The Small Business Administration has released its 2016 Small Business Scorecards, SBA’s Government-wide and agency-specific review of small business utilization, transparency, and agency progress.
The SBA negotiates the goals with every agency once every 2 years to ensure that prime and subcontracting goals exceed 23 percent of total contract spending.
Overall, SBA scored Government-wide small business use as an “A.” Government-wide small business contracting exceeded the established goals in every small business category other than HUBZones, which achieved only 1.67%, falling short of the 3.00% goal.
As a small business, this is great news; the Federal government remains committed to ensuring that entrepreneurship is encouraged and innovation has a place in our Government.
Federal Spending Trends and Small Business Set-Aside Goals
The numbers also reveal that, though goals were exceeded, the percentages for all but Service Disabled Veteran Owned Small Businesses (SDVOSB) dropped from 2015:
| Type | 2015 | Goal | 2016 |
| Small Business | 25.75% | 23.00% | 24.34% |
| Women Owned Small Business | 5.05% | 5.00% | 4.79% |
| Small Disadvantaged Business | 10.06% | 5.00% | 9.53% |
| Service Disabled Veteran Owned Small Business | 3.93% | 3.00% | 3.98% |
| HUBZone | 1.82% | 3.00% | 1.67% |
The drop occurred in a year when overall Federal contract spending also decreased, although, as a percentage, small business contracting should remain the same or increase. Consequently, it continues to be necessary for small businesses to market their capabilities to agency small business representatives, their customers, and large prime contractors.
Agencies Small Businesses Should Target in 2017
Based on this year’s Small Business Scorecards, let’s identify agencies that need to work with small businesses the most in the coming year. First, we’ll review Prime contracts awarded to small businesses – all shaded cells indicate areas where an agency missedits SBA goal and will be required to adjust in the coming years, which could be an opportunity for small businesses:
| Agency | Small Business (Goal) | Small Business % | Small Business $ | SDB (5% Goal) | WOSB (5% Goal) | SDVOSB (3% Goal) | HUB Zone (3% Goal) |
| Government-Wide Performance | 23.00% | 24.34% | 99,960,215,526 | 9.53% | 4.79% | 3.98% | 1.67% |
| Agency for International Development | 11.00% | 13.12% | $571,105,191.00 | 5.50% | 3.36% | 1.19% | 0.19% |
| Department of Agriculture | 52.50% | 56.24% | $3,318,838,167.00 | 16.85% | 9.86% | 3.98% | 3.94% |
| Department of Commerce | 40.00% | 41.44% | $1,899,238,194.00 | 17.43% | 11.59% | 4.87% | 4.23% |
| Department of Defense | 21.26% | 22.94% | $57,813,095,692.00 | 8.77% | 4.10% | 3.36% | 1.57% |
| Department of Education | 25.50% | 23.35% | $556,156,111.00 | 5.98% | 5.96% | 1.17% | 0.58% |
| Department of Energy | 6.37% | 5.39% | $1,425,906,166.00 | 2.87% | 1.24% | 0.65% | 0.15% |
| Department of Health and Human Services | 22.75% | 23.02% | $5,442,690,789.00 | 10.86% | 7.29% | 1.56% | 1.03% |
| Department of Homeland Security | 33.50% | 36.95% | $5,176,211,228.00 | 15.64% | 7.67% | 5.99% | 4.21% |
| Department of Housing and Urban Development | 35.00% | 46.34% | $515,022,468.00 | 23.28% | 20.12% | 4.41% | 1.20% |
| Department of Justice | 30.00% | 31.72% | $2,235,939,934.00 | 12.13% | 6.12% | 3.69% | 1.05% |
| Department of Labor | 35.10% | 36.04% | $658,558,821.00 | 22.90% | 12.03% | 4.72% | 2.77% |
| Department of State | 22.50% | 28.56% | $2,454,373,934.00 | 14.81% | 6.23% | 5.40% | 2.37% |
| Department of the Interior | 53.50% | 59.67% | $1,830,722,146.00 | 27.07% | 12.86% | 5.02% | 4.87% |
| Department of the Treasury | 37.00% | 36.17% | $1,087,123,276.00 | 15.29% | 11.59% | 4.14% | 4.49% |
| Department of Transportation | 49.50% | 51.77% | $983,003,674.00 | 21.89% | 10.65% | 3.11% | 10.86% |
| Department of Veterans Affairs | 32.50% | 29.88% | $6,910,384,502.00 | 7.09% | 3.04% | 17.76% | 1.58% |
| Environmental Protection Agency | 41.75% | 40.09% | $638,379,221.00 | 14.82% | 5.88% | 3.95% | 0.61% |
| General Services Administration | 36.50% | 39.23% | $1,646,312,884.00 | 21.64% | 9.31% | 5.32% | 3.89% |
| National Aeronautics and Space Administration | 16.75% | 16.67% | $2,666,446,582.00 | 8.17% | 4.05% | 0.86% | 0.52% |
| National Science Foundation | 12.75% | 18.64% | $81,181,202.00 | 11.17% | 2.68% | 3.12% | 2.37% |
| Nuclear Regulatory Commission | 32.25% | 37.12% | $84,357,393.00 | 20.32% | 10.20% | 6.14% | 2.90% |
| Office of Personnel Management | 25.25% | 31.40% | $294,506,368.00 | 11.45% | 9.66% | 1.46% | 3.19% |
| Small Business Administration | 72.75% | 73.70% | $111,573,427.00 | 39.48% | 21.73% | 11.20% | 6.54% |
| Social Security Administration | 36.75% | 36.67% | $549,961,455.00 | 8.68% | 13.39% | 3.16% | 1.57% |
Only a few agencies missed the overall goal and mostly by thin margins. The bigger differences come when identifying prime contracts awarded to specific designations of small businesses. For example, Education, Energy, HHS, and OPM all missed the SDVOSB mark. These agencies would be good strategic contacts for SDVOSB’s in 2017 and 2018.
Agencies that exceeded their goals understand the value of small businesses and will be looking to continue their success. Small Business-friendly agencies include Agriculture, Commerce, HUD, DOL, Interior, DOT, GSA, Regulatory Commission, and the SBA.
Sometimes there are reasons for missing goals. For example, NASA may find it difficult to find technically acceptable small businesses for many of its projects and instead relies on large primes to subcontract work. NASA exceeded the goals for SB, SDB, and WOSB when it came to subcontracted work.
The Department of Energy missed every goal; this may mean that small businesses are underrepresented in the programs that fall under DoE’s mission.
The Department of Veterans Affair missed two goals, but I would expect that to change much, given its Supreme Court-validated VetsFirst policy.
Subcontracting goals and performance by agency:
| Agency | Small Business (Goal) | Small Business % | Small Business $ | SDB (5% Goal) | WOSB (5% Goal) | SDVOSB (3% Goal) | HUB Zone (3% Goal) |
| Government-Wide Performance | 33.70% | 32.20% | 83,500,325,652 | 5.50% | 5.70% | 1.60% | 1.10% |
| Agency for International Development | 20.00% | 26.70% | $126,859,949.00 | 3.30% | 7.50% | 1.10% | 0.80% |
| Department of Agriculture | 23.00% | 23.80% | $220,369,767.00 | 0.80% | 1.70% | 0.10% | 0.30% |
| Department of Commerce | 30.00% | 56.40% | $162,077,057.00 | 16.10% | 19.60% | 3.80% | 2.70% |
| Department of Defense | 34.50% | 33.90% | $41,828,903,746.00 | 4.40% | 5.70% | 2.10% | 1.40% |
| Department of Education | 31.00% | 37.10% | $183,062,274.00 | 8.40% | 6.20% | 3.40% | 2.60% |
| Department of Energy | 50.00% | 54.20% | $5,439,606,719.00 | 11.80% | 11.00% | 3.10% | 3.30% |
| Department of Health and Human Services | 33.00% | 29.90% | $979,929,555.00 | 5.40% | 6.70% | 1.50% | 0.90% |
| Department of Homeland Security | 41.00% | 47.50% | $1,072,095,625.00 | 9.90% | 11.30% | 4.60% | 2.30% |
| Department of Housing and Urban Development | 55.00% | 53.80% | $97,872,071.00 | 19.00% | 13.30% | 8.30% | 1.50% |
| Department of Justice | 40.00% | 38.20% | $186,602,831.00 | 8.50% | 9.10% | 1.50% | 1.60% |
| Department of Labor | 55.00% | 65.90% | $123,767,321.00 | 16.30% | 16.50% | 5.20% | 7.50% |
| Department of State | 29.00% | 47.30% | $812,181,366.00 | 3.30% | 8.90% | 2.50% | 1.60% |
| Department of the Interior | 44.50% | 42.20% | $220,601,217.00 | 15.00% | 11.20% | 3.30% | 1.60% |
| Department of the Treasury | 26.00% | 39.00% | $194,940,988.00 | 8.00% | 9.50% | 1.20% | 2.80% |
| Department of Transportation | 55.00% | 50.10% | $700,656,164.00 | 10.30% | 9.00% | 2.10% | 0.60% |
| Department of Veterans Affairs | 17.00% | 18.70% | $7,436,959,133.00 | 1.40% | 2.20% | 0.30% | 0.50% |
| Environmental Protection Agency | 47.00% | 69.90% | $10,786,167.00 | 8.40% | 14.20% | 3.80% | 0.90% |
| General Services Administration | 29.00% | 31.30% | $19,895,281,124.00 | 7.60% | 5.90% | 0.70% | 0.40% |
| National Aeronautics and Space Administration | 33.00% | 39.20% | $2,587,386,334.00 | 12.50% | 10.70% | 2.90% | 2.70% |
| National Science Foundation | 24.00% | 50.30% | $22,270,793.00 | 9.90% | 27.50% | 2.80% | 0.90% |
| Nuclear Regulatory Commission | 40.00% | 86.90% | $19,881,070.00 | 14.70% | 20.80% | 3.40% | 3.10% |
| Office of Personnel Management | 58.00% | 44.50% | $23,420,376.00 | 9.00% | 7.50% | 5.20% | 10.20% |
| Small Business Administration | 39.00% | 92.30% | $572,942.00 | 23.50% | 22.60% | 0.10% | 0.00% |
| Social Security Administration | 50.00% | 50.60% | $109,895,204.00 | 8.10% | 13.10% | 2.10% | 2.50% |
Search www.FBO.gov for Request for Information or Sources Sought where agencies are conducting market research to identify small business that can provide the needed solution. Search agency forecasts to find where you can get ahead of the procurement cycle and make it known that you can satisfy the agency’s needs. Finally, reach out to Small Business Representative, Liaisons, Advocates, and Contracting Officers to get in front of influencers and decision makers.
Using Small Business Representatives to Connect
SBA Procurement Center Representatives: https://www.sba.gov/contracting/resources-small-businesses/pcr-directory/area-directors
Every agency and contracting office typically has a Small Business Representative that advocates for small business. You can typically find these representatives listed on each agency website.
Contact your local Procurement Technical Assistance Center (PTAC) for contracting training and assistance or contact Coley GCS for contract acquisition, strategic planning, Bid support, or channel representation.
Vice President for Coley GCS, LLC, a Government Contracts Consulting, Coaching and Training company. Daniel is a Certified Federal Contracts Manager (CFCM) and leads the day-to-day operations of Coley’s consulting practice. He has two decades of experience with the acquisition, management, and marketing of Federal, State, and Local government contracts. Daniel specializes in all aspects of GSA Schedules management and marketing and has helped hundreds of Coley clients remain compliant with the terms of their GSA contract while helping them expand their business.