Small Businesses Awarded Record-Breaking $120 Billion in Federal Contracts

Federal Government Achieves Small Business Contracting Goal for Sixth Consecutive Year; $4 Billion in Federal Contracts Awarded to Small Businesses in Alaska
Release Date: 
Wednesday, June 26, 2019
Contact: 
kimberlee.hayward@sba.gov | 907-271-4022

ANCHORAGE, Alaska – The U.S. Small Business Administration announces the federal government exceeded its small business federal contracting goal for the sixth consecutive year, awarding 25.05% in federal contract dollars to small businesses totaling a record-breaking $120.8 billion, an increase from the previous fiscal year of nearly $15 billion. 

Small businesses in Alaska were awarded $4 billion in federal contracts during fiscal year 2018.

The Fiscal Year 2018 Small Business Federal Procurement Scorecard marks the first time more than $120 billion in prime contracts has been awarded to small businesses.  Overall, the federal government earned an “A” on this year’s government-wide scorecard.   

“I’m happy to report that for the first time in history the federal government has awarded more than $120 billion in federal contracts and marked the sixth year in a row exceeding our target milestones for small businesses,” said Acting Administrator Chris Pilkerton.  “Through these businesses, we strengthen the economy, and support the American workforce in the process.  For example, the federal prime and subcontract awarded to small businesses in FY 2018 equate to more than one million jobs created.  Every contract that gets in the hands of a small business is a win-win for our nation, the entrepreneurs, their employees and the communities they support all across the country.”

FY 2018 Small Business Federal Procurement Scorecard:

The individual agency scorecards released by the SBA, as well as a detailed explanation of the methodology, is available online.

  • In FY 2018, the federal government exceeded the service-disabled veteran-owned small business and small disadvantaged business goals and the prime contract dollar awards in all small business categories increased from previous years.
  • The federal government also exceeded its subcontract goals for awards to small businesses and women-owned small businesses, and awarded more than $79 billion in subcontracts to all small businesses.  

The prime contract goal achievements by dollars and percentages for all categories are as follows:

 

Category

Goal

2014

2015

2016

2017

2018

$(B)

%SB

$(B)

%SB

$(B)

%SB

$(B)

%SB

$(B)

%SB

Small Business

23%

$91.7

24.9%

$90.7

25.7%

$99.7

24.4%

$105.7

23.8%

$120.8

25.05%

Small Disadvantaged Business

5%

$34.7

9.5%

$35.4

10.1%

$39.1

9.4%

$40.2

9.1%

$46.5

9.65%

Service Disabled Veteran Owned Small Business

3%

$13.5

3.7%

$13.8

3.9%

$16.3

4.0%

$17.9

4.1%

$20.6

4.27%

Women Owned Small Business

5%

$17.2

4.7%

$17.8

5.1%

$19.7

4.8%

$20.8

4.7%

$22.9

4.75%

HUBZone

3%

$6.7

1.8%

$6.4

1.8%

$6.9

1.7%

$7.3

1.7%

$9.9

2.05%

 

In Alaska the prime contract goal achievements by dollars and percentages for all categories are as follows:

 

Category

Goal

2018

$

%SB

Small Business

23%

$4 billion

84.90%

Small Disadvantaged Business

5%

$3.6 billion

75.63%

Service Disabled Veteran Owned Small Business

3%

$48.9 million

1.03%

Women Owned Small Business

5%

$43.4 million

0.91%

HUBZone

3%

$379.6 million

7.99%

 

As noted in the chart above, small business contracting far exceeds procurement goals to small businesses, small disadvantaged businesses and HUBZone businesses in Alaska.

“The federal government is the world’s largest customer spending hundreds of billions of dollars on goods and services. The SBA wants to see as many federal contracts go to small firms as possible,” SBA Regional Administrator Jeremy Field said. “Small businesses create two out of three net new jobs in the country so when federal work is contracted to small businesses, we know they’re creating jobs for their local community and growing the economy overall.”

The SBA continues to collaborate with federal agencies to expand small business opportunities for small business contractors to compete and win federal contracts.

A local example of how small businesses can grow and expand with federal contracts is illustrated by Anchorage firm ChemTrack, Inc.  After entering the SBA 8(a) Business Development Program – a nine-year certification that levels the playing field for small businesses owned by socially and economically disadvantaged people or entities -  ChemTrack was Alaska’s 2019 Woman-Owned Business of the Year based on the company’s economic and environmental contributions. ChemTrack is an 8(a) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) specializing in environmental engineering, remediation services, spill management, emergency response, and construction.

The FY 2018 scorecard analyzed the prime contracting and subcontracting performance, and other contributing factors which resulted in an overall “A” grade for the federal government. Eight agencies received A+, 12 received a grade of “A”, three received a “B” grade and one received a “C” grade.

Small Business Federal Procurement Scorecard Overview:

The annual Procurement Scorecard is an assessment tool to: (1) measure how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals; (2) provide accurate and transparent contracting data and (3) report agency-specific progress.  The prime and subcontracting component goals include goals for small businesses, small businesses owned by women, small disadvantaged businesses, service-disabled veteran-owned small businesses, and small businesses located in Historically Underutilized Business Zones (HUBZones).

Every year, the SBA works with each agency to set their prime and subcontracting goals and their performance is based on the agreed upon goals.  Each federal agency has a different small business contracting goal, determined annually in consultation with the SBA.  The SBA ensures that the sum total of all of the goals exceed the 23 percent target for the federal government as well as the socio-economic goals established by law.  

While each federal agency is responsible for ensuring the quality of its own contracting data, SBA conducts additional analyses to help agencies identify potential data anomalies.  As part of its ongoing data quality efforts, the SBA works with federal agency procurement staff to provide analysis and tools to facilitate review of data, implement improvements to procurement systems and conduct training to improve accuracy.

For more information on contracting resources for small businesses, visit SBA.gov/contracting.

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About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start and grow their businesses. It delivers services to people through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov. The SBA Alaska District Office serves the entire state of Alaska with office locations in Anchorage and Fairbanks, Alaska.