Big Picture Numbers
Here are the big picture numbers for doing business with the federal government.
Size of Federal Spending
United States Economy: $19.4 Trillion
The Federal Budget (Discretionary): $1.1 Trillion
Percentage of US Economy: 5.6%
Small Businesses in the United States 27.9MM
Small Businesses Registered with Federal Government 225K
Federal Spending w/ Small Businesses (2017) $105.7B
Average Sales per Small Business Contractor $469K
Small Business GSA Schedule Holder
Small Business GSA Schedule Holders 12,500
Total Small Business Sales GSA Schedule $12.4B
Avg. Sales per Schedule Holder $992K
It is not surprising that the GSA Schedule Population is outperforming the Small Business population as a whole by a factor of 2.1 to 1.
Small Business GSA Schedule Holders are generally more active contractors. This is generally because they leverage their GSA Schedule Contract to obtain other federal contracts. It has been my experience that firms that are doing a million dollars in sales of their GSA Schedule have another two million in sales from other contracting vehicles. This is because a GSA Schedule is generally the first contracting vehicle most firms obtain when doing business with the federal government and move on to other contracting vehicles once they have gotten their feet wet.
GSA Schedule Market Research Factor
When you factor in that GSA elibrary and GSA Advantage are the yellow pages for federal buyers, GSA Schedule holders outperform their small business peers in non-GSA Sales as even federal buyers that are not looking to utilize the schedule system look at the Schedules first to find competent contractors that can fit their needs to invite them to bid. So the reality is that GSA Schedule holders have greater than 4x the sales of non-schedule holders.
There are really only 12,500 small businesses that are viewed as serious about federal contracting. The competition is limited when you look at the numbers and this may be the easiest place to obtain your firms sales growth in 2018.