U.S. Shorts Small Businesses $3 Billion in Federal Contracts

by Paul Joseph on July 6, 2013 · 0 comments

The federal government has again failed to meet its goals for small business federal contracts.  Last year, Washington fell short by an estimated $3 billion in prime contracts short of the goals set for awarding federal contracts to small businesses. The Small Business Administration reported that just 22.25 percent of the estimated $400 billion spent by the federal government in 2012 was directed at small businesses across the country. SBA revealed this data in its 2012 federal spending scorecard which monitors contract spending by the federal government. While that figure is up from the 2011 total, it’s still short of the minimum established by the Small Business Act of 1953, according to a report at Entrepreneur.com . The House Small Business Committee says it is the seventh consecutive year the federal government has missed its goal set in the 60-year-old legislation. In a prepared statement, House Small Business Committee Chairman Sam Graves (R-MO) commented : 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. Although the shortfall may seem inconsequential in terms of percentage points, that $3 billion is more than enough to keep several small businesses thriving. The government also failed to reach its goal in awarding sub-contracts to small businesses on which separate data is kept. U.S. Flag Photo via Shutterstock The post U.S. Shorts Small Businesses $3 Billion in Federal Contracts appeared first on Small Business Trends .

[via Small Business Trends]

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