Biden Administration to Boost Minority Business Contracts by 50%
President Joe Biden announced plans on June 1st to take steps to increase the number of federal contracts awarded to small, disadvantaged businesses. The administration’s goal is to increase spending with these businesses by 50% or an additional $100 billion in contracts over the next five years.
A federal study titled “Contracting Barriers and Factors Affecting Minority Business Enterprises,” released by the Minority Business Development Agency in early 2017 found the needle has barely moved for boosting minority business participation in public contracts.
Albert Shen, the former deputy chief of minority business development under President Obama, believes one reason is that government procurement officials just hire who they know.
“The people that manage these large projects are — to be blunt — very homogeneous. They don’t have diverse networks, so they don’t know who to reach out to,” Shen said. “[But] because they don’t know doesn’t mean they don’t exist.”
According to the latest available data from the SBA (2017), there are approximately 9.2 million minority-owned businesses and 11.7 million women-owned businesses in the U.S.
FedBiz Access works with minority and woman owned businesses to help them register for certification as Minority Business Enterprises, 8(a) Small Disadvantaged Businesses, and Women-Owned Businesses. This helps these businesses establish their foundation with the federal government, as well as state and local, through their initial registration and certification filings, as well as market research to find the right buyers.
FedBiz Access works with contractors to ensure their federal registrations are current and compliant. FedBiz Access has a large database and directory for federal contracting that is affordable and useful for identifying and competing for federal awards. The business development services include Targeted Market Research, Set-Aside Certifications, and GSA Schedule registrations.
FedBiz Access helps companies build a clear path from registration to award.
Frequently Asked Questions
- 1 What is the Biden administration's goal for increasing federal contracts with disadvantaged businesses?
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The Biden administration announced plans to boost federal contracts awarded to small, disadvantaged businesses by 50%, aiming for an additional $100 billion in contracts over the next five years. This initiative was announced on June 1st.
- 2 Why has it been challenging for minority businesses to secure federal contracts?
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A 2017 federal study indicated minimal progress in minority business participation in public contracts. Experts suggest that government procurement officials often rely on existing, homogeneous networks, making it difficult for diverse businesses to gain access despite their capabilities.
- 3 How does FedBiz Access help minority and woman-owned businesses with federal contracting?
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FedBiz Access assists minority and woman-owned businesses by helping them register for crucial certifications like Minority Business Enterprises (MBE), 8(a) Small Disadvantaged Businesses, and Women-Owned Businesses (WOSB). They also provide market research to find buyers, ensure federal registrations are current, and offer business development services including GSA Schedule registrations.
- 4 What types of certifications does FedBiz Access help businesses obtain?
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FedBiz Access helps companies register for various federal and SLED certifications. These include Minority Business Enterprises (MBE), 8(a) Small Disadvantaged Businesses, Women-Owned Businesses (WOSB), VOSB/SDVOSB, HUBZone, WBE, DBE, and SBE certifications.
