Small Businesses Awarded $178 Billion in Federal Contracts in Fiscal Year 2023

The Small Business Administration (SBA) has just released its annual report card on federal agencies’ performance in awarding contracts to small businesses, and the results are impressive. The agencies exceeded their FY23 goal by awarding 28.4% of federal contract dollars to small businesses, representing a $178.6 billion investment in the sector.

SBA Administrator Isabel Casillas Guzman announced the results of the Fiscal Year (FY) 2023 federal procurement “Scorecard,” which evaluates how well federal agencies meet their small business contracting goals each year. Ten federal agencies received top grades of A+ for their performance, with an additional 12 agencies earning an A. Overall, the federal government received an A on this year’s scorecard.

Some highlights from the report include Small Disadvantaged Business (SDB) spending surpassing its 12% goal, service-disabled veteran-owned small businesses exceeding their 3% goal, Historically Underutilized Business Zones (HUBZone) firms receiving a record amount in contracts, and Women-owned Small Businesses receiving the highest-ever amount.

The SBA has prioritized making federal contracts more accessible under Administrator Guzman’s leadership, with efforts including new guidance to increase participation of new and recent entrants in federal contracting. Enhanced training programs like “Empower to Grow” help Small Disadvantaged Businesses improve their contract readiness, while reforms focus on tracking performance and revising size standards to include more small businesses in SBA programs.

Overall, the report showcases the government’s commitment to supporting small businesses and fostering growth in the sector.