The number of small businesses receiving government contracts dropped yet again in Fiscal Year 2020–and the four-year decline is 12.7%.
In its FY 2020 goaling scorecard, the SBA reported that 45,661 distinct small businesses received contracts in the top 100 NAICS codes. The previous fiscal year, 46,661 distinct small businesses received contracts. Four years ago, when SBA first started including this statistic in its annual reports, the number stood at 51,866. Clearly, the numbers are going in the wrong direction.
Congress is expected to pass a huge coronavirus stimulus package in the coming days. While lobbyists and congressional staffers wrestle over the last bits and pieces to find their way in to the bill, there seems to be a pretty important group left out—small business federal contractors.
As we reflect on the end of 2019 and look forward to what 2020 will bring, it’s interesting to see what was noteworthy to our readers in 2019. To that end, I’ve compiled a list of some of our most popular posts from 2019.
2020 will certainly bring many more changes in the federal contracting world and SmallGovCon will be here to provide insight on all of them.
As we wrote about, the Section 809 Panel had recommended that Congress eliminate most small business set-asides for DoD acquisitions. The Panel suggested replacing small business set-asides with a five percent small business price preference.
It looks like Congress heard our concerns—and those voiced throughout industry—and will reject this suggestion.
The third volume of the Panel’s recommendations, stretching over 500 pages, includes a recommendation that DOD be granted additional flexibility to spend its appropriated dollars from Congress. As the Panel puts it, Congress should “[p]rovide increased flexibility to the time periods within which contract obligations are permitted to occur.”
Another one of their ideas is to eliminate certain domestic purchasing preferences by having Congress create exceptions for DOD purchases and create a public interest exception for the Berry Amendment. The panel’s concern is that the purchasing restrictions can result in higher prices, reduced volume, or delivery delays.
The Section 809 Panel has recommended that Congress eliminate most small business set-asides for DoD acquisitions. The Panel would replace the longstanding set-aside system with a meager five percent small business price preference.
For small government contractors, this recommendation is the policy equivalent of a five-alarm fire. Small contractors may need to fight hard to save the set-aside system.