The agency has a new small and medium -sized enterprise contract target for the 2025 fiscal year, and is in line with the conventional target.
Small and medium -sized enterprises require specifically reset the blessed business goals and request agencies to award at least 5 % of these companies.
On January 24, SBA assigned the same goal to all social and economic categories to all organizations.
This reset has a particular impact on the SDB program. The Biden administration has set a 15 % goal of 15 % of all the Federal Prime Minister Agents to go to these companies in FY2025.
“The prime contract target for statutory small and medium -sized enterprises is the floor, not the ceiling, so the goal of the statutory SDB is” 5 % or more. ” As a result, the president has the authority to set a high prime contract target in the category of all small and medium -sized businesses. Former SBA officials who demanded anonymity to talk about this sensitive topic, have historically achieved 5 % SDB goals. “For example, in FY2017, the government gained 9 % in SDB. By gradually raising the goals of SDBs throughout the government to 15 % and negotiating each institution and individual SDBs, the whole government as a whole. SDB performance increased to 12 % in 2024.
The goal of SDBS is gone
Previous officials said that the decline in institutions to the SDB contract would have almost affect companies in the 8 (A) program.
“By lowering the SDB goals, government agencies can change the focus from concerns in 8 (A) from other difficult fields, such as Hubzone, which has never achieved 3 % of the major contract targets of 3 %. I have sex, “said the former staff.
In the past four years, agencies have consistently increased prime contract awards for small businesses, especially SDB. To do so, the SBA sets the goals of individual and specific SDB of each institution. In fiscal 2024, SDBS agencies were all within the Labor Bureau, including 60.5 % of SBA to 8.15 % of the energy division, 11.55 % of the Pentagon, and 12.25 % of the veterans. did.
In FY2023, the agency awarded $ 76.2 billion to a blessed small company.
Overall, the distributor has been awarded 28.4 % of SMEs 28.4 % of the federal contract dollar. This means that small businesses had received $ 178.6 billion in a total contract, which increased $ 15.7 billion from 2022. The government as a whole is 23 % of the small and medium -sized business contract goals.
SBA will provide 2024 data in the spring.
Trump ends the DEI program
SBA’s decision to lower the government’s as a whole seems to be directly related to the new administration’s policy of deleting all diversity, fairness, and inclusion requirements in contracts.
President Donald Trump issued a presidential decree on January 20 to end diversity, fairness and comprehensive programs. As part of the order, the agency was told to end the DEI or stock program or initiative.
John Shoraka, a former SBA government contract and business development, and now the CEO of Strategic Growth Partners, has stated that a set align program for SMEs seems to have been involved in the “anti -DEI” wave. 。
He stated that there were bills proposed to Congress to destroy the 8 (A) program.
“The 8 (A) program has been revised two summer as a result of the court’s decision, and the program has been corrected and the reference to race has been eliminated as a qualification.” “The 8 (A) program is a quick acquisition model of agencies, especially in the fourth quarter and needs to be implemented quickly by the end of the fiscal year. Most of the fiscal year, we make continuous resolutions, and we will continue to pass the 8 (A) program at the end of the year, as we do not have the ability to completely commit the funds until the final budget is approved. If the resolution and agency leave scramble to implement contract measures at the end of the year, the government will not work properly to prevent the government from using the 8 (A) program. You can procure the necessary products and services.
Cy Alba, a partner of Pilieromazza at a law firm, said that reversing goals is not unusual in the new administration.
“My understanding of talking to the new administration and the representative of the new parliament is supporting ultra -partial support for small and medium -sized enterprises and support for small and medium -sized enterprises to support growth and development. The enforcement of the consistent consistency between the Corporate Law and regulations will include continuous support for small and medium -sized enterprises in the federal market. ” “Therefore, I think that these changes are only reversed to the current situation because their goals have been stated for many years before the specific increase made by the Biden administration.”
Pilieromazza’s management partner, Tony Franco, has added that any government has changed its goal down.
“The Trump administration is definitely considered to be in their goals, focusing on the recovery of the so -called merit -based opportunities,” he said.
The new goals of SBA in all CFO Act Agency in the social and economic category are as follows:
5 % female owned by female small and medium -sized businesses 5 % Service Veteran 5 % HUBZONE 3 %
The overall goal of Agency SMEs seems to remain the same as those negotiated with SBA in 2025.
The email to the SBA was not returned immediately in search of comments on the decision to reset the goals.
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