Why Now Is A Great Time for Small Businesses to Enter the Government Marketplace
If you’re a small business owner, let me ask you this: what if you could access a dependable customer base that pays on time, buys across the calendar year, and actively seeks out small and diverse companies—like yours?
That’s not a fantasy. It’s what government contracting offers—and this year’s SBA Small Business Procurement Scorecard makes it even more compelling. The 2025 update shows agencies competing aggressively to hit small-business targets. For you, that creates opportunity.
The 2025 Scorecard: What It Measures
Here’s how the FY 2025 Scorecard evaluates federal agencies:
| Category | Weight | What’s Measured |
| Prime contracting achievement | 50% | Amount awarded to small-business primes |
| Subcontracting achievement | 20% | Dollars sub-awarded to small businesses by primes |
| Change in small-business prime counts | 10% | Year-over-year growth or decline in small business primes |
| OSDBU compliance peer review | 20% | Office of Small & Disadvantaged Business Utilization performance under 15 U.S.C. § 644(k) |
Agencies are graded from A+ (120%+) down to F (≤70%) based on how they perform relative to their goals.
The Scorecard reflects performance through FY 2024, and agencies submitted plans for FY 2025. The government-wide target remains 23% of prime contract dollars for small businesses, with sub-goals of 5% each for Small Disadvantaged Business (SDB), Women-Owned (WOSB), Service-Disabled Veteran-Owned (SDVOSB), and 3% for HUBZone firms
Why This Year’s Scorecard Matters to You
1. Agencies Are on Notice—and That Creates Opportunity
Public grades catalyze action. Agencies chasing A’s and A+’s are:
- Actively awarding set-aside contracts to small firms
- Strengthening OSDBU outreach, mentoring, training, and reporting
- Monitoring subcontracting achievements more closely
That means increased visibility for small businesses—and a more receptive procurement culture.
2. More Set-Asides = Less Competition
Set-aside programs—8(a), HUBZone, WOSB, SDVOSB, and SDB—are powerful tools. They limit competition to eligible small businesses. This year, improvements in agency performance across these categories indicate more dollars are flowing through these channels.
3. Long-Term Revenue and Stability
Government contracts, from firm-fixed-price awards to IDIQs, offer predictable work and reliable payment schedules. These can provide foundational revenue to support staffing, capital investments, and strategic growth.
4. Credentials That Build Momentum
Once you’ve established experience in federal contracting, your business gains traction. Certifications, GSA schedules, and OSDBU outreach success help:
- Win subcontracting and teaming roles
- Get noticed in agency vendor pools
- Make it easier to secure future federal awards
5. Contribution to Economic Equity
Government agencies are under pressure to diversify their suppliers. By qualifying for set-aside programs, your business helps agencies meet goals, while benefiting from elevated procurement focus.
What the FY 2025 Scorecard Is Showing Us
Agencies Meeting and Exceeding Goals
While final FY 2025 numbers weren’t published for each agency prior to April 29, the updated scorecards (with data through FY 2024) show strong agency alignment with small-business goals and aggressive new targets for FY 2025.
Some agencies have raised their internal goals—for example, GSA continues to target 25% for small-business primes and 23% for subcontracting.
Awards by Socio‑Economic Category
Agencies are consistently locking in:
- 5% for SDB, WOSB, SDVOSB
- 3% for HUBZone.
This means if your business qualifies in one of these groups, agencies will actively seek you out.
Rise in OSDBU Effectiveness
OSDBU offices are facing peer reviews on 21 compliance areas—from leadership authority to outreach and transparency. A stronger peer review outcome means more outreach events, small business training, and proactive agency engagement.
That leads to more contractor support and increased visibility for small and diverse businesses.
Getting Started: A Roadmap for Small Businesses
If the Scorecard shows agencies doubling down on outreach, let that translate into your action plan. Here’s how to engage:
1. Get Your Certifications
Register on SAM.gov. If you need help making sure your compliant, optimized for visibility, and stand out among the competition, we can help. Then, pursue relevant set-aside programs.:
- 8(a) – socially disadvantaged-owned
- HUBZone – underserved geography
- WOSB, SDVOSB, SDB
These certifications unlock access to set-asides, sole-source awards, and goal-based contracting opportunities. Now certified? FedBiz Access helps expedite socio-economic certifications for thousands of businesses each year.
2. Understand the Rules of the Road
Learn the basics of:
- Federal Acquisition Regulation (FAR)
- Simplified Acquisition Procedures (SAP) for orders < $250k
- Competition in Contracting Act (CICA) mandates
Understanding these rules makes you a stronger, more credible bidder.
3. Network with Agency OSDBUs
Attend small-business events, webinars, and meet-the-buyer sessions to connect with agency OSDBU staff. These relationships are essential to getting on agency radar screens.
4. Scan the Opportunities
Use portals like SAM.gov, GSA Advantage, FedBiz365 AI-driven market intelligence, and agency procurement pages to stay ahead of solicitations.
5. Consider Teaming and Subcontracting
If small contracts are a starting point, partner with larger primes to gain experience. That builds your track record and credibility.
6. Monitor Scorecards for Agency Selection
Agencies with A+ or A grades are actively pursuing small businesses year after year. Reach out where activity is strongest. If others lag, agencies may be planning initiatives and outreach. That’s your chance.
Current Trends That Benefit Your Business
From FY 2024 data and FY 2025 targets, we’re seeing:
- Reinforced commitment to 23% small-business prime contract level
- Sustained sub-goal funding for socio-economic categories
- Increasing emphasis on OSDBU performance reviews
- Focused efforts by leading agencies like GSA to exceed goals
All this supports an environment where agencies aren’t just meeting mandates—they’re transforming procurement cultures.
Anticipate and Navigate Challenges
No opportunity is without its complexities. Here’s how to stay ahead:
| Challenge | What It Means | Strategy |
| Bureaucracy & compliance | FAR requirements, reporting, documentation | Begin small, use consultants or SBA training, and invest in standard procedures |
| Competition | Many qualified teams pursue the same contracts | Differentiate through certifications, specialized services, or local presence |
| Cash flow | Govt. payment cycles can delay payments | Use prompt pay clauses, GSA schedules, and micro-contracts to build track record |
| Fiscal uncertainty | Budget shifts or shutdowns can slow spending | Diversify across agencies and contract types, including subcontracting |
Despite these hurdles, proactive businesses that prepare strategically stand to gain the lion’s share of value.
Your Playbook to Win in 2025
- Certify on SAM.gov and complete relevant set-asides.
- Educate yourself on FAR, SAP, CICA, and federal bidding processes.
- Connect with OSDBU offices and attend agency outreach events.
- Search procurement portals daily—even set alerts in FedBiz365.
- Partner with prime contractors to gain federal experience.
- Target agencies with strong Scorecard performance or upcoming initiatives.
- Track Scorecard releases and adjust strategy accordingly.
Agencies are redoubling efforts to meet and exceed goals; you simply need to align your business with their momentum.
In Summary
- The FY 2025 SBA Scorecard shows agencies doubling down on small business contracting, both via target spending and structural support.
- That means more set-aside dollars, better outreach, and increased opportunity for certified small firms.
- If you qualify for a socio-economic category, you’re in a prime position.
- With informed preparation—certifications, regulation knowledge, networking, and research—you can ride this wave.
Now is the time. Agencies are not just talking about supporting small businesses—they’re walking the walk. All that remains is for your business to recognize and act on the opportunity.
FedBiz Access is here to support your journey—from certification to winning your first contract. Whether you need assistance with registrations, market research and strategy, engaging government buyers, or certifications, reach out: (844) 628-8914
