by Linda Rawson | Mar 21, 2017 | General
I have owned DynaGrace Enterprises, a Women-owned Small Business (WOSB) and 8(a) firm for almost a decade. So why did I start a government contracting business in the first place? The answer is quite simple. I was younger and dumber and wanted to see if I could. I did not know what I should have known when I started. Maybe this article can give you some insight and help you determine if it was the good idea you thought it was.
There are several types of government contractors, and the one I am most familiar with provides services to the federal government. The manufacturing part and being able to offer a product to the government might be better for you, but I am not as familiar with that type.
Federal government contracting can be a way to start a small business. The market is worth over $100 billion in sales to small businesses each year. Providing services or products to the government is quite different than selling to the commercial sector.
Government contracts can guarantee ongoing revenue for your business. A stable cash flow enables a business to develop marketing budgets, hire staff and grow their business intelligently. The reoccurring monthly business generated from government contracts can also hedge against months that are slow. In fact, many contracts have 3-5 continuous year contract terms. Keep in mind though it can take 30 to 90 days to get paid. But once the payments start you are usually fine.
The procurement process for a government contract is extensive. You can speed up this process by marketing to government customers that have a budget. That can be like finding a needle in the haystack. The government goes through cycles for services. Sometimes they ramp up contractors and some years they ramp up on civilian employees.
You should be prepared for long hours when responding to solicitations. The last couple I have lost to very low bidders. I am not sure how they expect to give any benefits to their employees, but the government will get what they bid for, hence the term, “low bidder”. It is like buying the cheapest vehicle and realizing the plastic cracks in the sun after a month of owning it. I refuse to win a bid on the backs of my employees so the contract goes to a company that will. I run a respectable government contracting business.
The good part is I have some fantastic employees, and I have met some wonderful business people who are involved in government contracting. I started out as a civilian employee way back when and then worked for about four contractors before starting my own small contracting business. Having a small budget or lack of budget is a huge problem. The government employees in charge of budgets are usually friendly and appreciate the services we have to offer.
I would never even have thought about having my own business, and this opportunity has given me the experience and the pleasure of being an entrepreneur. It is an excellent way to get started and the SBA offers some training but expect to learn a lot on your own and with the help of mentors.
by Linda Rawson | Mar 21, 2017 | General
My company is DynaGrace Enterprises (DGE). We are a certified 8(a) (Small Disadvantaged Business (SDB)) as well as 8(m) (Women-Owned Small Business (WOSB) / Economically Disadvantaged Women-Owned Small Business (EDWOSB)). We have been in business since 2006 and the 8(a) is a great program but DGE will 
eventually graduate.
The U.S. Small Business Administration (SBA) issued a final rule authorizing federal agencies to award sole-source contracts to WOSB’s eligible for the WOSB Federal Contract Program. It was published in the Federal Register September 14, 2015, and was effective October 14, 2015. The rule levels the playing field for WOSB across the federal contracting marketplace.
Here is a link to the rule as it appears in the Federal Register on September 14, 2015. https://www.federalregister.gov/articles/2015/09/14/2015-22927/women-owned-small-business-federal-contract-program
It appears that for now, the current list of applicable North American Industry Classification System (NAICS) codes published by SBA for WOSB and EDWOSB contracting set-asides will remain in force, and will be used to facilitate sole source awards until superseded by new data. This NAICS code list can be found here:
2012 WOSB-EDWOSB NAICS Codes
DGE has past performance in the following NAICS codes:
| 237130 |
EDWOSB |
Power and Communication Line and Related Structures Construction |
| 238210 |
EDWOSB |
Electrical Contractors and Other Wiring Installation Contractors |
| 238990 |
EDWOSB |
All Other Specialty Trade Contractors |
| 541330 |
EDWOSB |
Engineering Services |
| 541511 |
EDWOSB |
Custom Computer Programming Services |
| 541512 |
EDWOSB |
Computer Systems Design Services |
| 541519 |
EDWOSB |
Other Computer Related Services |
| 541990 |
EDWOSB |
All Other Professional, Scientific, and Technical Services |
| 561621 |
EDWOSB |
Security Systems Services (except Locksmiths) |
| 561990 |
WOSB |
All Other Support Services |
| 811310 |
EDWOSB |
Commercial, Industrial Machinery/Equipment (except Automotive & Electronic) Repair & Maintenance |
This new regulation is great news and represents an opportunity for women-owned small businesses. If you are interested in working with DGE, please contact us.
by Linda Rawson | Mar 14, 2017 | Business, Federal Government Contracting
Named for Section 8(a) of the Small Business Act, this program was created to help small and disadvantaged businesses compete in the marketplace.
It also helps these companies gain access to federal and private procurement markets. The program is designed for socially and economically disadvantaged individuals. You can read more here in the article titled “What is 8(a)?” which is an excellent 
article describing the 8(a) program.
Why use the 8(a) program?
Contracts can be directly awarded to an 8(a) firm, under $4M for Services and $6.5M for Manufacturing, without much of the normal contracting process overheads:
- A qualified 8(a) firm is considered to be a lock-tight sole source justification which means Justification & Approval (J&A) is not required for contract award per FAR 6.204, FAR 6.302-5(b)(4), and 15 U.S.C. 637
- 8(a) contracts are one of the exceptions listed in FAR 5.202(a)(4), which waive the requirement to publish the synopses of contract actions for section 8(a) of the Small Business Act
- Can continue to use the same 8(a) company for follow-on contracts per FAR 19.805-2(d).
- 8(a) contracts can be issued much quicker than other processes, even IDIQ type task orders
- Even over the $4M/$6.5M threshold, SBA may accept sole source if there is not a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers at a fair market price per FAR 19.805-1(b).
What are the advantages of using DynaGrace Enterprises as an 8(a)?
As a small business, we have low overhead structure and costs. With technical competence and competitive rates, we strive to provide the best service and support to our clients.
Is the contracting process really that easy?
8(a) Procurement Process
- The government customer has a requirement that could be awarded to an 8(a) firm. For sole source awards the amount will be under $4M for Services and $6.5M for Manufacturing.
- The government customer drafts a Performance Work Statement (PWS) and meets with the Small Business Office (SBO) or contracting agency.
- The Purchase Request (PR) is coordinated through the normal approval process, including base/agency small business office and contracting. On block 12, REMARK section of
the PR, the statement “Recommend sole-source award to 8(a) firm, DynaGrace Consultants, Cage Code 4KM96” is added.
- Base/Agency contracting office sends an “offer letter” to the SBA, and SBA sends an “acceptance letter” to base/agency contracting office.
- Request For Proposal (RFP) is sent to DynaGrace Enterprises where they present an oral or written offer. The rates and cost are negotiated.
- The Base/Agency contracting office negotiates directly with DynaGrace Enterprises for the contractual terms.
- The order is issued to the SBA.
How long does the contracting process take?
Typically between 30 and 60 days.
For more information Contact Us.
We have excellent references available upon request.
