SBA Releases Procurement Scorecard

May 4, 2016

pic-contractingOn April 28, the U.S. Small Business Administration (SBA) released its FY 2015 Small Business Procurement Scorecards. The annual scorecards provide a grade, “A+” through “F”, on each federal agency’s annual small-business contracting goals.

In this year’s report, all of the agencies received either “A+”, “A” or “B” ratings. An “A+” is given for an agency exceeding 120 percent of its goals while an “A” is given for meeting 100-119 percent of its goals and a “B” indicates an agency met 90-99 percent of its contracting goal. SBA, the Department of Transportation and the General Services Administration all received “A+” ratings on this year’s scorecard.

Federal law requires that 23 percent of acquisitions by the U.S. government come from small businesses. Every two years, SBA works with federal agencies to set prime and subcontracting goals to meet that requirement and SBA is responsible for ensuring that the sum of all agency goals will meet the 23 percent requirement for federal acquisitions. The grades in the scorecards are based on those goals. The majority of the scorecard grade is weighted towards the amount of prime contracts awarded by the agency. The scorecard’s prime and subcontracting goals include those for small businesses located in Historically Underutilized Business (Hub-Zones) Zones, small disadvantaged businesses, service-disabled veteran-owned small businesses, and small-businesses owned by women.

The scorecards indicate that the federal government exceeded its total contracting goal in FY2015 by roughly eight percent, earning the overall federal government an “A” grade for the third year in a row. The biggest improvement came from the Department of Energy which went from an “F” grade in FY2014, to an “A” in FY2015.

Provisions included in the FY2016 National Defense Authorization Act will require some changes to the methodology employed by the scorecards going forward and will also require the Government Accountability Office to complete a report on the effectiveness of the new methodology in capturing government achievement.

NSBA supports the SBA’s efforts to ensure that the government meets its small-business contracting requirements each year. Small businesses represent more than 97 percent of all employers in this country and should be equally represented among the government’s contractors alongside their larger counterparts. Ensuring that small businesses have the ability to fairly compete for contracts with the federal government is absolutely essential to fostering an environment where small businesses can continue to grow and add jobs to the economy.

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