Of Entrepreneurs and Government

Entrepreneurs take many risks to get their companies off the ground, but federal workers tend to prefer security and reliability.

That's the fundamental difference between small businesses and the government agencies they work for, said Scott Denniston, who directs the small business center for the Department of Veterans Affairs.

Federal agencies typically grant contracts to large companies with proven track records. The main challenge for small businesses without much experience is proving they are worth the risk, Denniston said.

"We are mission driven, and supporting small businesses is not our mission," he told a group of small business owners at a government contracting forum at Fort Belvoir last week. "So you have to convince me why you are better for the job than your larger competitors."

The event was sponsored by the Fairfax County Chamber of Commerce's GovCon Council and the Fort Belvoir Capital District Contracting Center.

The Department of Veterans Affairs grants about 29 percent of its $10 billion budget to small businesses. A decade ago, it gave about 40 percent of its contracts to small businesses. This year, it expects to increase the business given to small, veteran-owned companies to about 36 percent.

Partnering with larger firms that have a solid reputation with an agency is the best way for a young company to get its foot in the door, Denniston said. Getting the first contract is always the most difficult, and it might take a dozen tries.

"Large businesses used to be the enemy," he said. "But now we can't think that way because that's often the only way for small businesses to break into the market."

Information technology, construction and health care services will be the biggest growth areas for small businesses working within the department. Pharmaceutical products will also be in high demand, but those contracts most likely will go to larger companies, he said.

3 Firms Win Homeland Security IT Deal

Three Fairfax County companies were chosen to provide IT products, such as computers, routers, servers and monitors, throughout the Department of Homeland Security.

In all, 11 vendors will work under the contract, known as First Source. The Fairfax County-based companies are iGov of McLean, EG Solutions of Reston and a joint venture between ST Net of Gaithersburg and Apptis of Chantilly.

Currently, the department buys IT gear through several contracts negotiated through the General Services Administration and individual agencies. The First Source contract, which could total $3 billion over a period as long as five years, is a step toward the department's goal of consolidating smaller agencywide procurements into megacontracts that serve entire departments.

The First Source award will accompany the department's Eagle project, which will provide IT services across the agency.

Have news about business in Fairfax County? Contact Kim Hart at 703-383-5120 orhartk@washpost.com.