The Department of Defense met its small business federal contracting goal for the fifth consecutive year and awarded 24% of federal contract dollars—or $72 billion—to small businesses, an increase of almost $11 billion over the previous year. Fiscal Year (FY) 2018 marks the first time the Department awarded more than $70 billion in prime contracts to small businesses. The Department also awarded $49 billion in subcontracts to small businesses—a $7 billion increase over FY 2017.
Scott Baum, Acting Director of the Small Business Programs and Principal Director within the Office of Industrial Policy announced, “I am happy to report that for the first time ever, the Department of Defense awarded more than $70 billion in prime contracts to small business and achieved an ‘A’ on the Small Business Administration procurement scorecard. In another milestone, DoD federal prime and subcontracts awarded to small businesses in FY2018 exceeded $120 billion for the first time, creating more than 654,000 American jobs. Small businesses are the backbone of our economy, and integral to the innovation and readiness needed to support the Department’s mission. Every contract that gets in the hands of a small business is a win for the small business, the Department, and the U.S. economy.”
In FY2018, the Department exceeded the prime contract goals for small businesses, service-disabled veteran-owned small businesses, and small disadvantaged businesses. DoD prime contract awards to small businesses represented 59% of all federal contract awards to small businesses. Additionally, the Department represented 61% of federal subcontract awards to small businesses and surpassed the subcontract goal for women-owned small businesses.
The Department continues to collaborate with the Small Business Administration and industry to expand opportunities for small business contractors, integral partners in building an innovative and ready Joint Force.