Major changes will help boost access to $560 billion in contracting opportunities for disadvantaged small businesses

u s small business administration

Major changes adopted by OMB (White House, Office of Management and Budget) will help boost access to $560 billion in contracting opportunities for disadvantaged small businesses

Reform is being made by the Biden-Harris Administration to level the playing field for all contracting entrepreneurs through a more equitable federal procurement system and buying strategy.

 

Government contracting

 

December 2, 2021

Among the key policy modifications recommended and advocated for by the SBA are changes to the government’s approach to encourage and score 24 federal agencies to bundle contracts. Over the last five years, this system, called Category Management, has favored major corporations and made far too many contracts out of reach for small businesses, which has a far-reaching impact on the U.S. economy. Today’s changes will help increase contracting opportunities for over 30,000 underserved small businesses and give America’s 32.5 million small businesses a seat at the table by making the SBA a voting member of the Category Management Leadership Council, the interagency governing body that oversees contract bundling activities.

In addition to changes to category management, the Administration is unveiling fiscal year (FY) 2020 disaggregated contracting data, analyzed by the SBA, which tracks the federal government’s contracting with small and minority-owned firms and breaks that information down across several racial and ethnic categories—a move the SBA Administrator Isabella Guzman has consistently pushed for to create transparency and accountability in contracting. Under the previous Administration, more than 80 percent of small businesses, half of which were from historically disadvantaged socioeconomic groups, had been nearly left out of the federal contracting space, losing billions of dollars in opportunities every year.


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