Winning Small Business Contracts With FAR Advantages

Under the Federal Acquisition Regulation (FAR), small businesses are given special consideration in federal contracting to encourage their participation and growth in federal contracting. The FAR outlines various preference categories for federal acquisitions. These categories are designed to promote the acquisition of high-quality goods and services. Here are some key preference categories defined in the FAR:

1. Small Business (SB): A business is considered small when its annual average 3-year revenues fall below a threshold as defined in the NAICS: Table of size standards | U.S. Small Business Administration
2. 8(a) Business Development Program (SDB): This program helps small, disadvantaged businesses compete in the marketplace. Participants can receive sole-source contracts and are eligible for specialized business training.
3. Service-Disabled Veteran-Owned Small Businesses (SDV): Additional preference is given to service-disabled veteran-owned small businesses.
4. Women-Owned Small Businesses (WOSB): Preference is given to women-owned small businesses to promote gender equality in federal procurement.
5. HUBZone (Historically Underutilized Business Zones): Preference is given to businesses located in HUBZones to promote economic development in those areas.

These categories help ensure that federal procurement processes are inclusive and support various segments of the business community. The goal of these preferences is to foster a competitive business environment by ensuring small businesses have a fair chance to thrive in the federal marketplace. Every year, federal organizations publish their percentage contracting goals, in percentage of dollars awarded and/or executed. For the Peterson SFB complex, these are their approved FY2025 goals:

Peterson SFB Small Business Goals for FY2025 (01 Oct 2024 – 30 Sep 2025)

As the FY draws to a close, more opportunities for qualifying small businesses may emerge as government entities strive to achieve these goals. The examples below will help you track those opportunities

If your small business falls into one of these categories, strategize to work with large primes and the Peterson Small Business office to provide your capabilities and show why your firm can perform their requirements.

For more information on FAR contracting and YTD award data, contact:

Robert J. Walter, GS-14
DAF Director Small Business Programs,
Space Base Delta 1
robert.walter.10@spaceforce.mil