The Biden-Harris administration awarded small businesses 26.5% of federal contract dollars, exceeding their initial 23% goal. This equates to a $162.9 billion investment, an $8.7 billion increase from the previous fiscal year, significantly boosting the small business economy.
Administrator Isabella Casillas Guzman states that the Biden Administration has been championing initiatives that fuel economic growth while reducing barriers in federal contracting. The record level of contract spending with small businesses supports over a million jobs in sectors like manufacturing, construction, research & development.
The Small Business Administration (SBA) is instrumental in setting contracting goals for each agency and works closely with government buyers to prioritize small businesses in procurement processes.
Several federal agencies scored highly on the government-wide scorecard for their achievements in small business contracting. Ten agencies received an “A+,” and ten more were awarded an “A” grade.
The overall performance of the federal government for FY 2022 showcases several highlights:
- Small Disadvantaged Business (SDB) spending exceeded its 11% goal for the second consecutive year.
- Service-disabled Veteran-owned small business spending achieved its 3% goal, reaching 4.6%, or $28.1 billion.
- HUBZone small businesses were awarded a record $16.3 billion in federal contract awards.
- Women-owned Small Businesses (WOSB) received over $26 billion for the fourth consecutive year.
- The federal government achieved its small business subcontracting goals, awarding 30.9%, or $79.1 billion, to small business subcontractors.
Notably, despite an increase in small business awards, the number of small businesses receiving prime contracts with the federal government has continued a trend of decrease spanning a decade.
Under the Biden-Harris administration, the Small Business Administration has prioritized expanding access to federal contracting, particularly for businesses in underserved communities. Several strategic and targeted changes have been implemented, including releasing new guidance for encouraging new entrants to the federal contracting space, announcing several reforms in small business contracting, revising agreements to promote equitable access to contracting opportunities, and implementing a new certification system for Service-Disabled Veteran-Owned Small Businesses.
The Small Business Federal Procurement Scorecard is an important tool for evaluating the effectiveness of federal agencies in meeting their small business contracting goals. The SBA ensures that the federal government meets or surpasses the government-wide statutory goals mandated in the Small Business Act for each category. This commitment to small business participation and success in government contracts marks a significant step forward in supporting small business growth and economic development.
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This article, “Small Businesses Recieved $162.9 Billion in Federal Contracts” was first published on Small Business Trends
