Small businesses nationwide won a record $96.8 billion in federal contracts last year, an increase of more than $3 billion over fiscal 2008, the U.S. Small Business Administration reported Friday.
Contracts awarded to small businesses accounted for nearly 22 percent of all federal spending last year, according to an annual scorecard released by the SBA that tracks small-business procurement. “There was an increase in both dollars and contracting share for every small-business category,” SBA Administrator Karen Mills said in a statement.
“This represents real progress, but not enough. We must reaffirm our commitment to ensuring that the 23 percent (of all federal spending) goal is met and exceeded.”
The SBA tracks businesses in five categories: small businesses overall, women-owned small businesses, small disadvantaged businesses, service-disabled veteran-owned small businesses, and so-called HUB Zone business that are in historically underused business zones.
Of those categories, only one — small disadvantaged businesses — exceeded its goal for the year in 2009. Its contract awards represented 7.6 percent of all federal funding in 2009, or $33.5 billion, exceeding the category’s goal of 5 percent.
“Federal contracts awarded to small businesses are a win-win, providing small businesses with the opportunity to grow and create jobs, and offering innovative services and essential goods to the government at great value to the taxpayers,” Mills said.
According to the SBA, additional funding and contract opportunities arose in 2009 due to the American Recovery and Reinvestment Act. Through early August, small businesses landed more than 30 percent of Recovery Act contracts. The SBA is required to report regularly to the president and Congress on how federal agencies and departments perform against their annual goals, in an effort to increase accountability.
In the scorecard released Friday, the SBA graded 24 federal agencies on various contracting goals set by Congress and is available online at www.sba.gov.
