Small and local businesses do more than add capacity to capital projects; they strengthen how those projects are planned, delivered and received by the communities they serve. These firms bring firsthand knowledge of local conditions, community priorities and relationships that can help agencies identify concerns early and address them before they become project challenges. Their participation develops the regional workforce and builds a stronger contracting community that remains in place long after construction is complete. 

Realizing these benefits requires more than establishing participation goals. It requires agencies to adopt practices that remove barriers and create meaningful opportunities for small businesses to compete, lead and grow. 

Publish lookaheads consistently and engage early 

As a small business owner, I know how important accurate and timely information is when deciding where to invest limited pursuit resources. The agencies most successful at attracting small business participation publish procurement lookaheads well in advance and update them consistently as schedules change. A reliable lookahead allows firms to focus on opportunities that align with their capabilities, plan staffing and build teams before a solicitation is released. 

Early engagement is equally important, but simply attending an industry event is not enough. Agencies should ensure that project managers, procurement officials and other decision makers with direct knowledge of upcoming projects are present and accessible. These representatives should be prepared to discuss anticipated scopes, schedules, contracting approaches and the capabilities the agency will need. Direct access to informed decision makers helps small businesses assess whether an opportunity is a good fit and establish relationships before teams are formed. 

Create opportunities for small businesses to prime 

One of the most effective ways to expand participation is to create contracts on which qualified small businesses compete against one another. These programs level the playing field and give firms opportunities to lead projects, develop staff and build the experience needed to pursue larger contracts.  

The procurement process should also be proportional to the contract’s size and complexity. Lengthy proposals and extensive administrative requirements can consume a small firm’s time and resources. Streamlined submissions allow agencies to evaluate the qualifications that matter while reducing barriers that may discourage capable firms from competing. 

Make prompt payment an operational priority 

As chair of LIT’s Small Business Committee and a member of several other industry small business committees, I consistently hear that cash flow is one of the greatest challenges facing small firms. The issue is particularly significant for small businesses working as subconsultants because their invoices must pass through a larger prime consultant before reaching the agency. Even a modest delay can affect a small firm’s ability to meet payroll, retain staff and continue delivering the work. 

The agencies most successful at attracting high-quality small business partners understand this constraint and establish programs that make prompt payment an operational priority, not simply a contract provision. When an invoice is disputed, the issue should be identified quickly and resolved without delaying payment for approved work. Agencies that provide this level of payment certainty earn the confidence of small businesses and become preferred clients for firms deciding where to commit their limited resources. 

Meaningful small business participation is built through consistent practices, not goals alone. Early visibility, right sized prime opportunities, reliable payment and ongoing collaboration give small firms a chance to compete and perform. By working with small businesses and understanding their challenges, agencies can encourage them to grow, expand their capabilities and take on larger roles. In return, agencies develop a stronger, more capable contracting community that improves capital delivery over the long term.