Federal Gov’t Misses Small Biz Contracting Goal

July 9, 2013

pic-contractingFor the seventh year in a row, the federal government failed to meet its overall small business contracting goal. According to the U.S. Small Business Administration’s (SBA’s) FY2012 Small Business Procurement Scorecard, federal agencies awarded 22.25 percent (or $89.9 billion) of contracts to small businesses, falling short of its 23 percent small business contracting goal but increasing their awards from FY2011.

However, the federal government did meet their small business contracting goals for small disadvantaged businesses and service disabled veteran-owned small businesses, awarding eight percent and 3.03 percent, respectively. John Shoraka, Associate Administrator for Government Contracting and Business Development at the SBA, said that “[o]verall, the contracting pie is down. We know that in this particular fiscal environment, the total dollars available for federal procurement is down year over year, but we’ve seen the portion of the pie going to small businesses increase.”

According to the SBA, the following six (6) agencies actually met their small business contracting goals for FY2012:

  • U.S. Department of Interior,
  • U.S. Department of Transportation,
  • U.S. Department of Treasury,
  • U.S. Small Business Administration,
  • U.S. General Services Administration, and the
  • U.S. Nuclear Regulatory Commission.

In a press release dated July 2, 2013, Rep. Sam Graves (R-Mo.), Chairman of the House Small Business Committee said, “[t]he fact that the federal government hasn’t met this meager 23 percent small business contracting goal for seven years is simply unacceptable, and further proof that our government continues to give lip service to small companies.” Rep. Graves went on to state that “small businesses only received 19.38 percent of all prime contract dollars last year.” The 19.38 percent figure is based on House Small Business Committee analysis that includes “all contracts subject to the Federal Acquisition Regulation, such as contracts awarded and performed overseas, contracts awarded to federal prison industries, and contracts for utilities, among others.”

Small-business contracting has been identified by NSBA as one of the association’s top priorities for 2013. NSBA firmly believes that small businesses provide high-quality goods and services to federal contracting agencies and infuse the federal procurement system with much-needed competition. In turn, the federal government invests in the most dynamic and innovative sector of our economy. Accordingly, NSBA looks forward to working with the Congress and the Administration to pass legislation and implement government policies that promote and facilitate small business participation in the federal marketplace.