Contract Dollars Hit a Record, But Short of Goal The federal government fell short of its 23% goal for small business contracting in 2010 for the fifth straight year, according to SBA. Agencies awarded 22.7% of their prime contract dollars to small firms, up from 21.9% the year before. The government achieved the congressionally mandated goal in only one socioeconomic category, small disadvantaged businesses. SBA said prime contract dollars flowing to small contractors reached a record $97.95 billion in a year when total federal contract spending declined slightly, according to the Office of Management and Budget. SBA has acknowledged in the past that the official figures may not be completely accurate because of data errors, but said it continues to work to improve the quality of data. (See next story for agency-by-agency results.) Market share increased in four of the five socioeconomic categories. The figures show 4.04% of dollars going to woman-owned firms, the first time that category has exceeded 4%, but still short of the 5% goal set by Congress. Small disadvantaged businesses received 7.9%, exceeding the 5% goal. (That figure includes 8(a) firms, which do not have a statutory goal.) Service-disabled veteran-owned firms garnered 2.5%, double the figure from two years ago, but still short of the 3% goal. HUBZone businesses won 2.77%, down slightly from 2.81% in 2009, and less than the 3% goal. The Defense Department, which accounts for about two-thirds of federal contract spending, awarded 20.9% of its dollars to small firms, down from 21.1% the year before. The Labor Department was the only agency to achieve the congressional goals in all categories. SBA said prime contractors reported awarding 35.4% of their subcontract dollars to small businesses. SBA’s scorecard, which grades agencies on their performance and plans to improve performance, rated the overall government effort a B. Thirteen agencies earned A’s, two were graded D and none received an F.