What Happened to the Stimulus Money?

What Happened to the Stimulus Money?

By Ann Sullivan, WIPP Government Relations

Recently, I have had the opportunity to present a comprehensive look at the stimulus money in different parts of the country. I have been surprised to find that the perception among small businesses is that the stimulus money--all $787 billion of it--has already been dispensed and in the hands of large contactors. There is a perception that there is nothing left for small businesses. 

Nothing could be further from the truth. The Vice President's quarterly report to the President issued in May contains a very compelling chart that shows that very little of the money has been dispensed. That is not even taking into account the money at the state and local level that has yet to be spent. The agencies have just recently completed their spending plans. With respect to state and local government, the same is true.
Since the contracting rules remain the same as the ones currently in place, agencies must follow the standard contracting procedures. Preparing those solicitations, takes time. With respect to small business participation, the Office of Management and Budget Chief Peter Orszag issued a directive to all agencies that small businesses should be used to the maximum extent practicable. The Congress and the Administration have made it pretty clear that they expect large contractors to use small businesses in their plans to spend the stimulus money.  Small businesses ought to leverage that pressure to their advantage.

 
It's pretty clear that with respect to stimulus money, it is not business as usual. The website www.recovery.gov is much more than a transparency tool - it is a way for small businesses to follow the money. Agencies issue weekly reports, opportunities are posted on FedBizOpps and states are listing their projects as well on the website.

If you are not a federal or state contractor, now is the time to explore a new segment of business. Form alliances with small and large contractors who already contract with the government. Become a subcontractor and learn the ropes. If you are a federal contractor, look for ways to expand existing contracting vehicles you have in place.  Designate a staff member to follow www.recovery.gov and www.Grants.gov daily. 

 
The money trail is pretty easy to follow. Don't walk away from a huge sector of business because someone told you that there is not money left. If you are a WIPP member, take advantage of the training opportunities WIPP offers in the Give Me Five program. Go for it - you have 12 to 18 months to make it happen.