How 25 Small Federal Contractors Beat the Odds

To say the odds are stacked against small businesses that target federal government with IT products and services is a major understatement. Standard challenges that plague all contractors--long sales cycles, procurement red tape--are magnified, and "fair competition" suddenly seems more like a page out of David vs. Goliath. So when small businesses manage to succeed despite this, they deserve accolades.

GovernmentVAR's inaugural list of leading minority solution providers highlights 25 small businesses from across the various set-aside categories: women-owned businesses, service-disabled veteran-owned businesses (SDVOBs), businesses located in designated historically underutilized business zones (HUBZones), and Small Disadvantaged Businesses (SDBs) or 8(a) companies. While they range in size and focus, each of these companies understands how to compete for a slice of the federal contracting pie and win. Each holds its own GSA contract (except Arlington, Va.-based By Light, which expects to be awarded one by midyear) and all tout references with both federal agencies and the megasystems integrators. In short, these are 25 small businesses that act like anything but. And that may very well be the secret to their success.

Slide Show: Meet 5 VARs Who Are Beating the Odds

1. Commercial Data Systems
Location: Honolulu, Hawaii
References: Army, Air Force, Departments of Agriculture, Health and Human Services (HHS), Transportation (DoT)
Categories: 8(a), HUBZone
Top exec: Mark Wong, President/CEO
Partners: Sun, IBM, Foundry Networks, Network Appliance, Oracle
Employees: 65
Year founded: 1986

CDS started out as a developer of Unix software. Now, two decades later, CDS is the largest computer-consulting firm in the state of Hawaii, has regional headquarters in Albuquerque, a satellite office in the Washington, D.C., area, and reported $60 million in revenue in 2005--roughly $1 million per employee. The company has long embraced the concept of complete solutions, from inception and design to procurement, installation, testing and employee training. Currently, CDS holds a basic ordering agreement (BOA) with the Army's White Sands Missile Range through June 2007.

2. Digital Consulting Services
Location: Newbury Park, Calif.
References: Air Force, Navy, Department of Commerce (DoC)
Category: 8(a)Top exec: Joel Oropesa, President/CEO
Partners: Cisco, HP, IBM, Sun Microsystems, Veritas
Employees: 43
Year founded: 1994

DCS promises what primes and customers want most of all: solutions that solve a problem, delivered on time and within budget. As a result, the systems integrator counts the biggest defense contractors among its references. Those include Lockheed Martin and Northrop Grumman, to name just a couple. The solution provider is listed on mega-procurement vehicles, including AFWay and the 8(a) Streamlined Technology Acquisition Resources for Services (STARS) contract. That success hasn't gone unnoticed. DCS was awarded the 2006 U.S. Small Business Administration Administrator's Award for Excellence, the 2004 Small Business Person of the Year from the Los Angeles District Office of the SBA to president and CEO Joel Oropesa, the 2005 Hispanic Business Top 100 Recognition Award and a range of awards from DiversityBusiness.com. In 2005, the solution provider ranked 469 on the VARBusiness 500 and earned the Fastest Growing Companies of the Year Recognition Award from VARBusiness in the same year.

NEXT: VAR on the fast track