Small business procurement

Each federal agency has a statutory annual goal for awarding contract dollars to particular groups of contractors. As a contracting official, you’re responsible for finding contractors that can do the work and meet your agency’s goals.

The combined goals for the federal government are:

• 23% of prime contracts for small businesses
• 5% of prime and subcontracts for women-owned small businesses
• 5% of prime contracts and subcontracts for small disadvantaged businesses
• 3% of prime contracts and subcontracts for HUBZone small businesses
• 3% of prime and subcontracts for service-disabled veteran-owned small businesses

Agencies have individual goals for what percent of prime and subcontract dollars should go to small businesses. These agency goals may be different than the federal government’s overall goals. SBA publishes annual agency contracting goals.

SBA's Office of Government Contracting and Business Development determines how agency goals are set.

Agencies report information for each award over $25,000 through the Federal Procurement Data System Next Generation. SBA evaluates that information and publishes goaling scorecards that report on individual agency performance. Each agency that fails to achieve any proposed prime or subcontract goal is required to submit a justification and corrective action plan to SBA.

You’re required to use the Dynamic Small Business Search (DSBS) as a part of your market research. You can use DSBS to help determine set-aside or sole-source allocation, or search for contractors for open or upcoming awards.

In addition to using DSBS, you can try to find contractors through outreach, by hosting events and industry days.

If your research confirms there are an adequate number of small businesses to justify a set-aside or sole-source award, you should preference those options in order to help your agency meet its goals.

Office of Government Contracting and Business Development
409 3rd St. SW, Suite 8800
Washington, DC 20416