Small Businesses Awarded $154.2 Billion in Government Contracts

The U.S. Small Business Administration (SBA) recently announced that the Biden-Harris Administration has exceeded its small business federal contracting goal, awarding $154.2 billion in federal contract dollars to small businesses.

Small Businesses Awarded $154.2 Billion in Government Contracts

The amount is an $8 billion increase from the previous fiscal year, with the share of contracts going to small businesses equating to 27.2% of total federal contracting funds. Along with the $72 billion in subprime contracting goals, this ‘historic spend’ has helped to support over a million jobs in the American economy.

SBA Proudly Exceeds Contracting Goals

The SBA sets a certain number of contracting goals for each agency and then works with government buyers to ensure that they prioritize small businesses.

Overall, the federal government exceeded its goal of 23% in prime contract dollars earning themselves an ‘A’ grade on this year’s government-wide Scorecard. Eleven of the federal agencies also earned an ‘A+’ grade for their achievements in small business contracting.

‘Historic Records’ for Small Business Contracting

Administrator Isabella Casillas Guzman said of the SBA’s achievement: “The Biden-Harris Administration set historic records in small business contracting, including the highest percentage spend to Small Disadvantaged Businesses and growth for our Service-disabled Veteran Small Businesses, which has advanced competition, strengthened local economies, and supported job growth across the nation.

“By expanding small business opportunities and building equity in federal procurement, we have helped to ensure that federal agencies can fully leverage the extraordinary talent and innovation delivered by our nation’s entrepreneurs. Building on the major procurement reforms announced last year; the SBA will continue to further progress in all federal procurement goals so more entrepreneurs can grow their businesses with government contracts, including those presented by President Biden’s Infrastructure Investment and Jobs Act.”

The U.S. Transportation Secretary Pete Buttigieg added: “Small businesses know how to get the job done, and they have a key role to play in delivering the generational infrastructure investment underway through the Bipartisan Infrastructure Law. We know that it hasn’t been easy for small businesses – particularly those owned by women and people of color – to reap the benefits of past infrastructure investments, and we’re proud of the actions this Administration is taking to level the playing field, remove barriers to opportunities, and increase access to wealth creation for small businesses across America.”

As one of the departments to receive an ‘A+’ grade, the Department of Homeland Security (DHS) Alejandro N. Mayorkas said: “Last year alone, DHS obligated $8 billion to American small businesses working to support the homeland security mission. DHS will continue to lead in small business contracting by focusing on small business outreach and engagement as we support diversity, equity, and inclusion.”

Agency Scorecards Reveal Spending Details

The agency scorecards showed that spending on small disadvantaged businesses reached 11% for the first time in history, which achieved President Biden’s committed increase to such business contracting one year ahead of schedule.

The spending on small businesses owned by service-disabled Veterans reached 4.4%, which easily cleared the original 3% target. That represents about $25 billion in procurement and a $1 billion spending increase over the previous year.

Image: Depositphotos

This article, "Small Businesses Awarded $154.2 Billion in Government Contracts" was first published on Small Business Trends