Small businesses win $178 billion in federal contracts in FY23


release date: May 4, 2024by Michael Gutain Small business news0

The Small Business Administration (SBA) just released its annual report on how federal agencies approach awarding contracts to small businesses. These agencies awarded 28.4% of federal contract funding to small businesses, exceeding the FY23 target of 23%.

SBA Secretary Isabel Casillas Guzmán announced the results of the 2023 Federal Procurement “Scorecard.” This scorecard evaluates how well federal agencies meet their small business contracting goals each year.

This achievement represents an investment of $178.6 billion in the small business sector, an increase of $15.7 billion over last year. The agreement supports more than 1 million jobs in industries such as manufacturing, construction and technology.

Ten federal agencies received the highest rating of A for their performance, and 12 additional agencies received an A. The entire federal government earned an A on this year’s scorecard. Notable agencies include the SBA, Department of Agriculture, Department of Housing and Urban Development, Department of the Interior, and Department of Homeland Security, as well as the National Science Foundation and the General Services Administration.

SBA works closely with government buyers to set contracting goals and prioritize small businesses in the procurement process.Detailed agency scorecard and explanation Scoring method It can be found on the SBA website.

Highlights of the report include:

  • Disadvantaged small and medium-sized businesses (SDB) spending reached a record $76.2 billion, exceeding the third year’s 12% target.
  • Small businesses owned by service-disabled veterans exceeded their goal of 3 percent and achieved 5 percent, or $31.9 billion in contracts, an increase of $3.8 billion from last year.
  • Historically Underutilized Business Zone (HUBZone) companies have won a record $17.5 billion in contracts.
  • Women-owned small businesses received a record $30.9 billion, representing approximately 5% of total eligible contract value.

The SBA said that under Secretary Guzman’s leadership, it has prioritized making federal contracts more accessible. Efforts include new guidance to increase new and newcomer participation in federal contracts and expand access to multiple contracts that account for more than 20% of government contracts.

According to the SBA, enhanced training programs such as “Empower to Grow” will help disadvantaged small businesses improve contract readiness. Small Business Contract Reform also focuses on tracking performance, reforming contract consolidation practices, and revising size standards to bring more small businesses into his SBA programs.

Image: Enbat

Michael Guta is an assistant editor at Small Business Trends and has been with the team for nine years. He currently manages the East Africa editorial team. Michael brings years of content experience in the digital ecosystem covering a wide range of industries. He holds a Bachelor’s degree in Information and Communication Technology with an emphasis in Technology Management.

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“Small businesses received $178 billion in federal contracts in fiscal year 2023 and were responsible for supporting 1 million good jobs…”
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