New Goldman Sachs and Bipartisan Policy Center Report Reveals Systemic Roadblocks for Small Businesses in Federal Contracting Process

Rhea-AI Summary

The Goldman Sachs 10,000 Small Businesses Voices program, in collaboration with the Bipartisan Policy Center, released a report highlighting barriers small businesses face in federal procurement.

It noted a 38% decline in small businesses as federal contractors over the past decade and a 79% drop in new participants from 2005 to 2019. While federal agencies have met a 23% spending goal for small businesses, they have consistently missed targets for women-owned businesses and those in HUBZones.

Policy reforms are urged to enhance small business participation in federal contracts.

Positive

• Goldman Sachs 10,000 Small Businesses Voices supports policy reforms to enhance small business access to federal contracts.
• The report includes comprehensive policy recommendations to promote small business participation.

Negative

• 38% decline in small businesses participating as federal contractors over the last decade.
• 79% drop in new small business entrants into the procurement marketplace from 2005 to 2019.
• Federal government has only met its goal of awarding 5% of contracts to women-owned small businesses twice since 1994.
• Never met the 3% HUBZone goal for small businesses.

In partnership with the Bipartisan Policy Center, the Goldman Sachs 10,000 Small Businesses Voices program released a new report detailing the systemic barriers small businesses face during the federal procurement process. The report offers policy recommendations that Congress should consider including in an infrastructure package or other legislation to reform the system.

The report revealed that, over the last 10 years, there has been a 38% decline in the number of small businesses participating as federal contractors. Even more dramatically, the number of small businesses entering the procurement marketplace as new entrants declined by 79% from 2005 to 2019. Goldman Sachs 10,000 Small Businesses Voices found that 88% of small business owners support changes to the federal procurement process.

Furthermore, while federal agencies have met annual goals of spending 23% of procurement dollars with small businesses for seven consecutive years, the government has generally failed to meet procurement goals for women-owned small businesses and small businesses located in historically underutilized business zones. Since 1994, the federal government has only met its goal of awarding 5% of contracts to women-owned small businesses twice and it has never met the 3% HUBZone goal.

“It’s deeply troubling that the federal government has failed to meet its own goals for small business contracts over the last 20 years,” said Joe Wall, director of the Goldman Sachs 10,000 Small Businesses Voices program. “Our report makes clear that significant reforms are needed to ensure the federal contracting process gives small businesses a level playing field to compete and succeed.”

“The Bipartisan Policy Center is proud to partner with the Goldman Sachs 10,000 Small Businesses Voices community to raise awareness about this important issue that impacts small businesses and our economy,” said Dane Stangler, Director of Strategic Initiatives at the Bipartisan Policy Center. “Policy action by Congress and the Administration to reform federal procurement can increase access for small business and strengthen the American industrial base.”

The new report also outlines a number of different policy priorities that can promote greater small business participation in federal contracting, including: expand the breadth of small business participation, increase diversity, and reduce entry barriers; enhance assistance for small businesses to increase competition; improve transparency, accountability, and oversight; and modernize the 8(a) program to streamline the certification process at the beginning and for annual renewal.

The full report with detailed policy recommendations for procurement reform can be found here.

ABOUT 10,000 SMALL BUSINESSES VOICES

Goldman Sachs 10,000 Small Businesses Voices is an initiative for program participants to organize and advocate for policies that matter to them. It builds on Goldman Sachs 10,000 Small Businesses, which over the past decade has provided access to education, capital, and support services to more than 10,000 small business owners across all 50 states, Puerto Rico, and Washington D.C.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210625005033/en/

FAQ

What are the main findings of the Goldman Sachs 10,000 Small Businesses Voices report regarding federal procurement?

The report reveals a 38% decline in small businesses as federal contractors and a 79% drop in new entrants from 2005 to 2019.

What percentage of small business owners support changes to federal procurement processes?

88% of small business owners support changes to the federal procurement process.

How has the federal government performed in meeting its small business contracting goals?

The federal government has consistently failed to meet its procurement goals for women-owned and HUBZone small businesses.

What recommendations does the Goldman Sachs report make for improving federal procurement?

The report recommends reforms to increase small business participation, such as enhancing support, improving transparency, and modernizing the certification process.