New Scorecard Rates Agency Contracting Results Half of federal agencies received the lowest possible grade on SBA’s first scorecard for small business procurement. The government spent 22.8% of its prime contract dollars with small businesses last year, just short of the 23% goal set by Congress, according to SBA. The House has voted to raise the goal to 30%. Governmentwide, agencies exceeded the 5% goal for small disadvantaged businesses and the unofficial 2.5% goal for 8(a) firms. But they fell short of the 5% goal for woman-owned businesses and the 3% goals for service-disabled veteran and HUBZone firms. Ten agencies did not reach their goals for contracting with small businesses, including the biggest spender, the Defense Department. A majority fell short of contracting goals with socioeconomic groups: small disadvantaged businesses, service-disabled veteran-owned businesses, woman-owned firms and companies located in HUBZones. (See next story for agency figures and scorecard.) The scorecard grades agency performance as green, yellow or red. Seven of 24 agencies were rated green, meaning they met their overall small business goal and at least three of the four socioeconomic goals. Five agencies earned a yellow grade by meeting their small business goals and at least two of the socioeconomic goals. Twelve agencies drew a red rating, meaning they met no more than one socioeconomic goal. SBA Administrator Steven Preston said the scorecard is designed to bring “greater transparency and greater accountability in small business contracting.” In an Aug. 17 teleconference with reporters, he said he expects public release of the scorecard will spur agency leaders to focus more sharply on small business procurement issues. Agencies are rated on whether they met goals that were set in negotiation with SBA, based on the kinds of products and services each agency buys. Some agencies’ goals are higher than the 23% governmentwide goal. For example, GSA awarded 32% of its dollars to small businesses, but its goal is 45%. Preston said agencies will not be allowed to lower their goals just so they will look good on the scorecard, but he acknowledged that some goals may be unrealistically high. A second scorecard will grade agencies’ progress toward improving their small business performance, based on such criteria as top-level commitment and whether goal achievement is part of executives’ annual performance reviews. Preston said it will be updated every six months.