The Office of Management and Budget has released a memorandum that directs federal agencies to raise the share of contract dollars awarded to small disadvantaged businesses from 11 percent in fiscal year 2022 to 12 percent in FY 2023.
OMB will continue to collaborate with the Small Business Administration and other agencies, the National Economic Council, Domestic Policy Council and the Gender Policy Council to implement the procurement equity programs and carry out more initiatives to build up the federal supplier base’s resilience, according to the memo published Tuesday.
OMB said efforts will include reducing barriers to entry and providing opportunities for these SDBs, women-owned small businesses and other small entities to compete for federal contracts.
According to the document, agencies reached the 11 percent goal in FY 2021 by awarding a total of $62.4 billion to SDBs.
The Biden administration seeks to increase the share of federal contracting dollars awarded to SDBs to 15 percent by 2025.
