The U.S. federal government spent over 25% of its contracting dollars in fiscal year 2015 with small businesses, giving the government a grade of “A” on the Small Business Administration’s Small Business Procurement Scorecard. The SBA released the scorecard earlier this week, showing the federal government surpassed its goal of having 23% of prime contracting procurement dollars go toward small businesses. In all, the government spent $90.7 billion during 2015 on contracts with small businesses, or 25.75% of its contracting dollars.
The federal government also hit its goal of spending 5% of its contracting dollars on women-owned small businesses (WOSB), with agencies spending $17.8 billion on these contracts according to the scorecard. More than 10%, or $35.4 billion, of government procurement contracting dollars went to small disadvantaged businesses (SDB), more than double the 5% goal it set for 2015. A total of $13.8 billion, or 3.93% of federal contracting dollars, went to service disabled veteran-owned small businesses (SDVOB), as well.
Perhaps not surprisingly, the SBA was the government agency that spent the largest percentage of its prime contracting dollars on small businesses in 2015, with 69% (more than $113 million in all) of its contracting dollars going toward small businesses. The SBA, Department of Transportation and the General Services Administration were the three agencies to receive an A+ grade on this year’s scorecard.
Eighteen agencies received an A, including the Department of Interior, which awarded 55.2% of contracts to small businesses, surpassing its goal of 53%. In all, the DOI spent approximately $1.56 billion on small businesses.
The Department of Defense, which also received an “A” grade, spent the most money total on small business, with approximately $52.4 billion awarded to small business contracts in 2015, according to the scorecard.
Three agencies received “B” grades and zero got a “C”, “D” or "F" grade on the scorecard.
John Shoraka, associate administrator for government contracting and business development with the SBA, said next week is National Small Business week, making the release of the procurement scorecard timely. He said federal agencies, when combined, make up the largest consumer of goods and services in the world, and when they commit to awarding federal contracts to small businesses, it has a major impact on small business owners across the country.
“This report card is our way to recognize those agencies who lead by example,” Shoraka said. “We want to encourage every part of the federal government to do business with small enterprises in the communities where we live and work.”
The SBA has given an “A” grade to the federal government in the last three years. In 2011 and 2012, the government received a B grade for its efforts in contracting with small businesses. The SBA takes various achievements into account to calculate agency scores. Eighty percent of the grade is based on prime contracting achievement, 10% is based on subcontracting achievement and another 10% come from the agency’s plan progress report performance.
The SBA also recently announced the government hit its goal of awarding 5% of its contracts to WOB.