So, numbers out of the Small Business Administration — federal agencies exceeded the White House’s annual small business contracting goal by awarding a record-breaking $154 billion – but the number of companies in that group continues to decline. Quoting NextGov:
Agencies set a new record in awarding 27.2% of total federal contracting awards to small businesses, earning an “A” for the government-wide score – and beating the White House goal of 23% for the fiscal year 2021. However, the number of small businesses, women-owned small businesses, and small disadvantaged businesses serving as federal prime contractors continued to fall as part of a trend. Officials said they were trying to counteract the decline through various measures, including protecting against contract bundling.
Why do we care?
The article cites a 40% decrease in the industrial base – so fewer companies are going after this work. There’s one thing you can say about federal work – the government always pays its bills.
I don’t have first-hand experience with this market – I’m the rare DC metro resident who has never done a bit of government work – but I will note that spend is being captured by an increasingly smaller group of companies, despite the intention to increase that number. If you’re considering, that’s critical data.
