Small Contractors Should Team Up To Win Federal Projects

                                                                 Photograph by Justin Sullivan/Getty Images

The contracting industry is very competitive!  The government keeps overspending while the responsible voters want the budget to be balanced; so it appears that the contracting projects coming from the government may be fewer and fewer.  This will only make the competition tougher.

The smaller contractors seem to have a disadvantage in competing for most contracting projects and in most instances this is an accurate assumption.  So what can a smaller contracting company do? The enlightened contract owner will do some creative thinking and take definitive action!

Randy Lebolo saw the housing market going into a slump in 2008 and he put on his “thinking hat” and thought of several different scenarios.  He knew that he had to diversify and being a small contractor he was at a disadvantage competing against the larger contracting companies so he did some research and decided to make a bold move.

Lebolo is a U.S. citizen born of a Texan mother and a father from Columbia and he qualifies as a minority.  He took his twelve (12) year old company and applied to the SBA- 8a program.  He was approved after a six (6) month processing time and has gone on to become a successful entrepreneur.

He has completed several contracts with his own company, Lebolo Construction Management.  He has also been able to team up with a larger contractor on several more projects. His company joint ventured with Weitz Company to obtain an $18 million project!

His team work along with his creative management skills has set him on a course to success.

Federal Agencies target to spend at least 23 percent of prime contracts each year with small businesses, however, most of the time they fall short of their goal.  They have found that small and midsized companies are more successful when they are able to team up with each other or team up with larger companies.

The joint ventures help both parties as each part of the joint venture brings their strengths to the table. Marketing plays a key role in obtaining projects.

Most successful contractors indicate that meeting with government buyers in a face to face situation has helped obtain more projects than not.  Basically, you have to get know the buyer and you have to let them get to know you!

Any venture has its risks and it is wise to get to know the company that you plan to partner up with on any project.  Do not get into a situation where you have to sacrifice your integrity!

This article was inspired by an article from  To read the complete article please click here.

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