White House issues memorandum on SDB utilization
News - Published Oct 06, 2022
The White House issued a memorandum on October 4th directing the Small Business Administration (SBA) and the twenty-three other large federal agencies covered by the Chief Financial Officers Act of 1990 (including the Department of Transportation and the Department of Veterans Affairs) to negotiate contracting goals for small disadvantaged businesses (SDBs) that would allow the federal government as a whole to award at least 12 percent of its contracting dollars to SDBs.
The memorandum was issued by the Office of Management and Budget (OMB) within the White House. It follows on a White House committment, made in 2021, to increase SDB utilization as a share of federal contract spending to 15 percent by 2025. The SBA has already reported the SDB spend increasing to 11.01 percent of federal spending in fiscal year 2021. The SDB certification is offered by the SBA to firms that are owned by disadvantaged individuals and meet the SBA's criteria for being a small business.
The OMB stated that it was planning on continuing its work with the SBA and other agencies to further the goal of creating opportunities "for all socioeconomic small businesses, including SDBs, women-owned small businesses (WOSBs), SDVOSBs, and HUBZone small businesses."
Read the memorandum at https://www.whitehouse.gov/wp-content/uploads/2022/10/M-23-01.pdf.