Nationally, Small Businesses Secured a Record-Breaking $120.8 Billion in Prime Federal Contracts, Supporting More Than 638,000 Jobs

DETROIT – The U.S. Small Business Administration’s release of the Fiscal Year 2018 Small Business Federal Procurement Scorecard shows a record-breaking $120.8 billion in prime federal contracts – 25.05% of the federal contracting dollars - were awarded to small businesses. The FY 18 numbers are an increase of nearly $15 billion over the previous fiscal year and mark the sixth consecutive year the federal government exceeded its small business contracting goal. Here in Michigan, approximately $1.5 billion in federal contracts went to area small businesses.

“These record-breaking national numbers are a win-win, as, along with supplying the government with the goods and services needed to operate, they support our nation’s small businesses and entrepreneurs, as well as their employees and local communities,” SBA’s Great Lakes Regional Administrator Rob Scott said. “The accomplishments here in Michigan are a direct result of our continuous government-wide focus on increasing small business contracting opportunities. This focus starts at the top with the President’s commitment to small businesses and funnels through to our field offices’ outreach efforts focused on helping them start, grow and expand.”

The value of a federal contract is illustrated by Novi’s KBTS Technologies success in recent years. In 2018, it most recently secured $ $1.5 million total in federal contracts with the U.S. Department of Health and Human Services and Department of Interior. As a result of its work with the U.S. government, KBTS Technologies has added employees and increased revenue.

“The $1.5 billion that small businesses here in Michigan secured in federal contracts represents an incredible impact to our economy and supports job creation innovation, and growth,” SBA’s Michigan District Director Constance Logan said. “Our Business Opportunity Specialists are committed to helping small businesses in SBA’s 8(a) program secure government contracts that will impact communities all across the nation.”

The measured socio-economic categories also achieved national historic highs this year. Small disadvantaged businesses received 9.65%, or $46.5 billion of all small business eligible contracting dollars, the highest percentage since 2016. Service-disabled veteran-owned small businesses received $20.6 billion (4.27% of all eligible contracting dollars) and women-owned small businesses received $23 billion of eligible contracting dollars – the highest amount ever. Historically Underutilized Business Zone small businesses received about $10 billion of all eligible funds, representing 2.05%, the highest achievement in the last six years.

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, HUBZone, women-owned and service-disabled veteran-owned small business programs. It also works closely with the National 8(a) Association, Native American Contractors Association, Native Hawaiian Organization Association, Women Impacting Public Policy, American Express and other national and local organizations on contracting outreach efforts.

Small Business Federal Procurement Scorecard Overview

The annual Procurement Scorecard is an assessment tool to: (1) measure how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals; (2) provide accurate and transparent contracting data and (3) report agency-specific progress. The prime and subcontracting component goals include goals for small businesses, small businesses owned by women, small disadvantaged businesses, service-disabled veteran-owned small businesses, and small businesses in HUBZones.

Every fiscal year, the SBA works with each agency to set its small business prime and subcontracting goals (each agency has different goals) and the agency’s performance is based on the agreed upon goals. The SBA ensures that the sum total of all of the goals exceed the 23% target for the federal government as well as the socio-economic goals established by law.  

While each federal agency is responsible for ensuring the quality of its own contracting data, the SBA conducts additional analyses to help agencies identify potential data anomalies. As part of its ongoing data quality efforts, the SBA works with federal agency procurement staff to provide analysis and tools to facilitate review of data, implement improvements to procurement systems, and conduct training to improve accuracy.

About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start and grow their businesses. It delivers services to people through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.