The Office of Management and Budget (OMB) sent out a memo earlier this week reminding agency heads of the Biden administration’s goal to increase the percentage of contracting opportunities awarded to Small Disadvantaged Businesses (SDB) to 13 percent in fiscal year (FY) 2024.
The memo comes as a reminder of the White House’s goal to broaden the wealth gap between small disadvantaged businesses and individuals by using the purchasing power of the Federal government.
“Use of the Federal government’s purchasing power to build wealth in underserved communities, consistent with applicable law, has been a centerpiece of the president’s equity agenda and ties into the administration’s broader economic strategy to support small businesses and increase the resilience of the Nation’s supply chains,” the memo says.
The memo outlines how the Small Business Administration (SBA) exceeded the Biden administration’s goal of reaching 11 percent of all contracts awarded to SDBs, hitting 11.4 percent for FY2022. Since then, the White House has stepped up those efforts, increasing the goal to 13 percent for FY2024 and 15 percent for FY2025.
Furthermore, the memo says OMB will continue to work on efforts to build the diversity of the Federal supplier base. Those efforts include:
- Increasing opportunities for small businesses on multiple award contracts, which are popular vehicles for significant buying activities;
- Strengthening the quality, timeliness, and access to procurement forecasts so small businesses can better prepare to compete for work;
- Expanding access to Federal contracting through innovative acquisition practices that reduce transaction costs for small businesses; and
- Improving practices for small business subcontracting, which is a key gateway into the Federal marketplace.
“OMB will continue to work with SBA, the Domestic Policy Council, the National Economic Council, the Gender Policy Council, and agencies to build the diversity and resilience of the Federal supplier base,” the memo says.
