SMALL BUSINESS

Small biz goals fall short

Despite improvements for prime work, gap widens for subcontract

The Small Business Administration reported that the federal government again missed the mark for small business contracting during fiscal 2012, but the gap has narrowed for primes.

Overall, $89.9 billion in government contracts went to small businesses last year, that’s 22.25 percent of all contracts, according to the SBA report. The goal for small businesses is 23 percent. In fiscal 2011, 21.65 percent of contracts went to small businesses.

There also are goals for various sub-categories of small businesses:

  • Women-owned: 4 percent or $16.2 billion (goal 4 percent)
  • Small disadvantaged: 8 percent or $32.3 billion (goal 5 percent)
  • Service disabled, veteran-owned: 3.03 percent or $12.3 billion (goal 3 percent)
  • HUBZone: 2.01 percent or $8.1 billion (goal 3 percent)

The annual SBA report also tracks small business contracting goals. The gap between goal and achievement is greater there.

Overall, 33.6 percent of subcontracts went to small businesses, with the goal being 36 percent; however, women-owned small businesses surpassed their 5 percent goal with 5.6 percent achieved. Small disadvantaged businesses also were over their 5 percent goal with 5.1 percent.

But service-disabled, veteran-owned businesses fell short with 1.8 percent versus a goal of 3 percent, as did HUBZone, which had 1.3 percent of subcontracts against a goal of 3 percent.

SBA’s annual release of its small business goals isn’t without critics. The American Small Business League criticized the report saying it was “completely false and totally unsupported by the facts.”

The group claims that SBA miscalculated the actual federal acquisition budget, and according to ASBL, small businesses only received 8.2 percent of prime contracts.

In addition, the group claims that a significant number of large businesses are receiving small business contracts.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts

  • How Do You Support the Project Lifecycle?

    How do best-in-class project-based companies create and actively mature successful organizations? They find the right mix of people, processes and tools that enable them to effectively manage the project lifecycle. REGISTER for this webinar to hear how properly managing the cycle of capture, bid, accounting, execution, IPM and analysis will allow you to better manage your programs to stay on scope, schedule and budget. Learn More!

  • Sequestration, LPTA and the Top 100

    Join Washington Technology’s Editor-in-Chief Nick Wakeman as he analyzes the annual Top 100 list and reveals critical insights into how market trends have impacted its composition. You'll learn what movements of individual companies means and how the market overall is being impacted by the current budget environment, how the Top 100 rankings reflect the major trends in the market today and how the biggest companies in the market are adapting to today’s competitive environment. Learn More!