The issues facing mid-tier companies are complex, as they are too big to be small, and too small to compete with large firms and the top federal government contractors. Although selling the firm is an option, many firms may not want to partake in M&A activity and remain viable players in the market.
Bloomberg Government released a report titled, Mid-Tier Paradox, Too Small to Compete, Too Big to Survive, in which they studied mid-tier successes in federal contracting.
It is worth a read, as some of the strategies outlined include agency and legislative support options such as:
- Extending flexible teaming arrangements to mid-sized companies that recognize aggregate, as well as individual, team member performance;
- Allowing mid-tier companies to grow commercial revenues while still considered a small business for the purpose of government contracting; and
- Limiting the use of quantitative past performance evaluations, or making their terms more flexible to include smaller mid-tier companies.
These are viable options, and can help foster healthy economic competition for mid-tier firms in a very competitive federal procurement market. Combined with the strategies outlined in the report, mid-tier firms can find ways to differentiate themselves through unique experiences that other firms may not have.