Agencies Fall Short of Small Business Contracting Goal Small businesses’ share of federal prime contract dollars increased slightly to 21.89% in fiscal 2009, according to SBA, but the government fell short of the 23% goal for the fourth straight year. All agencies combined achieved the congressionally mandated goal in only one socioeconomic category: Small disadvantaged businesses, including 8(a) firms, received 7.57% of prime contract dollars, exceeding the 5% goal. (SBA no longer breaks out figures for 8(a) companies because Congress has set no goal in that category.) However, SBA said market share increased in every category. “This represents real progress, but not enough,” SBA administrator Karen Mills said in a statement. “We must reaffirm our commitment to insuring that the 23% goal is met and exceeded.” The governmentwide results: •Small businesses 21.89%, up from 21.5% in 2008. (Goal is 23%.) •Woman-owned 3.68%, up from 3.40%. (Goal is 5%.) •Small disadvantaged businesses, including 8(a)s 7.57%, up from 6.76. (Goal is 5%.) •Service-disabled veteran-owned 1.98%, up from 1.49%. (Goal is 3%.) •HUBZone 2.81%, up from 2.34%. (Goal is 3%.) The Defense Department, which accounts for about two-thirds of contract spending, awarded 21.13% of its dollars to small firms. No agency achieved its goals in all socioeconomic categories; the Agency for International Development failed to meet any of its goals. Agency-by-agency results are available at http://www.sba.gov/aboutsba/sbaprograms/goals/index.html. Only three agencies exceeded the 3% goal for contracting with service-disabled veterans: the Veterans Affairs Department, EPA and SBA. While SBA has concentrated on improving the accuracy of procurement data, the agency has acknowledged that the figures are not perfect. The American Small Business League said its analysis of official 2009 data showed that 61 of the top 100 contractors listed as small businesses did not qualify as small, including several subsidiaries of Fortune 500 companies. This year SBA introduced a letter-grade system for rating agencies on their performance in three areas: small business prime contracts, small business subcontracts and planning to increase their awards to small firms. Ten of 24 agencies received A grades: the Department of Agriculture, Education, Energy, Homeland Security, Interior, Labor, Transportation, Veterans Affairs, EPA and SBA. Three agencies were graded F: the Agency for International Development, National Science Foundation and Office of Personnel Management. The governmentwide effort was graded B.