Office of Management and Budget issues memo on SDB utilization

News - Published Nov 21, 2023

The Office of Management and Budget (OMB) within the federal government has issued a memo directing federal government agencies to raise their spending with small disadvantaged businesses (SDBs), as designated by the U.S. Small Business Administration (SBA), to 13 percent in fiscal year 2024.

The memo comes in the context of a presidential executive order issued earlier in 2023 directing federal government agencies to raise their SDB utilization to 15 percent by the end of fiscal year 2025. The OMB's authority to set a goal for fiscal year 2024 was specified by the order.

The memo notes that the federal government attained an 11.4 percent SDB utilization rate in fiscal year 2022, exceeding the interim goal of 11 percent that had been set for that year.

The OMB also directs federal agencies to "increase access to contracting opportunities for WOSBs, HUBZone small businesses, and SDVOSBs," given those businesses' likelihood of also being SDBs.

Read the OMB's memo at https://www.whitehouse.gov/wp-content/uploads/2023/10/M-24-01-Increasing-the-Share-of-Contract-Dollars-Awarded-to-Small-Disadvantaged-Businesses_Final.pdf.