Coronavirus (COVID-19): Relief options and Additional Resources
CLICK HERE Close

Report: Illinois Small Businesses Received $2.3 Billion in Federal Contracts in FY 2019

Nationally, Small Businesses Secured a Record-Breaking $132.9 Billion in Prime Federal Contracts and the Women-Owned Contracting Goal was Met for the Second Time in Scorecard History
Release Date: 
Monday, August 17, 2020

CHICAGO – The U.S. Small Business Administration’s release of the Fiscal Year 2019 Small Business Federal Procurement Scorecard shows a record-breaking $132.9 billion in prime federal contracts – 26.5% of the federal contracting dollars – were awarded to small businesses, adding one million jobs to the American economy. Here in Illinois, $2,344,288,581 in federal contracts went to area small businesses.

The FY 19 numbers are an increase of nearly $12 billion over FY 18 and mark the seventh consecutive year the federal government exceeded its small business contracting goal. FY 19 also marks the second time that the women-owned small business contracting goal of 5% was met*.

“These record-breaking national numbers are a win-win, as, along with supplying the government with the goods and services needed to operate, they support our nation’s small businesses and entrepreneurs, as well as their employees and local communities,” SBA’s Great Lakes Regional Administrator Rob Scott said. “The accomplishments here in Illinois are a direct result of our efforts to ensure small businesses succeed and especially important now, as our economy recovers from the pandemic-related setbacks.”

The value of a federal contract is illustrated by Chicago’s SYTE Corp.’s success in recent years. In 2019, it most recently secured a $1.5 million federal contract with the U.S. Army Corps of Engineers. Federal contracting has provided a valuable revenue stream to SYTE as the company continues to explore growth opportunities.

“The $2.3 billion that Illinois small businesses secured in federal contracts represented an incredible impact to our economy in FY 19 and supported job creation, innovation and growth,” SBA’s Illinois District Director Robert Steiner said. “Our SBA team and wide network of resource partners are available virtually and by phone to help small business owners navigate the federal contracting process.”

In its efforts to help small businesses secure federal contracts, the SBA promotes its programs to procuring federal agencies and small businesses, frequently holding training sessions across the country to educate contracting officers on the requirements for SBA’s 8(a) Business Development, Historically Underutilized Business Zone, women-owned and service-disabled veteran-owned small business programs. It also works closely with other national and local organizations on contracting outreach.

The SBA continues to collaborate with federal agencies to expand small business opportunities for small business contractors to compete and win federal contracts. The FY 19 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+, 14 received an “A” and two received a “B” grade.

FY2019 Small Business Federal Procurement Scorecard

Individual agency scorecards the SBA released, as well as a detailed explanation of the methodology, are available online.

  • In FY19, 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 $90 billion in subcontracts to all small businesses.  

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

Category

Goal

2015

2016

2017

2018

2019(1)

$(B)

%SB

$(B)

%SB

$(B)

%SB

$(B)

%SB

$(B)

%SB

Small Business

23%

$90.70

25.70%

$99.70

24.40%

$105.70

23.80%

$120.80

25.05%

$132.90

26.50%

Small Disadvantaged Business

5%

$35.40

10.10%

$39.10

9.40%

$40.20

9.10%

$46.50

9.65%

$51.60

10.29%

Service- Disabled Veteran Owned Small Business

3%

$13.80

3.90%

$16.30

4.00%

$17.90

4.10%

$20.60

4.27%

$22.00

4.39%

Women Owned Small Business

5%

$17.80

5.10%

$19.70

4.80%

$20.80

4.70%

$22.90

4.75%

$26.00

5.19%

HUBZone

3%

$6.40

1.80%

$6.90

1.70%

$7.30

1.70%

$9.90

2.05%

$11.40

2.28%

1. FY19, in accordance with federal law, SBA  provided double credit, for scorecard purposes only, for prime contract awards in disaster areas that are awarded as a local area set aside and a small business or other socio-economic set aside when the vendor state is the same as the place of performance (15 USC § 644(f)), for Puerto Rico awards  (15 USC § 644(x)(1)) and included in the calculation of FY19 government-wide achievements the Department of Energy first-tier subcontracts required to be included by section 318 of the Consolidated Appropriations Act of 2014 (“CAA”), Public Law 113-76.

 

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 in Historically Underutilized Business Zones.

Every fiscal year, the SBA works with each agency to set its small business prime and subcontracting goals (each agency has different goals) and the agency’s performance is based on the agreed upon goals. The SBA ensures that the sum total of all of the goals exceed the 23% 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, the 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.