Advocacy Releases Small Business Procurement Report

June 18, 2014

pic-contractingOn June 5, the U.S. Small Business Administration’s (SBA) Office of Advocacy released a report entitled, “Evaluation of the Small Business Procurement Goals Established in Section 15(g) of the Small Business Act.” Each year, the SBA negotiates goals with each federal agency for procurement from small businesses, as well as goals for important sub-groups: women-owned small businesses, small disadvantaged businesses, small businesses located in historically underutilized business zones (HUBZones), and service-disabled veteran-owned small businesses.

Advocacy’s report focused on the small business procurement goals as ordered in the National Defense Authorization Act for FY 2013. The report examines the characteristics of companies seeking federal contracts and evaluates the overall procurement process to determine how contracting goals are established, what data is available, and what barriers still exist that inhibit small-business entry.

Several key findings from the report include:

  • Over 80 percent of federal procurement is concentrated in four main industries: manufacturing; professional, scientific and technical services; administrative and support, waste management and remediation services; and construction.
  • Of the four main industries, construction awards the most small-business contracts, with close to 45 percent going to small business.
  • Increasing small business procurement in the top sectors, especially manufacturing where the small business share is not quite 12 percent, is essential to improving the overall small business procurement rate.
  • Inadequate market research is a major barrier to small-business procurement. Stronger market research is needed to match small-business capabilities with procurement requirements.

Please click here to view the full report.