Relentless competition and price cutting race make small/medium software business very difficult to maintain their business. Especially small software businesses are often at a disadvantage when they try to win government contracts, Due to the characteristics and importance of software industry, there is no doubt that government support for mall/medium software business is indispensible. In fact, the development of the US software industry has been strongly influenced by government policy during postware period. This paper attempts to examine the general small/medium business supporting policies currently implemented. In addition, policies in the construction industry and the US federal government are explored, in order to find appropriate roles the government should play.