Maximizing Success as a Small Business Set-Aside

The Federal government’s support for Small Business contracting has had a dramatic impact on the economic vitality of communities across the country. Results from GFY 2020 reflect that the small business federal contracting goal was again exceeded, awarding 26.01% or $145.7 Billion in federal contract dollars to small businesses, a $13 billion increase from the previous fiscal year. Evaluating those results further, the Small Disadvantaged Business (10.54%/5%) and Service-Disabled Veteran Owned Small Business actuals vs. goals (4.28%/3%) were also exceeded, while the Women Owned Small Business came in with a narrow miss (4.85%/5%). HUBZone has shown growth but continues to reflect a shortfall in results 2.44%/3%). While goal numbers are improving, the number of small businesses doing business with the Federal Government has decreased by almost 40%.

The Small Business Administration was formed to build and maintain a small business industrial base to support the national defense and economy. When the pool of Small Business awardees is evaluated further however, do we find that we are achieving the long term goals necessary to meet the needs of the federal government? i.e., are we growing a broader/stronger/deeper industrial base of high-quality contractors capable of providing innovation and meeting future needs?

Or more and more do we see top small business contractors continuing to win these set-aside contracts until they’ve outgrown their small business designation, while other high-quality but less successful contractors languish and/or go out of business? And if we see that the trend leans toward the latter, how do we make adjustments and create the win-win environment where the graduating small businesses can continue to grow and mature, while the previously less successful contractors can more successfully participate while delivering a product which meets or exceeds the product or service requirements?

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