CONTRACTING AND PROCUREMENT

The Senate Committee on Small Business and Entrepreneurship has long promoted small business participation in the federal contracting arena.  Small businesses are our nation’s most dynamic job generators and provide the benefits of competition, including lower prices, better services and products, to the federal government, the largest purchaser of goods and services in the world.  In fact, the U.S. government procures around $500 billion annually in products and services.  Ranking Member Snowe has produced a guide for small businesses interested in accessing Federal contracting opportunities, which may be accessed here.

The Committee has long advocated for small business, including service-disabled veteran-owned businesses, HUBZone firms, and minority and women-owned businesses, to have increased opportunities to participate in the Federal marketplace.  The Committee takes very seriously its oversight role in ensuring that the Federal government meets its 23 percent goaling requirement for small business.

Over the years, various laws have been enacted to provide tools and incentives to aid small businesses in competing for these contracts.  For instance:

  • The Small Business Goaling Program established in law an overall government-wide small business prime contracting goal of 23 percent.  The Small Business Administration (SBA) is responsible for administering and reporting on the results of the program.

  • The Historical Underutilized Business Zone, or HUBZone Program stimulates economic development and creates jobs in urban and rural communities by providing federal contracting assistance to small businesses. These preferences are available to qualified small firms located in a HUBZone designated area and employ staff who live in such areas. There is a government-wide goal of three percent of prime contracting dollars for HUBZone firms. To learn more about the program, go to www.sba.gov/hubzone.

  • Women-Owned small businesses have a five percent government-wide prime and subcontracting goal.   A women-owned small business is defined as one which is at least 51 percent owned and controlled by one or more women, or, in the case of any publicly owned business, at least 51 percent of the stock is owned by one or more women, and whose management and daily business operations are controlled by one or more women.

  • Service-Disabled Veteran-Owned small businesses have a three percent government-wide participation goal for the total value of both prime contract and subcontract awards for each fiscal year. A service-disabled veteran-owned small business is defined as one which is at least 51 percent owned and controlled by one or more service-disabled veterans, or, in the case of any publicly owned business, at least 51 percent of the stock is owned by one or more service-disabled veterans, and whose management and daily business operations are controlled by one or more service-disabled veterans. For more information go to www.sba.gov/vets.

  • The Department of Veterans Affairs has authority to conduct Veteran-owned small business set-asides for its own procurements. For information on VA programs, go to www.va.gov.

  • Small Disadvantaged Businesses have a federal government-wide prime and subcontracting goal of five percent. To qualify, a business must be at least 51 percent owned and controlled by one or more individuals who are socially and economically disadvantaged.
  • The 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their small businesses. Businesses that usually have been in existence for at least two years may be eligible for the nine-year program that includes counseling and training, and potential federal procurement opportunities. To see if you qualify for the 8(a) business development program, go to www.sba.gov/8abd. 


In recognition of the various programs’ value, Ranking Member Snowe, in the 111th Congress, introduced S. 1489, the Small Business Contracting Programs Parity Act to ensure that the various contracting programs are placed on an equal footing.  Chair Landrieu and Ranking Member Snowe also worked together to ensure that key provision of the legislation were included as part of an amendment to S. 1390, the Defense Authorization Act. 

Small Business Goaling Summary Report

 

 

2007

2007

2008

2008

Category

Goal

%

$

%

$

Small Businesses

23%

22%

$83.2 billion

21.50%

$93.2 billion

Small Disadvantaged

Businesses

5%

6.6%

$24.9 billion

6.76%

$29.3 billion

Women

5%

3.4%

$13 billion

3.40%

$14.7 billion

Service-disabled Vets

3%

1.01%

$3.8 billion

1.49%

$6.4 billion

HUBZone

3%

2.2%

$8.5 billion

2.34%

$10.1 billion

 

 

Small Business Innovation and Research and Technology Transfer Programs—See Innovation

For additional information, please visit: www.business.gov and www.sba.gov