Contact:
Shirah Apple
Rachel.apple@sba.gov
414-841-7013
Across the nation, the U.S. Government exceeds their fiscal contracting goal awarding $163 billion to small businesses
WISCONSIN – The U.S. Small Business Administration (SBA)’s release of the Fiscal Year 2022 Small Business Federal Procurement Scorecard shows a record-breaking 26.5% of federal contracting dollars awarded to American small businesses. This historic level amounts to a $162.9 billion investment in the small business economy – an $8.7 billion increase from the previous fiscal year.
“Through President Biden’s Investing in America agenda, we have championed initiatives to fuel our nation’s historic economic growth, while also reducing barriers and ensuring fair competition in federal contracting,” said SBA Administrator Isabel Casillas Guzman. “The Biden Administration continues to raise the bar, reaching a record high level of contract spending with small businesses, supporting over one million good-paying jobs in manufacturing, construction, research & development and other vital industries.”
“The SBA has worked closely with the White House and our partner agencies to enact policy changes that level the playing field for all contracting entrepreneurs through a more equitable federal procurement system and buying strategy promised by the President,” said SBA Great Lakes Regional Administrator Geri Aglipay. “I’m proud of the hard work our small business advocates across the federal government and our SBA partner organizations have done to reach these results.”
According to data compiled by the SBA, 21.87% of the purchases made by the U.S. government in the Great Lakes Region of Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin were from small business owners. Of the $5.9 billion spent on federal contracts in Wisconsin, more than $1 billion, or 17.35% of those total dollars were spent buying products and services from Wisconsin’s small businesses. This is the second year in a row that federal government contracts awarded to small businesses in Wisconsin have exceeded $1 billion, with the FY21 figures topping $1.1 billion and 18%; annual contract awards in Wisconsin dating back to at least 2010 did not meet the $1 billion threshold.
The value of federal contracting is illustrated locally by Great Lakes Power Vac, a woman-owned small business headquartered in Pewaukee. GLPV currently employs 15 people. Founder and President Greta Smith-Bemi participated in one of SBA’s premier contracting programs, theSBA 8(a) Business Development Program, and leveraged her 8(a) certification earning over $1.8 million in 8(a) set-asides and sole-source contracts, as well as subcontracting . After graduating from the program, she continued to grow the firm and diversify with federal, state, and local contracts. “The SBA 8(a) program was very valuable to Great Lakes Power Vac,” she noted. “Thanks to our presence in federal systems listing certified small businesses, we secured a sole source contract with NAVFAC, and ultimately other contracts and subcontracts. Additionally, working on federal projects helped GLPV to professionalize and refine our programs to fulfill numerous quality assurance requirements. In the long run, this has been a benefit in working with other clients.”
“Government contracting is a powerful tool for entrepreneurs to open new and stable revenue streams for their small businesses,” said SBA Wisconsin District Director Eric Ness. The more than $1 billion that Wisconsin small businesses secured in federal contracts is important for Wisconsin’s economy . SBA resources like the 8(a) Business Development Program are vital to companies like Great Lakes Power Vac and others to creating new jobs, build stronger communities and improve the quality of life for everyone living in the Badger State.”
In its efforts to help small businesses secure federal contracts, the SBA promotes its programs to procuring federal agencies and small businesses, frequently holding training sessions across the country to educate contracting officers on the requirements for SBA’s 8(a) Business Development, Historically Underutilized Business Zone, women-owned and veteran- and service-disabled veteran-owned small business programs. It also works closely with other national and local organizations on contracting outreach. For more information on SBA federal contracting programs and assistance, check out the federal contracting section of the SBA website at Small Business Administration (sba.gov). To learn how the SBA Wisconsin District Office can help you achieve your small business dreams, visit www.sba.gov/wi. You can also follow us on Twitter at @SBA_Wisconsin or on LinkedIn.
Expanding Access to Federal Contracting:
The Small Business Administration, under the Biden-Harris Administration, has made it a top priority to expand access to federal contracting. The SBA, under Administrator Guzman’s leadership, has made 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, including a Supplier Base Dashboard to track an agency’s mix of new entrants, recent entrants, and established vendors.
- Announcing several reforms in small business contracting, including directing all agencies to include progress toward achievement of each of the socioeconomic small business goals as evaluation criteria in all performance plans for Senior Executive Service (SES) managers that oversee the acquisition workforce or agency programs supported by contractors.
- Revising an agreement with federal agencies to promote maximum utilization of 8(a) certified SDBs to ensure equitable access to contracting opportunities.
- Updating NAICS codes eligible for WOSB set-aside contracts expanded from 444 to 759, representing a 70% increase.
- Activating ChallengeHer, a government contracting education initiative to help women-owned small business gain access to federal contracts and encourage participation in the SBA’s WOSB program alongside partners from Women Impacting Public Policy (WIPP) and American Express (AMEX).
- Creating a new HUBZone map that updates designations and census tract boundaries resulting from the 2020 Census.
- Implementing a new certification system for SDVOSBs as part of the migration of Veteran-owned business certification from the Department of Veterans Affairs (VA) to SBA.
Small Business Federal Procurement Scorecard Overview:
The annual Procurement Scorecard serves as a vital assessment tool, gauging the effectiveness of federal agencies in meeting their small business and socioeconomic prime contracting and subcontracting goals. This comprehensive Scorecard not only offers accurate and transparent contracting data but also provides detailed reports on agency-specific progress.
Working in collaboration with federal agencies, the Small Business Administration annually assists in establishing individual prime and subcontracting goals. Moreover, the SBA ensures that the federal government, as a whole, meets or surpasses the government-wide statutory goals mandated in 15(g)(1) of the Small Business Act for each category.
To maintain the quality and accuracy of contracting data, every federal agency takes responsibility for its own data. Simultaneously, the SBA conducts supplementary analyses to identify potential data anomalies. Working alongside federal agency procurement staff, the SBA provides crucial analyses and tools to facilitate data review, enhance procurement systems, and conduct training to improve accuracy. This collaborative effort ultimately strengthens the federal government’s commitment to small business participation and success in government contracts.
The SBA sets contracting goals for each agency and works with government buyers to ensure that they prioritize small businesses. Overall, the federal government exceeded its goal of 23 percent in prime contract dollars and earned an “A” on this year’s government-wide Scorecard. Eleven federal agencies earned an “A+” for their agencies’ achievements in small business contracting, and an additional ten agencies received an “A” grade. Individual agency scorecards and a detailed explanation of the methodology used is available at SBA.gov.
