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Numerical targets
distinguish “prime contractors” from “sub-contractors”(continued)
US Federal Procurement
is effected through three parallel interlocking processes
I. Government agencies
work with the SBA to set small business procurement goals
II. Companies establish
themselves as able and willing to participate in procurement
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At the highest
level, the US Federal Government sets numerical targets for the proportion
of all federal procurement that should go to small business
The government
mandates definition of a ‘small business’ to the SBA, which formulates
definitions based on several criteria
Numerical targets
distinguish “prime contractors”, who work directly for the government,
from “sub-contractors”, who are employed by prime contractors
In addition to
the top level targets, the government requires certain contracts to be set
aside automatically for small business
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Federal support
for small business is engendered and maintained at many levels and in many
different aspects throughout the federal government
Federal procurement
policy and its impact on small business are determined by a series of interrelated
acts, official policy documents, and other influential policy statements
Federal procurement
policy and its impact on small business are determined by a series of interrelated
acts, official policy documents, and other influential policy statements
(continued)
Federal procurement
policy and its impact on small business are determined by a series of interrelated
acts, official policy documents, and other influential policy statements
(continued)
Several resources
are in place which greatly assist government procurement officers in their
task of finding small business contractors, as well as in understanding
and applying the underlying regulations and policies
Additionally, many
information resources are available to assist small businesses in the process
of securing federal contracts
Various bodies
provide very practical advice and assistance to small companies to help
them secure contracts
Various bodies
provide very practical advice and assistance to small companies to help
them secure contracts (continued) 
Through the Federal
Procurement Awards Program, the SBA offers prestige and marketing advantages
to large and small businesses, creating a very real incentive to contract
with small businesses
In addition to
rewards for success, the SBA has the authority to inflict stiff penalties
on agencies or businesses that feel to meet the guidelines imposed
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III. The Contract
allocation process itself involves the offering companies, the SBA, and
the soliciting government agency
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Although no reliable
data source is available, state and local government procurement represents
about half of total US government procurement
Broadly speaking,
state and local government procurement is governed by similar principles
to those at the federal level, but differences arise due to the differing
roles of the government institutions themselves
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Receipt of federal
procurement contracts is clearly beneficial to the well-being of small companies
in several ways
However, assessment
of whether small companies are receiving their ‘fair share’ of government
procurement (and consequently whether the procurement system is effective
in supporting small business) is more difficult
Taking these factors
into account, small businesses today receive more than a fair share of federal
procurement dollars
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Federal procurement
evolution will continue to favour small businesses relative to large but
in absolute terns the dollar value will decrease