For me, one of the murkiest areas of teaming for government contracting has always been one where a large business teams with a small business to take advantage of the small business program. It's done all the time - and in fact it is a viable and lucrative business strategy. The tricky part has always been how much work the large company can do without getting in trouble - and what percentage of work scope has to be awarded to a small business. I have been researching this topic for a while, and the answer I have been getting (and sharing in my training courses) is that it's safer to have a small business (or a combo of small businesses) self-perform 50% of the scope (unless it's construction - where a small business can get away with 15% of the scope).

It is a common practice, however, to distribute work share more liberally - almost to the point that a small business becomes a facade behind which a large business performs nearly 100% of the work and enjoys the small business set aside advantages. Another variation has been where a large business places its employees temporarily at a small business, passing them off as a small business's own set of employees - but then pockets the majority of the proceeds from the contract. It is also a fact that the government has benefited from this practice - it's easier for them to award contracts to large businesses that they want on a program by using the small business program.

Although it's been a common practice, I have warned everyone who was considering this strategy that they can do it only if they are not afraid to be audited and get in trouble. But, in all reality, many have done it, and there hasn't been a major slap-down of a major player for quite a while (if ever). Until now.

In accordance with last Friday's Washington Post article "SBA suspends major contractor GTSI from government work," it finally happened to a top-50 government contractor. Read the article at http://www.washingtonpost.com/wp-dyn/content/article/2010/10/01/AR2010100106319.html.

P.P.S. We got a new addition to our staff - a highly experienced proposal manager/technical writer. He is currently available, so if you need full time or just-in-time proposal support, contact Alex Brown at service@ostglobalsolutions.com or 301-384-3350.

If you think of someone else who could benefit from these courses, please, forward this invitation to them!

About the Author: Olessia Smotrova-Taylor is president/CEO of OST Global Solutions, Inc., a Metro Washington, DC consulting and training company that helps businesses grow by winning government and commercial contracts. She is a practicing capture and proposal manager who won more than $16 Billion in new business. She has 15 years of experience in proposal and capture management, marketing, and communications. Her self-study course, Executive Summary Secrets, sells worldwide. She is also an instructor in the upcoming on-site Capture & Proposal Management Courses that show how to position to win before an RFP issuance and how to write less and win more. Prior to starting her own consulting company, she won business for Raytheon and Lockheed Martin, and wrote for the Financial Times of London.

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