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Kerfuffle Over Contracting Numbers

Monday, May 11, 2015  
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Policy Briefing Week of May 4



Kerfuffle Over Contracting Numbers


SBA Contracting Data is expected soon. Not only was the women-owned goal not met, but the data itself is being questioned.


Examination of FY14 contracting numbers compiled on, shows the government contracted 4.68% of its prime awards to women-owned small business.  That is short of the 5% goal that the government is asked to meet.  The data also shows that SBA exceeded its overall small business goal by 2%--at 25% of all federal contracts. 


Not so fast, Biz Journals reporter, Kent Hoover points out in a recent article.  He cites examples of those considered as small by SBA were, in fact, very large government contractors. In addition, he references a counting tactic that is baffling - the small business exclusion. That is, nearly $100 billion in contracts is excluded from the calculation -- adding that in, and the percentages shrink even more.


SBA has yet to release its official contracting numbers and we are inclined to give them the benefit of the doubt.  But Hoover raises a very good point - common sense dictates that large businesses should not be counted as small companies.


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