iStock illustration Small companies accounted for 23 percent of business conducted with the Defense Department in fiscal year 2022, but the relationship between the department and small firms is fragile, according to a recent industry report. Despite a record $159 billion — a 3 percent increase over the previous year — awarded to small businesses from the federal government in 2022, the number of small businesses receiving prime government contracts remains in steady decline, said market intelligence firm HigherGov. In 2022, 58,681 small businesses received federal contracts. That’s fewer than half the number that received contracts in 2010, despite there being more than 400,000 small businesses registered to perform contracts with the government, according to the Feb. 13 “Government Small Business Contracting Report.” Major drivers of the decreasing number of businesses receiving awards “include increased use of contract vehicles available to a limited number of firms, expanding regulations (such as cybersecurity requirements), and contract bundling that benefits larger firms and incumbents,” the report said. Furthermore, the government has put more emphasis on increasing the dollar amount of contracts, rather than the “number and diversity of small businesses winning contracts,” the report added. The average small business contractor received awards […]
Click here to view original web page at www.nationaldefensemagazine.org
