Federal Government Contracting for Diverse Businesses: Your 2025 Roadmap to $183 Billion

FY2024 Federal Contracting by the Numbers

The scale of federal contracting is massive:

• Total federal contract spending: $773.68 billion
• Small business share: $183 billion (28.8% of total)
• Number of small businesses receiving contracts: 78,677 companies
• Fourth consecutive year of growth in small business contracting

Source: SBA FY2024 Procurement Scorecard, GovSpend Federal Contract Analysis

Set-Aside Programs: Your Path to Federal Contracts

The federal government uses certification-based set-aside programs to ensure diverse businesses get fair access:

8(a) Business Development Program

FY2024 Spending: $15.4 billion in set-aside contracts

Target Goal: Moving toward 15% of all contracts by 2025

Current Participation: 5,679 certified 8(a) firms (as of November 2024)

Key Benefits:

• Sole-source contracts up to $4.5 million (services) or $7 million (manufacturing)
• Business development assistance for 9 years
• Access to set-aside competitions with less competition

Eligibility: Small, disadvantaged businesses with owners who are socially and economically disadvantaged U.S. citizens.

Source: SBA 8(a) Program Data, Dynamic Small Business Search November 2024

Women-Owned Small Business (WOSB) Program

FY2024 Spending: $31.7 billion to women-owned companies

Set-Aside Contracts: $1.3 billion in WOSB-specific set-asides

Target Goal: 5% of all federal contracts (currently at 3.44%)

Current Participation: 13,289 certified WOSBs (November 2024)

Recent Update: December 2024 Federal Register published WOSB program updates and clarifications.

Eligibility: At least 51% owned and controlled by women who are U.S. citizens.

Source: GovSpend WOSB Impact Analysis FY24, SBA Certify Data

Service-Disabled Veteran-Owned Small Business (SDVOSB)

FY2024 Spending: $32.8 billion (exceeded 5% goal)

Year-over-Year Increase: $3.8 billion more than previous year

Target Goal: 5% (increased from 3% in FY2024 NDAA)

Current Participation: 32,729 VOSB/SDVOSBs (November 2024)

Key Development: Congress raised the goal from 3% to 5% in the FY2024 National Defense Authorization Act—a major win for veteran entrepreneurs.

Source: Congress.gov IN12313, SBA FY2024 Data

HUBZone Program

FY2024 Spending: Under $1 billion in set-asides

Target Goal: 3% (historically never achieved government-wide)

Current Participation: 4,015 HUBZone firms (November 2024)

2025 Updates:

• Certification required at offer time (not annual)
• Reduced residency requirement to 90 days
• Minimum 10 hours/week work requirement
• 12-month grace period for 35% residency compliance

HUBZone represents a less competitive space—fewer certified firms means less competition for set-aside contracts.

Source: SBA HUBZone Program Updates, Maynard Nexsen 2025 Regulatory Analysis

How Federal Contracting Actually Works

Step 1: Get Registered

• Register in SAM.gov (mandatory for all federal contractors)
• Obtain a CAGE code and DUNS number
• Get certified through SBA Certify portal

Step 2: Get Certified

• Apply through certify.sba.gov for 8(a), WOSB, SDVOSB, or HUBZone
• Processing time varies by program
• Consider multiple certifications if eligible

Step 3: Find Opportunities

• SAM.gov contract opportunities
• Agency forecast portals
• Subcontracting directories
• APEX Accelerator assistance (free government contracting help)

Step 4: Compete and Win

• Respond to solicitations
• Build past performance
• Consider mentor-protégé programs
• Start with subcontracting to build experience

Top Agencies for Diverse Supplier Spending

Some agencies are more active in diverse supplier contracting:

• Department of Defense: Largest procurement budget
• Department of Health and Human Services: Strong small business programs
• Department of Homeland Security: Active diverse supplier outreach
• Department of Veterans Affairs: Goal increased to 29% for FY2025
• GSA: Schedule contracts provide ongoing opportunities

Your Action Plan

1. Take our Certification Quiz to identify which federal certifications match your eligibility
2. Register in SAM.gov (required for all federal contractors)
3. Apply for certifications through SBA Certify
4. Contact your local APEX Accelerator for free counseling
5. Build a capability statement tailored to government buyers
6. Start tracking opportunities in your NAICS codes

Sources & Fact Check

All statistics verified from official sources:

• SBA Biden-Harris Administration FY2024 Small Business Contracting Report (April 2024)
• GovSpend Federal Contract Awards FY24 Analysis
• Federal News Network SBA Goals Commentary (2025)
• SBA Certify Program Data (November 2024)
• Maynard Nexsen Key 2025 Updates for Small Business Government Contractors
• Congress.gov Service-Disabled Veteran-Owned Small Business Contracting Program Changes (IN12313)
• Federal Register WOSB Program Updates (December 2024)

Last verified: January 2025