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The Federal Government Shorts Small Businesses Again, Misses Contracting Goal For Seventh Straight Year

Washington D.C., Jul 2 -

House Small Business Committee Chairman Sam Graves (R-MO) today released the following statement on the release of the FY 2012 Small Business Procurement Scorecard, which shows the government missed its goal of awarding 23 percent of federal contracts to small businesses for the seventh consecutive year.

“The fact that the federal government hasn’t met this meager 23 percent small business contracting goal for seven years is simply unacceptable, and further proof that our government continues to give lip service to small companies. We passed legislation last year that takes a step toward holding senior agency executives accountable for meeting the small business goals by making goal achievement an element in their performance plans. Nevertheless, the Administration must make meeting this goal a priority because it is efficient governance, and not just a law that makes small businesses feel good. Improving small business opportunities through federal contracts creates jobs and saves taxpayer money because small businesses bring competition, innovation and lower prices.

“If we look at the real number, you’ll find that small businesses only received 19.38 percent of all prime contract dollars last year. The Administration shouldn’t be allowed to cook the books. If we can’t trust the Administration to be honest about results, how can we trust them to be honest when it comes to health care, taxes, and the budget.”

According to Committee analysis of data from the Federal Procurement Data System, small businesses actually received 19.38 percent of all federal contracts for Fiscal Year 2012. This analysis includes all contracts subject to the Federal Acquisition Regulation, such as contracts awarded and performed overseas, contracts awarded to federal prison industries, and contracts for utilities, among others. The federal government spent $515.8 billion in prime contracts in FY 2012, and of that amount, $100 billion of all contracts were awarded to small businesses. During the 112th Congress Small Business Contracting Reform Initiative, the Committee passed legislation in the National Defense Authorization Act of 2013 (NDAA) that requires the Small Business Administration to use this more accurate method of goal calculation. The legislation originated as HR 3850, and was included as Sec. 1631(c) of the NDAA.

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