Five years running, agencies miss small business goal

SBA releases 2010 report that shows small firms received almost $100 billion in contracts, but agencies fell short of the 23 percent governmentwide goal.

By Jason Miller
Executive Editor
Federal News Radio

Small businesses received almost $98 billion in government contracts in 2010, but agencies still missed the governmentwide goal.

The Small Business Administration today issued its annual report on small business contracting, which showed agencies awarded 22.7 percent of their contracts so small firms-falling just shy of the 23 percent goal. SBA said the percentage, however, was the largest increase in five years, outpacing last year’s total of 21.9 percent. Agencies still have not met the executive order in April 2010 calling for more contracts to go to small firms.

And once again, agencies fell short in meeting the goals in all but one of the five socio-economic areas.

SBA said agencies awarded 7.95 percent of all contracts to small disadvantaged businesses, well above the 5 percent goal. In fact, it was almost a half-a-percent increase over 2009 totals.

But for women-owned, service-disabled, veteran-owned and Historically Underutilized Business Zone (HUBZone) goals, agencies weren’t even close.

In fact, contracts to HUBZone firms dropped to 2.77 percent in 2010 from 2.81 percent in 2009.

“We are proud of the achievement the government has made in, but are determined that the government will meet and exceed the goal,” SBA administrator Karen Mills said in a release. “SBA is focused on a number of key initiatives to help increase small business contracting opportunities, as well as combat fraud, waste or abuse. These efforts will ensure the benefits of our programs continue to go to the intended recipients.”

Along with releasing the small business contracting totals for 2010, SBA also issued the agency report cards.

SBA said 10 agencies increased over their 2009 letter grades:

  • 13 agencies received an A
  • 5 agencies received a B
  • 4 agencies received a C
  • 2 agencies received a D

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