SBA Boosts Disadvantaged Small Business Procurement Goal to 12%

The Small Business Administration’s (“SBA”) is increasing its federal contracting awards to small disadvantaged businesses (SDBs) goal to 12% by September 30, 2023.

By promoting diversity, equity, inclusion, and accessibility, the SBA hopes to help more small businesses realize their entrepreneurial dreams while growing the U.S. industrial base. The current level of contracting awards to SDBs is 10.5% of federal contract spending.

The SBA provides oversight in federal contracting to ensure that government-wide goals for small business utilization are achieved every year. By leveraging the federal government’s purchasing power, the SBA works with SDBs so that a percentage of federal spending flows through set-aside awards specifically for Certified Socio-Economic SDBs.

The federal government is the largest buyer of goods and services in the world. In 2021, the federal government awarded approximately $630 Billion in federal contract spending. These award dollars represent a tremendous opportunity to support the small business community.

Goal Strategies:

• To help small businesses leverage this opportunity, the SBA provides technical assistance and business development services so that SDBs can better compete for federal contracting awards.

Strategy 1: Facilitate Contract Opportunities

• Through the Small Business Procurement Advisory Council (“SBPAC”), assist federal agencies throughout the acquisition lifecycle, from acquisition planning through award and period of performance. This assistance helps federal agencies set and meet their small business contracting goals.

Strategy 2: Strengthen Small Business Capabilities

• Create opportunities for small businesses to win federal contracts through training, sharing best practices, publishing data, and hosting matchmaking events delivered through the 8(a) Business Development and 7(j) Management and Technical Assistance Programs.
• Create opportunities for small businesses to win federal contracts through training, sharing best practices, publishing data, and hosting matchmaking events delivered through the 8(a) Business Development and 7(j) Management and Technical Assistance Programs.

Strategy 3: Leverage Technology to Increase Participating Firms

• Modernize the process U.S. firms use to apply for, maintain, and manage their SBA set-aside program certification and status through automation and digitization. This project replaces multiple outdated IT systems with a single, high performing, customer centric, web-based platform.

To support a robust national recovery and a resilient federal supply chain, the SBA focus is to help small businesses increase their participation in federal procurement process under three mandates:

1. Grow the small business industrial base by providing increased opportunities for small businesses to enter the federal marketplace.
2. Enable more small businesses to become prime contractors to increase government-wide usage of small business socio-economic set-aside awards.
3. Increase the number and value of government contracts awarded to SDBs by providing training and outreach to ensure certified small businesses have the information and resources to successfully engage, compete, and implement government contracts.

FedBiz Access helps eligible businesses win government contracting by offering research and engagement strategy sessions, as well as marketing packages to government contractors and targeted buyers at the federal, state, and local levels.

FedBiz Access has over 21 years of experience working with companies to help them win business by ensuring their research, engagement strategy, registrations, set-aside certifications, and GSA Multiple Award Schedules are current, complete, and compliant. 

FedBiz Access helps companies build a clear path from registration to award.