A new initiative from the Biden administration, announced in late May 2023, aims to provide increased federal contracting opportunities for small disadvantaged businesses (SDBs), with $100 billion earmarked to support these historically marginalized companies by 2025—an almost 50% increase in set-asides for minority-owned businesses.

Under this new program, the General Services Administration (GSA) and the Small Business Administration (SBA) will identify a pool of SDBs participating in the 8(a) Business Development Program, with the intention of improving their access to federal contracts under GSA’s Multiple Award Schedule Program.

Challenges, such as competition with established companies and large companies abusing opportunity programs, have posed a challenge for SDBs and minority-owned businesses in gaining access to federal opportunities. However, the 8(a) program has fostered partnerships between some of those SDBs and the government and provided support to minority-owned businesses. By establishing a pool, procurement officials will more easily be able to locate and contract with small and disadvantaged businesses.

No details have yet been provided about requirements for acceptance into the pool or how contracting opportunities will be offered. Courtney Fairchild, president and CEO of the government contracting consulting company Global Services and a GSA schedule specialist, said the success of the initiative depends on these details. She anticipates her organization analyzing awards through the pool, including the dollar value, to determine if the program is successful.

“If successful, I would think the logical next step would be to implement similar MAS Pools for woman-owned, HubZone and [service-disabled veteran-owned small businesses] to increase opportunities across all SBA-certified socio-economic groups,” she told Nextgov.com.

According to experts, metrics such as the size and scope of available opportunities, the length of engagement and the relevance of North American Industry Classification System codes could be used to determine the effectiveness of the program and if the pool is recruiting firms across multiple sectors.

“It is essential to understand that SDBs do not lack ability, but, instead, accessibility,” said Earl Stafford Jr., CEO of Aperio Global, an SDB specializing in cybersecurity and artificial intelligence solutions. “This initiative will produce actionable evidence and promote outcome-based SDB opportunities.”

Last year, federal agencies set a record, with $62.4 billion in federal contracts awarded to SDBs, amounting to about 11% of all federal contracting opportunities. The contracting goals for all agencies was raised to at least 12% for fiscal year 2023 by the Office of Management and Budget. 

Regardless of the approach taken by the agencies to determine its success, the new program will provide an opportunity “to exhibit the strengths, diversity of thoughts and varied technological capabilities across the SDB community,” according to Stafford.

Ronald Bailey, senior vice president of industry development for NECA, calls it “a great initiative that will create opportunities and enhance the ownership for disadvantaged business leaders.”