The Federal Government and lots of State and Neighborhood Government agencies present a worthwhile contract preference to bottled water firms who qualify as compact firms.
This preference grew out of the wish of the Federal Government to aid compact firms capture government contracts for drinking water and the compact small business preference for bottled water firms can be pretty relevant and pretty worthwhile.
The household and workplace bottled water delivery small business is dominated by two substantial firms and one particular is foreign owned which provides compact American firms an extra benefit. The initial substantial bottled water corporation is Nestle, a Swiss corporation, that bottles and markets water beneath lots of brand names like Deer Park, Poland Springs and Arrow Head amongst other folks.
The second corporation is DS Waters, a substantial small business owned by the investment firm Kelso & Co. that markets beneath lots of brand names which includes Crystal Springs and Sparkletts.
Neither Nestle nor DS Waters qualify as compact firms.
It is a reality that, in the government buying globe, agencies choose American firms that qualify as compact firms.
The compact small business preference indicates that, if an chance is designated a compact small business set aside, only compact firms can bid and win government contracts. Even even though substantial firms are very aggressive and frequently predatory in their pricing, they are legally precluded from bidding on compact small business set aside contracts. This is very good small business for compact bottled water firms.
About 25% of all Federal government possibilities are set aside for compact small business. Don’t forget this is 25% of the total small business and precise industries like bottled water might be greater. State and regional set asides are also a substantial percentage of total small business.
The compact small business preference is particularly worthwhile for water manufactures for the reason that the Federal compact small business guidelines classify a water manufacturer as a compact small business as obtaining much less than 500 staff. Each Nestle and DS Waters have far more than 500 staff.
For that reason if you are a water manufacturer with much less than 500 staff you can bid and win Federal, State and Neighborhood contracts.
In addition, because water is heavy and distribution fees are a substantial portion of the value to the buyer, a compact small business water manufacturer has a all-natural benefit in capturing small business if they are situated close to government offices or installations. Of course, government marketing and advertising is distinct from the regular guidelines of industrial marketing and advertising but Federal, State and Neighborhood procurement regulations are effectively documented and establish a level playing field for all bidders.
So, if your corporation is a compact manufacturer, you must pursue government small business at all levels. It is lucrative and the finest portion is that you never have to compete with Nestlé or DS Waters!