How the SBA All Small Mentor-Protégé Program Can Open Up a World of Opportunity for Your Business
Federal mentor-protégé programs have existed for decades to help government agencies meet requirements for awarding a percentage of contracts to certain types of businesses. So when the SBA established the All Small Mentor Protégé Program in 2016, it was by no means unveiling a novel concept. Its own 8(a) Business Development M-P Program – designed to help small businesses “owned and controlled by socially and economically disadvantaged individuals” compete for federal contracts – had already been around for several years, providing a blueprint for the newest iteration.
And yet, despite its similarities to the 8(a) version and other agency-specific M-P programs, the “All Small” program represents a massive turning point in government contracting. Unfortunately, most small business leaders don’t know this. As of January 2020, the program had fewer than a thousand active mentor-protégé agreements, even though applications have been accepted since October of 2016.
All big government contractors have teams dedicated to identifying and partnering with protégés, and it makes good business sense for them to do so. On the other hand, the perceived (and real) complexity of federal contracting likely prevents many small business leaders from learning more about this program and others like it, which could be one of the reasons small businesses have disappeared at an alarming rate from the federal space over the past decade or so.
If you’re looking to compete for government contracts but questioning whether or not it’s a good idea to apply for the All Small M-P Program, we’re here to provide answers, so keep on reading.
(Hint: it is.)
One Giant Leap
Simply put, the “All Small” Program allows participating small businesses to take a quantum leap forward in terms of readiness to compete for and win federal contracts. It primarily does this by removing three of the biggest barriers to smaller or less mature companies hoping to enter the byzantine world of government contracting.
Barrier #1: The rules of the game. All of that aforementioned complexity is a serious obstacle to companies that don’t have access to seasoned federal procurement experts. Mentors can help protégé firms gain a better understanding of the rules and regulations that define government contracting, while shepherding them through the entire process. Experience is the best teacher and this program allows small businesses to learn by doing, without fear of failure or penalty for ignorance. In the business world, these types of win-win scenarios are virtually impossible to find.
Barrier #2: The proposal process. Government RFPs are essentially the physical manifestations of the entire nebulous bureaucratic system. Responding to them can be a trial by fire for small businesses that lack dedicated in-house proposal teams or the resources to hire hordes of consultants. Mentor firms, by contrast, already possess the infrastructure required to craft winning RFP responses in a timely manner, and the credibility that comes with years or even decades of productive collaboration with government agencies.
Barrier #3: Past performance requirements. Speaking of credibility, small businesses bidding on federal contracts for the first time have none. Unfortunately, contracting offices put a premium on past performance when deciding whether a firm is a good fit for a particular opportunity. New companies or those without a history of providing solutions to the public sector are stuck playing the classic chicken and egg game. When you establish a joint venture with a mentor firm under the stipulations of the “All Small” Program, you no longer have to play that game. The mentor’s track record is the only one that matters.
The Best of All Worlds
The joint venture governing mentor-protégé relationships combines characteristics of both parties to expand the eligibility of each to compete for a wider range of federal contracts. Mentors provide the infrastructure, institutional knowledge, and history of performance that contracting officers want to see when awarding contracts. Protégés might have special designations that make both companies eligible for set-asides, or specific domain expertise that can enhance mentors’ capabilities. That combination is hard to beat, and hard for contracting officers to ignore.
While protégés own 51% of the newly established enterprise, they’re only required to perform 40% of the work when a contract is awarded. With the full resources of the mentor firm at their disposal, they can begin building their own successful track record and separating themselves from competitors still searching for the secret to a winning RFP response.
We can’t emphasize this enough: the “All Small” Program can be an absolute game changer for small businesses. Maybe you’re thinking it sounds too good to be true. Why not check out some past success stories? Maybe you’re wondering whether or not you’re even eligible. If so, we have more good news.
Unlike the 8(a) M-P Program and similar agency-specific initiatives, the “All Small” Program is, as its name suggests, open to all small businesses. The eligibility requirements outlined on the SBA website take less than 30 seconds to absorb. While companies that meet certain socio-economic conditions may make more appealing protégés to prospective mentors pursuing specific types of contracts, if your small business can offer a larger firm some sort of competitive edge, it’s worth your time to pursue a partnership.
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Not sure where to start? Our experience working in the federal space has allowed us to build lasting relationships with major government contractors in virtually every industry. If you’re looking for the perfect mentor, we can help. Give us a call or reach us via email at inquiries@8astrategies.com and let’s talk about what you can get out of the SBA’s All Small Mentor-Protégé Program.