Small business share of contracts shrunk slightly in 2011, SBA reports

The Small Business Administration on Tuesday released its annual score card on federal contract dollars won by small businesses, reporting that contractors meeting the eligibility criteria were awarded $91.5 billion in government work in fiscal 2011, or 21.65 percent of the total.


Current law requires agencies to reach for a goal of awarding 23 percent of contract dollars to qualified small businesses. In the Obama administration’s first three years, SBA reported, the 24 major agencies awarded a total of $286.2 billion in contracts to small businesses, or 22.07 percent, just short of the target. SBA said this represented a $32 billion increase over the three preceding years even as contract spending dropped governmentwide.

Some lawmakers have proposed raising the goal to 25 percent in a bid to help create jobs during the weak economy.

“Federal contracting with small businesses is a win-win,” John Shoraka, SBA’s associate administrator for government contracting and business development, wrote in a blog post. “Small businesses get the revenue they need to grow their revenues and create jobs. Meanwhile, the federal government gets the chance to work with some of the most responsive, innovative and nimble companies in the United States -- often with a direct line to their [chief executive officer].” But, Shoraka added, the fiscal 2011 score card “reflects the need for improvement in small business procurement across the federal government.”

The score card showed an overall drop in the share of small business awards since fiscal 2010, with an increase only in the category of small businesses owned by service-disabled veterans. Contract dollars as a percentage of overall spending dropped slightly in the categories of women-owned small businesses, small disadvantaged businesses and businesses in Historically Underutilized Business Zones.

The Petaluma, Calif.-based American Small Business League gave the score card a thumbs down. The group has long challenged the score card’s methodology and has argued that far fewer small businesses actually are winning contracts. “Since 2003, more than a dozen federal investigations have found billions of dollars in federal small business contracts flowing into the hands of corporate giants,” it said in a Tuesday statement.

“I endorsed Barack Obama for president, but I couldn’t be more disappointed,” said Lloyd Chapman, the league’s president and founder. “During his campaign, President Obama promised to end the diversion of federal small business contracts to corporate giants, but has done nothing since. President Obama must force the SBA to stop fabricating these numbers.”

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.