Small Businesses Get Record Contracts Worth $154b

A large number of small businesses are entering into the federal marketplace

Source : Alexander Grey, Unsplash

September 2, 2022

Author : Patty Allen

Federal agencies awarded a record $154 billion in small business contracts, but the number of enterprises in that group continues to fall, according to the Small Business Association (SBA).

SBA Administrator Isabella Casillas Guzman made the announcement recently, along with Transportation Secretary Pete Buttigieg and other top officials.

Agencies awarded 27.2% of total federal contracting awards to small firms, earning a "A" for the government-wide score and exceeding the White House goal of 23% for FY2021. Small businesses, women-owned businesses, and small disadvantaged enterprises continue to slide as federal prime contractors and officials seek to reverse the decline by preventing contract bundling.

Agencies didn't meet some of the administration's targets for the year, such as growing federal contracting expenditure on women and minority-owned firms. Women-owned small companies won 4.63 percent of federal contracting money, missing the White House goal of 5%. HUBZone obtained a record 2.53% of government contracts, more than $14 billion, which was less than the 3% goal.

Eleven agencies obtained an "A+," including the SBA, GSA, the Commerce Department, and others. Ten organizations meanwhile received an "A," including Defense, Education, and Veterans Affairs.

"We know that it hasn't been easy for small businesses – particularly those owned by women and people of color – to reap the benefits of past infrastructure investments," Buttigieg stated. But he added that he was "proud of the actions this administration is taking to level the playing field."

White House officials said they were working on "major reforms" to increase new small business entry in the federal marketplace, including simplifying contract processes and strengthening outreach to HUBZone and disadvantaged enterprises.

Category : Historically Underutilized Businesses Minority Business Enterprises Small Business Enterprises Women Business Enterprises Federal Government Small Business Administration

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