Small Business Milestone: Federal Government Awards More than $120B in Contracts to Small Businesses in 2018

Blog
July 30, 2019

The Small Business Administration (SBA) announced in June 2019 that, for the sixth year in a row, federal agencies exceeded their mandatory goal of awarding at least 23% of prime contract dollars to qualified small businesses. In fiscal year 2018, agencies awarded 25.05% of contract dollars to small businesses, totaling $120.8 billion in obligations. This marks a $15 billion increase over last year’s record-setting performance. According to the SBA, this is the “first time more than $120 billion in prime contracts [have] been awarded to small businesses.”

For only the second time, the government earned an overall “A” on the government-wide annual small business performance scorecard. The scorecard measures prime contracts to women-owned small businesses (WOSB), small disadvantaged businesses, service-disabled veteran-owned small businesses (SDVOSB), and HUBZone small businesses. The government exceeded contracting goals for small disadvantaged businesses and SDVOSB firms, while improving performance over the prior year. Even though awards WOSB and HUBZone small businesses fell short of target, dollars spent increased in all socio-economic categories from 2017.

Acting Administrator Chris Pilkerton stated, “Through [small] 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 FY18 equate to more than one millions 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.”

The SBA also released scorecards for individual federal agencies. Each agency has a different small business contracting goal, negotiated annually in consultation with the SBA. The SBA ensures that the sum total of all goals meets the 23% overall target established by law. Eight agencies received an “A+” for meeting or exceeding 120% of their goals, including Homeland Security, Commerce, Education, Labor, Interior, Housing and Urban Development, Treasury, and the SBA. 12 agencies received an “A” grade, three received a “B” grade, and one received a “C” grade.

For more information on agency small business goals, the Federal Procurement Data System (FPDS-NG) Department Level Small Business Goaling Report provides additional funding data by Funding/Contracting Agency. For questions, please contact our government contracting specialists or Vanessa Wilson at 301.231.6200.