New Entrants

Creating a More Diverse and Resilient Federal Marketplace

At a time when applications to start new small businesses in America are at an all-time high, it is imperative that the Federal marketplace leverage this small business growth in supply chains that support agency missions, reverse the significant decline of small business participation in the Federal supplier base over the last decade, and increase the share of Federal contract dollars awarded to small, disadvantaged businesses.

The following includes Guidance, Best Practices, Tools, & Resources for strengthening the diversity and resilience of the Federal marketplace:

Guidance

• Office of management and Budget Memorandum, Advancing Equity in Federal Procurement

M-22-03

• Office of management and Budget Memorandum, Creating a More Diverse and Resilient Federal Marketplace through Increased Participation of New and Recent Entrants

M-23-11

• Strategies for Meeting and Exceeding the Small Disadvantaged Business Goal for fiscal year 2022

A memo that outlines actions agencies can take now.

Best Practices

• Market research

Include the resources used to locate new entrants and the results found in any market research report that is generated.  This will assist reviewers in ensuring that these measures are being fully utilized.

• • Non-traditional Market Research Techniques

Find resources from the U.S. Digital Service on performing market research to reach non-traditional government sources.

• Procurement Center Representatives

The Small Business Administration (SBA) has Procurement Center Representatives (PCRs) that assist small businesses and may identify opportunities to break down previously consolidated/bundled requirements so more new entrants have the opportunity to compete for agency requirements.  Work with your local PCR to review these requirements and find ways to increase new entrant participation.

• Vendor Outreach

Include MBDA (see Resources for more information), small business specialists, and the Office of Small and Disadvantaged Business Utilization in your vendor outreach efforts.  These resources can assist in making sure that potential new entrants are aware of such events and are able to participate. 

• • Sources Sought Notices: Publishing these and ensuring that entities like MBDA and the SBA’s PCRs are aware of these opportunities can assist with identifying potential new entrants.
  • Draft Solicitation: These drafts can provide vendors with a chance to provide initial feedback to the Government on overly restrictive requirements or any areas of confusion that may cause a new entrant to be unable to respond.

Tools

• Procurement Equity Tool

A new procurement equity tool has been developed to improve agencies’ analytic capability to find potential entities registered in SAM that could compete in an agency competition, in turn helping to diversify the supplier base. A user guide is attached to this email that explains how the tool can support outreach for the purpose of promoting greater demographic and geographic diversity in agency competitions.

• Supplier Base Dashboard

This is a tool for the public and agency managers to track the size of the supplier base and the mix of new entrants, recent entrants, and established vendors in the supplier base using the definitions above. The dashboard will help agencies identify:

• • the total number of entities that have done business with the agency during the fiscal year;
  • the breakdown of entities that are new entrants, recent entrants, or established vendors;
  • the breakdown of entities that are small businesses or other than small businesses;
  • the breakdown of entities that are small disadvantaged businesses, women-owned small businesses; service disabled, veteran-owned small businesses, and small business contractors in Historically Underutilized Business Zones (HUBZones); and
  • any of the information described above for individual market segments.
• Periodic Table of Acquisition Innovations

Use innovative buying practices, such as those showcased on the Periodic Table of Acquisition Innovations, that have been demonstrated to reduce barriers and increase small businesses participation, such as virtual industry days, virtual requirements development, video proposals, and remote technical demonstrations. Click on the “Small Business” filter to see practices that have particular benefits in contracting with small businesses.  Reach out to the Department of Commerce’s acquisition innovation lab, The Lab, for assistance with any innovative techniques.

• Dynamic Small Business Search (DSBS)

Search SBA’s DSBS.gov by NAICS to find ready and willing SDB firms to meet your requirements. The DSBS uses keywords, so users can search for particular products and services as well.

• Department of Commerce Debriefing Guide

The Department of Commerce Debriefing Guide highlights current best practices and encourages open and meaningful communication with offerors to address barriers to doing business with the Department. 

Resources

• 8(a) STARS III GWAC

1,100 qualified 8(a) contractors for IT services: http://www.gsa.gov/stars3

• New Innovators List

1,400 SBA certified 8(a) new entrants: https://community.max.gov/x/z1sjhw

• White House Webinar on Equitable Procurement https://youtu.be/m5P5n9XLwnM
• Crowdsourcing

A number of agencies have effectively leveraged crowdsourcing tools and techniques to engage in robust tailored dialogues with individuals and organizations about Federal procurement. The Office of Federal Procurement Policy uses an online crowdsourcing platform available here to obtain feedback from various stakeholders, including advocacy groups, minority serving institutions, employers and business organizations, employees, subject matter experts and others on a variety of procurement related matters, including advancing equity in Federal procurement.  Join the group to follow along with these dialogues.

• NIST Manufacturing Extension Partnership (MEP)

The MEP is a resource here at the Department of Commerce that can assist with scouting suppliers.  MEP is a public-private partnership with Centers in all 50 states and Puerto Rico dedicated to serving small and medium-sized manufacturers. Last year, MEP Centers interacted with more than 33,500 manufacturers, leading to $18.8 billion in sales, $2.5 billion in cost savings, $6.4 billion in new client investments, and helped create or retain more than 116,700 jobs.  Click here to learn more about the supplier scouting process and how it can assist you!

• Minority Business Development Agency (MBDA)

MBDA is also a resource here at the Department of Commerce and is the only federal agency solely dedicated to the growth and global competitiveness of minority business enterprises.  MBDA invests in a national network of MBDA Business Centers, Specialty Centers, and Grantees.  Its programs offer customized business development and industry-focused services to provide greater access to capital, contracts and markets.  If market research identifies a potential vendor who needs this assistance the following resources may be shared to assist them with navigating the federal procurement process.

• MBDA Business Centers
• MBDA Advanced Manufacturing Centers
• MBDA Export Centers
• MBDA Federal Procurement Center