2020 Into 2021 – Strategy for Federal Growth

Growth ArrowStrategy for       Federal Growth

2020 into 2021

By Gloria Larkin, President & CEO TargetGov

It is a mistake to assume that a new fiscal year (October 1) begins slowly. As fiscal year 2021 begins and simultaneously the 2020 calendar year rushes to an end, companies can see greater federal growth, revenue and profitability by making the critical match between the specific needs of the agency and the company’s available services, innovative solutions and products along with aggressively marketing every possible contract vehicle to targeted prospect agencies and decision-makers. From October 1 through December 31, 2020, agencies will make every effort to spend all available funds new funds for both innovative and sustaining programs, using those vehicles currently held by the preferred vendors.

Key Factor

The key factor in most year-round contract and task order awards is holding the preferred contract vehicle that the government customer mandates, whether that is a multiple-award contract (MAC,) a massive Government-Wide Acquisition Contract (GWAC) or Indefinite-Delivery Indefinite Quantity (IDIQ). MACs account for one of every four dollars spent annually by the federal government, with the General Services Administration (GSA) administered contracts and related Best-in-Class (BIC) contract vehicles the main influencers.

Aggressively growing small businesses pursue and win multiple MACS, with the top small businesses holding 13 MACs on average.

Silver Lining

Small businesses are well-served to take advantage of a particular silver lining, the Simplified Acquisition Threshold (SAT) program. Normally the SAT accounts for over $40 Billion in services and products purchased every year. The SAT generally states that every purchase or transaction between $10,000 and $250,000 shall be awarded to a small business, as long as a qualified and capable business can be found in a timely manner and offer the services and products at competitive prices. These contracts or transactions can take place in as little a few days, with no cumbersome drawn-out public bidding process. However, it is imperative that the small business become proactive in targeting the correct agencies and decision-makers with the appropriate marketing messages.

2020 Year End

Now, until December 31, 2020, the SAT presents an even more attractive opportunity because it has been increased from the normal $250,000 to $750,000 per transaction as a result of the national emergency declared by the President. This situation creates the possibility of a windfall for those small businesses positioned to market effectively to the appropriate decision-makers. It is anticipated that with the SAT now at $750,000, aggressive small businesses can win an additional $8-10 billion in contracts before the calendar year end of December 31.

Position for 2021

By double-teaming the targeted services and products with the preferred contract vehicle, businesses of all sizes are poised to end 2020 with a healthy win rate and revenue volume, as well as position for a profitable 2021.


Gloria Larkin is President and CEO of TargetGov, American Express Procurement Advisor and a national expert in business development in the government markets.  Email glorialarkinTG@targetgov.com, visit www.targetgov.com or call toll-free 1-866-579-1346 x 325 for more information.

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