If you’re a small business trying to get into the federal marketplace, you might find yourself competing with major companies that are more established, and we all know that they have an unfair advantage.
Don’t get discouraged! There is a secret to success for small businesses and that is simplified acquisition procedures (SAP).
Although this procedure is limited only to contracts under $150,000, It’s still an opportunity that you should take advantage of. It’s the simplest way to bid on any government contract.
For SAP contracts, agencies don’t need to go through the formal process, which means less paperwork and lower cost. It’s a win-win for both the government and the small business.
According to the Bureau of the Fiscal Service, the United States government spent approximately $1.1 trillion in 2020 on contractual services and supplies. Ever wondered which agencies spent the most?
With that in mind, we present to you the top 10 agencies in 2020 that have invested the most in contracts, more specifically, contracts that were completed under SAP.
1. Defense Logistics Agency (DLA)
The Defense Logistics Agency is responsible for nearly every consumable item used by the U.S. military forces worldwide. They have spent about $4.4 billion on contracts completed under SAP, making it first on the list.
The DLA has nine supply chains that contract a wide variety of products such as food, textiles, energy products, medical material and equipment, construction material, etc.
2. Department of the Army (USA)
The United States Department of the Army comes in second, with an accumulative government spending of $2.1 billion. They are the Military Department within the United States Department of Defense.
There are five U.S. army buying commands, each acquires its own specified products or services, which range from combat systems to civil works to medical research and health sciences to base operations to research and development.
3. Department of Veterans Affairs (VA)
The Department of Veterans Affairs provides vital services to America’s veterans such as health care services, benefits programs, and access to national cemeteries to former military personnel and their dependents. They have invested about $ 1.4 billion in contracts completed under SAP.
The products and services they acquire are for a nationwide system of hospitals, clinics, Veterans Integrated Service Networks (VISN), data processing centers, and National Cemeteries.
4. Department of the Navy (USN)
The Department of the Navy’s primary mission is to protect the country by effective prosecution of the war at sea. The USN’s SAP contract procurements in 2020 were worth $1.3 billion.
The contracting functions of this agency are decentralized which means your market research should extend beyond the geographical bounds of your city, state, and region. Each Navy or Marine Corps major buys its own supplies and services that support its own mission.
A Small Business Professional is assigned to each buying activity. This person could be your focal point for upcoming procurements and source of information on small business matters.
5. Department of the Air Force (USAF)
The Department of the Air Force has spent $958 million in SAP contracts in 2020, earning their fifth place on the list. They are the agency responsible for defending the country through the control and exploitation of air and space.
If you are interested in working with the Air Force, they have small business specialists around the country who can help your company identify and respond to every type of procurement opportunity the Air Force offers.
6. US Census Bureau
The U.S. Census Bureau provides current facts and figures about the country’s people, places, and economy. For 2020, their cumulative spending on contracts completed under SAP is $749 million.
They usually work with the Information Technology Directorate (ITD) industry, as there is a growing need for the management of data collection and processing. This agency, like most, if not all, government agencies, aims towards giving small business owners more business opportunities.
7. Department of State (DOS)
Next on the list is the Department of State, with a cumulative government spending of $531 million. The DOS oversees America’s international interactions, which include business relations, official federal government initiatives, individual travel, and immigration.
The top industries that were awarded contracts for SAP in 2020 were administrative management and consulting services, furniture manufacturing, facilities support services, computer systems design services, and other computer-related services.
8. United States Mint (US MINT)
The United States Mint is responsible for producing coinage for the country, as well as controlling the movement of bullion. SAP contracts in this industry in 2020 were worth $515 million.
Small businesses are given the maximum practicable opportunity by the Treasury Department to participate as subcontractors in the contracts awarded, as it is part of their policy to provide them in its acquisitions.
9. Federal Aviation Administration (FAA)
The Federal Aviation Administration has a cumulative spending amount of $462 million on SAP contracts in 2020. This agency issues and enforces regulations involving manufacturing, operating, and maintaining aircraft.
For them to function as an organization, they rely on equipment, systems, supplies, services, and construction provided by commercial, educational, and non-profit businesses.
10. Forest Service (FS)
Last but not the least, with SAP contracts amounting to a total of $362 million, we have the Forest Service. They manage the U.S. national forests and grasslands.
The products and services that they purchase from vendors are wide-ranging. They acquire natural resource and conservation services, construction of structures and facilities, maintenance of property, fire and aviation support service, the list goes on.
RESOURCES
The list found in this article and their respective ranking was taken from usaspending.gov, wherein federal agencies were ranked from highest to lowest, according to their cumulative government spending in 2020 for contracts completed under SAP.
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