Vet-owned firms grow but still short of goals

Government spending with service-disabled, veteran-owned businesses continues to rise but is still short of the mandated 3 percent, according to an analysis by Eagle Eye Publishers.

The market research firm found that federal agencies spent $6.9 billion during fiscal 2008 with service-disabled contractors, which is about 1.4 percent of total government procurements. To reach the 3 percent goal, agencies would have had to spend $15.5 billion with these companies.

This is the fifth fiscal year that spending with service-disabled companies has increased, according to Eagle Eye.

Only 8 of 46 agencies reached their 3 percent goal, with Veterans Affairs leading the way with $1.6 billion out of the agency’s $14.5 billion in procurement spending.

In pure dollars, the Defense Department spends the most with service-disabled, veteran-owned companies, with $3.5 billion in contract obligations during 2008.

By percentage, the Federal Maritime Commission spent the most with these companies, with 16.7 percent of its contracts in 2008 going to service-disabled, veteran-owned firms, according to Eagle Eye.