Federal Government Achieves Small Business Contracting Goal for Sixth Consecutive Year with Record-Breaking $120 Billion to Small Businesses

Eight Federal Agencies, including SBA, Receive A+ Rating on FY2018 Small Business Federal Procurement Scorecard
Release Date: 
Wednesday, July 17, 2019
Release Number: 
19-14
Contact: 
Bailey Wolff

WASHINGTON – The U.S. Small Business Administration (SBA) recently announced that the federal government exceeded its small business federal contracting goal for the sixth consecutive year, awarding 25.05 percent in federal contract dollars to small businesses totaling $120.8 billion. This number represents an increase of nearly $15 billion from the previous fiscal year. 

SBA was one of eight federal agencies that received an “A+” score for its efforts.

“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 SBA Acting Administrator Chris Pilkerton

Overall, the federal government earned an “A” on this year’s government-wide scorecard with 20 out of 24 agencies receiving an “A” or better.

“The SBA Atlantic Region takes its mandate to spend 23 percent of its federal contracting dollars with small businesses very seriously. I’m proud that we have surpassed that goal. Every contract in the hands of a small business owner is a win-win situation, creating jobs in local communities and boosting our national and regional economies,” said SBA Atlantic Regional Administrator Steve Bulger.

In SBA’s New York District, consisting of New York City, Long Island, and the seven downstate counties of Ulster, Dutchess, Sullivan, Orange, Rockland, Putnam and Westchester, the federal government spent $787 million with small businesses.

“The federal government buys everything from paperclips to airplanes. SBA is a critical partner in this public-private partnership, educating small businesses about the huge opportunities to provide services and products to federal agencies, and help them position themselves to fulfill contracts once they become available,” said Beth Goldberg, Director of SBA’s New York District Office.

The Scorecard includes prime contracting data, subcontracting data, a comparison of the current year prime contract awards to small business with the previous years’ awards, and a peer review process of compliance with Office of Small Business Utilization requirements.  Agencies are provided time to verify their data before data is pulled that SBA uses to compile the Scorecard and the peer review process takes some time to complete.

FY2018 Small Business Federal Procurement Scorecard:

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

  • In FY18, 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%

SBA continues to collaborate with federal agencies to expand small business opportunities for small business contractors to compete and win federal contracts. The FY2018 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.

###

 

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.