U.S. Small Business Administration (SBA)
Government-wide Procurement Preference
The federal government purchases billions of dollars in goods and services each year that range from paperclips to complex space vehicles. It is the policy of the United States, as stated in the Small Business Act, that all small businesses have the maximum practicable opportunity to participate in providing goods and services to the government. To ensure that small businesses get their fair share, the SBA negotiates annual procurement preference goals with each Federal agency and reviews each agency’s results. The SBA is responsible for ensuring that the statutory government-wide goals are met in the aggregate. The statutory goals are as follows:
- 23 percent of prime contracts for small businesses;
- 5 percent of prime and subcontracts for small disadvantaged businesses;
- 5 percent of prime and subcontracts for women-owned small businesses;
- 3 percent of prime and subcontracts for Hubzone businesses;
- 3 percent of prime and subcontracts for service-disabled veteran-owned small businesses.