In a new memorandum from the Biden administration, Office of Management and Budget (OMB) Deputy Director for Management Jason Miller detailed how the White House would like to direct $100 billion in Federal contracting opportunities to small disadvantaged businesses (SDBs).
Executive Order (EO) 13985 served to direct agencies to make Federal contracting and procurement opportunities readily available to all eligible vendors and remove barriers for underserved individuals and communities. President Biden also set a goal of increasing the share of contracts awarded to SDBs to 15 percent by 2025.
“To achieve the President’s commitment, the memorandum instructs agencies to take five management actions, which have been developed in partnership with the Small Business Administration (SBA) and Federal buying agencies,” wrote Miller. “As a result, they will strengthen the breadth and depth of the Federal Government’s small business supplier base, which has eroded significantly over the past decade.”
These five management actions include:
- Agreeing with SBA on an agency-specific SDB contracting goal for fiscal year (FY) 2022 that would allow the government to cumulatively award at least 11 percent of Federal contract spending to SDBs in FY22;
- Reviewing and adjusting category management stewardship practices to boost contracting opportunities for SDBs and other small businesses;
- Increasing the number of new entrants into the Federal marketplace and reversing the decline in the small business supplier base;
- Including the achievement of small business contracting goals as a part of the performance plans for key Senior Executive Service officials; and
- Ensuring agency small business contracting offices have senior leadership access.
“These actions will also advance the third priority of the President’s Management Agenda (PMA): managing the business of government to build back better,” adds Miller. “The Biden-Harris Management Agenda Vision recognizes that fostering lasting improvements in the Federal acquisition system, including through the management actions described in this memorandum, can create opportunities for underserved communities.”
