The Biden administration is increasing the threshold of procurement dollars awarded by the government to small, disadvantaged businesses to 13 percent in fiscal year 2024.
The Office of Management and Budget on Wednesday issued a memo on the executive order, stating that the SDB allotment will continue to increase every year moving forward.
In FY2022, the government spent 11.4 percent of its contracting dollars on SDBs, according to the Small Business Administration.
Section 7(a) of the new EO 14091 directs SBA and government agencies to negotiate goals to achieve the 13 percent prime contract spending on SDBs next year. OMB is also targeting a 15 percent allocation to such businesses in fiscal 2025.
The budget office pledged to continue coordinating with other agencies as well as SBA, the Domestic Policy Council, the National Economic Council and the Gender Policy Council to increase procurement opportunities for small businesses by expanding access and reducing transaction costs to improve their competitive advantage.