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Arkansas Procurement Technical Assistance CenterPhone: 501-671-2390Email: email@example.com
by PTAC Staff - May 1, 2020
As the Coronavirus pandemic continues to wreak havoc on many businesses, the government
is still spending money. History has shown us that in times of recession, the federal
government spends even more money than usual in hopes of reviving the economy.
Take the so-called "Great Recession" of 2008, for example. In response, the government
passed the American Recovery and Reinvestment Act of 2009, an $800 billion stimulus
package designed to save jobs and boost the economy. Some federal contractors did
not only survive "The Great Recession" but had their best years ever. Unfortunately,
many businesses on the outside of the federal market struggled to stay afloat.
On March 27th, 2020, the feds passed the Coronavirus, Aid, Relief, and Economic Security
Act, also known as the Cares Act, thus providing an unprecedented $2.2 trillion in
stimulus funding with more in the works. Much of the news regarding this stimulus
funding has been around Small Business Administration loans and direct payments to
individuals, which is not surprising since it affects the larger part of the population.
But what the news media failed to mention are the provisions in the Act to keep the
government contracting base stable (check out the recommended readings in our May newsletter for details). Have you heard the recent talks about an infrastructure spending bill
to further boost the economy? If you have anything to do with construction - you are
in luck. Opportunities may be knocking on your door sooner than you think, of course
assuming you've already positioned yourself as a reliable and trustworthy contractor.
So, what does this mean for you?
The federal marketplace is not a lifeboat - you don't reach for it when your business
is about to go down. You have to get your foot in the door in good times so it will
be there for you when things get bad. And they will. Recession is a natural economic
phenomenon that has many triggers, so the question is not "IF" it's coming but 'WHEN."
If you've been enjoying success in the commercial sector - that's great. But you're
leaving yourself exposed to the harmful effects of a recession. The demand in the
commercial sector depends mainly on consumer spending, which tends to dry up in bad
economic times. To protect your business, you should diversify your revenue streams,
and what's a better way to do it than federal contracting? The demand in the federal
marketplace depends entirely on federal spending, which tends to spike when the economy
Yes, federal contracting is not a piece of cake. It can be complicated and even frustrating
at times. But there are people who can help you figure it out and become successful at winning government contracts. Reach out
to the Arkansas Procurement Technical Assistance Center and schedule a counseling
session if you have not done this in a while. It's your choice, are you going to be
a player or a spectator?