<<Back to Article National Association of Government Contractors www.governmentcontractors.org SBA Report on Small Business Contract Goals Misleading Jun 13, 2007 Washington, D.C. -- The National Association of Government Contractors (NAGC) is disappointed in the recent release of a Small Business Administration report showing misleading contracting numbers for small businesses. According to the U.S. Small Business Administration's most recent report for fiscal year 2005, the government exceeded its annual goal, awarding 25 percent of contracts to small businesses. Stemming from a 1997 decision to award 23 percent of contracting dollars to small businesses and recent changes in that law upping the number to 25, the SBA would have us believe this goal is being reached. However, this reporting does not count billions of dollars worth of contracts an estimated 20 percent of the years total spent due to "exclusions." "Changing the formula after the law is passed requiring 23 percent be awarded to small businesses is at best misleading and at worst a government scam," said J.R. Claeys, President of NAGC. "Small businesses work too hard to earn their place in government contracting to have this lie put into print. Small businesses do not, in fact, receive 23 percent or government contracts, and certainly not the bogus number generated from the SBA's new math." According to the SBA these gray areas are necessary and based on set criteria which includes spending by some 20 agencies' on private sector contracts, money spent internationally and on contracts deemed beyond the reach of small companies. When brought to the attention of SBA officials, who deemed these exclusions a necessary part of the reporting process, a definitive examples of what constituted grounds for exclusion in reporting was uncertain and an overhaul in current reporting methods was suggested. Issues of contract bundling placing some federal dollars out of reach of small business and no system in place to define when a "small business" has outgrown the title also raise concerns in terms of legitimate small businesses receiving their share of contracts. Several lawmakers and the Government Accountability Office have voiced concerns that the SBA's reports are creating a false sense that small businesses are getting their due percentage. Reforms in reporting suggested include an annual assessment of small business status, a closer eye in contracts being awarded to smaller firms owned by larger firms and including overseas contracts in the SBA's future reports. About NAGC: The National Association of Government Contractors (NAGC) is the home of America's procurement professionals. Thousands of business owners and executives working with government agencies, universities and private corporations trust NAGC as a professional resource for their procurement needs. Article URL: http://www.governmentcontractors.org/articles/a.323.asp © Copyright 2005-2008 The National Association of Government Contractors