US Gov Breaks Small Biz Procurement Record

The USA’s Small Business Administration plays a key role in setting government contracting goals in any given year. Individual government agency scorecards have been developed to help track against these goals. This week, the US government has reviewed recent performance.

The  Biden-Harris Administration has advised its small business contracting goal of 23% growth this  fiscal year (FY) 2022, has been exceeded, with results at an all all-time high of 26.5% of federal contract dollars  going to small businesses. This percentage amounts to a $162.9 billion (USD) investment in the small business economy – an $8.7 billion(USD) increase from the previous fiscal year. 

Some of the individual government agency results included:

  • For the second consecutive year, Small Disadvantaged Business (SDB) spending exceeded its 11% goal.
  • Service-disabled Veteran-owned small business spending has exceeded its 3% goal, reaching 4.6%. This achievement translates to $28.1 billion(USD) in procurement, reflecting a $3 billion(USD) spending increase compared to the previous year.
  • Business Zone (HUBZone) small businesses were granted $16.3 billion(USD) in federal contract awards, marking the highest amount ever awarded to this category.
  • Women-owned Small Businesses (WOSB) received more than $26 billion(USD) for the fourth year, accounting for 4.6% of the Fiscal Year 2022 total eligible dollars, slightly below the 5% target. The overall dollars granted to WOSBs increased from $26.2 billion(USD) in Fiscal Year 2021 to $28.1 billion(USD) in Fiscal Year 2022. Funds set aside specifically for WOSB firms amounted to $1.56 billion(USD) in Fiscal Year 2022, showing a 17% lift. This growth followed the expansion of certified WOSB firms from approximately 1,000 to nearly 6,000 and the NAICS codes in which women-owned businesses can receive set-aside awards.
  • The federal government achieved its small business subcontracting goals, awarding 30.9%, or $79.1 billion (USD), to small business subcontractors.
  • In Fiscal Year 2022, although there was a significant increase in small business awards, the number of small businesses receiving prime contracts with the federal government continued a multi-year trend of decreases in small-business vendors, spanning a decade.

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