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Federal Small Business Awards Hits Record in FY2021


The Federal awards to small businesses in Fiscal Year (FY) 2021 hit a record $154 billion, exceeding the current administration’s goals. This earned a rating of “A” from the Small Business Administration’s (SBA) government-wide Small Business Procurement Scorecard. In total, 27.2% of total federal contracting awards went to small businesses, beating the white  house’s goal of 23%. SBA FY2021 Set Aside Awards for Small Business

The largest gains were to be had in the 8(a) small and disadvantaged business awards as well as the service disabled veteran-owned small business (SDVOSB) awards. Unfortunately not all federal set-asides were so lucky; women-owned small businesses (WOSB) receiving 4.63% of total contracting dollars. This was a bit under the administration’s goal of 5% for the year and a slight decrease from the year prior. Historically underutilized business zone (HUBZone) companies received $14 billion in awards amounting to 2.53% of all contracts; however while on the right track was less than the 3% goal.

Only three agencies did not receive an A or A+ award. These were Department of Health and Human Services (HHS) with a B, Department of Treasury also with a B, and Department of Housing and Urban Development (HUD) with a C. The three highest performing agencies were the Office of Personnel Management (OPM), the General Services Administration (GSA), and the Nuclear Regulatory Commission (NCR). All three were at least 30% above their set goals for FY2021.

While these realized goals are great news for small businesses, there are fewer small businesses competing for federal contracts. Over the past ten years, small firms doing business with the federal government has shrunk by about 40%. With less competition and more ear-marked dollars for small and disadvantaged businesses, it makes a lot of sense for these entities to throw their hat in the ring. The current administration has communicated they are working on improvements to boost this number as well. This includes abridging the cumbersome instructions and requirements to compete for opportunities and increasing outreach to HUBZone and disadvantaged businesses.

To learn more about the Biden administration’s 5 year plan to increase equity in contract awards, please see this article. If you are a small or disadvantaged business, please get started with a 5 day trial to explore the many opportunities currently available and on the horizon. EZGovOpps’ analysts are able to provide important information about a contract’s history. This including scope, task order activity, and incumbent information that isn’t readily available so you can place a competitive bid.

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