Equity Action Plans aim to boost SDB support, reduce barriers

Wide-ranging plans from more than 90 federal agencies to implement Exec Order 13985 targeting underserved

      President Joe Biden signed Executive Order 13985 on “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government” on his first day in office in 2021.

      In June 2021, Biden raised the governmentwide Small Disadvantaged Business (SDB) procurement goal to 11% in fiscal 2022, rising to 15% by fiscal 2025. Previously, the goal was 5%.

      Now agencies have developed more detailed agendas to carry out the order and achieve the SDB goals in “Equity Action Plans” released on April 14. More than 90 federal agencies have issued plans.

      The frameworks identify a broad range of systemic barriers in programs for housing, health care, justice and other concerns, including SDBs’ access to federal contracting, loans, grants and support services.

      The plans build upon an Office of Management and Budget memo of December 2021 that laid out policies for implementing the executive order.

      Here are the highlights of the plans for SDBs and other small contractors:

SBA Equity Action Plan

      In fiscal 2020, SDBs comprised 25% of all federal contractors, but SDBs received only about 10% of total federal procurement dollars, SBA said in its report. SBA’s actions to raise SDB contract awards include:

• Under the OMB’s order from December 2021, the SBA now has a voting seat on the governmentwide Category Management Leadership Council, where it advocates for small businesses and SDBs;
• SBA has devoted nearly 30% of its Small Business Development Center funding to minority-focused institutions;
• SBA has placed three Women’s Business Centers on the campuses of Historically Black Colleges and Universities;
• The agency has reconvened the Council on Underserved Communities;
• SBA will offer training for potential 8(a) Business Development Program applicants four times a year; and
• SBA will examine data on 8(a) participation and requirements to reduce burdens, and will hold “listening sessions” with underserved communities.

GSA Equity Action Plan

      GSA outlined the following goals:

• Establish 8(a) STARS III and Polaris to increase SDB representation;
• Simplify the process for obtaining a Multiple-Award Schedule contract;
• Establish a robust post-award engagement strategy for SDBs;
• Establish plans for greater supplier diversity and for regular on-ramping for multiple-award contracts; and
• Expand the Forecast of Contracting Opportunities Tool.

      Separately, the GSA announced its new SDB goal for 2022 is 21%. Last year it achieved just over 20%.

DOD Equity Action Plan

• Advance equity through wage setting and labor practices of DOD contractors;
• Set a “galvanizing” goal for procurements from SDB contractors; and
• Empower small business initiatives.

More information:
White House release: https://bit.ly/3jVBL5o
Web Links to all Equity Action Plans: https://www.whitehouse.gov/equity/
SBA plan: https://bit.ly/3vrTsit
GSA plan: https://bit.ly/3jT8s3r
GSA news release: https://bit.ly/3jUoCtj
DOD plan: https://bit.ly/37nEJgF
OMB Memo: https://bit.ly/3L1IK94

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