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.

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