgrade their tech systems to handle business and compliance challenges better. Doing so will make it easier to expand their operations and improve their connections with government agencies, keeping them competitive.
Many small businesses aiming for new contracts focus solely on providing top-notch products or services to the government. They’re specialists in their fields but often lack the time and resources to try out the latest tech solutions that could streamline their business or centralize their financial and project management.
Just offering excellent services isn’t enough to win contracts anymore. Federal agencies now see technological gaps as a critical issue, regardless of how skilled a contractor might be. For instance, regulations like CMMC and NIST impact every stage of the project lifecycle for federal contractors. Contractors must meet these requirements for their cybersecurity setup, personnel, and how they handle sensitive data throughout a project. Since government agencies can’t ignore compliance, they might award contracts to businesses that meet these criteria even if they don’t provide the best solutions.
The problem with outdated tech doesn’t stop at losing contracts. It can also frustrate employees, who spend valuable time fixing broken applications or waiting on colleagues for document access. Not investing in tech can make it hard to attract potential job applicants, who are keen on working for firms with solid infrastructure, making daily work easier and securing more contracts.
So, how can small government contractors differentiate themselves? Small contractors, operating with fewer resources than bigger firms, need to find what sets them apart. This requires looking beyond just the product and understanding that government agencies want partners who focus on security, compliance, and adaptability.
Adopting a long-term perspective is crucial. Many small contractors hesitate to optimize their tech due to high initial expenses, which is understandable. Market conditions affect smaller firms more significantly. However, they can make small, steady tech improvements instead of fearing high upfront costs. It’s worth considering how much outdated tech might already be costing in terms of missed opportunities. With the rise of SaaS applications, the entry cost for advanced solutions is much lower, enabling organizations to explore tech upgrades without waiting for years.
It’s also important for contractors to choose tech that can scale. Compliance standards change quickly, and outdated tech can lag behind. For instance, if NIST introduces new rules, it might take ages to adjust if your tech is old. And then, before you know it, there’s another update. The key is implementing flexible tech that can adapt, helping tackle a broader range of projects and making your organization an attractive partner.
Additionally, having a tech setup that supports remote work and seamless collaboration is essential, both internally and with government entities, to keep projects on track.
Working with the right partner is also vital. Passing off tech responsibilities to a specialized company can let you concentrate on delivering quality service to government agencies. However, the partner must be a good match, especially if you’re new to government contracting. A potential tech partner should have experience with the regulations in your field, ensuring a smooth transition to more specialized systems without unnecessary delays.
By optimizing their tech, small contractors lay the foundation for consistently securing contracts. With numerous challenges already in the way when competing against larger firms, the last thing small businesses need is to create more obstacles by neglecting their tech infrastructure. Thankfully, with a trustworthy partner, small contractors can revamp their technology to improve project management visibility and position themselves to face future challenges and secure contracts that fuel growth.
