Equity in Federal Procurement Literature Review

The U.S. Small Business Administration (SBA) contracted with New Editions, Consulting, Inc., to conduct a comprehensive literature review on the topic of promoting equity in Federal procurement. This review focused on three key areas: (1) developing a working definition of equity in the context of federal contracting, (2) identifying existing inequities faced by historically marginalized small businesses, and (3) exploring existing and proposed practices for advancing equity within the federal procurement system. 

Findings revealed the absence of a clear and holistic definition of equity in federal procurement, with current terminology often reinforcing existing biases and failing to distinguish between equality and equity. Additionally, the review highlighted persistent inequities, with small businesses owned by marginalized groups facing disparities in business ownership, contract awards, and contract dollars. These disparities are perpetuated by systemic barriers, including lack of access to capital, discriminatory practices, complex procurement processes, and inadequate outreach efforts. 

Despite these challenges, the review identified a range of promising practices at both the administration and agency levels, including executive orders promoting small business participation, agency-level efforts to increase contracting opportunities, simplify processes, and conduct targeted outreach, as well as initiatives to enhance agency capacity and provide support to small businesses during the contracting process. 

While promising solutions exist, the literature review underscores the need for further research to evaluate the effectiveness of these practices and ultimately dismantle systemic barriers, paving the way for equitable opportunities for historically marginalized communities within the federal procurement system.