The federal government is increasing the amount of spending dollars available for small business. Small Business now receives 26.5% of all federal contracting dollars. Firms that have also obtained an SBA/VA certification/Verification are more effective at carving out a piece of these small business dollars.
| Small Business Federal Spending | 132.9B |
Of this the following amounts are spent with the following Certification Types:
| 8(a) Certification / SDB | 51.6B |
| WOSB Certification | 26.0B |
| SDVSOB Verification | 22.0B |
| HUBZone Certification | 11.4B |
The table below shows the Average Sales by Certification Type as well as the additional sales this certification receives by obtaining a GSA Schedule Contract. I have also listed the qualification for these certification types.
| 8(a) | 8(m) WOSB/EDWOSB | SDVOSB | HUBZone | |
|---|---|---|---|---|
| Number of firms | 5,843 | 64,834 | 22,746 | 7,391 |
| Disadvantaged Group | Typically Minority Owned Firms, Women and Service Disabled Veterans Can Apply. | Women Owned Businesses | Service Disabled Veteran Owned Small Businesses | Businesses and employees located in Historically Underutilized Areas. |
| Average Federal Revenue per Firm | $8.8MM | $401K | $967K | $1.5MM |
| Average Boost with GSA Schedule | $1.MM | $1.5MM | $1.4MM | $.9MM |
| Federal Budget Target %/$ | 5.00% $24.0 Billion |
5.00% $24.0 Billion |
3.00% $14.4 Billion |
3.00% $14.4 Billion |
| Results Actual | 9.10% $51.6 Billion |
4.71% $26.0 Billion |
4.05% $22.0 Billion |
1.65% $11.4 Billion |
| Required Ownership and Control | 51% in Disadvantaged Group | 51% in Disadvantaged Group | 51% in Disadvantaged Group | 35% of employees in HUBZone |
| US Citizen Requirement | Yes | Yes | Yes | Yes |
| Small Business Requirement based on NAICS Code | Yes | Yes | Yes | Yes |
| Economic Disadvantaged Metric | Owner makes less than $350K on average for past 3 years. Net worth under $750K less primary residence, IRA, 401K and value of the business. Total assets of applicant under $6 million excluding retirement accounts. | None for WOSB and for EDWOSB owner makes less than $350K on average for past 3 years. Net worth under $750K less primary residence, IRA, 401K and value of the business. Total assets of applicant under $6 million excluding retirement accounts. | No requirements | No requirements |
| Years in Business | 2 years – in some cases a firm can be eligible for a two year waiver. | No requirement | No requirement | No requirement |
| Certification Term | 9 years | No limit | No limit | No limit |
| Set-aside Condition | Sole source up to $6.5 MM manufacturing and up to $4.0 MM all other | Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 designated NAICS codes; $5MM for manufacturing $3MM all other | Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 NAICS codes; $5MM for manufacturing $3MM all other | Sole source up to $5MM for manufacturing up to $3MM all other |
