Biden-Harris Administration Exceeds Small Business Contracting Goals, Fueling Economic Growth

In a significant announcement, Administrator Isabella Casillas Guzman revealed that the Biden-Harris Administration has not only met but exceeded its small business contracting target for fiscal year 2022. The administration achieved an extraordinary milestone by awarding a groundbreaking 26.5% of federal contract dollars to small businesses, surpassing the 23% goal. This achievement translates to a monumental $162.9 billion investment in the small business economy, marking an impressive $8.7 billion increase from the previous fiscal year.

The outstanding success was fueled by the efforts of various federal agencies, with ten agencies earning an exceptional "A+" grade for their accomplishments in small business contracting, and another ten receiving an "A" grade. The overall government-wide performance was also graded an "A" on this year's scorecard.

Administrator Guzman commended the administration's commitment to fostering economic growth and promoting fair competition in federal contracting through initiatives aligned with President Biden's Investing in America agenda. The record high level of contract spending with small businesses has played a crucial role in supporting over one million jobs across vital industries such as manufacturing, construction, and research & development.

The Small Business Administration (SBA) played a pivotal role in setting contracting goals for agencies, working closely with government buyers to prioritize small businesses in the procurement process. The individual agency scorecards, along with detailed explanations of the methodology, are available on SBA.gov.

Highlights from the federal government's overall performance include:

• Small Disadvantaged Business (SDB) Spending: Exceeded its 11% target for the second consecutive year, showcasing President Biden's resolute commitment to ambitious SDB contracting goals.

• Service-disabled Veteran-owned Small Business Spending: Surpassed its 3% goal, reaching an impressive 4.6%, amounting to $28.1 billion in procurement. This reflects a notable $3 billion increase compared to the previous year.

• Historically Underutilized Business Zone (HUBZone) Small Businesses: Achieved a remarkable milestone with $16.3 billion in federal contract awards, the highest ever for this category. While not meeting the 3% statutory goal, significant progress was made in supporting and empowering HUBZone small businesses.

• Women-owned Small Businesses (WOSB): Despite falling slightly below the 5% target at 4.6% of total eligible dollars, WOSBs received over $26 billion for the fourth consecutive year. A remarkable 17% surge in funds set aside for WOSB firms was observed, aligning with the expansion of certified firms and NAICS codes eligible for set-aside awards.

• Small Business Subcontracting Goals: Achieved by awarding 30.9%, or $79.1 billion, to small business subcontractors.

While the federal government witnessed a substantial increase in small business awards, a multi-year trend of decreasing small-business vendors receiving prime contracts continued, spanning a decade.

The SBA, under Administrator Guzman's leadership, prioritized expanding access to federal contracting, particularly for underserved communities. Strategic changes, such as the release of new guidance and reforms in small business contracting, were implemented to empower small businesses in seizing opportunities presented by key legislation.

These accomplishments underscore the Biden-Harris Administration's commitment to bolstering economic growth, fostering diversity, and ensuring equitable access to federal contracts. The efforts not only contribute to small businesses' success but also to the nation's overall economic prosperity.

Source: Biden-Harris Administration Sets Record-Breaking $163 Billion in Federal Procurement Opportunities to Small Businesses | U.S. Small Business Administration (sba.gov)