Interagency task force on federal contracting opportunities for small businesses

Small businesses are leaders in innovation and drivers of the economy. Small businesses hold more patents than all of the nation's universities and largest corporations combined, and create two thirds of all private sector jobs, employing half of all working Americans.

The federal government is the largest buyer in the world, spending over $500 billion each year. For the Federal government, contracting with small businesses is common sense. Small businesses get the revenue they need to create jobs and drive the economy forward, and federal agencies get the creativity, innovation, and technical expertise of small businesses to help accomplish their mission. When small businesses are excluded from federal contracts, the federal government, American taxpayers and the nation's economy lose out.

Over 30 years ago, Congress set a goal of having a certain portion of all federal contracting dollars go to small businesses and established sub-goals for small businesses owned by women, socially and economically disadvantaged individuals, and service-disabled veterans of the Armed Forces, and for small businesses in Historically Underutilized Business Zones (HUBZones). The current government-wide goal for small businesses' share of contracting dollars is 23%.

In keeping with this commitment to small businesses, the President established the Interagency Task Force on Federal Contracting Opportunities for Small Businesses to ensure small businesses can participate in the nation's economic recovery, including small businesses owned by women, minorities, socially and economically disadvantaged individuals, and service-disabled veterans of our Armed Forces, as well as HUBZone small businesses. The Task Force - co-chaired by SBA, the Office of Management and Budget (OMB) and Commerce, and including twelve other federal agencies - created five working groups to address key barriers for small businesses in federal contracting. The working groups met, heard from key stakeholders, and identified three priority objectives:

Stronger rules.  Insufficient guidance and gaps in current policy hamper the use of tools that provide contracting opportunities for small businesses. The Task Force recommends actions to strengthen and update policies where they are weak or outdated and develop policies where they are lacking.

A better equipped, more informed and more accountable acquisition workforce. A lack of knowledge and agency accountability inhibits the government's ability to meet and exceed small business procurement goals on an ongoing basis. The Task Force recommends increasing the knowledge base and efficiency level of the procurement workforce and providing appropriate incentives and accountability for agencies to meet small business goals.

Improved outreach and better use of technology and data. The current data systems in the federal acquisition environment are cumbersome and not user friendly for many small businesses, especially for those who are new to the systems and trying to "get their foot in the door." The Task Force recommends a one-stop shop for easier access to procurement information, as well as greater focus on the accuracy of procurement data.

The complete report outlines the key recommendations and actions needed to meet these priority objectives.