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Federal Market Intelligence for Small Business |
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In FY2020, the government met small business goals for 8th year in a rowSmall business awards rose 9.6%; but eligible awards up 11.7%The government awarded 26.02% of all eligible prime contracts to small businesses in fiscal 2020, exceeding the statutory 23% goal, the Small Business Administration announced in its annual Small Business Procurement Scorecard. It is the eighth year in a row that the goal was met. Prime awards to small contractors rose to $145.7 billion in fiscal 2020, up from $132.9 billion in fiscal 2019. That is a $13 billion increase, or 9.6%. While that growth was impressive, it was not as high as the more substantial boost in total federal contract spending in that period. Federal contract spending soared, and small business contracts apparently were carried along for the ride, in fiscal 2019 and 2020. Total contract spending expanded from $590 billion in fiscal 2019 to $666 billion in fiscal 2020, which was a 12.8% increase, USASpending.gov indicates. The pool of small business-eligible awards grew to $560 billion, up from $501.5 billion in fiscal 2019, an 11.7% increase, according to SBA’s procurement scorecards. The federal government also met its subcontracting goals for small businesses. Despite those successes, the number of small vendors dropped. SDB, SDVOSB, WOSB & HUBZ goals The government also met its goals for acquisitions from Small Disadvantaged Businesses and from SDVOSBs (Service-Disabled Veteran-Owned Small Businesses). But the percentages fell short of the goals for Women-Owned and HUBZone firms. Small Disadvantaged Businesses (SDBs) captured $59.0 billion in awards, which represented 10.54% of all eligible awards, in fiscal 2020. That exceeded the 5% goal and was slightly higher than the 10.29% for SDBs in fiscal 2019. SDVOSBs won $23.9 billion in awards, which was 4.28% of eligible awards in fiscal 2020. That exceeded the 3% goal, but it was slightly lower than the 4.39% in fiscal 2019. Women-Owned Small Businesses (WOSBs) received $27.1 billion in awards, which was 4.85% of eligible awards, in fiscal 2020. That fell short of the 5% goal. The year before, in fiscal 2019, the government procured 5.19% from WOSBs, exceeding the goal. HUBZone firms were awarded $13.6 billion, or 2.44% of eligible procurements, in fiscal 2020. That did not meet the 3% goal. SBA Administrator Isabel Guzman announced the procurement results while describing 2020 as an “extremely challenging year” for small firms due to the COVID-19 pandemic. Best and worst agencies The Housing and Urban Development Dept. received a “D” grade for awarding only 1.77% to small firms. Its goal was 25%. The Education Dept. earned a “C” grade, in part for failing to meet its 16% goal. It awarded 14.46% to small firms. Overall, the government earned an “A” on 2020 procurements from small firms, the same as in fiscal 2019, Guzman wrote, with the following agencies earning an “A+” for their achievements:
DOD procurements The Defense Dept., which accounted for $328 billion in eligible procurements, awarded 24.5% to small businesses, exceeding its 22.05% goal, in fiscal 2020, the SBA said. Small business awards totaled $80.4 billion at the DOD.
More information:
SBA procurement scorecard: https://bit.ly/3CMeKKx
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Washington Insider:
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