On Jan. 24, the Small Business Administration reset its contracting goals with small disadvantaged businesses, or SDBs, to at least 5 percent of all federal prime contracts awarded in 2025, Federal News Network reported Thursday.
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Uniform SDB Contracting Target
The target applies uniformly across all affected agencies. Previously, the government negotiated SDB contracting targets individually with each agency to achieve a governmentwide percentage.
In 2024, that governmentwide percentage was 12 percent. The original target for 2025, as set by the Biden administration, was 15 percent.
Impact on 8(a) Program Companies
Commenting on the matter, a former SBA official who had requested to remain anonymous told Federal News Network that the 5 percent SDB target has historically been met and that the government had gradually increased the percentage over the years.
The same official anticipates, however, that the reduced target would likely impact companies under the SBA’s 8(a) Business Development program.
“By lowering the SDB goal, agencies will likely turn their focus away from 8(a) concerns to other areas where they struggle, such as HUBZone, where the government has never met the 3 percent prime contract goal,” the former SBA official said.