SBA hits some prime small business goals, falls short on others

Overall, the government met and even exceeded its goal for small business prime contracts last fiscal year, the $100 billion mark for the first time. But agencies fell short of their overall subcontracting goal.

During fiscal year 2017, agencies bought $105.7 billion in goods and services from small businesses, which captured 23.9 percent of prime contract dollars. That proportion was slightly below fiscal 2016 when they captured 24.34 percent. Those numbers do not include subcontract dollars.

But the total dollars -- prime and subcontracted -- are higher with $105.7 billion in fiscal 2017, compared to $99.1 billion in 2016.

The Small Business Administration gave “A” grades to 20 agencies. Nine of those got an "A-plus" and 11 with an "A" grade. Two agencies received a "B" grade and one received "a" C grade -- the U.S. Agency for International Development.

While the overall goal of 23 percent was surpassed, two specific small business categories fell short of their goals.

Women-owned small businesses have a goal of 5 percent but the government only spent 4.71 percent or $20.8 billion with these businesses. The fiscal 2017 percentage also is slightly below 2016 when women-owned small businesses picked up 4.79 percent of prime contract spending.

Results for Historically Underutilized Business Zone companies fell short. HUBzone firms won just 1.65 percent, or $7.3 billion, against the 3 percent goal. This also was a drop from fiscal 2016 when these businesses captured 1.67 percent of prime contract dollars.

Small disadvantaged businesses won 9.1 percent of the prime contracts, worth $40.2 billion in fiscal 2017. In fiscal 2016, they won 9.53 percent, a slight drop. The goal is 5 percent.

Only service-disabled, veteran-owned small businesses saw their percentage increase in fiscal 2017. They won 4.05 percent of prime contract dollars or $17.9 billion, compared to the 3.98 percent they won in 2016. The goal is 3 percent.

The overall subcontracting goal of 31.95 percent was not achieved. Small businesses won 31.4 percent of subcontract dollars.

Only women-owned and small disadvantaged businesses surpassed their 5 percent goals. Women-owned captured 6.2 percent of subcontract dollars, and small disadvantage captured 5.3 percent.

Service-disabled, veteran-owned business won 1.9 percent of subcontract dollars and HUBZone captured 1.3 percent. Both have a 3 percent subcontracting goal.

Agencies receiving A-plus:

• Commerce Department
• Education Department
• Homeland Security Department
• Housing and Urban Development Department
• Labor Department
• Interior Department
• Nuclear Regulatory Commission
• Office of Personnel Management
• Small Business Administration

Agencies getting an A:

• State Department
• Transportation Department
• Treasury Department
• Agriculture Department
• Environment Protection Agency
• Defense Department
• General Services Administration
• Energy Department
• National Science Foundation
• Justice Department
• Social Security Administration
• NASA

Agencies getting a B:

• Health and Human Services Department
• Veterans Affairs Department

Agency with a C:

• U.S. Agency for International Development