Missed Again: Agencies Fall Short of Small Business Goals The small business share of the federal market shrank in 2008 for the fourth straight year, according to SBA’s annual scorecard. Small firms received 21.5% of prime contract dollars in fiscal 2008, down from 22% the year before, falling short of the 23% goal for the third year in a row. The government achieved its goal in only one socioeconomic category: small disadvantaged businesses received 6.76% of the dollars, compared to a goal of 5%. SBA officials have acknowledged that the official figures overstate the amount of small business contracting because of data-entry errors and some large contractors being misclassified as small. The figures were released days after the Obama administration announced an initiative to increase outreach to small companies. (See story.) Service-disabled veteran-owned firms received 1.49% of the dollars, up from 1.01% the year before. Just four agencies met the 3% goal for SDV contracting: GSA, Veterans Affairs, Labor and EPA. Awards to woman-owned business were flat at 3.4%, well below the 5% goal set by Congress. HUBZone companies won 2.34%, up from 2.2%, but still short of the 3% goal. No figures were provided for 8(a) companies because there is no congressionally mandated goal in that category. GSA was the only one of 24 agencies to reach its goals in all socioeconomic categories. The Agency for International Development and the Office of Personnel Management missed all of their goals. Goals are set for individual agencies based on their spending histories. (For agency-by-agency figures, go to http://www.sba.gov/aboutsba/sbaprograms/goals/index.html. The Defense Department, by far the biggest spender, awarded just under 20% of its dollars to small firms, losing ground for the third straight year. Overall, small businesses received more than $93 billion in prime contracts, a 12% increase from the previous year. But total federal procurement grew by 18% during the year, according to official records. “This record $93.3 billion in contracts to small businesses is significant, however, across the federal government we are committed to ensuring that the 23 percent goal is met and even exceeded going forward,” SBA Administrator Karen Mills said. “Especially during these tough economic times, federal contracts for small businesses can be just the opportunity they need to continue to grow and create jobs. At the same time, the federal government gets access to some of the most innovative and best products and services.”