OMB sets goals for small-business contracting

In an effort to promote the use of small businesses in federal contracting, the Office of Management and Budget today issued final guidance that sets federal prime and subcontracting goals for different categories of small businesses.

Procurement reform, including the use of governmentwide contracts, has made it difficult for small businesses to compete for government work. This guidance aims to change that by setting agency goals and requiring agencies to say how they will improve their results if they fail to meet their small-business goals.

The guidance addresses governmentwide goals for procurement contracts awarded to small businesses; HUBZone small businesses; small, disadvantaged business; and woman-owned small businesses.

The guidance lays out the following goals for agencies, which are stated as a percentage of overall federal procurement dollars:

Five percent of prime contract awards should go to women-owned small businesses and small, disadvantaged businesses;

Five percent of subcontract awards should go to women-owned small businesses and small, disadvantaged businesses;

A 3 percent phased-in HUBZone prime contract award goal;

An annual governmentwide goal for prime contract awards to small businesses of not less than 23 percent.

Featured

  • Defense
    Soldiers from the Old Guard test the second iteration of the Integrated Visual Augmentation System (IVAS) capability set during an exercise at Fort Belvoir, VA in Fall 2019. Photo by Courtney Bacon

    IVAS and the future of defense acquisition

    The Army’s Integrated Visual Augmentation System has been in the works for years, but the potentially multibillion deal could mark a paradigm shift in how the Defense Department buys and leverages technology.

  • Cybersecurity
    Deputy Secretary of Homeland Security Alejandro Mayorkas  (U.S. Coast Guard photo by Petty Officer 3rd Class Lora Ratliff)

    Mayorkas announces cyber 'sprints' on ransomware, ICS, workforce

    The Homeland Security secretary announced a series of focused efforts to address issues around ransomware, critical infrastructure and the agency's workforce that will all be launched in the coming weeks.

Stay Connected