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Fiscal Year 2004 Small Business Prime Contracting
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The Federal Procurement Data Center (FPDC) recently released its annual report on small business prime contract awards for fiscal year 2004. The good news is small businesses were awarded a record $69.23 billion in prime contracts last year, as the federal government exceeded its statutory goal for small business prime contracting. The bad news is that prime contract awards to small businesses declined as a percentage of overall prime contract dollars awarded from fiscal year 2003 to fiscal year 2004 by 2.21 percent and actions by 18.52 percent.
Fiscal Year 2004 Total Contract Dollars
Total government-wide prime contracting increased by 8.08 percent while actions decreased by 12.05 percent between fiscal year 2003 and fiscal year 2004. During the same time period, small business prime contracting increased by 5.68 percent and actions decreased by 28.33 percent. As a result, government-wide spending per action was up 22.88 percent and small business spending was up 47.47 percent.
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FY04 |
FY03 |
VARIANCE |
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All federal $s |
$299,886,097,753 |
$277,477,715,973 |
8.08% |
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All federal actions |
9,965,306 |
11,330,377 |
-12.05% |
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Avg spend/action |
$30,093 |
$24,490 |
22.88% |
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SB federal $s |
$69,228,771,571 |
$65,505,923,852 |
5.68% |
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SB federal actions |
4,358,031 |
6,081,080 |
-28.33% |
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SB spend/action |
$15,885 |
$10,772 |
47.47% |
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SB as % of total $s |
23.09% |
23.61% |
-2.21%/td>
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SB as % of total actions |
43.73% |
53.67% |
-18.52% |
Not surprisingly, the Department of Defense (DOD) is responsible for a large chunk of federal contracting. DOD accounted for 70.27 percent of government-wide prime contracting dollars and 67.06 percent of contracting actions. DOD was responsible for nearly the same amount of small business with 67.79 percent of prime contracting dollars and 62.74 percent of actions.
Removing DOD from the calculations, federal government-wide prime contracting increased by only 3.65 percent (versus 8.08 percent) and actions decreased by 42.11 percent (versus 12.05 percent). Most interesting, though, is that small business prime contracting dollars year-over-year actually declined by 1.78 percent when DOD contracting is removed from the calculation. The DOD accounts for all of the increase in small business contracting dollars, plus some.
On a dollar basis, within small business programs, Service Disable Veterans Small Business contracting dollars grew the most between fiscal year 2003 and 2004, with a growth rate of 109.10 percent. The next highest growth rate was HUBZONE programs with a 39.83 percent growth rate, followed by Woman-Owned Small Businesses and SBA non-8(a) growing 9.84 percent and 7.99 percent respectively. The only small business program that declined in contract dollars year-over-year was the SBD 8(a) program.
Fiscal Year 2003 & 2004 and Contract Dollars
Year-Over-Year Variance
By Small Business Program
(billions)
Fiscal Year 2004 Contract Dollars
Breakdown by Small Business Program
The DOD was the leading awarder of small business prime contracts across all categories of small business, both in terms of dollars and actions, with the sole exception of the Service Disabled Veterans program, in which the Department of Veterans Affairs (VA) had more actions than the DOD (although the DOD awarded more contract dollars).
Click here to access the FPDC Small Business Goaling Report. For access to the analysis used for this article, click here.
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