Women-Owned Firms 

in Federal Procurement: 

A Focus Group Report 

Prepared for 

The National Women’s Business Council 

Prepared by 

The National Foundation 

for Women Business Owners 

© NFWBO, October 1999 

1411 K Street, NW, Suite 1350
 

Washington, DC 20005-3407
 

(202) 638-3060
 

Fax (202) 638-3064
 

E-mail: info@NFWBO.org 

Home page: http://www.nfwbo.org 
National Foundation for Women Business Owners 

Table of Contents 

Introduction ......................................................................... 1
 

Background and Objectives ...................................................... 1
 

Methodology ................................................................. 2
 

Limitations of Focus Group Research .............................................. 3
 

Executive Summary .................................................................. 4
 

Detailed Observations Among Women Business Owners ..................................... 7
 

Conclusions and Recommendations .................................................... 16
 

Appendix A: Recruitment Questionnaire for Focus Group Participants .......................... 18
 

Appendix B: Discussion Outline for Focus Group .......................................... 20
 

Women-Owned Firms in Federal Procurement: A Focus Group Report i 
National Foundation for Women Business Owners 

Introduction 

Background and Objectives 

In its 1998 annual report to Congress, the National Women’s Business Council (NWBC) reported 

on a statistical study it had undertaken concerning woman-owned firms in Federal contracting. 

This analysis showed that the participation of women-owned firms in Federal contracting had 

grown from $3.2 billion in fiscal year 1987 to $5.2 billion in FY1997. In FY1997, some 5,722 

women-owned businesses were involved in 446,332 prime contract actions amounting to $3.3 

billion. Another $2.3 billion was awarded to women-owned enterprises in subcontract actions. 

During the course of that study, the NWBC obtained some detailed information on many of the 

individual contract actions performed by women-owned firms in FY1997, including the amount of 

awards, the industry category of the awards, and the location of the businesses. This information 

was summarized in a database provided to the NWBC by Eagle Eye Publishers. 

The National Foundation for Women Business Owners (NFWBO) is conducting a three-phase 

study for NWBC on the information contained in this database. Phase I was a detailed analysis 

of the information contained in the database. Phase II — this report — is a qualitative study 

among a select number of women business owners contained in the database. Phase III will 

consist of a quantitative survey among all of the women business owners in the database. 

This report summarizes the results of the focus group discussions held among women in two 

geographic areas — Washington, DC (specifically northern Virginia) and San Francisco, CA. 

The objectives of this qualitative research were five-fold: 

C To explore the paths these women took to Federal contracting; 

C To learn about who or what helped them enter into the Federal procurement 

marketplace; 

C To discuss their past and current challenges in the market; 

C To explore their views on recent trends in Federal procurement and how these 

trends are affecting them; and 

C To probe their ideas and suggestions for how to improve Federal procurement 

system. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 1 
National Foundation for Women Business Owners 

Methodology 

Two focus groups were held during the week of September 6, 1999, among women business 

owners who were prime Federal government contractors in fiscal year 1997. The groups met as 

follows: 

Washington, DC area September 7, 1999 

7:00 - 8:30 p.m. 

San Francisco, CA September 9, 1999 

7:00 - 8:30 p.m. 

The cities of Washington, DC and San Francisco, CA were selected because of the 

concentration of women business owners with Federal contracts in FY1997 in their vicinity. In 

Washington, DC, the focus group was held at Metro Research Services, Inc., in Fairfax, Va. In 

San Francisco, the group was held at Fleischman Field Research in downtown San Francisco. 

The women business owners who were recruited to attend the focus group discussions had to 

meet the following criteria: 

C Be the sole owner or one of the owners of a business with at least one prime 

Federal contract in FY1997; 

C Come from a range of industries; and 

C Have both defense-related and non-defense-related contracts represented in 

the group. 

There were 10 participants in Washington, DC, and six participants in San Francisco, CA. The 

women were recruited from a listing of all women-owned businesses with Federal contracts in 

FY1997. 

Each of the discussions lasted approximately 90 minutes. The recruitment questionnaire and 

discussion outline may be found in Appendices A and B at the back of this report. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 2 
National Foundation for Women Business Owners 

Limitations of Focus Group Research 

Although the women business owners attending the focus group discussions seemed to be 

representative of many other women business owners with Federal contracts — and probably 

were in many respects — it should be stated clearly that focus group discussions are qualitative 

in nature. The findings in this report should not be taken to represent all women business 

owners with Federal contracts, nor even all women business owners with Federal contracts in 

the Washington, DC or San Francisco Bay areas. Rather, focus group findings should be used 

to: 

C Gather more detailed impressions, perceptions, emotions, and opinions than 

quantitative research can obtain; 

C Provide an outline or framework for further research; or to 

C Add detail, nuance, and further interpretation to existing quantitative research. 

This project was conducted for NWBC by the National Foundation for Women Business Owners 

(NFWBO). The NFWBO is a non-profit research institute dedicated to the study of women’s 

entrepreneurship. The mission of the NFWBO is to strengthen women business owners and 

their enterprises by conducting research, sharing information, and increasing knowledge. 

One final methodological note: the quotes contained in this report are direct, verbatim quotes 

from the women business owners who participated in the focus group discussions. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 3 
National Foundation for Women Business Owners 

Executive Summary 

There was a distinct difference in outlook between the women in the Washington, DC area group andthe group in San Francisco. The women in DC were much more knowledgeable and engaged in the 

procurement process, and much less pessimistic than the women in San Francisco. 

! 

The women in DC had a higher level of awareness about training and educational opportunities, andwere more likely to have availed themselves of mentor-protégée and other assistance programs. 

! 

Some women were WBE (Women Business Enterprise) certified and a few were 8(a) certified, butresponses were mixed when asked how helpful these certifications have been to their businesses. 

Many of these women felt that agencies and procurement officers were not listing many procurements as 

small-business, minority- or women-owned business set-asides.1 

! 

For the women we met with (all of whom still are Federal contractors), getting into the Federal

procurement marketplace was a goal at the outset or early on in their business development. While 

Federal agencies are not thought of as a market by all businesses, these women made a conscious 

decision to get into the market. 

! 

For the most part, the women were not able to point to a single lucky break that propelled them into

Federal contracting. Rather, it was patience, persistence and doggedness that got them into the 

market. 

! 

When discussing the most important challenges they face in Federal procurement, the challengebrought up spontaneously and early in both discussions was prompt payment. While they 

acknowledged that one of the benefits of Federal contracts is the assurance of payment, the timeliness 

was the first challenge nearly everyone mentioned. Most said the norm was more like 60 to 90 days, 

rather than the promised 30 days. 

1

Note: after the DC discussion, we were asked to bring up the “presumed group” concept in San Francisco. None of the 

women were familiar with the term and, when it was explained to them, were of mixed opinion about whether it would help, given the 

reasons noted. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 4 
National Foundation for Women Business Owners 

Another important challenge mentioned was the increased workload being imposed upon fewer andfewer contracting officers (COs). Not only did they say this was one reason for the frequent (if not 

regular) exceeding of the 30-day payment rule, they said that it was harder and harder to build 

relationships with these COs, to get phone calls returned, and to get questions answered. 

! 

Along the same lines, the recent trend towards electronic posting of bid solicitations, and selection of

the lowest bid without consideration of other factors, contributes to the inability to develop working 

relationships with COs. 

! 

Many of our discussants, especially the ones who provide services rather than goods, also

bemoaned the difficulty of gaining access and developing relationships with “end users.” For many 

service providers, COs are gate-keepers, nay-sayers and roadblocks to providing the best services to 

those in the agencies who will actually benefit from them. Discussants also mentioned the frequent 

necessity of updating COs on changes to procurement law, and the government’s use of the GSA 

SmartPay credit card. Two of the successful strategies cited by some women in this regard involved 

helping end users write sole-source justifications for their work, and using a GSA contract. 

! 

The trend toward larger and fewer procurements (“bundling”) is also seen as a significant challenge,

because it means that there are fewer chances to compete on a level playing field with businesses 

of the same size. This may put many smaller firms in the position of acting in a subcontracting role, which 

most of the discussants acknowledge is fraught with difficulties. Few of the women we met with were 

willing to play the role of subcontractor, having been mistreated in that role previously. For example, the 

subcontractor might not be used in the actual work (even though her firm was included in the proposal), 

or payment from the prime contractor might lag beyond legal limits. 

! 

There was a general consensus that many of the challenges come from being a small business asopposed to being woman-owned, and that any actions taken to improve opportunities for small 

businesses would benefit women-owned and minority businesses as well. 

! 

Women-Owned Firms in Federal Procurement: A Focus Group Report 5 
National Foundation for Women Business Owners 

The differences between the Washington, DC group and the San Francisco group were most apparentwhen the women were asked if they would continue working in the Federal procurement arena in the 

future. The women in Washington, DC were in general agreement that they would continue in this 

marketplace, while the majority of the women in San Francisco were actively seeking ways to limit their 

involvement in Federal procurement and to diversify their customer base. 

! 

When asked what advice they would give to other women business owners thinking about getting

into the Federal procurement arena, these women say to be persistent, be prepared, network, and 

don’t rely on procurement completely – diversify your customer base. 

! 

When asked what advice they would give to Federal agency officials to make the system better,

they said: 

T allow greater contact with end users and empower them to purchase small 

amounts (i.e., get COs out of the middle); 

T make COs accountable for their actions, so they take ownership of 

procurements, not just push paper; 

T make the cost of using the GSA SmartPay credit card recoverable for the small 

business owner; 

T reduce the paperwork burden on all participants in the process; and 

T enforce procurement goals for small businesses and women-owned 

businesses, to stem the tide of bundling. 

! 

When asked what advice they would give to Congress to improve Federal government purchasing,

they suggested that Congress: 

T	 simplify the Federal Acquisition Regulations (FAR), and stop adding new 

regulations, since they said that they often follow the changes more closely than 

do contracting officers; 

T	 make agencies accountable for procurement goals, which would keep the 

market open to small businesses; 

T	 keep alive the concept of set-asides for small businesses; 

T	 make it easier to award future contracts to small businesses with a good past 

performance record; and 

T	 make it easier to extend a renewal or a recompete. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 6 
National Foundation for Women Business Owners 

Detailed Observations Among Women Business Owners 

There was a distinct difference in outlook between the women in the Washington, DC area group and 

the group in San Francisco. The women in DC were much more knowledgeable and engaged in the 

procurement process, and much less pessimistic than the women in San Francisco. 

“Our business is exorbitantly higher than it has been in years because it’s easier for the 

government to buy from us than it ever has been. We spend all of our outreach time with the 

end users; we usually get referrals. We teach procurement contracting to the government 

people. That was one of the markets I got into immediately because I wanted to understand how 

it worked.” (Washington, DC) 

“I think business has changed quite a bit, and become a lot more frustrating and a lot less 

lucrative in the last few years. I’m sure that someone is contracting with the government, 

because they are obviously buying all the things that they need, and getting all the services that 

they need. But I know we’re not as active as we were.” (San Francisco) 

“I think, actually, we help our clients more than they help us, because we’re constantly 

bombarded with ‘please fill out this form’ of where is your small business, your woman-owned 

business, so they get points for it. But I don’t know of any work, in 25 years, that we have 

obtained because we are a female-owned corporation, or it’s a small business.” (San Francisco) 

The women in DC had a higher level of awareness about training and educational opportunities, and 

were more likely to have availed themselves of mentor-protégée and other assistance programs. 

“I attended a year of a program sponsored by the SBA called the 7J Program, in which another 

company hosted 12 companies to come there once a month, and you go through seminars. 

And we went through every aspect of business...It was marketing, business plan, every aspect 

of business...And that’s where I learned how to work because I went with that company before I 

started my own.” (Washington, DC) 

“I took the SBA Score Program and assistance program. I took how to incorporate, how to start 

your own accounting system. I took everything that they offered initially...And then, for the last 

three years, we’ve been in the mentor-protégée program with AT&T...The government funds 

AT&T to provide you with training and assistance to help you grow your company.” (Washington, 

DC) 

“I’m in a mentor-protégée program, too. With the company I used to work with, and the one 

where I am now.” (Washington, DC) 

Women-Owned Firms in Federal Procurement: A Focus Group Report 7 
National Foundation for Women Business Owners 

“I’ve gone to a number of meetings where they’re supposed to explain how to work through the 

system. And so little of it was relevant that I finally just stopped going, because it really didn’t 

make any difference.” (San Francisco) 

“They have an SBA, small business, large contract fair. My partner attended...and they said, 

‘Well, you know, we don’t know if we’re interested in small businesses or not.’ And these were 

two very prime contractors...I mean, they’ve got their partners chosen. And they work their 

partners.” (San Francisco) 

“You’re giving up a day for being at that (procurement) fair, and hoping you get something, even 

if it’s just a lead, where you could be going somewhere else that you know you’d get some 

business. It’s a trade-off.” (Washington, DC) 

“Nothing came of it (the procurement fair).” (San Francisco) 

“It (the procurement fair) was not useful.” (San Francisco) 

“We were invited to display at a couple of them (procurement fairs), but we didn’t think we would 

get much out of it. We didn’t go.” (San Francisco) 

Some women were WBE (Women Business Enterprise) certified and a few were 8(a) certified, but 

responses were mixed when asked how helpful these certifications have been to their businesses. 

Many of these women felt that agencies and procurement officers were not listing many 

procurements as small-business, minority- or women-owned business set-asides.2 

“It took me four and a half years to get my 8(a) certification, and about $100,000 in costs.” (White 

woman business owner, Washington, DC) 

“My experience is that there is nothing better today than the Small Business Administration in 

America...I wish that program could be in the rest of the world, in Latin America.” (Hispanic 

woman business owner, Washington, DC) 

“I found a gentleman...who had worked for both the SBA and a couple of other government 

agencies. He understood SBA, he understood the 8(a) program...And he was telling me what 

my disadvantaged status was, because he understood the buzz words. And so he helped me 

put my package together.” (Black woman business owner, Washington, DC) 

2

Note: After the DC discussion, we were asked to bring up the “presumed group” concept in San Francisco. None of the 

women were familiar with the term, and when it was explained to them, were of mixed opinion about whether it would help, given the 

reasons noted. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 8 
National Foundation for Women Business Owners 

“I’m WBE...and for WBE now, if your personal assets exceed a certain amount, you can’t qualify 

as a disadvantaged business.” (White woman business owner, San Francisco) 

(Regarding a “presumed” category for women business owners) “It depends on how they 

evaluate you, how they look at your assets...Once you hit $18 million, you’re no longer 

considered small...And $18 million, in the business we’re in, is not a lot. You do a couple of 

half-million drop ships of product, you hit the $18 million mark, and you’re out.” (White woman 

business owner, San Francisco) 

“We’re a straight, small, woman-owned business. And I think we get more out of the small 

business than we do the woman-owned.” (White woman business owner, San Francisco) 

“What we’ve seen is that, even though we’re classified as woman-owned, small business...if our 

price is not low enough, we do not win. We just lost a very large contract to Federal Data Corp. 

They’re a fulfillment house. They’re a large business. We lost to them by .08%. This customer 

is in our back yard. Why didn’t we win? And they say,’Oh, it’s because we didn’t say it was 

small business set aside.’ That’s, I think, one of the problems. If you look at the procurement 

documents, they are not saying it’s a small business set-aside. Then it’s low bid. And there’s 

no way you can go against a big company. It’s impossible, because their percentages are so 

high.” (San Francisco) 

“The Army Corps has put together a program, it’s usually in December every year, and all of the 

procurement officers from each of the districts are required to go to it...I think it’s very important 

that, at least annually, from the top level, you have people saying, ‘We need to really try to give 

as much business as possible to women-owned small businesses, minority businesses.’ They 

have to hear that encouragement from somewhere...There is something to be said for having a 

top level Army Corps person saying how few of the contracts are going to women or minority 

businesses, how they have a commitment from the top to change that, (and) for all the 

contracting officers to hear that.” (Washington, DC) 

For the women we met with (all of whom still are Federal contractors), getting into the Federal 

procurement marketplace was a goal at the outset or early on in their business development. While 

Federal agencies are not thought of as a market by all businesses, these women made a conscious 

decision to get into the market. 

“We went into it with the military as our client target. Because of the way business was done 

when we started...it was more person-to-person, not physically, but you spoke with the buyers 

on the phone, and you developed a relationship, and were able to work with them.” (San 

Francisco) 

Women-Owned Firms in Federal Procurement: A Focus Group Report 9 
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“I had a Federal background. So our first customer was a Federal customer.” (San Francisco) 

“She (former partner) owned the business, and of course I learned it from her, and then she 

decided to go out of business. And at that time...most of the contracts were Navy.” (San 

Francisco) 

“In order to grow a company and have any stability, I looked to government and military 

contracts, because you have long-term three- and five- year contracts.” (Washington, DC) 

“We also do work with corporate clients...but there the nature of the way that they manage things 

like community relations is that they actually do more crisis communications...So you might get a 

project and you’re really busy for two to three months, then they go away. And you never know 

if you’ll get another call from them. So for me, working with the Federal government has been 

ideal...Because, like you said, projects are usually three and four years in duration, so you do 

have the stability to grow the business with that kind of workload.” (Washington, DC) 

For the most part, the women were not able to point to a single lucky break that propelled them into 

Federal contracting. Rather, it was patience, persistence and doggedness that got them into the 

market. 

“We’re resellers of box products — we don’t provide any services, it’s all hardware, software, 

and supplies. So it’s just basically getting your name out there. Procurement, procurement, 

procurement. Not the end user. You had to speak to the contracting officers to get your name 

out there. And, if you did something for Commerce here, then they would give your name 

to...like, I do Commerce all around the country now. Just getting your name out there — that 

was the main thing.” (Washington, DC) 

“We started out with one project manager in one district, and then it went to two project managers 

in one district, and now we’re working with five and almost six districts. So, as somebody gave 

us a shot, we kind of built a name, and kind of built it from there.” (Washington, DC) 

“The Federal government provided the entry under small business. There was no question 

about that. That gave us the motivation to enter that business...We got one (contract) and then it 

led to the others.” (San Francisco) 

When discussing the most important challenges they face in Federal procurement, the challenge 

brought up spontaneously and early in both discussions was prompt payment. While they 

acknowledged that one of the benefits of Federal contracts is the assurance of payment, the 

timeliness was the first challenge nearly everyone mentioned. Most said the norm was more like 60 

to 90 days, rather than the promised 30 days. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 10 
National Foundation for Women Business Owners 

“Of course, waiting to get paid for three months is...an ongoing struggle.” (San Francisco) 

“We’re somehow able to be paid in, I would say, 45 to 60 days. And partly it’s because we 

keep right on top of it, and we keep calling offices, and checking on the particular contract, 

and...raising hell when we need to. I’ve been known to call directly to an end user and say, 

‘Where’s the receiving report and make sure you date it correctly!’ Because they will say, ‘Oh, 

today’s Sept. 9th? I guess that’s the day we received it.’ When actually they received it July 

30th. So, keeping on top of it makes a really big difference in the payment.” (San Francisco) 

“Thirty days from what?...From that movable start number. I was discovering, that in Indianapolis, 

it didn’t count until they picked the paper up and stamped it in the machine. So you could have 

this horrible pile of stuff...” (Washington, DC) 

“I found it so difficult to get paid that, as a matter of practice, I work (as a subcontractor) for 

people who pay on time. Just because I don’t want the hassle.” (Washington, DC) 

Another important challenge mentioned was the increased workload being imposed upon fewer and 

fewer contracting officers (COs). Not only did they say this was one reason for the frequent (if not 

regular) exceeding of the 30-day payment rule, they said that it was harder and harder to build 

relationships with these COs, to get phone calls returned, and to get questions answered. 

“The contracting officer, if they don’t know you, can make it very difficult to deal with.” 

(Washington, DC) 

“Or very easy. You have to build a relationship.” (Washington, DC) 

“Exactly the point.” (Washington, DC) 

“The other thing, with the government’s reorganization, the contract offices are understaffed. So 

we are all victims of that. You’ve got two or three people trying to do the job of 10 people. 

You’ve got a stack of stuff. So when you send something in, if you don’t follow it up, it just gets 

lost.” (Washington, DC) 

Along the same lines, the recent trend towards electronic posting of bid solicitations, and selection 

of the lowest bid without consideration of other factors, contributes to the inability to develop 

working relationships with COs. 

“It’s a killer, especially when it gets down to, ‘Well, your price was a little bit too high.’ And you 

put in so much time to get the proposal in, to do the presentations, or whatever, and boy, it gets 

down to price so often now, that you really think twice.” (Washington, DC) 

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“(In the past), if we were bidding on a big order, and we made sure they (i.e., COs) knew we 

were a small, woman-owned business, then we might have a small edge in the bidding 

office...Not all of the time, just some of the time.” (San Francisco) 

“I think when you’re dealing with Internet procurement, for example, if you are not a large 

company —a large company, the manufacturer, or the only distributor in this part of the United 

States — it’s not going to matter that you’re a woman-owned, small business. It’s irrelevant. 

You’re not going to get it. The only time you had the edge was when it was more personal, and 

it was more on the phone.” (San Francisco) 

“There is so much being done electronically that you have less of a personal contact. And there 

are fewer people.” (San Francisco) 

“No small business can afford the resources, as you said, to monitor those (electronic) RFPs all 

the time.” (San Francisco) 

“And they change the bidding rules. I mean, that’s what happened with this last deal...All of a 

sudden they decided they didn’t want to award us this contract. They wanted to award it to 

someone else. So they republished the CBD, for one day. We contacted her (the CO) three 

days later and asked what was going on. She said, ‘Well, you lost.’ ‘How did we lose? This is 

a time and materials contract. Please explain to me exactly how we lost.’ She said, ‘Well, didn’t 

you see it? We put it back out to bid.’ “ (San Francisco) 

Many of our discussants, especially the ones who provide services rather than goods, also 

bemoaned the difficulty of gaining access and developing relationships with “end users.” For many 

service providers, COs are gate-keepers, nay-sayers and roadblocks to providing the best services 

to those in the agencies who will actually benefit from them. 

“I’ve never obtained any business from contracting officers or procurement shops. We’ve 

always sold our services to the people who are going to use us. And they try to figure out a 

way to get us a contract and get the money to us.” (Washington, DC) 

“Nowadays, the way it goes, it’s the end user that goes out and gets the three quotes and turns it 

into a procurement.” (Washington, DC) 

“The end user sends up their request for a purchase, (and) they sent it with a vendor from whom 

they want to purchase it. So there is no competition, but I don’t quite understand how to become 

the person from whom they want to purchase...(if) you can’t be in touch with the end user.” (San 

Francisco) 

Women-Owned Firms in Federal Procurement: A Focus Group Report 12 
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“We’ve ignored that rule. Because we know who they (the end users) are. Unless you call that 

end user...I have to stay very close to the end user.” (San Francisco) 

“(Our contact is) almost always with the end user. And then we have to get involved...with the 

contracting officers. And they rarely understand the service. So that makes it very awkward and 

difficult.” (San Francisco) 

“Why are these people, (contracting officers) so powerful? If somebody from the agency says, 

‘OK, I love your product. I’ll go with you,’ why do these people have to...like you have to 

conquer them in order to survive.” (Washington, DC) 

“Contracting officers have been helpful to me, once we have sold a customer, as far as getting 

the contract through...But I never got a sale through a contracting officer.” (Washington, DC) 

Discussants also mentioned the frequent necessity of updating COs on changes to procurement 

law, and the government’s use of the GSA SmartPay credit card. 

“The biggest problem I see in Federal contracting is that the laws get changed, the FAR gets 

updated, but it is on us, as the small business to educate the (contracting officer). They never 

know what’s going on, or what the latest information is.” (Washington, DC) 

“Interpretation of the FAR...They’re very uncomfortable with the changes...They want to do it the 

old way...The procurement process is too complicated...They’ve made it too hard.” (San 

Francisco) 

3 “One of the biggest changes has been in the use of the IMPAC card, the government VISA

card. And there are a couple of different levels of that. One...is that the contractor has to pay for 

that. For instance, we pay 2 1⁄2 %...And they say, ‘You’re not allowed to charge us for using a 

credit card.’ ‘Well, excuse me, but somebody charges me for using a credit card, and 

therefore, I must charge you.’ ...So that’s one issue with the IMPAC card. The other issue is the 

decentralization of the purchasing...Each department is kind of doing its own purchasing. 

Through Freedom of Information, you can get a list of IMPAC card holders. When you contact the 

card holders, they say, ‘Oh, the end-user tells us who to buy from.’” (San Francisco) 

“The IMPAC card...(has) disbursed the purchasing to so many different places that you can 

barely find the people who are looking for goods or services.” (San Francisco) 

3

Now known as the GSA SmartPay credit card. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 13 
National Foundation for Women Business Owners 

Two of the successful strategies cited by some women in this regard involved helping end users 

write sole-source justifications for their work, and using a GSA contract. 

“So, one thing we’ve done, we have several contracts that are multiple year contracts. And the 

end user, we’ve helped the end user write a sole-source. And that’s the only way, in my time 

that I’ve been with the Federal government, to guarantee that you have the business, is help 

them write their sole-source justification.” (San Francisco) 

“That’s what we do, too.” (San Francisco) 

“My experience has been when our customer wanted to give us money...they put us on as a 

(subcontractor)...They got someone else. But since we got our GSA contract, all those things 

are coming back through the GSA contract.” (Washington, DC) 

“We used to have to compete for all of our renewal contracts. One would expire, they’d have to 

put it out for bid, everybody in the world would bid against us, and it got so that it turned out to 

be just the low bidder....I don’t have to compete very much for my renewals anymore. Because 

we’ve got the GSA contract.” (Washington, DC) 

The trend toward larger and fewer procurements (“bundling”) is also seen as a significant 

challenge, because it means that there are fewer chances to compete on a level playing field with 

businesses of the same size. This may put many smaller firms in the position of acting in a 

subcontracting role, which most of the discussants acknowledge is fraught with difficulties. Few of 

the women we met with were willing to play the role of subcontractor, having been used and abused 

in that role previously. For example, the subcontractor might not be used in the actual work (even 

though it was included in the proposal), or payment from the prime contractor might lag beyond 

legal limits. 

“When a major prime, say Lockheed Martin, gets a single award, and they have used your 

name, your company name, your past performance, and you have signed a contract, you still 

will sometimes not get one penny’s worth of work...I took it all the way up the chain to the head 

of contracting and the head of their small business office for that particular division of Lockheed, 

and never got anywhere. I finally just wrote it all off to experience.” (Washington, DC) 

“And they,(some prime contractors) stretch out payments, so you’re using your subs as your 

bank as well. That works out real well, too. They stretch out payments to 45 or 60 days.” 

(Washington, DC) 

“I thought I read something recently in FAR (Federal Acquisition Regulations) that the prime 

couldn’t bill (the government) until he paid the sub.” (Washington, DC) 

Women-Owned Firms in Federal Procurement: A Focus Group Report 14 
National Foundation for Women Business Owners 

“That is absolutely true. It is one of those other things that is not checked, and many, many 

companies after all that is said, the sub isn’t paid until the prime is paid, and then some.” 

(Washington, DC) 

There was a general consensus that many of the challenges come from being small as opposed to 

being woman-owned, and that any actions taken to improve opportunities for small businesses 

would benefit women-owned and minority businesses as well. 

“For the most part, I work through the small business offices of the agencies, and...make my 

company known to them, even if I know who the end user is. Then I go to the end user, and 

say, ‘I’ve been to the small business office.’ And I have two people on my side. Then I go over 

to contracts. So I do a triangle. And I try to work all three of them.” (Washington, DC) 

“If you find an agency where the small business office is ineffective, don’t bother marketing that 

agency. It will be seldom, and hard...that you get work there.” (Washington, DC) 

“It (the mentor-protégée program) is open to any small business, any category of small business 

there is. If you’re large enough, I highly recommend it. I have had a few companies call me that 

they only had two people, and I said, ‘Well, when would you have time?’...It’s a wonderful 

program. I don’t mean to discourage anyone. But know what you’re getting into...Each agency 

runs their program slightly differently. To get to know more about them, besides their home 

page, (contact) their head’s small business office.” (Washington, DC) 

The differences between the Washington, DC group and the San Francisco group were most 

apparent when the women were asked if they would continue working in the Federal procurement 

arena in the future. The women in Washington, DC were in general agreement that they would 

continue in this marketplace, while the majority of the women in San Francisco were actively 

seeking ways to limit their involvement in Federal procurement and to diversify their customer base. 

“I wish it were easier, but yes, I’m going to continue.” (Washington, DC; general agreement from 

the rest of the group) 

“I will not pursue a government contract right now. I will continue to service the ones that we’ve 

worked with in the past...I would not sit on the Internet and watch for an RFP...It takes me 2% of 

the time to negotiate and sign a $100,000 contract with an industry client, than it would for a 

$25,000 contract with the government.” (San Francisco) 

Women-Owned Firms in Federal Procurement: A Focus Group Report 15 
National Foundation for Women Business Owners 

“We have refocused our business to where we will not bid unless it’s an existing customer or 

partner or commodity-based IT product...We have some fairly substantial commercial-based 

customers, and you know, they give us 15% on hardware. The government, you’re lucky if you 

get 2%. So it’s economies. Where do we grow our base?” (San Francisco) 

Conclusions and Recommendations 

In summary, the women business owners in Washington, DC and San Francisco described the following 

practices that they employ to compete successfully in the Federal procurement process: 

T Taking the time to learn and understand how the system works, 

T Spending time with the end user, 

T Developing relationships with end users and contracting officers, 

T Helping end users write sole-source justifications for the work, 

T Making use of available programs, especially the mentor-protégée program, 

T Figuring out how to get invoices paid as soon as possible, 

T Following up on any paperwork sent to the Federal government, 

T Working through the small business office of the agencies, and 

T Obtaining a GSA contract. 

Two government practices that did not seem to be effective for a number of the women were 

procurement fairs and electronic posting of bids. 

When asked what advice they would give to other women business owners thinking about getting into 

the Federal procurement arena, these women say to be persistent, be prepared, network, and don’t rely 

on procurement completely – diversify your customer base. 

When asked what advice they would give to Federal agency officials to make the system better, they 

said: 

T allow greater contact with end users and empower them to purchase small amounts (i.e., 

get COs out of the middle); 

T make COs accountable for their actions, so they take ownership of procurements, not 

just push paper; 

T make the cost of using the GSA SmartPay credit card recoverable for the small 

business owner; 

T reduce the paperwork burden on all participants in the process; and 

T enforce procurement goals for small businesses and women-owned businesses, to 

stem the tide of bundling. 

Women-Owned Firms in Federal Procurement: A Focus Group Report 16 
National Foundation for Women Business Owners 

When asked what advice they would give to Congress to improve Federal government purchasing, they 

suggested that Congress: 

T simplify the Federal Acquisition Regulations (FAR), and stop adding new regulations, 

since they said that they often follow the changes more closely than do contracting 

officers; 

T make agencies accountable for procurement goals, which would keep the market open 

to small businesses; 

T keep alive the concept of set-asides for small businesses; 

T make it easier to award future contracts to small businesses with a good past 

performance record; and 

T make it easier to extend a renewal or a recompete. 

The National Foundation for Women Business Owners recommends that the National Women’s Business 

Council consider the following topics in the Phase III quantitative survey among women business owners 

having Federal contracts in FY1997: 

C	 Payment issues, including timeliness of government payments to prime contractors, and 

whether or not women business owners are paid within the legal time-frame when 

working as a subcontractors on large procurements; 

C	 The relative importance of relationships with contracting officers and end users; 

C	 Recent trends and their impact, including bundling of procurements, electronic posting 

of bids, use of the GSA SmartPay credit card, and set-asides. 

C	 Government procurement programs: Which programs were utilized by the women 

business owners, and how helpful were they? 

C	 Small business offices in government agencies: How effective are these offices in 

helping small businesses and/or women-owned businesses obtain Federal contracts? 

C	 Changes to the Federal Acquisition Regulations (FAR): How does it impact small 

businesses and/or women-owned businesses if the contracting officers do not keep up 

to date with changes to the regulations? 

Women-Owned Firms in Federal Procurement: A Focus Group Report 17 
 

What industry is your company in? (Recruit a variety) 

1 Agriculture, forestry, fishing 10 Finance/Insurance 

2 Mining 11 Real estate 

3 Construction 12 Personal services 

4 Manufacturing, non-durable 13 Business services 

5 Manufacturing, durable 14 Health services 

6 Transportation/Transportation scvs. 15 Educational services 

7 Communications/Public utilities 16 Social services 

8 Wholesale trade 17 Other services 

9 Retail trade 18 Other (SPECIFY: ______) 

National Foundation for Women Business Owners 

Appendix A: Recruitment Questionnaire for Focus Group Participants 

Hello, my name is __________ and I’m calling on behalf of the National Foundation for 

Women Business Owners. Today we are talking with business owners in your area, and I 

have just a few brief questions. This is a research study and we are not trying to sell you 

anything. May I please speak with (name on card/list or President of the company)? 

(ONCE NAME ON LIST IS REACHED, REPEAT INTRO) 

1. We have your company noted as a woman-owned business which had at least one 

Federal contract in fiscal year 1997. Is this correct? 

1 Yes (CONTINUE) 

2 No (THANK AND TERMINATE) 

2.	 Are you the owner of the business? 

1 Yes (CONTINUE) 

2 No (ASK TO SPEAK WITH THE WOMAN WHO IS THE PRINCIPAL 

OWNER OF THE BUSINESS. REPEAT INTRO WITH HER.) 

3.	 

4.	 About what share of your company’s revenues come from Federal contracts? (Note: 

Recruit a variety of percentages.) 

___ ___ ___ % 

Women-Owned Firms in Federal Procurement: A Focus Group Report 18 
National Foundation for Women Business Owners 

5.	 Are all, most, some, or none of your Federal contracts defense-related? 

(Note: Recruit a variety of defense/non-defense.) 

1 All 

2 Most 

3 Some 

4 None 

6.	 Are all, most, some, or none of your Federal contracts non-defense-related? (Note: 

Recruit a variety of defense/non-defense.) 

1 All 

2 Most 

3 Some 

4 None 

We are assisting the National Foundation for Women Business Owners with a study 

among women business owners in Federal government contracting. I’d like to invite you to 

a group discussion, at which we will talk about your experience as a woman business 

owner engaged in Federal contracting. 

To thank you for your time in participating in this two-hour discussion, we’ll be offering you 

the sum of $150 for participating in this study. Again, this is a research study and not a 

marketing effort for any product or service. This discussion will be held at <PLACE> on 

<DATE> at <TIME>. Food and beverages will be served. Would you be able to attend 

this discussion? 

(UPON AGREEMENT OF ATTENDANCE:) Thank you very much. We will send you a 

letter confirming the date and time of the discussion, as well as directions to our offices. 

(CONFIRM MAILING ADDRESS) 

NAME: ____________________________________________________________ 

BUSINESS NAME: __________________________________________________ 

ADDRESS: ________________________________________________________ 

CITY: _____________________ ST: _____________ ZIP: _________ 

PHONE: ___________________ FAX: ______________________________ 

Women-Owned Firms in Federal Procurement: A Focus Group Report 19 
National Foundation for Women Business Owners 

Appendix B: Discussion Outline for Focus Group 

I. Introductions	 10 minutes 

A. Explanation of purpose 

B. Self-introduction of participants 

II. Business Background	 10 minutes 

A.	 Did you start the business yourself? Has it always
 

been yours?
 

B. Are you the sole owner or do you have partners? 

C. Is/was it an 8A firm? 

D. Are you certified by any other entity? Which ones? 

III. How You Got Into Government Contracting	 20 minutes 

A. Is government business your core business? 

- what percent of revenues? 

- Federal only or Federal/state/local? 

- how many different agencies 

- geography 

B.	 At what stage of business growth did you decide 

to go after Federal contracts?
 

C. What was your market entry strategy? 

D. How long before you got your first Federal contract? 

E. What was your first big break? How/who got it? 

F.	 Did you get any training/education before attempting
 

the Federal contract market (e.g., mentor-protégée,
 

procurement conferences, etc.)?
 

IV. Doing Business With the Federal Government	 25 minutes 

A.	 How long have you been doing business with 

the Federal government?
 

(incl. prime contract vs. subcontracts)
 

B. How satisfied are you overall? 

C.	 Do you want to continue doing business 

with the Federal government?
 

D. Why or why not? 

E.	 What recent trends are you seeing in Federal contracting
 

and how have they affected you?
 

Women-Owned Firms in Federal Procurement: A Focus Group Report 20 
National Foundation for Women Business Owners 

F. What are some of the challenges you have faced

 in doing business with the Federal 

government? (Is prompt payment an issue?) 

G. How have you overcome these challenges? 

H.	 What advice would you give to other women
 

business owners who want to enter
 

this market?
 

V. Subcontracting	 10 minutes 

A.	 Although all of you are/have been prime contractors,
 

have you also been subcontractors?
 

B. How has that experience worked out? 

C.	 Have you ever been in on a successful bid that ended
 

up not using your services? How frequent an
 

occurrence is that?
 

VI. Improving the System	 15 minutes 

A.	 What programs, activities, people have been 

particularly helpful for you?
 

B.	 What programs, activities, people have not worked
 

or need improvement?
 

C.	 What aspects of the system would you change to 

make it more hospitable to you and to other
 

woman business owners?
 

Women-Owned Firms in Federal Procurement: A Focus Group Report 21