You Wont Believe the GSA Approved Rates McKinsey is Charging to the Government! Hit the Mark in 2024
We're 18 days into 2024 and our team is absolutely pumped for the contracting (and grant) opportunities that are currently available and will be coming out in the near future. The governments at all levels are continuing to put out opportunities and as all governments have been doing over the past years, more and more opportunities are increasingly price sensitive with an eye to being awarded to small businesses. If you are interested in a detailed analysis of the contracting landscape and how you can leverage it, feel free to find a time to chat with us.
However, to give you a couple highlights:
Mckinsey & Company's revenue from federal contracting fell by 22.78% year over year from 2022 to 2023. While there are several contributing factors, one of the major factors were the rates (and still are) that were being charged to the federal government. Their rate misalignment with the market was so large that they had to reduce their GSA Schedule rates a little over a year after having them been approved. On top of reducing rates charged to the government, McKinsey (like other large consultancies) made a major positioning move and is heavily relying on being a subcontractor to bring in federal dollars.
While we are still awaiting the Small Business Administration's Annual Scorecard to be released for 2023, it is inferred that the federal government has continued its push to award prime contracts to small vendors. Small business targets are reset yearly, and have been inching up as a percentage of total contracts awarded.
While not an exhaustive list of government agencies, these agencies make up a bulk of the federal government contracting spend. So what should you as a small business who wants to win federal government contracts take away from this chart? Simply this: heavily target your proposal efforts towards winning work from HHS, Treasury, and the Department of Veterans Affairs. These scorecards are regularly presented and used at high levels within the federal government to inform procurement decisions.
If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set aside programs at both the State and Federal level, to being empowered by a Fractional Capture team, to receiving up to 5 tailored to your business government opportunities per month Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.
