NAGC Releases Results of 2005 Annual Government Contractor Survey

On August 20, 2005, the National Association of Government Contractors (NAGC) released the results of a survey of government contractors nationwide. Over 2,200 government contractors responded to the organizations annual survey, providing valuable information about what contracting activities small business are engaged in. The survey solicited information in several key areas, including: GSA Schedules, teaming arrangements, and subcontracting.

Washington, D.C. (PRWEB) August 19, 2005 -- The National Association of Government Contractors (NAGC) released the results of a survey of government contractors nationwide. Over 2,200 government contractors responded to the organizations annual survey, providing valuable information about what contracting activities small business are engaged in. The survey solicited information in several key areas, including: GSA Schedules, teaming arrangements, and subcontracting.

Those businesses that have been awarded contracts indicate a general satisfaction with the process and professional partnerships that have been formed. However, the survey also indicates that many businesses are missing out on key opportunities to access valuable information and enter the government marketplace.

The survey represents primarily small businesses that consider themselves new to government contracting. Forty-three percent of respondents have been registered with the Central Contractor Registry (CCR) less than one year.

Among contractors responding to the survey, only 38 percent having been awarded a contract by the Federal government, while only 29 percent have been awarded a contract by a state or local government entity.

Missed Opportunities

FedBizOpps. One of the more surprising results of the survey revealed that more than half of those contractors responding to the survey were not registered with FedBizOpps.gov, the single government point-of entry for Federal government procurement opportunities over $25,000. Commercial vendors may access information through this single portal free of charge. J.R. Claeys, President of NAGC, is concerned that small businesses arent tapping into this valuable resource. Something must be done to reinforce the legitimacy of this resource and modify the perception that only large businesses are able to compete for contracts.”

GSA Schedules. Also unexpected, was the relatively small percentage of survey respondents on GSA Schedule(s). Less than 15 percent of the survey respondents are on a GSA Schedule(s). Of those businesses on Schedule, approximately 95 percent are on one to three Schedules. For those businesses engaged in teaming, the experience was generally considered favorable or very favorable. But the results also highlight the importance of networking; nearly two-thirds of those in teaming arrangements identified a teaming partner through a previous business arrangement. Furthermore, those businesses engaged in teaming overwhelming found that the arrangements offered additional opportunities the company may not otherwise have been able to provide customers.

A Successful Relationship? Prime Contractors and Subcontractors

Many small businesses opt to subcontract in lieu of pursuing larger contractors on their own. The survey captured general information about the experiences of contractors and subcontractors. Recently, the relationship between prime contractors and subcontractors has received a significant amount – specifically, contract management of subcontracts and evaluation of past performance for certain contracts and task orders.

The majority of prime contractors surveyed identified architectural and engineering; business and consulting services; construction services and building supplies; and IT/telecommunications as the type of work most frequently contracted out.

Just as important, the survey found that an overwhelming majority of subcontractors found their experience with prime contractors to be favorable or very favorable. Eight in ten subcontractors reported that they received compensation according to the terms and conditions set forth in the contract. This is good news for businesses that have been uncertain about the reliability of subcontracting.

And for subcontractors who wonder how important the site visit is – more than 50 percent of the prime contractors responding to the survey indicated they made site visits when selecting a subcontractor.

The National Association of Government Contractors (NAGC) is an advocate for policies that benefit America's business community in the government procurement process. NAGC provides programs and events that increase business opportunities for member companies, as well as providing training, services and networking opportunities to get your business involved in procurement with government at all levels.

For additional information about NAGC, visit www.contractaccess.org

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