There’s an old saying in Hollywood: “In confusion there is profit.” Here in Washington, there is no doubt that sequestration has sowed confusion. The question before the local contracting community is how to survive, and even profit, in its aftermath.
The task won’t be easy. A recent Wells Fargo study estimates that Uncle Sam’s spending represents 20 percent of the greater Washington region’s gross domestic product. Some discomfort is inevitable.
But many companies are changing how they pursue federal business in the age of austerity. Here are a few tips that could help contractors survive and even thrive in 2013 and beyond.
Bigger isn’t always better. The federal government has failed to hit its small-business contracting goals for 11 consecutive years. That’s about to change. Starting this year, compensation for senior agency officials will be tied partly to their agency’s small-business contracting performance. New rules also make it easier for small businesses to team with one another on large contracts. With salary bumps on the line, you can bet federal buyers will look at small contractors in a more positive light. Line up your small-business partners now to take advantage of the new rules.