US Government: Your New Business Partner
US Government: Your New Business Partner
Are you interested in breaking into the federal market?
The United States Federal Government is the wealthiest customer and the largest purchaser in the world. Every year, it procures approximately $ 550 billion in goods and services from the private sector and, by law, aims to grant 23% of those contracts to qualified American small businesses.
Most federal or state government agencies require that at least a percentage of the businesses they contract, or the products and services they procure, be generated by small businesses owned by women, veterans and, HUBZone firms, in general, minorities.
The Federal Government spends $ 500 million per hour every day, 365 days a year. Thus, in 2019, the Government spent approximately $75 billion dollars on goods and services produced by American small businesses.
All purchases made by Federal Agencies are backed by the U.S. Government. Federal agencies typically pay their suppliers and contractors in 30 days, in compliance with federal law (in addition, the Government requires the main contractors to pay the subcontractors in the same period established by federal law).
Overview of the Federal Market Potential
- Annual Government Budget: US$ 4.11 trillion, the equivalent of 25% of US GDP.
- 100 national agencies and 1200 sub-agencies to provide services
- Uncle Sam has 2.1 million employees in the Government
- The Department of Defense is the largest employer in the US with 2.87 million troops in the Armed Forces and 732,000 civilian employees
- The US Department of Defense maintains an active presence in 4800 military bases in more than 160 countries, on seven continents
- Uncle Sam manages and maintain eight million buildings worldwide
- Uncle Sam grants $550 billion via 4.5 million contracts annually
- Uncle Sam awards $500 billion dollars in grants annually
- Uncle Sam purchased $20 billion in goods and services via government credit cards
- Uncle Sam has 70,000 buyers for goods and services, and buy 11 million item categories
- They outsource almost all the production of goods and services consumed or needed to the private sector
- By law of the US Government (FAR 19.502.2), each contract below US$ 250,000 is exclusively set aside for small businesses. There are billions of dollars in opportunities under this category!
- By federal law (FAR 19.7) 33.7% of the total amount of all contracts over US$ 700,000 must be subcontracted to small businesses
Overview of the Federal Market Potential
- Annual Government Budget: US$ 4.11 trillion, the equivalent of 25% of US GDP.
- 100 national agencies and 1200 sub-agencies to provide services
- Uncle Sam has 2.1 million employees in the Government
- The Department of Defense is the largest employer in the US with 2.87 million troops in the Armed Forces and 732,000 civilian employees
- The US Department of Defense maintains an active presence in 4800 military bases in more than 160 countries, on seven continents
- Uncle Sam manages and maintain eight million buildings worldwide
- Uncle Sam grants $550 billion via 4.5 million contracts annually
- Uncle Sam awards $500 billion dollars in grants annually
- Uncle Sam purchased $20 billion in goods and services via government credit cards
- Uncle Sam has 70,000 buyers for goods and services, and buy 11 million item categories
- They outsource almost all the production of goods and services consumed or needed to the private sector
- By law of the US Government (FAR 19.502.2), each contract below US$ 250,000 is exclusively set aside for small businesses. There are billions of dollars in opportunities under this category!
- By federal law (FAR 19.7) 33.7% of the total amount of all contracts over US$ 700,000 must be subcontracted to small businesses
Do business with the US Government
There are opportunities for businesses owned by US citizens, and lawful permanent residents (LPRs).