SBA: Small Business Contracting Goal Exceeded for All-time High

The United States Small Business Administration (SBA) recently announced that the current Administration set a record-breaking $163 billion in federal procurement opportunities for small businesses in fiscal year (FY) 2022. This was 23 percent higher than its goal. An all-time high of 26.5 percent of federal contract dollars went to small businesses.

The SBA said that the historic level represents an $8.7 billion increase from the previous fiscal year and that ten federal agencies earned an “A+” for their agencies’ achievements in small business contracting on the Small Business Federal Procurement Scorecard. An additional ten agencies received an "A," and the government earned an "A" on this year’s government-wide scorecard.

SBA Administrator Isabella Casillas Guzman commented, “Through President Biden’s Investing in America agenda, we have championed initiatives to fuel our nation’s historic economic growth while reducing barriers and ensuring fair competition in federal contracting. The Biden Administration continues to raise the bar, reaching a record high level of contract spending with small businesses, supporting over one million good-paying jobs in manufacturing, construction, research & development, and other vital industries.”

For the second year in a row, small disadvantaged business (SDB) spending was higher than its 11 percent goal, while service-disabled Veteran-owned small business (SDVOSBs) spending also exceeded its three percent goal, hitting 4.6 percent. That is $28.1 billion in procurement, a $3 billion spending increase compared to the previous year.

Historically Underutilized Business Zone (HUBZone) small businesses reached $16.3 billion in federal contract awards. This is another record-breaking number as it is the highest amount ever awarded to this category since the program’s existence, although it did not quite meet its three percent goal.

For the fourth year in a row, women-owned small businesses (WOSB) received over $26 billion, accounting for 4.6 percent, just under its five percent goal.

"The overall dollars granted to WOSBs increased from $26.2 billion in Fiscal Year 2021 to $28.1 billion in Fiscal Year 2022," the Administration noted. "Moreover, the funds set aside specifically for WOSB firms amounted to $1.56 billion in Fiscal Year 2022, showing a remarkable 17% surge. This growth followed the expansion of certified WOSB firms from approximately 1,000 to nearly 6,000 and the NAICS codes in which women-owned businesses can receive set-aside awards."

The Administration went on to say that it remains dedicated to collaborating with contracting agencies who are actively pursuing future changes to achieve the five percent goal for WOSBs.

The federal government awarded 30.9 percent ($79.1 billion) to small business subcontractors, achieving its goal. While the fiscal year did see a big increase in small business awards, the amount of small businesses receiving prime contracts with the federal government decreased, continuing a decade-long trend.

The SBA did, however, highlight actions it has taken to expand access to federal contracting, including the following: releasing new guidance; announcing several reforms; revising an agreement with federal agencies to promote maximum utilization of 8(a) certified SDBs to ensure equitable access to contracting opportunities; updating NAICS codes eligible for WOSB set-aside contracts; activating ChallengeHer (an initiative to help women-owned small businesses gain access to federal contracts); creating a new HUBZone map; and implementing a new certification system for SDVOSBs.