Defense Secretary: Pay Attention to Small Business Contracting Defense Secretary Leon Panetta is urging the department’s buyers to step up spending with small businesses in the final weeks of the fiscal year. In a memo to service chiefs and defense agencies, Panetta said DOD is currently falling short of its 22.3% goal for contracting with small firms. “I therefore urge you and everyone in your organization who is involved in the acquisition process to review all acquisitions for the remainder of the year to identify opportunities for increased contracting with small businesses,” he wrote. DOD awarded 20.9% of its dollars to small firms in 2010, down from 21.1% the year before. The department usually accounts for about two-thirds of federal procurement spending.