For the third consecutive year, DoD earned an “A” grade in the Small Business Administration’s (SBA’s) Small Business Procurement Scorecard.
SBA’s annual Scorecard measures how well federal agencies reach their small business and socioeconomic prime contracting and subcontracting goals. Every year, SBA works with DoD to establish prime-contracting and subcontracting goals. DoD’s “A” grade is based on three quantitative measures: prime contracts (80 percent), subcontracts (10 percent) and its progress plan for meeting goals (10 percent).
“DoD’s grade reflects our commitment to maximizing opportunities for small businesses to contribute to national security by providing combat power for our troops and economic power for our nation,” Dr. James Galvin, Acting Director of DoD’s Office of Small Business Programs, said. “DoD’s fiscal year 2016 achievements are the result of dedicated efforts by the entire DoD acquisition community, especially Small Business Professionals and Contracting Officers.”
Small Business Professionals collaborate with acquisition staff to help define requirements for procurements, identify qualified small businesses through market research and shape acquisition strategies to address small business prime-contracting and subcontracting requirements.
Connecting Small Businesses With Contracting Opportunities
DoD spends more than 60 percent of the federal procurement budget eligible for small businesses and is committed to expanding opportunities for small businesses to compete for and win defense contracts.
FY 2016 Small Business Prime Contracting Achievements
In fiscal year 2016, DoD achieved three out of five of its prime-contracting goals.
DoD exceeded its prime-contracting goal of 21.26 percent by awarding 22.94 percent of small business-eligible, prime-contracting spending to small businesses. DoD exceeded its prime-contracting goals for small businesses, small disadvantaged businesses (SDBs) and service-disabled, veteran-owned small businesses (SDVOSBs), but missed its goals for woman-owned small businesses (WOSBs) and HUBZone-certified small businesses.
FY 2016 Small Business Subcontracting Achievements
In fiscal year 2016, DoD met one out of five of its subcontracting goals. DoD exceeded its subcontracting goal for WOSBs, but did not meet its overall small business goal or goals for SDBs, HUBZone-certified small businesses and SDVOSBs.
FY 2016 Prime Contracting Spending on Small Businesses: $58 Billion
Of course, small businesses don’t take percentages to the bank. In fiscal year 2016, DoD awarded $57.8 billion in prime-contract spending to small businesses, $5.4 billion more than fiscal year 2015. DoD awarded $10.3 billion in prime-contract spending to WOSBs, $22.1 billion to SDBs, $4.0 billion to HUBZone-certified small businesses and $8.5 billion to SDVOSBs.
FY 2017 Small Business Procurement Goals
DoD’s fiscal year 2017 small business prime-contracting goal is 22 percent. DoD’s fiscal year 2017 subcontracting goal is 34 percent. You can find the fiscal year 2017 prime contracting goals for 22 DoD buying commands here.
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