MAIL BAG: MISSING GOALS CAN CAUSE AS MUCH TROUBLE IN CONTRACTING AS IN HOCKEY

Loyal reader T. Cruise of Fightertown, USA writes:  I see the government just met its 23% small business goals again.  I agreed to 23%, too, but am only doing 11% with small firms.  Could that be a problem? Your contract could be going right into the “danger zone”, T.  While GSA, and other federal agencies can place immense pressure on a contractor to adopt unrealistic small business use goals with the phrase, “they’re just goals”, ask German soccer player Celia Sasic what it means when you miss one.  Companies should never agree to a contract term they know they can’t meet, whether it’s a small business goal or anything else.  The fact is, some companies can, and do, use small businesses way more than 23%, while others would be lucky to crack the 10% mark.  It’s not that some companies are more small business-friendly than others, but rather that the specific market segment involved means there may just not be that many opportunities for businesses of any size to be part of the supply chain.  Before your firm is pressured into a goal it can’t come close to meeting, take the time to explain what the reality is in your market sector and why, if possible, your firm will out-perform others in that sector in terms of small business use, but can’t honestly come close to 23%.  Lastly, if your CO has lost that lovin’ feelin’, T, be prepared to walk away from a contract with terms that just set your firm up for trouble later on.