FY24 Small Business Procurement Scorecard
The Small Business Administration (SBA) recently released its FY24 Small Business Procurement Scorecard, revealing that numerous federal agencies received high marks for their efforts in awarding contracts to small businesses. While these grades suggest commendable performance, a deeper examination raises questions about the metrics used and the actual impact on the small business community.
The SBA's scorecard evaluates federal agencies based on their success in meeting small business contracting goals. Agencies are graded on a scale from A+ to F, with the grading determined by four key areas: prime contracting achievement (50%), subcontracting achievement (20%), year-over-year growth in small business prime contractors (10%), and compliance with small business utilization requirements (20%) . In FY24, ten agencies, including the SBA itself, the Department of Agriculture, and the Department of Homeland Security, achieved A+ grades, while twelve others received an A .
On the surface, these results indicate a strong commitment to supporting small businesses. The federal government awarded a record-breaking $178.6 billion in contracts to small businesses, accounting for 28.35% of total eligible contracting dollars. Notably, spending with Small Disadvantaged Businesses (SDBs) reached $76.2 billion, exceeding the 12% goal, and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) received $31.9 billion, surpassing their 3% target .
However, these impressive figures warrant a closer look. The grading system's structure may inadvertently inflate agency performance. For instance, agencies achieving 120% or more of their goals receive an A+, potentially overshadowing areas where they fall short. Moreover, the emphasis on meeting percentage-based targets might encourage agencies to focus on quantity over quality, awarding numerous smaller contracts to meet goals without considering the long-term success of the businesses involved.
Additionally, while overall spending has increased, it's essential to assess whether these funds are reaching a diverse range of small businesses. The SBA's disaggregated data for FY24 indicates that small-business-eligible dollars totaled $637 billion . Yet, without detailed analysis of which businesses are receiving contracts, it's challenging to determine the equitable distribution of these funds. Are minority-owned, women-owned, and rural small businesses benefiting proportionally? The data doesn't provide a clear answer.
Furthermore, the scorecard doesn't account for the challenges small businesses face in navigating the federal contracting process. Complex regulations, lengthy application procedures, and the need for compliance with various standards can be daunting, particularly for newer or smaller firms. High grades on the scorecard don't necessarily reflect improvements in these areas.
Disclaimer: This analysis is based on publicly available data from the SBA and other official sources as of July 16, 2025. While efforts have been made to ensure accuracy, readers should consult the original scorecard and related documents for the most current and detailed information.