Utah small business benefits from $3.9B in federal contracts

Brice Wallace 

Contracting with the federal government had a $3.9 billion impact on Utah small businesses in the 2021 fiscal year, according to a recently released government report.

The figure represents the gross federal dollars spent in the state and is part of the $154.2 billion in federal contract dollars to small businesses throughout the U.S. during that time.{mprestriction ids="1,3"} The national total was $8 billion higher than in the prior fiscal year. Small-business contracting accounted for 27.2 percent of total federal contracting.

“Utah small businesses not only support Hill Air Force Base but many other federal agencies in Utah and nationwide,” said Marla Trollan, director of the U.S. Small Business Administration Utah District. “These Utah firms are a vital part of the government contracting ecosystem and our local economy.

“As one of the largest buyers in the nation, the federal government bought almost $800 million worth of goods and services from Utah small businesses last year. The Utah District Office continues to support and prioritize the overall SBA mission, ensuring all small businesses have access to opportunities and can compete in the federal marketplace.”

The figures released by the SBA indicate that in Utah during the 2021 fiscal year:

• Small-business contract awards totaled $783.2 million.

• Small disadvantaged business awards totaled $313 million.

• Woman-owned small-business awards totaled $209.7 million.

• Service disabled veteran-owned small-business awards totaled $93.2 million.

• Awards in Historically Underutilized Business Zones totaled $62.7 million.

• Contracts under the 8(a) program totaled $90.6 million.

“The federal government is the largest buyer of goods and services on Earth, and small firms are front and center in supplying these items to all agencies at all levels,” said Aikta Marcoulier, SBA regional administrator. “The SBA has made it a priority to assist American manufacturers sell their products and services to the U.S. government, and make sure there is an equitable and fair procurement process used by all federal agencies.”

Nationally, women-owned small businesses received more than $26 billion in federal contracts for the third straight year, translating to 4.6 percent of the 2021 fiscal year total eligible dollars. The SBA is working with contracting agencies to make future progress toward a higher figure, in part by increasing the number of certified firms from approximately 1,000 to nearly 6,000 and expanding the job-position codes for which women-owned businesses can receive set-aside awards. Currently, over 92 percent of federal spending is covered by codes eligible for women-owned small-business set-aside awards.

Service-disabled veteran-owned small businesses reached $25 billion in procurement and a $1 billion spending increase over the prior year.

Small disadvantaged business spending reached 11 percent for the first time in history, reaching the Biden administration’s goal one year ahead of schedule.

  HUBZone small businesses received a record $14.3 billion in federal contract awards.

Nationwide, the federal government achieved its small-business subcontracting goals, awarding 30.9 percent, or $72 billion, to small-business subcontractors. Women-owned small-business subcontractors received 5.2 percent of subcontracts, or $12.2 billion, exceeding a 5 percent goal.

“Small businesses play a vital role in the American economy, and they are essential to the mission of the Department of Defense, enabling us to develop, deliver and sustain critical capabilities to our warfighter,” said William LaPlante, DoD undersecretary. “DoD achieved our small-business prime contracting goal for eight consecutive years. This shows our commitment to maximize opportunities for small businesses, which increases competition and strengthens our national and economic security.”

SBA Administrator Isabella Casillas Guzman said increased small-business contracting has advanced competition, strengthened local economies, and supported job growth across the nation.

“By expanding small-business opportunities and building equity in federal procurement, we have helped to ensure that federal agencies can fully leverage the extraordinary talent and innovation delivered by our nation’s entrepreneurs,” she said. “Building on the major procurement reforms announced last year, the SBA will continue to further progress in all federal procurement goals so more entrepreneurs can grow their businesses with government contracts, including those presented by President Biden’s Infrastructure Investment and Jobs Act.”

The federal government reported that despite the overall increase in the dollar value of small-business awards, the number of small businesses receiving prime contracts with the federal government fell again in fiscal 2021. This continues a multi-year trend of decreases in small-business vendors, dating back over a decade.

In December, the government issued a policy memorandum intended to reverse the decline in the small-business supplier base, in part by tracking new entrants to ensure that new government contractors are entering and then finding opportunities in the federal marketplace. 

Businesses wanting to learn more about government contracting can attend the PTAC Government Procurement Symposium on Oct. 19, 8 a.m.-4 p.m., at Salt Lake Community College’s Miller Campus, 9690 S. 300 W., Sandy. The annual event is presented by the Procurement Technical Assistance Center at the Governor’s Office of Economic Opportunity. Details are at go-utah.fyi/PTACsymposium.{/mprestriction}