Feds Exceed Small Biz Contracting GoalAugust 2, 2021
Last week, the U.S. Small Business Administration (SBA) announced that the federal government exceeded its small business contracting goal. For Fiscal Year 2020 (FY20), small businesses received $145.7 billion in federal contract dollars, a $13 billion increase from the previous year. The federal government also added almost a million jobs to the economy through the $145.7 billion in prime contract dollars and $82.8 billion in subcontracts awarded to small businesses.
Overall, the federal government exceeded its goal of 23 percent in prime contract dollars and earned an “A” on this year’s government-wide Scorecard. Eight federal agencies earned an “A+” for their agencies’ achievements in small-business contracting.
Highlights from the overall Federal Procurement Scorecard are:
- The federal government exceeded the service-disabled veteran-owned small business and small disadvantaged business goals of 3 percent and 5 percent.
- Although dollar awards increased to new records from previous years in all small business categories, the government fell short of meeting the goals for women-owned small businesses and HUBZone small businesses. The government spent over $27 billion with women-owned small businesses and over $13 billion with HUBZone businesses, figures that both exceeded the prior year’s spending by over $1 billion.
- The goals for awards to small businesses and women-owned small businesses were exceeded, with the government awarding almost $83 billion in subcontracts to all small businesses.
- Even though there was an overall increase in the value of small-business awards, the number of small businesses receiving prime contracts with the federal government decreased.
Under the Biden-Harris Administration, the SBA will continue to examine and expand upon its SBD contracting goals, in line with the President’s commitment to equity.
More detailed information and the small business procurement scorecard overview are available on SBA’s website.