How To Start Business with the Department of State
The State Department’s small business agency has special funding and contract vehicles to those who want to become a supplier. Its director has suggestions for those who see a business opportunity.
Of a total $12 billion in contracts a year, around $3 billion go to small businesses, according to George Price, director of the Office of Small and Disadvantaged Business Utilization, Department of State.
Small businesses are better off starting a commercial relationship with the Department of State as subcontractors, especially if working overseas, according to an agency expert.
While procedures and competition to become a supplier may seem like the uphill battle, real difficulties appear after business starts.
“You shouldn't be doing a lot of work that's out of scope,” Price said. He explained that contracts should stay profitable for the supplier and while it is the role of the agency to get the most out of its suppliers, businesses should protect their workload.
In procurement, sometimes requests from offices are clear and describe what is required. In other cases, it may not be quite like that: “There's the way it is on paper and then there's the way it works,” said Price, speaking at an event organized by the AFCEA Northern Virginia Chapter.
Price suggested asking contracting counterparts in the agency for clear references, to ensure performance.
Contracts are achieved through technical competence, understanding of requirement, industry experience and ability to perform the technical and business, according to Price’s office. While status as a small business or veteran-owned business may help a company qualify, that does not guarantee a purchase order will be approved if the necessary operations requirements are not met.
There's the way it is on paper and then there's the way it works.
As a warning, Price offered, “if you're talking to somebody and they're promising you a contract, then little alarm bells should be going off.”
Another common issue with beginners was expecting too much from the small business office.
“One of the things you can't do is you can't ask my office to write your proposal or review your proposal. That happened, that does happen. I can't act as being an agent for you,” Price told the audience.
