Highlights: One Million Small Business Jobs Created, Small Disadvantaged Business Goal Achieved a Year Ahead of Schedule
In FY2021, the federal government exceeded its small business federal contracting goal, awarding 27.2 percent or $154.2 billion in federal contract dollars to small businesses, an $8 billion increase from the previous fiscal year.
The share of contracts going to small businesses equates to 27.2 percent of total federal contracting funds. Combined with $72 billion in subprime contracting goals, this historic spend has supported over one million jobs in the American economy.
Overall, the federal government exceeded its goal of 23 percent in prime contract dollars and earned an “A” on this year’s government-wide Scorecard. Eleven federal agencies earned an “A+” for their agencies’ achievements in small business contracting, and
an additional ten agencies received an “A” grade. SBA sets contracting goals for each agency and works with government buyers to ensure that they prioritize small businesses.
“The Biden-Harris Administration set historic records in small business contracting, including the highest percentage spend to Small Disadvantaged Businesses and growth for our Service-disabled Veteran Small Businesses, which has advanced competition, strengthened
local economies, and supported job growth across the nation,” said Administrator Guzman. “By expanding small business opportunities and building equity in federal procurement, we have helped to ensure that federal agencies can fully leverage
the extraordinary talent and innovation delivered by our nation’s entrepreneurs. Building on the major procurement reforms announced last year; the SBA will continue to further progress in all federal procurement goals so more entrepreneurs can grow their
businesses with government contracts, including those presented by President Biden’s Infrastructure Investment and Jobs Act.”
“These small business contracts represent an incredible impact on the Mid-Atlantic region,“ said SBA Mid-Atlantic Regional Administrator John Fleming, “infusing more than $53 billion into the economies of DC, Delaware, Maryland, Virginia, West Virginia and
Pennsylvania – the agency’s largest portfolio of federal contractors. That’s nearly 12,500 companies providing quality, American-Made goods and services and employing thousands of U.S. workers, while advancing innovation and growth.”
“There is no doubt that federal small business spending helps more Americans realize the American dream,” said Michelle Harris, SBA Delaware Deputy Director. “Here, in Delaware, the federal government spent $175,580,093 with small businesses in FY2021, an
influx of funds providing a welcome boost to our local economy.”
This Summer, the individual agency scorecards were released, and a detailed explanation of the methodology is
available at SBA.gov. Highlights include:
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Small Disadvantaged Business (SDB) spending reached 11.0 percent for the first time in history. This achieves the President’s committed increase to SDB contracting one year ahead of schedule.
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Service-disabled Veteran-owned small business spending reached 4.4 percent out of a three percent goal, which represents $25 billion in procurement and an important $1 billion spending increase over the prior year.
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Historically
Underutilized Business Zone (HUBZone) small businesses received a historic $14.3 billion in federal contract awards; although the federal government has never met the 3-percent statutory goal, it reached the highest amount awarded to HUBZone businesses
in the program’s history.
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Women-owned
Small Businesses (WOSB) received more than $26 billion for the third straight year, translating to 4.6 percent of the FY21 total eligible dollars. The SBA is actively working with contracting agencies to make future progress toward achieving the WOSB goal.
For instance, SBA has increased the number of certified firms from approximately 1,000 to nearly 6,000 and expanded the NAICS codes for which women-owned businesses can receive set-aside awards. Now over 92 percent of federal spending is covered by NAICS codes
eligible for WOSB set-aside awards.
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The federal government achieved its small business subcontracting goals, awarding 30.9 percent, or $72 billion, to small-business subcontractors. Women-owned Small Business subcontractors received 5.2% of subcontracts, or $12.2 billion, exceeding the 5 percent
WOSB subcontracting goal.
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Despite the overall increase in the dollar value of small-business awards, the absolute number of small businesses receiving prime contracts with the federal government decreased again in FY21. This continues a multi-year trend of decreases in small-business
vendors, dating back over a decade. In December, the government issued a policy memorandum intended to reverse the decline in the small-business supplier base, in part by tracking new entrants to ensure that new government contractors are entering and then
finding opportunities in the federal marketplace.
*The prime contract goal achievements by dollars and percentages for all categories are as follows:
Category
|
Goal
|
2017
|
2018
|
2019(1)
|
2020(1)
|
2021(1)
|
$(B)
|
%SB
|
$(B)
|
%SB
|
$(B)
|
%SB
|
$(B)
|
%SB
|
$(B)
|
%SB
|
Small Business
|
23%
|
$105.70
|
23.80%
|
$120.80
|
25.05%
|
$132.90
|
26.50%
|
$145.66
|
26.02%
|
$154.20
|
27.23%
|
Small Disadvantaged Business
|
5%
|
$40.20
|
9.10%
|
$46.50
|
9.65%
|
$51.60
|
10.29%
|
$59.02
|
10.54%
|
$62.40
|
11.01%
|
Service-Disabled Veteran-Owned Small Business
|
3%
|
$17.90
|
4.10%
|
$20.60
|
4.27%
|
$22.00
|
4.39%
|
$23.94
|
4.28%
|
$25.00
|
4.41%
|
Women-Owned Small Business
|
5%
|
$20.80
|
4.70%
|
$22.90
|
4.75%
|
$26.00
|
5.19%
|
$27.14
|
4.85%
|
$26.20
|
4.63%
|
HUBZone
|
3%
|
$7.30
|
1.70%
|
$9.90
|
2.05%
|
$11.40
|
2.28%
|
$13.64
|
2.44%
|
$14.30
|
2.53%
|
1. FY 2019-21, in accordance with federal law, SBA provided double credit, for Scorecard purposes only, for prime contract awards in disaster areas that were 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)), and for awards to small businesses in Puerto Rico or covered territories (15 USC § 644(x)(1)). SBA also included in the calculation of FY19-21 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.
|
The SBA continues to collaborate with federal agencies to expand small business opportunities for small business contractors to compete and win federal contracts. The FY2021 Scorecard analyzed the prime contracting and subcontracting performance and other contributing
factors, which resulted in an overall “A” grade for the federal government.
Small Business Federal Procurement Scorecard Overview:
The annual Procurement Scorecard is an assessment tool to measure how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals. The Scorecard also provides accurate and transparent contracting data and reports
agency-specific progress. The prime and subcontracting component goals include goals for small businesses, WOSBs, SDBs, service-disabled veteran-owned small businesses, and small businesses located in HUBZones.
Every year, the SBA works with agencies to set their individual prime and subcontracting goals. The SBA ensures that, in the aggregate, the federal government meets or exceeds the government-wide statutory goals mandated in 15(g)(1) of the Small Business Act
in each category. While each federal agency ensures the quality of its own contracting data, SBA conducts additional analyses to help identify potential data anomalies and with federal agency procurement staff to provide analysis and tools to facilitate a
review of data, implement improvements to procurement systems, and conduct training to improve accuracy.
|