By Vince DelaRosa, 5/15/2023
Governmental spending, although frowned upon by some, is used on a variety of goods, programs, and services to support and protect the American public in all 50 states. Likewise, there are many solid opportunities for American and Tribal companies to provide services to the American people in this process. Let's take a closer look.
In the United States, the processes of government procurement enable federal, state, and local governments in the country to acquire goods, services (including construction), and interests in real property.
The budget for the federal government in 2023 is $5.4 trillion. Most of that amount goes toward mandatory programs like Social Security and Medicare. $1.709 trillion is dedicated to discretionary programs. However, annually over $500 billion dollars plus goes towards contracting for projects and services with various units of government.
The White House has issued new guidance for federal agencies to increase the share of government contracting dollars to small, disadvantaged businesses (SDBs) in fiscal year 2023. Further, the administration’s effort is to steer $100 billion in new contracting opportunities, annually, to minority-owned businesses, plays right into the hands of tribes.
It is clear, business in the American marketplace presents numerous advantages for all companies seeking growth, expansion, and increased profitability. The vast consumer base, extensive infrastructure, technological advancements, and diverse business opportunities make the largest marketplace an enticing prospect for businesses.
By capitalizing on these advantages, companies can gain a competitive edge, maximize their reach, and tap into a wealth of potential customers.
~ TRIBAL BUSINESS CONTRACTING:
For tribes, the Tribal 8(a) program amplifies contracting activities by combining the benefits of contracting preferences with the specific opportunities accessible to tribal entities.
The Tribal 8(b) program allows for the tribes and their partners to expertly play the long game. From micro to macro, the results can be significant when you run your analysis across the contracting landscape, with targets in mind, that's how we like to set the pipeline up.
Contracting Preferences: Tribal 8(a) firms enjoy contracting preferences, including sole-source awards, set-aside contracts, and limited competition. These preferences provide tribal businesses with increased opportunities to secure government contracts and access a broader range of business opportunities.
Additionally, the Tribal 8(a) program offers advanced benefits to tribal entities, combining the advantages of small business contracting with unique opportunities for tribal economic development, and technical assistance.
By leveraging the power of contracting and exploring the benefits of programs like Tribal 8(a), tribal businesses can unlock new avenues for growth, success, and community empowerment. This can also include business alliances and partnering options.
NOTE:
With so many opportunities for all businesses, it is crucial for businesses owners to navigate the market effectively, understanding local customs and regulations, and developing winning strategies tailored to the unique dynamics of the marketplace.
~ REGULAR BUSINESS CONTRACTING:
Recognize the immense potential and advantages that come with operating in the world's largest marketplace.
Here are some key business advantages that any good company can leverage:
Vast Consumer Base: The largest marketplace is home to a massive consumer base, offering businesses access to millions of potential customers. This presents a significant opportunity to expand market share, and drive revenue growth.
Diverse Market Segments: With a large and diverse population, the largest marketplace often encompasses various market segments and customer demographics. This diversity allows businesses to tailor their products, services, and marketing strategies to cater to specific customer preferences, leading to enhanced customer satisfaction and loyalty.
Business Partnerships and Collaborations: Operating in the largest marketplace increases the likelihood of encountering potential business partners and collaborators. This presents opportunities for strategic alliances, joint ventures, teaming arrangements, and mutually beneficial partnerships, which can unlock new markets, share resources, and foster innovation.
Economic Stability and Growth: The largest marketplace often exhibits relative economic stability, backed by strong institutions and policies. This stability provides a favorable business environment, reduces uncertainties, and supports long-term growth and investment opportunities.
A tribe can unleash latent potential, accelerating scale and profitability in these marketplaces.
WORKING TOGETHER
Here are a few key reasons why partnering with a tribe is a good idea.
When it comes to federal contracting, savvy businesses understand the value of strategic partnerships. One often overlooked yet highly advantageous option is teaming up with Native American tribes through the Tribal 8(a) program. This unique collaboration presents a multitude of benefits that can significantly enhance a company's competitive edge in the federal marketplace.
* Enhanced Access to Contracting Opportunities: Partnering with a tribe opens doors to a wealth of federal contracting opportunities. By aligning with a tribe, companies can tap into a vast network of government contracts, including those reserved for economically disadvantaged businesses. This strategic alliance expands your reach and increases the likelihood of securing lucrative federal projects.
* Competitive Edge through Socio-Economic Preferences: Federal agencies are mandated to promote socio-economic diversity in their procurement processes. By partnering with a tribe, your business gains a competitive edge through various socio-economic preferences. Tribal 8(a) firms qualify for sole-source contracts, allowing expedited procurement without the need for a lengthy competitive bidding process. Additionally, tribal affiliation provides access to the Indian Incentive Program, which offers a 5% rebate on the total contract value, further enhancing your competitiveness in the federal marketplace.
* Enhanced Business Activities: There are specialized strategies that tribes can advance that can significantly enhance deal-making at the federal contracting level. I will not go into those strategies here, that would take another article to outline. However, if you would like to learn more about leveraging specialized strategies for enhanced deal-making capabilities, here is a glimpse into one area of deal-making.
By embracing collaboration with tribes, businesses can gain a competitive edge, enhance their balance sheets, and contribute to the economic growth and prosperity of Native American communities. Below here is our summary outline on the contracting long game.
"Strategic Contracting: Macro, Micro, and Long Game Perspectives for Effective Contracting Strategy!"
We operate a specialized U.S. Federal Contracting firm called TeKeni Industry Solutions. We understand the importance of taking a comprehensive approach to our contracting strategies.
Through our work, we tend to take a long view. We see short-term victories, but we like to capture long term market moves that have lasting value.
MACRO: With a macro perspective, we analyze the broader market landscape, industry trends, and government regulations to leverage with a tribe. This ensures that your contracting strategy aligns with larger market forces and maximizes your competitive advantage.
MICRO: At the micro level, we dive deep into the details, assessing specific contracts using AI, checking down on requirements, and customer needs. Our meticulous analysis enables us to tailor your approach, optimize resource allocation, and develop you forge winning proposals.
LONG GAME: Preferably, we emphasize the long game view, this is the durable pathway. Considering the lifecycle of contracts and their potential impact on your organization, we work in cycles, and through transitional contracting phases. We help you build sustainable relationships, foster partnerships, and position your business for continued success.
With our expertise, you can confidently navigate the complexities of the contracting landscape, secure lucrative opportunities, and achieve your strategic objectives. The long game view we take helps to guide you in crafting an effective contracting strategy that ensures long-term growth and success.
If you want to explore new business options, or advanced strategic tribal business partnerships, feel free to reach out to me here at: NativeConsulting@Dr.com of click the button below.
Vince DelaRosa is a former legislator for an American Indian tribe and the founder of Native Advisors.
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