The federal government announced on December 2, 2021 a set of reforms to the federal procurement process to help meet the government’s ambitious target of increasing equity① for the share of federal contracts to Small Disadvantaged Businesses (“SDBs”) and increase opportunity for all underserved communities②.

Currently, less than 10% of federal agencies’ total eligible contracting dollars go to minority-owned businesses, and women-owned small businesses receive less than 5% of awards.

On June 1, 2021, the federal government introduced a new goal to increase the share of contracts going to SDBs by almost 50% by 2025 (or 15% of all awards), an unprecedented target projected to translate to an additional $100 billion to SDBs over 5 years.

On November 18, 2021, the Administration announced the President’s Management Agenda, its vision for minority small businesses, “By creating more opportunities for all types of businesses and underserved entrepreneurs to compete for federal contracts, the federal marketplace can serve as a platform to create a more equitable economy.”

To further its vision, the federal government announced on December 2, 2021 a set of reforms to the federal procurement process to help meet the government’s ambitious target of increasing the share of federal contracts to SDBs and increase opportunity for all underserved businesses, including:

Requesting federal agencies to immediately increase their procurement goals so that governmentwide spending results in 11% of contracting dollars being awarded to SDBs in Fiscal Year 2022, up from the current statutory goal of 5%.

Continue taking steps towards meeting the goal of ensuring that 15% of all federal contracts go to SDBs by 2025 by adopting management practices to drive accountability and institutionalize achievement of small business contracting goals.

Increasing transparency in the data of federal contracting spend by race/ethnicity of business owner and changes to the use of “category management” to boost contracting opportunities for underserved small businesses.

Over the course of the coming year, the federal government will also update goals for other “socio-economic” certification set-aside categories of small businesses, including women-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone businesses.

In the federal marketplace these socio-economic certifications help small businesses win set-aside awards.

Participation in the small business contracting assistance programs requires a formal certification process. FedBiz Access has 21 years of experience working with companies to help them win business by ensuring their registrations and certifications are current, complete, and compliant.

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

① The term “equity” means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as African American, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

② The term “underserved communities” refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life, as exemplified by the list in the preceding definition of “equity.”