EXPLORING THE IMPACT OF NEARLY COMPLETE MARKET DATA ON SMALL BUSINESSES IN THE GOVERNMENT PROFESSIONAL SERVICES MARKET

Abstract

According to the United States Government’s Federal Procurement Data System (FPDS), in 2016 the Government awarded contracts worth over $472 billion. While the majority of these contracts were for products, the Government spends an average of over $76 billion per year on professional services. Roughly 28 percent of these funds go to small businesses, as classified by the Small Business Administration. Supporting Government contractors, several firms provide nearly complete market information on Federal Business (FedBiz) contract opportunities through Data as a Service (DaaS) offerings. Such services create a unique environment where nearly complete information about upcoming opportunities is available to anyone for a price. Businesses need to understand the value of such data services and ask questions about how best to use them. This gives businesses a very unique information resource in a very unique market and should cause firms to adapt by developing new and different ways to become more profitable. The goal of this research is to provide conceptual insights into the impact of FedBiz DaaS on the Government marketplace itself and on the resource mix of Government contractors. The results of this research show that businesses that adopt FedBiz DaaS increase revenue and win more contracts. Implementation of FedBiz DaaS resources leads to an improved Competitive Position for a company; changes to staffing, roles, and processes for a company’s Organizational Capabilities; and changes to the Competitive Intensity of the overall marketplace.