Even in a struggling economy, there is one business source that never seems to slow: government.

For example, Boeing Co.'s defense unit posted higher quarterly profits Oct. 22 thanks to its business with the Pentagon, according to Reuters. This helped offset the effects of the six-week machinists' strike that brought the company's overall quarterly profit down. Boeing's defense unit is the Pentagon's No. 2 supplier and reported an overall profit of $854 million so far this year, up 4 percent from the $822 million posted in 2007.

Last year, according to the Federal Acquistion Institute's latest Annual Report on the Federal Acquisition Workforce, the number of contracting officers in the government rose 6.8 percent between 2001 and 2007. The government now has approximately 19,000 contracting professionals in the Department of Defense and 9,300 in civilian agencies.

These 28,000 contract specialists are responsible for more than $450 billion in government contracts, David Drabkin, deputy chief acquisition officer and senior procurement executive at the U.S. General Services Administration, recently wrote at FederalTimes.com. These specialists also are doing more complex work, Drabkin adds. "In 1995, the government changed its focus from getting the 'lowest price' to getting the 'best value'."

According to Aprodex, a marketing and business development portal for global diversified asset protection solutions, the U.S. Army has indicated its hopes of hiring 1,300 new civilian employees over the next three years to oversee more than $80 billion in contracts.

The government also sets aside 23 percent of its contracting dollars to small business. Last year, federal agencies fell short of its goal, awarding only 22 percent of contracting dollars to small businesses, down from the 22.8 percent in 2006. The usual slowness of government, the red tape and many complex rules make federal contracting for small businesses challenging at best and impossible at worst.

However, small firms won a record $83.2 billion in federal prime contracts last year, almost $6 million more than they did in 2006, according to the annual Small Business Administration (SBA) scorecard, released last month. The $83.2 billion does not include the $3.9 billion in contracts for which size was not indicated in the Federal Procurement Data System or the $64.8 billion awarded to small firms through subcontracts.

Though there are no shortcuts to getting a piece of the government contracting budget pie, there are several ways for aspiring government contractors to win government deals. Small businesses might consider hiring a business development consultant to help them steer through the complexities of the federal procurement process, suggests Washington Technology.

Washington Technology also names several vehicles small businesses can use to win government contracts, such as:

8(a) Business Development program: This SBA program allows disadvantaged business to gain official status and compete against similar-sized firms rather than taking billion-dollar businesses head-on.

General Services Administration (GSA) schedule: The GSA establishes government contracts with commercial firms for more than 11 million commercial products and services. Within the GSA schedule, businesses can apply to qualify for as many GSA schedule categories as possible.

Subcontracting: Rather than trying to work directly with the government, firms can opt to subcontract to a more established company that already has a federal prime contract.

Interested contractors should do their utmost to establish relationships with government program management and procurement professionals, Washington Technology advises. This can be done through presentations to agencies during their planning periods and at professional development conferences and networking events.

Despite the uncertainty of a new administration and a shaky economy, it seems that federal contracting, particularly in defense, is not slowing down. Perhaps businesses can prevent contraction by contracting.

Earlier

Cash in on Federal Year-End Spending

2008 Growth Opportunities in Government Procurement

Does Federal Red Tape Deter Small Business?

The State of the Federal Contracting Workforce

Resources

Annual Report on the Federal Acquisition Workforce, FY 2007
Federal Acquisition Institute, May 2008

Defense Contractors Profits Rise
by Bill Rigby
Reuters, Oct. 22, 2008

Commentary: More Contract Specialists, Better Tools Needed
by David Drabkin
Federal Times, Sept. 7, 2008

Take Your Pick: Defense Jobs on the Rise
Aprodex, Jan. 7, 2008

17 of 24 Federal Agencies Met 2007 Small Business Goal in SBA's Annual Contracting Scorecard
U.S. Small Business Administration, Oct. 22, 2008

Contracting 101: Start with Patience and Value
by Joyce Bosc
Washington Technology, Oct. 6, 2008