WASHINGTON – Today, Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice for America’s 33 million small businesses in President Biden’s Cabinet released the following statement applauding President Biden’s announcement that for the second consecutive year, the federal government exceeded its annual goal for federal contracting dollars awarded to Small Disadvantaged Businesses (SDBs), set at 12% for FY2023. SDBs received 12.1% of federal contracts totaling a record $76.2 billion in FY2023 – surpassing the record set by the Biden-Harris Administration last year of $69.9 billion and marking the third straight year of record-breaking awards to SDBs.
In January 2024, the Biden-Harris Administration announced a bold goal of increasing the share of federal contracting dollars going to SDBs to 15% by FY2025, a 50% increase from spending levels when he first took office. As part of President Biden’s agenda, the SBA has announced new and improved initiatives to advance this goal – and we’re already seeing results.
“In June 2021, President Biden issued a powerful challenge to the entire federal government—the largest purchaser of goods and services in the world—to harness our buying power and open doors of opportunity to America’s small businesses, with a focus on increased contracts to Small Disadvantaged Businesses in underrepresented communities,” said Administrator Guzman. “Today’s announcement shows the results, with a new record of contract spending with Small Disadvantaged Businesses and steady progress towards President Biden’s goal of awarding 15% of federal contracting dollars to Small Disadvantaged Businesses by FY2025. The Biden-Harris Administration is committed to leveling the playing field for entrepreneurs to ensure a diversified supply chain, strong competition, and innovation – and will not be deterred by attacks against these efforts to advance our economy.”
In December 2021, the Biden-Harris Administration announced major reforms to level the playing field for all contracting entrepreneurs through a more equitable federal procurement system and buying strategy.
Under Administrator Guzman’s leadership, the SBA has advocated for and supported several strategic and targeted changes to ensure small businesses, particularly those in underserved communities, are empowered to find and take advantage of opportunities presented by President Biden’s signature legislation, including the historic Bipartisan Infrastructure Law, CHIPS and Science Act, and more. Actions include:
- Releasing new guidance, “Creating a More Diverse and Resilient Federal Marketplace through Increased Participation of New and Recent Entrants.” This executive action includes several new initiatives for encouraging new entrants to the federal contracting space to reverse a decade-long decline in the contracting base, including a Supplier Base Dashboard to track an agency’s mix of new entrants, recent entrants, and established vendors.
- Expanding access for small businesses to multiple-award contracts, which account for over 20% of government contracts. In January, the Office of Federal Procurement Policy directed agencies to structure those contracts with small-business participation in mind and instructed agencies to apply the small-business Rule of Two—the rule that a small business must receive a purchase if two or more small businesses are able to do the work—when using those contracts.
- Launching an enhanced training program, “Empower to Grow,” to strengthen Small Disadvantaged Businesses’ contract readiness. This revitalization of the popular 7(j) Management and Technical Assistance program includes improved coaching, training, and technology tools to get more disadvantaged businesses contract-ready and build a diversified supplier base. In FY2023, small businesses participating in the 7(j) program saw a contract win rate of 60% and self-reported annual revenue growth of 45% on average.
- Announcing several reforms in small business contracting, including:
- Directing all agencies to track and evaluate the performance of each of the socioeconomic small business contracting goals in all performance plans for Senior Executive Service (SES) managers that oversee the acquisition workforce or agency programs supported by contractors.
- Changing the government’s approach to consolidating federal contracts by reforming the Category Management program.
- Creating special contract procedures for 8(a) participants using the GSA’s Multiple Award Schedule. The new procedures increase contracting opportunities for 8(a)-certified SDBs to ensure more equitable access to federal contracting dollars.
