With the markets acting sporadically, many don’t feel comfortable with the current state of the economy. This article offers an interesting suggestion for some entrepreneurs to eliminate part of that risk, and find a more reliable stream of income. The author notes that getting federal government contracts is actually easier than getting state or local government contracts. I would have thought it would be the opposite, but the reasoning is that state and local government contracts are generally given to special interest groups and more susceptible to politics; whereas federal government contracts are more objective – at least the smaller federal contracts.
Very interesting. My only concern is that using a government contract may skew the long term viability of a company. I think in the short run as an alternative it is a good idea, but for some who may need to make a business change for private sector competitiveness, they may not be able to adequately gauge their business through the fog of government award.
A new niche market is also being created for companies who excel at getting government contracts. Places like ONVIA no longer compete for contracts but rather develop software that helps other companies file for bids at higher rates of success.
“The law requires the Federal, State and Local government to only spend money that they have “encumbered and appropriated.” This means that they are only allowed to spend money that they have on hand and budgeted for specific purposes.”… Or that the government doesn’t really have