In today’s competitive federal contracting landscape, small businesses must leverage every available tool to gain an edge. Two valuable assets are the General Services Administration (GSA) Schedule contract and HUBZone (Historically Underutilized Business Zone) Certification. By examining recent federal spending data on various sectors under different NAICS (North American Industry Classification System) codes, we can see clear advantages of combining HUBZone Certification with a GSA Schedule contract. This combination allows small businesses to capture a larger share of federal spending, particularly in industries where demand is rising. Here’s a closer look at how GSA Schedule contracts and HUBZone Certification can benefit small businesses and increase their opportunities in federal contracting.
1. Increased Federal Spending for HUBZone-Certified Businesses
Federal spending on HUBZone-certified small businesses has been substantial across several sectors, such as Computer Programming Services (NAICS 541511), Administrative Management (NAICS 541611), and Engineering Services (NAICS 541330). HUBZone Certification, which aims to encourage economic growth in underutilized regions, is a powerful tool for small businesses seeking to win federal contracts. This certification gives businesses a competitive advantage by providing access to contracts specifically set aside for HUBZone-certified companies.
For instance, in 2023, HUBZone-certified businesses in Computer Programming Services (NAICS 541511) received federal spending of over $533 Million, with HUBZone dollars through GSA contracts totaling over $2.68 Billion. This demonstrates the considerable demand for these services and shows how HUBZone-certified companies are better positioned to meet this demand.
2. The Added Advantage of a GSA Schedule Contract
Having a GSA Schedule contract is a significant benefit in federal contracting. The GSA Schedule simplifies the procurement process, allowing federal agencies to quickly access pre-approved vendors and make purchases without the lengthy processes involved in traditional contracting. For small businesses, holding a GSA Schedule contract can make their offerings more accessible to federal buyers.
In sectors such as Computer Systems Design Services (NAICS 541512), the “HUBZone Dollars with GSA” column indicates that companies with both HUBZone Certification and a GSA Schedule capture more significant federal spending. In 2023, these companies saw a total of over $907 Million in federal spending through GSA contracts. This pattern underscores the value federal agencies place on businesses that meet HUBZone and GSA requirements, as it streamlines their procurement process and aligns with federal initiatives to support small businesses in disadvantaged areas.
3. Consistent Growth in Federal Spending Over Time
Another key benefit of combining HUBZone certification and a GSA Schedule contract is the potential for continuous growth in federal spending over time. The data shows a consistent increase in total federal spending from 2021 to 2023 in almost every sector analyzed. For example, the Other Computer Related Services sector (NAICS 541519) saw an increase from $3.35 Billion in 2021 to $4.45 Billion in 2023, with HUBZone and GSA spending also rising significantly each year.
This growth reflects increasing federal demand in fields like IT services, consulting, and facilities support, where HUBZone-certified and GSA-contracted small businesses are uniquely positioned to benefit. By aligning with government priorities for supporting small, HUBZone-certified businesses, companies can secure stable revenue streams and benefit from the government’s long-term spending trends.
4. Targeted Advantage in High-Demand Sectors
While the advantages of HUBZone Certification and GSA Schedule contracts are evident across various industries, the data reveals specific sectors where the impact is particularly strong. In Administrative Management and General Management Consulting Services (NAICS 541611), HUBZone dollars through GSA contracts reached over $2 Billion in 2023, up from $1.58 Billion in 2021. This pattern suggests that federal agencies actively seek certified and GSA-listed vendors in these fields, making HUBZone and GSA credentials highly advantageous for companies operating in management consulting.
Similarly, Facilities Support Services (NAICS 561210) experienced substantial spending growth, with total dollars increasing from $916 Million in 2021 to over $1.57 Billion in 2023. A significant portion of this spending was allocated through HUBZone GSA contracts, demonstrating that federal agencies rely on certified businesses with GSA contracts for facilities-related needs.
For small businesses, the combination of HUBZone Certification and a GSA Schedule contract offers significant advantages in the federal marketplace. The GSA Schedule provides a streamlined pathway for federal agencies to procure services, making it easier for certified small businesses to compete. Meanwhile, HUBZone Certification aligns with government goals to support economic development in disadvantaged areas, increasing the likelihood of winning contracts.
The benefits of combining HUBZone and GSA are clear: increased visibility, more accessible contracting, and growing federal spending year over year. As demand for services such as IT, consulting, and facilities support continues to rise, small businesses that hold both certifications are positioned to capture an increasing share of federal dollars. For companies seeking to grow in the federal market, obtaining a GSA Schedule contract and HUBZone Certification can be strategic steps to long-term success.
If marketing in government contracting is part of your business plan, I always recommend industry experts such as Advance GSA and ez8a whom can provide guidance concerning eligibility, qualifications, and the application process. Their expertise can help ensure your business is well-positioned to take advantage of the many opportunities that GSA Schedules and/or HUBZone Certification offer in the federal contracting space. Neither Advance GSA nor ez8a charge for an initial consultation.
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