Obama Admin. achieves record 24.99% in small biz procurement

SBA announces 23% goal met for second year in a row in FY14

The Obama Administration reached a record 24.99% in federal contracting with small businesses in fiscal 2014--the highest percentage since goals initially were set in 1997, officials announced.

U.S. agencies exceeded the government’s 23% goal for small business contracting for the second year in a row, according to the announcement from the Small Business Administration.

Small vendors received a total of $91.7 billion in federal contracts, an increase of $8.6 billion over fiscal 2013 levels, the SBA said.

“We’re celebrating the federal government’s best year ever,” SBA Administrator Maria Contreras-Sweet said at a press conference on June 26. “President Obama prioritized procurement at the highest levels of his administration and we’ve set a new government-wide standard as a result.”

The SBA’s announcement received a mixed reception, as conservatives have ramped up criticism of the SBA’s methodology (see related article on right.)

Disadvantaged, SDVOSBs

The SBA also announced that the government had met goals for procurements from small disadvantaged businesses and from service-disabled veteran-owned small businesses (SDVOSBs) in fiscal 2014. The small disadvantaged procurement goals have been met for several years, and the SDVOSB goal previously was met in fiscal 2012 and fiscal 2013.

The government awarded 9.46% to small disadvantaged firms, totaling $34.7 billion, in fiscal 2014. SDVOSB contracting hit 3.68%, totaling $13.5 billion, for the year.

HUBZones, WOSBs

Federal agencies once again fell short on goals for contracting with HUBZones and with Women-Owned Small Businesses (WOSBs).

HUBZone contracting was 1.82%, with $6.7 billion, which was short of the 3% goal, the SBA said. The HUBZone contracting goal has not been met since at least fiscal 2007, which is the earliest year for which goal data is readily available online at the SBA website.

WOSB contracting reached 4.68%, totaling $17.2 billion, which did not attain the 5% goal. WOSB contracting also has not reached the goal since at least fiscal 2007.

SBA Procurement Scorecard

The SBA also released its Small Business Procurement Scorecard for fiscal 2014, showing goal achievement for 24 departments and agencies. Each agency negotiates its goals with the SBA annually; some are substantially more than 23% while others are substantially less.

Federal agencies that met their overall small business goal in fiscal 2014, in order of value of small business procurements, were these departments and agencies:

• Defense, $54.3 billion;
• Homeland Security, $4.7 billion;
• USDA, $3 billion;
• Justice, $2.1 billion;
• Commerce, $1.6 billion;
• State, $1.5 billion;
• Treasury, $998 million;
• Education, $821 million;
• Transportation, $786 million;
• Labor, $754 million;
• SSA, $639 million;
• USAID, $281 million;
• OPM, $205 million;
• SBA, $109 million;
• NRC, $87 million;
• NSF, $46 million.

Falling short on goal

Surprisingly, a number of large agencies did not meet their small business contracting goal this year for the first time in several years.

Several large agencies were very close but did not achieve their goal, including the Health and Human Services Department, with a goal of 21.69% and achievement of 21.56% ($4.5 billion.) HHS raised its goal last year after exceeding its goal for several years in a row.

In addition, the Veterans Affairs Department also barely missed its goal, with 34.42% achieved ($6.5 billion) and a goal of 34.77%. The VA also had previously met its goal several years in a row.

The General Services Administration reached 38.97%, with $1.5 billion in small business spending, but that was short of its 39% goal, after several years of meeting its goal.

NASA had 18.23% in contracting with small business, with $2.5 billion in spending, which did not attain its 19.71% goal. NASA had just raised its goal, after meeting the goal for several years in a row.

Here are the agencies that did not meet their overall small business goal in fiscal 2014, in order of small business contract spending, according to the SBA scorecard:

• VA, $6.5 billion;
• HHS, $4.5 billion;
• NASA, $2.5 billion;
• GSA, $1.5 billion;
• Interior, $1.5 billion;
• Energy, $1.2 billion;
• EPA, $575 million;
• HUD, $500 million.

Moment in time

The SBA has said its annual scorecard is based on a “moment in time” with data as of a specific date. For the fiscal 2014 scorecard, the date was Feb. 20, 2015.

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