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Government Contracting Crash Course: A Big Client for Small Business

Look inside the world of government contracting and find out what it takes to become a vendor with the world’s biggest customer. Learn the basics of how to get certified and how to partner as a way to get your foot in the door.

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  • American Express OPEN Victory in Procurement Surveys

    American Express OPEN Victory in Procurement 2011 Survey Report: Women and Minority Contractors

    American Express OPEN Victory in Procurement 2011 Survey Report: Small Business Trends in Federal Contracting

    American Express OPEN Victory in Procurement 2010 Survey Report: Subcontracting and Teaming

    American Express OPEN Victory in Procurement 2010 Survey Report: Women and Minority Contractors

    American Express OPEN Victory in Procurement 2010 Survey Report: Strategies for Success

  • Winning Government Contracts: Three Entrepreneurs Show What It Takes To Thrive

    DALLAS, TX – October 19, 2011 Yesterday at the "Grow Your Business through Government Contracting" event in Dallas, American Express OPEN®, the small business division of the financial services company, recognized three small business owners for their remarkable achievements in government contracting with the second annual Victory in Procurement (VIP) Awards.

    "Small businesses have the power to drive this economy. Their success is America's success," said Karen-Michelle Mirko, director of customer advocacy at American Express OPEN. "We are celebrating three business owners for their diligence, persistence and success in selling to the world's largest customer. These owners are the shining examples that small businesses need to see so that they too can grow their business."

    At yesterday's event, active contractors had direct access to government buyers – including the largest federal buyer, the Department of Defense – via VIP Contract Connections, buyer/seller meetings. Local buyers, like the City of Dallas, and prime contractors also met with business owners to discuss contract opportunities. There were close to 30 procurement officials from the federal, state and prime contracting levels at the event.

    A woman-owned small business, The Lyons Group, which provides graphic and web design, printing, advertising, integrated online marketing and social networking, as well as virtual paralegal and administrative support for small to emerging businesses, walked away with a federal government contract from the Department of Interior. In 2010 alone, the federal government spent $98 billion on products and services supplied by small businesses, including $34.4 billion with small, disadvantaged firms and $17.5 billion with women-owned small businesses.

    All business owners had the opportunity to meet government procurement officials, network and learn from fellow business owners as well as experts, and receive free business counseling through SCORE® Roundtable Coaching.

    Yesterday's awardees were recognized in the categories of Government Contractor of the Year, Woman Contractor of the Year and Teaming Contractor of the Year. Candidates provided details about their work and success in government contracting via a detailed application which was evaluated by a panel of judges.

    The 2011 winners are:

    1. Government Contractor of the Year was awarded to Randy Lebolo of Boynton Beach, FL-based Lebolo Construction Management, a construction management firm. Attending government contracting events, visiting government agencies and forming key relationships with contracting officers, Lebolo Construction has been on the fast track to contracting success. Obtaining 8(a) certification and being on the GSA schedule has helped the company grow through the recession and hire new employees. After winning several small 8(a) contracts, Lebolo Construction was recently awarded its largest contract to date – an $18 million mentor-protégé agreement. Ninety percent of Lebolo Construction revenues are generated through government contracts, and 2011 revenues are projected to increase by 40% over 2010.

    2. Woman Contractor of the Year was awarded to Hester Taylor Clark of Jacksonville, FL-headquartered, The Hester Group, a strategic communications and program management company. Through government contracting – which makes up 90% of the company's revenues – The Hester Group has grown to become one of the largest African-American, woman-owned strategic communications and program management agencies in Northeast Florida. The business also has a satellite office in Alexandria, VA. The Hester Group has doubled its staff and expanded their offices due to government contracting. 2011 revenues are projected to increase by 175% over 2010.

    3. Teaming Contractor of the Year was awarded to Lisa Firestone of Bethesda, MD-based Managed Care Advisors Inc. (MCA) is a woman-owned, small business specializing in workers' compensation case management services and employee benefits and disability management consulting. Since entering the government contracting arena, MCA's workforce has quadrupled, and today, 85% of the company's revenues are generated through federal government contracts. Ms. Firestone attributes teaming relationships as an integral part of MCA's success and anticipates 50% revenue growth this year.

    The VIP awards are part of American Express OPEN's Victory in ProcurementTM (VIP) for Small Business initiative. Launched in 2009, VIP is a national program that helps small business owners capitalize on the enormous growth opportunity provided through government contracts. By partnering with WIPP, SCORE "Counselors to America's Small Business" and Teaming USA, a partnership with Business Matchmaking, the program is helping business owners at every level of contract readiness.

    About American Express OPEN

    American Express OPEN is the leading payment card issuer for small businesses in the United States and supports business owners with products and services to help them run and grow their businesses. This includes business charge and credit cards that deliver purchasing power, flexibility, rewards, savings on business services from an expanded lineup of partners and online tools and services designed to help improve profitability. Learn more at www.OPEN.com and connect with us at openforum.com and twitter.com/openforum.

    American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at www.americanexpress.com and connect with us on www.facebook.com/americanexpress, www.twitter.com/americanexpress and www.youtube.com/americanexpress.

  • American Express OPEN® Announces Multi-Partner Government Contracting Program to Help Small Business Owners Win Government Contracts and Stimulus Funds

    SAN FRANCISCO, CA - November 19, 2009 American Express OPEN®, the small business division of American Express®, today launched OPEN for Government Contracts: Victory in ProcurementSM (VIP) for Small Business, a national program to help small business owners capitalize on the enormous growth opportunity provided through government contracts. By partnering with Business Matchmaking (www.businessmatchmaking.com), SCORE "Counselors to America's Small Business" (www.score.org) and Women Impacting Public Policy (WIPP) (www.giveme5.com), OPEN®’s VIP program is expected to help business owners at every level of contract readiness access as much as $1 billion in procurement opportunities.

    The VIP program was launched today in San Francisco at a Teaming USASM event headlined by American Express OPEN and Business Matchmaking. Teaming USA, a component of the VIP program, helps facilitate teaming relationships among small business owners interested in government contracting through live events, online resources and an interactive web site. At the event, OPEN® unveiled the VIP program's interactive, step-by-step online resource (www.OPEN.com/governmentcontracts), which is designed to help guide business owners through the government contracting process – from registration on the Central Contractor Registration (CCR) to generating repeat business with the federal government.

    Having spent nearly $400 billion in fiscal year 2007, the federal government is the world’s largest single purchaser of goods and services. With an additional $787 billion in economic recovery funds to be spent and a procurement goal to award 23% of federal contracting dollars to small firms, the federal government represents one of the few major areas of growth in today's economy.

    "America's small businesses have long been considered the engine of our economy, and we need their ingenuity and resourcefulness more than ever to help create jobs and get the economy back on track," said Susan Sobbott, president of American Express OPEN. "Business owners need more business. New customers directed to small business is essential to forge the path to economic recovery. The federal government is a big customer who can make a big difference for many small businesses. Our partnerships with Business Matchmaking, SCORE and WIPP will help business owners learn about and win valuable, new contracts to grow their businesses, increase their ability to hire new employees and help revive this economy."

    OPEN for Government Contracts: Educate, Enroll, Engage and Execute

    Despite the enormous growth opportunity presented by federal contracts, 40% of business owners do not have any knowledge of how to apply for federal contracts. In addition, 40% are not sure their product or service is purchased by the federal government, according to a SCORE survey of 1100 small business owners.

    The VIP program aims to address this issue and has set the following goals:

    1. Educate: Help one million business owners better understand the contracting process

    2. Enroll: Encourage 100,000 businesses owners to get “contract-ready” by registering on the CCR or obtaining the proper certification(s) for their businesses

    3. Engage: Facilitate up to 10,000 teaming, mentoring and coaching opportunities for businesses

    4. Execute: Help business owners secure $1 billion in government contract and sub-contract commitments

    "Economic downturns underscore the importance of having a broad set of customers, and doing business with the federal government is one way for business owners to diversify their base," said Sobbott. "American Express OPEN is committed to providing business owners with the rich educational resources and hands-on support they need to succeed in government contracting."

    Victory In Procurement (VIP) – An Integrated Approach to Government Contracting

    The VIP program is a comprehensive offering that helps small business owners get the insight and experience they need to win government contracts.

    The program provides business owners with the following resources:

    • Connections: Allows business owners to connect with procurement officials at federal, state and local government agencies through American Express OPEN and Business Matchmaking’s procurement matching system and events.

    • Teaming: Helps business owners foster teaming relationships across industries and geographic regions through Teaming USA events and the Teaming USA online networking tool, www.teamingusa.com.

    • Coaching and Mentoring: Offers business owners one-on-one coaching and mentorship opportunities facilitated by American Express OPEN Advisor on Government Contracting, Lourdes Martin-Rosa, SCORE’s speed coaching program and WIPP’s Give Me 5: Education and Access for Women in Federal Contracts program (www.giveme5.com).

    • Events: Offers business owners a comprehensive event calendar to provide them with a chance to learn best practices, connect with other business owners and form relationships with procurement officials at major government agencies.

    • Online Training and Resources: Provides business owners with a virtual classroom on government contracting. VIP's new interactive Web site, www.OPEN.com/governmentcontracts, provides step-by-step access to hands-on training and education resources, in-depth guides, case studies and checklists to assist in the various steps of the contracting process.

    The VIP program's interactive, step-by-step online resource (www.OPEN.com/governmentcontracts), provides the following government contracting course curriculum to help business owners navigate various areas of the government contracting process:

    • Level 1: What is Government Contracting?: Provides an introduction and overview on government contracting; Outlines the reasons to pursue contracts and lists business resources.

    • Level 2: Prepare Your Business for Government Sales: Provides an overview on how to prepare for success in government contracting; Includes access to research tools for high potential opportunities and a dynamic funding map for federal procurement agencies

    • Level 3: Get Involved in Mentor-Protégé Programs: Explains how to find and select a good mentor and become a protégé to another business when pursuing government contracting opportunities; Outlines the qualifications for several federal agency mentor-protégé programs

    • Level 4: Become An Accomplished Government Contractor: Explains how to be successful on an ongoing basis in government contracting.

    For more tips about contracting, OPEN has also developed OPEN BOOK: Government Contracting, a step-by-step guide for small business owners interested in doing business with the government. To access the OPEN BOOK guide, please visit: http://www.openforum.com/idea-hub/topics/innovation/article/open-book-a-practical-guide-to-government-contracting-1.

    American Express OPEN also authored a series of targeted, in-depth worksheets called OPEN Insights, which walk business owners through various government-contracting topics, such as repeat sales and teaming. To download the guides, please visit http://www.openforum.com/governmentcontracting/resources/insights.

    About American Express OPEN®

    American Express OPEN is dedicated exclusively to the success of small business owners and their companies. OPEN supports business owners with exceptional service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business. Specifically, business owner customers can leverage an enhanced set of products, tools, services and savings, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. To obtain more information about OPENSM, visit www.OPEN.com, or call 1-800-NOW-OPEN to apply for a card. Terms and conditions apply.

    American Express Company www.americanexpress.com is a leading global payments, network and travel company founded in 1850.

    About Business Matchmaking

    Business Matchmaking (BMM) is the nation's premier public-private initiative supporting procurement opportunities for small business in every industry. During the past six years, BMM has facilitated more than 75,000 face to face small business/buyer meetings and enabled several billions of dollars in government and major corporate contracts being awarded.. Participating small companies are mostly minority, women and veteran owned firms. http://www.businessmatchmaking.com.

    About SCORE

    Since 1964, SCORE "Counselors to America's Small Business" has helped more than 8.3 million aspiring entrepreneurs and small business owners through counseling and business workshops. More than 11,200 volunteer business counselors in 370 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. For more information about starting or operating a small business, call 1-800/634-0245 for the SCORE chapter nearest you. Visit SCORE on the Web at www.score.org.

    About Women Impacting Public Policy (WIPP)

    Women Impacting Public Policy is a national bi-partisan group comprising over half a million members. The non-profit organization is the public policy voice for 45 national Women in Business groups and is The Voice for Women in Business in Our Nation’s Capital. WIPP strengthens its members’ sphere of influence in the legislative process, creates economic opportunities for members and builds alliances with other small business organizations. Visit www.wipp.org.

    National Contact:

    Rosa Alfonso; Director of Public Affairs, American Express OPEN; 212-640-1712 rosa.m.alfonso@aexp.com

    Nova Halliwell; for American Express OPEN; 212-539-3277 novah@mbooth.com

  • American Express OPEN Releases its First-Ever Small Business Government Contracting Survey at the Inaugural Victory in Procurement (VIP) Event in New York

    Successful Small Business Contractors Invest $86,000 Annually in Time and Money to Pursue Federal Contracts, Submit Average of Nearly 7 Bids per Year, Win Almost 3 Contracts

    NEW YORK, NY – April 1, 2010 American Express OPEN®, the small business division of American Express, released its first-ever government contracting survey of small business owners. The Victory in Procurement (VIP) Small Business survey was released yesterday at an event in New York where more than 400 business owners learned how to succeed in government contracting. The survey reported findings from more than 1,500 business owners who are listed in the Federal Procurement Data System (FPDS) and registered on the Central Contractor Registration (CCR) the primary vendor database for the federal government.

    The federal government is the world's largest single purchaser of goods and services, spending more than $500 billion annually[1].

    The survey included active contractors (small businesses that have been awarded a prime federal contract within the past three years), currently inactive contractors (small businesses that are registered on the CCR, but who have either never landed a prime federal contract or who are designated as inactive in terms in the FPDS) and non-contractors (a subset of inactive contractors who are registered on the CCR but who have not yet landed a prime federal contract).

    The survey included active contractors (small businesses that have been awarded a prime federal contract within the past three years), currently inactive contractors (small businesses that are registered on the CCR, but who have either never landed a prime federal contract or who are designated as inactive in terms in the FPDS) and non-contractors (a subset of inactive contractors who are registered on the CCR but who have not yet landed a prime federal contract).

    "Active contractors are more successful in winning government contracts in part because they are more vigorous in the bidding process," said Susan Sobbott, president of American Express OPEN. "They take an average of 1.7 years to win their first federal contract, submit an average of nearly 7 federal prime contracting bids and win almost 3 contracts per year."

    Active contractors made an estimated $86,000 investment in time and money in 2009 seeking federal contracts. The median sales for active small business contractors was between $1 and $4.9 million, and federal contracts accounted for 38% of their revenues. "Active contractors make a larger investment in their contracting activities – and it is paying off," Sobbott continued.

    Many small business owners who have not yet won their first prime contract are just getting started. Four in ten (42%) non-contractors have started pursuing federal contracting only recently, having registered on the CCR (a necessary first step in the federal procurement process) in 2008 or later. Thus, many of them will become successful – if they keep bidding – over the next year.

    The survey also found that getting on the General Services Administration (GSA) Schedule can be an important strategy for winning federal government business. The GSA Schedule is a list of approved vendors for the products and services the government procures. One-third (34%) of active small business contractors are on the GSA Schedule while only 13% of currently inactive contractors are on it. There is a significant gender difference in the firms who are seeking procurement opportunities through the GSA Schedule: 40% of women business owners who are active contractors are on the GSA Schedule versus 31% of men business owners.

    In another marker of success, fully 80% of active small business contractors who are on the GSA Schedule have annual revenues of $1 million or more and derive 47% of their annual revenues – at least $500,000 per year – from federal contracts.

    In another marker of success, fully 80% of active small business contractors who are on the GSA Schedule have annual revenues of $1 million or more and derive 47% of their annual revenues – at least $500,000 per year – from federal contracts.

    At yesterday's VIP event, local business owners had the chance to network and learn:

    • Tactical strategies to differentiate from the competition

    • How to leverage business teaming to access contract opportunities

    • Business development strategies and the importance of certifications

    • Explanation of the GSA Schedule – list of approved vendors for the products and services the government procures

    OPEN’s VIP program is helping business owners at each level of contract readiness succeed in government contracting. American Express OPEN launched the VIP program in November 2009 in partnership with Business Matchmaking (www.businessmatchmaking.com), SCORE “Counselors to America’s Small Business” (www.score.org) and Women Impacting Public Policy (WIPP) (www.giveme5.com).

    Victory In Procurement (VIP) – An Integrated Approach to Government Contracting

    The VIP program is a comprehensive offering that helps small business owners get the insight and experience they need to win government contracts.

    The program provides business owners with the following resources:

    • Connections: Allows business owners to connect with procurement officials at federal, state and local government agencies through American Express OPEN and Business Matchmaking’s procurement matching system and events.

    • Teaming: Helps business owners foster teaming relationships across industries and geographic regions through Teaming USA events and the Teaming USA online networking tool, www.teamingusa.com.

    • Coaching and Mentoring: Offers business owners one-on-one coaching and mentorship opportunities facilitated by American Express OPEN Advisor on Government Contracting, Lourdes Martin-Rosa, SCORE’s speed coaching program and WIPP’s Give Me 5: Education and Access for Women in Federal Contracts program (www.giveme5.com).

    • Events: Offers business owners a comprehensive event calendar to provide them with a chance to learn best practices, connect with other business owners and form relationships with procurement officials at major government agencies.

    • Online Training and Resources: Provides business owners with a virtual classroom on government contracting. VIP’s new interactive Web site, www.OPEN.com/governmentcontracts, provides step-by-step access to hands-on training and education resources, in-depth guides, case studies and checklists to assist in the various steps of the contracting process.

    Survey Methodology:

    A total of 1,508 small business owners responded to an online survey launched between January 19 and February 2, 2010. The survey population is randomly drawn and representative of small businesses that are either currently engaged in or actively interested in seeking federal procurement opportunities. These business owners are a specialized population: those who are contained in the Federal Procurement Data System (FPDS) and registered on the Central Contractor Registration (CCR) database. There are three distinct populations:

    1. Active contractors – small businesses that have been awarded a prime federal contract within the past three years (N=698 business owners);

    2. Currently Inactive contractors – small businesses that are registered on the CCR, but who have either a) never landed a prime federal contract or b) may have done so in the past but who are designated as inactive in the FPDS (N=810 business owners); and

    3. Non-contractors – a subset of inactive contractors: 644 business owners who are registered on CCR but who have not yet landed a prime federal contract.

    The survey is thus representative of all of the small businesses in the federal procurement system, but is not nationally representative of all small businesses. The sampling errors of each of the three distinct samples are: +/- 3.7% among 698 active contractors; +/- 3.5% among 810 inactive contractors; and +/- 3.9% among 644 non-contractors. This means that, 95 times out of 100, the survey findings will be within those ranges of true population values.

    About American Express OPEN

    American Express OPEN is the leading payment card issuer for small businesses in the United States and supports business owners with products and services to help them run and grow their businesses. This includes business charge and credit cards that deliver purchasing power, flexibility, rewards, savings on business services from an expanded lineup of partners and online tools and services designed to help improve profitability. Learn more at www.OPEN.com and connect with us at openforum.com and twitter.com/openforum.

    American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at www.americanexpress.com and connect with us on www.facebook.com/americanexpress, www.twitter.com/americanexpress and www.youtube.com/americanexpress.

    National Contact:

    Rosa Alfonso; Director of Public Affairs, American Express OPEN; 212-640-1712 rosa.m.alfonso@aexp.com

    Moon Kim; M Booth & Associates for American Express OPEN; 212-539-3285 moonk@mbooth.com

  • Public-Private Partnership Helps More Women Business Owners Secure Federal Government Contracts

    SBA Rolls Out "Give Me 5" Program Curriculum Developed by American Express OPEN and Women Impacting Public Policy

    LOS ANGELES--(BUSINESS WIRE)--In an effort to help more women business owners get their fair share of federal contracting opportunities, the U.S. Small Business Administration (SBA) is bringing the Give Me 5 program government contracting curriculum to its network of 110 Women’s Business Centers (WBC) across the country. Launched in 2008 by Women Impacting Public Policy (WIPP) and American Express OPEN, the Give Me 5 program curriculum aims to educate women business owners and increase the number of government contracts awarded to women.

    "The SBA and the Obama Administration have made great strides in supporting the women's business community with the recent proposed rule to expand federal contracting opportunities for women business owners. Through these efforts, we are confident that we can help more women access and win federal contracts."

    The Give Me 5 program derives its name from The Equity in Contracting for Women Act (2000), which sets the goal for federal contracting officers to award 5% of all contracts to women-owned businesses.

    Through a series of events, one-on-one mentorships and a comprehensive online training curriculum, the Give Me 5 program has educated more than 250,000 women on federal contracting opportunities and helped more than 24,000 women business owners take the important first step to working with the federal government – getting their businesses on the Central Contractor Registration (CCR), the primary vendor database for the federal government. Last month, 150 WBC leaders gathered in Washington, D.C. for training on the Give Me 5 curriculum.

    "Bringing the Give Me 5 program to our Women Business Centers will help more women business owners do business with the government, as well as help the government beat its 5% contracting goal for women-owned businesses," said SBA Administrator Karen Mills.

    "We are thrilled to work with the SBA and value the commitment of Administrator Mills and the agency in advancing women's procurement programs," said Barbara Kasoff, president and chief operating officer of WIPP. "The SBA and the Obama Administration have made great strides in supporting the women's business community with the recent proposed rule to expand federal contracting opportunities for women business owners. Through these efforts, we are confident that we can help more women access and win federal contracts."

    Today, the Pacific Asian Consortium in Employment (PACE), a WBC in Los Angeles, in partnership with the Give Me 5 program is conducting training on federal contracting opportunities for nearly two hundred local and regional women business owners.

    A new study released by American Express OPEN examining the successes and challenges among women and minority business owners in government contracting found that federal contracting can be fruitful for those business owners willing to persevere.

    In fact, the second report of OPEN's groundbreaking survey of more than 1,500 business owners listed in the Federal Procurement Data System (FPDS) and registered on the CCR found that two thirds of women whose firms do business with the federal government generate more than $1 million in sales, even though it took them nearly two years, on average, to land their first contract.

    Following are some of the key findings found in the report:

    • Women and minority small business owners who are active prime contractors are achieving success in the federal marketplace: 65% of small businesses that are prime federal contractors generate over $1 million in sales, including 63% of women-owned small business prime contractors and 63% of prime contracting firms owned by persons of color. Also, women and minority business owners took a similar period of time to land their first federal contract as overall active contractor – nearly two years.

    • Women, though nearly as successful, have not reached quite the same high levels of contracting success as their male peers: 42% of active women contractors estimate that they've received $1 million or more in federal contracts, including 16% who’ve won $10 million or more. This compares to 47% and 23% among active male contractors.

    • Minority business owners have had to work much harder – and are making a greater investment – to win federal contracts: Minority business owners report having submitted an average of 27.7 bids for prime contracts over the past three years (9.2 bids annually) versus 19.5 bids for active small business contractors (6.5 bids annually) and 19 bids for women (6.3 bids annually) during that same timeframe. Minority business owners also invested significantly more in 2009 - $108,368 on average. In contrast, women business owners invested $70,512 while successful contractors overall invested just over $86,000 last year.

    • Success strategies employed by women and minorities differ: For women, the GSA schedule has proven to be a fruitful route to contract success with 40% of active women-owned business contractors on the GSA schedule (versus just 33% of minority-owned businesses and 34% of all active small business contractors). For minorities, it's all about making personal connections as they are far more likely than average to have attended a procurement matchmaking event (55% versus 38% of all active contractors); met with an agency OSDBU or procurement official (58% versus 37%); and attended an agency-led procurement seminar (58% versus 44%).

    • Though women and minorities are equally successful once becoming active federal contractors, both are still far more likely to be left at the starting gate: 48% of non-contractors (those that have yet to win a prime contract) are minority business owners and 39% are women.

    "Generating more demand for their products and services is a top concern for business owners, and doing business with the federal government, which is the world's largest customer spending more than $500 billion annually1, can be an effective way for these firms to increase revenue," said Susan Sobbott, president of American Express OPEN. "We're committed to helping business owners do more business, and that's why we partnered with WIPP to create the Give Me 5 program and conducted groundbreaking research examining the challenges and opportunities associated with federal contracting."

    About SBA

    The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam. The agency plays a significant role in the American Recovery and Reinvestment Act, deploying credit tools provided under the law that have resulted in more than $27.5 billion in small business loans since the Act was passed in February 2009.

    About Women Impacting Public Policy (WIPP)

    Women Impacting Public Policy is a national bi-partisan group comprising over half a million members. The non-profit organization is the public policy voice for 45 national Women in Business groups and is The Voice for Women in Business in Our Nation’s Capital. WIPP strengthens its members’ sphere of influence in the legislative process, creates economic opportunities for members and builds alliances with other small business organizations. Visit www.wipp.org.

    About American Express OPEN

    American Express OPEN is the leading payment card issuer for small businesses in the United States and supports business owners with products and services to help them run and grow their businesses. This includes business charge and credit cards that deliver purchasing power, flexibility, rewards, savings on business services from an expanded lineup of partners and online tools and services designed to help improve profitability.

    Learn more at www.OPEN.com and connect with us at openforum.com and twitter.com/openforum.

    American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at www.americanexpress.com and connect with us on www.facebook.com/americanexpress, www.twitter.com/americanexpress and www.youtube.com/americanexpress.

    1 Federal Procurement Data System

    Contacts

    SBA
    Hayley Matz
    Press Secretary
    202-205-6948
    hayley.matz@sba.gov
    or
    American Express OPEN
    Rosa Alfonso
    Director of Public Affairs
    212-640-1712
    rosa.m.alfonso@aexp.com
    or
    Women Impacting Public Policy (WIPP)
    Jason Lalak
    Director of Business Development,
    415-434-4314
    Jlalak@wipp.org

  • Small Business Success Formula: Partnership Equals Prosperity When Pursuing Federal Contracts

    In First Year, Teaming USA Program Has Taught Thousands of Small Business Owners the Key to Government Contracting Success

    New York, NY – November 2, 2010 – A new study released today by American Express OPEN, the small business division of the financial services company, demonstrates the power of collaboration and partnerships to succeed in winning bids for federal contracts. Among the findings were:

    • Business owners who team up with other small businesses to jointly bid on federal contracts see the greatest results: Two-thirds (68%) of active small business contractors who have pursued teaming opportunities have exceeded $1 million in federal contracts won to date, and 38% have exceeded $10 million.

    • Businesses that partner with a larger prime contractor also report a higher success rate versus the average small business contractor: 61% of active small businesses that have performed as a subcontractor report that the total value of all of the federal contracts they have won to date exceeds $1 million, and 31% have exceeded $10 million.

    • In contrast, a lower percentage of all active contractors have exceeded the $1 million and $10 million milestone in federal contract awards won to date: 46% and 21% respectively. Active contractors are defined as small businesses that have been awarded a prime federal contract within the past three years.

    The study also found that compared to active contractors overall, small business owners who employ teaming or subcontracting strategies win 50% more contracts. However this greater success requires a larger investment in uncovering contracting opportunities. On average, active contractors invested just over $86,000 in cash and staff time when bidding for federal contracts in 2009. Active teaming contractors and subcontractors invested $149,000 and $123,000, respectively.

    “Partnership through teaming and subcontracting arrangements can clearly lead to greater contracting success and help drive revenue,” said Karen-Michelle Mirko, Director of Advocacy, American Express OPEN. “While these collaborative contracting strategies require more time and money than going it alone, the pay-off can also be greater. In fact, 45% of contractors who team up and 42% who subcontract report revenues of $5 million or more compared to 36% of active small business contractors.”

    The American Express OPEN Victory in ProcurementSM (VIP) survey reports findings from a survey of more than 1,500 small business owners listed in the Federal Procurement Data System (FPDS) and registered on the Central Contractor Registration (CCR), the primary vendor database for the federal government. It focuses on the experiences and successes active small business contractors have enjoyed through subcontracting and teaming opportunities.

    Other notable findings of the survey include:

    • Profitability increases as a direct result of federal contracts: 41% of active small business contractors surveyed say that the profitability of their company has increased due to pursuing sub-contracting opportunities. The percentage rises to 50% for those active in teaming relationships.

    • Contractors in the Technical and Professional Services field are the most involved in teaming and subcontracting: 74% of active small business contractors in the Professional and Technical Services industry pursue subcontracting and 70% are involved in teaming.

    • The Southern region of the U.S. reports greater activity around teaming and subcontracting: 60% of active small business contractors in the South are involved in subcontracting and 53% engage in teaming. In contrast, only 35% of active contractors in the Northeast pursue teaming relationships.

    • Firms owned by African-Americans and Asian-Americans are much more likely than average to be pursuing subcontracting and teaming for procurement success: While 56% of all active small business contractors (including 54% of Caucasians) have pursued subcontracting, that share rises to 61% among business owners of color – including 64% of African-Americans and 74% of Asian-Americans. Hispanics pursue contracting at about the same rate (55%) as all active small business contractors. With respect to teaming, 45% of all active small contractors have pursued it: 42% of Caucasians and 65% of all minorities, including: 51% of Hispanics, 65% of African-Americans and 70% of Asian-Americans.

      • The report is the third in a series published from a groundbreaking survey by American Express OPEN. The first report captured the strategies for success employed by small business contractors, the level of effort required to secure a contract, and the difficulties faced by those still seeking their first prime contract. The second report focused on the successes and challenges seen among women and minority small business owners in federal procurement.

      To help support business owners who are current or aspiring government contractors, American Express OPEN and Business Matchmaking, a public-private initiative supporting procurement opportunities for small businesses, created the Teaming USA program in 2009. In its first year, more than 2,500 small business owners have connected via the Teaming USA web portal and more than 3,000 have attended regional events across the country.

      “We’re committed to helping business owners grow, and Teaming USA is a one-of-a-kind program designed to connect small business owners in exploring new procurement strategies to increase revenue,” said Mirko.

      The U.S. government spends $500 billion or more each year and has a goal to award 23% of their spending – some $115 billion annually – to small businesses.

      About American Express OPEN

      American Express OPEN is the leading payment card issuer for small businesses in the United States and supports business owners with products and services to help them run and grow their businesses. This includes business charge and credit cards that deliver purchasing power, flexibility, rewards, savings on business services from an expanded lineup of partners and online tools and services designed to help improve profitability. Learn more at www.OPEN.com and connect with us at www.openforum.com, www.facebook.com/open and www.twitter.com/openforum.

      American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at www.americanexpress.com and connect with us on www.facebook.com/americanexpress, www.twitter.com/americanexpress and www.youtube.com/americanexpress.

      About Teaming USA

      Teaming USASM, a program of American Express OPEN® and Business Matchmaking, helps small business owners across America join forces to secure procurement opportunities. Teaming USA provides the tools and inside tips to successfully team up with other small business owners to win contracts and is free of charge to all small business owners. Learn more at www.TeamingUSA.com.

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