Federal Procurement and Small Business Goals
The federal government's annual procurement spend is the largest single source of contract dollars in the United States. For fiscal year 2023, total federal contract obligations reached approximately $759 billion, according to USASpending.gov.
Federal law (15 U.S.C. § 644) sets statutory small business contracting goals. Agencies are scored against these targets annually in the SBA's Small Business Goaling Report.
| Goal category | Statutory goal | FY2023 actual |
|---|---|---|
| Small business (all) | 23% | 28.4% |
| Small disadvantaged business (SDB/8(a)) | 5% | 14.0% |
| Women-owned small business (WOSB) | 5% | 4.7% |
| Service-disabled veteran-owned (SDVOSB) | 3% | 5.3% |
| HUBZone | 3% | 1.9% |
Source: SBA, FY2023 Small Business Goaling Report (published 2024). Small business and SDB figures are reported as a percentage of eligible contract dollars, not total federal spend.
8(a) Business Development Program
The SBA's 8(a) program is the primary vehicle for sole-source awards to small disadvantaged businesses.
- Active 8(a) firms: approximately 5,400 as of early 2024, per SBA program data
- Sole-source ceiling (services): $4.5 million per award
- Sole-source ceiling (manufacturing): $7.5 million per award
- Program duration: nine years (four-year developmental stage + five-year transitional stage)
- Annual 8(a) award total: approximately $10.7 billion in FY2023
To qualify, the business must be at least 51% owned and controlled by a socially and economically disadvantaged individual. Owners must meet a net worth threshold: under $750,000 (excluding the business and primary residence) at initial application.
Source: SBA, 8(a) Business Development Program overview; SBA FY2023 Goaling Report.
HUBZone Program
The HUBZone program targets economically distressed communities.
- HUBZone-certified firms: approximately 9,700 as of mid-2024 (SBA registry)
- Price evaluation preference: 10% in full-and-open competitions
- Sole-source ceiling: $4.5 million (services), $7.5 million (manufacturing)
- HUBZone requirement: principal office in a qualifying census tract; at least 35% of employees must reside in a HUBZone
- FY2023 HUBZone awards: approximately $14.4 billion (1.9% of eligible spend against a 3% goal)
The 3% HUBZone goal has been missed in most fiscal years since the program's inception. Compliance continues to be a challenge for agencies, according to annual SBA reporting.
Source: SBA HUBZone program data; SBA FY2023 Goaling Report.
Women-Owned Small Business (WOSB) Program
The WOSB federal contracting program reserves specific NAICS codes for women-owned competition or sole-source awards in industries where women are economically disadvantaged.
- WOSB sole-source ceiling: $4.5 million (services), $7.5 million (manufacturing) as of the 2015 NDAA amendment
- EDWOSB threshold: additional economic disadvantage test applies; owner's personal net worth must be under $850,000
- FY2023 WOSB awards: approximately $35.6 billion (4.7% of eligible spend against a 5% goal)
- Eligible NAICS codes: SBA publishes the current list of WOSB-eligible industries at certify.sba.gov
Source: SBA, WOSB Federal Contracting Program; SBA FY2023 Goaling Report.
Service-Disabled Veteran-Owned Small Business (SDVOSB)
- SDVOSB set-aside threshold: contracts above the simplified acquisition threshold ($250,000) where two or more SDVOSBs can compete at a fair price
- Sole-source ceiling: $4.5 million (services), $7.5 million (manufacturing)
- VA SDVOSB sole-source ceiling: $5.5 million (services), $11 million (manufacturing) under the Veterans First Contracting Program
- FY2023 SDVOSB awards (government-wide): approximately $39.7 billion (5.3% of eligible spend)
- VA SDVOSB share: the Department of Veterans Affairs is the largest single customer for SDVOSB set-asides due to the Veterans First Contracting Program (38 U.S.C. § 8127)
- VetCert registrations: the SBA assumed administration of SDVOSB verification from the VA in January 2023; the SBA's VetCert database is the authoritative registry
Source: SBA, VetCert program; VA, Veterans First Contracting Program; SBA FY2023 Goaling Report.
Minority Business Enterprise (MBE) — NMSDC
The National Minority Supplier Development Council (NMSDC) is the primary certifying body for corporate MBE certification.
- Certified MBEs (active): approximately 12,000+ as of 2023
- NMSDC regional affiliates: 23 regional councils across the United States
- Corporate members: 1,750+ Fortune 500 and large companies
- Annual MBE spend reported by NMSDC corporate members: over $400 billion in collective Tier-1 and Tier-2 diverse spend (NMSDC 2022 annual report)
- Certification processing time: typically 60–90 days through a regional affiliate; documentation requirements vary by affiliate
NMSDC certification is voluntary — it is not a federal set-aside program. It is the primary credential for corporate supplier diversity programs, and most Fortune 500 supplier diversity goals count NMSDC MBEs toward their minority spend targets.
Source: NMSDC.org, 2022 Annual Report; NMSDC affiliate program information.
Women's Business Enterprise (WBE) — WBENC
The Women's Business Enterprise National Council (WBENC) certifies women-owned businesses for corporate and some government programs.
- Certified WBEs (active): approximately 17,000+ as of 2023
- WBENC regional partner organizations: 14 Regional Partner Organizations (RPOs)
- Annual certification fee: typically $350–$1,250 depending on revenue tier (varies by RPO)
- Processing time: 60–90 days with complete documentation
- Corporate members and government entities: 350+ accepting WBENC certification
WBENC certification is distinct from the SBA WOSB certification. Many large corporations require WBENC certification specifically. Some federal and state programs accept WBENC as a third-party certifier for WOSB, eliminating the need for separate SBA self-certification.
Source: WBENC.org, certification program information.
Disability-Owned Business Enterprise (DOBE) — Disability:IN
Disability:IN operates the national certification program for disability-owned and service-disabled veteran-owned businesses in the corporate sector.
- Certified DOBEs and SDVOBEs: 600+ active certifications as of 2023
- Corporate members: 400+ member companies pledging to source from disability-owned firms
- Annual DOBE fee: $0 for businesses under $1M revenue; tiered above that
- Processing time: 60–90 days
Source: Disability:IN, certification program information.
LGBT Business Enterprise (LGBTBE) — NGLCC
The National LGBT Chamber of Commerce (NGLCC) is the exclusive certifier for LGBTQ+-owned businesses in the corporate sector.
- Certified LGBTBEs: approximately 1,700+ as of 2023
- National and local affiliate chambers: 60+ affiliate chambers
- Corporate members: 200+ companies accepting NGLCC certification
- Processing time: 30–60 days
- Certification fee: tiered by revenue, typically $250–$1,500
Source: NGLCC.org, certification program.
Disadvantaged Business Enterprise (DBE) — USDOT
The DBE program is administered by state departments of transportation and applies to federally funded highway, transit, and airport projects.
- Federal DBE goal (system-wide): set locally by each state; the national average typically falls between 10–15% of project value
- Administered by: state DOTs, transit agencies, and airport authorities receiving USDOT funds
- Eligibility: personal net worth under $2.047 million (excluding primary residence and business); business must be a small business under SBA size standards for its NAICS code
- Processing time: 60–120 days, varies by state
- Annual DBE contract dollars: over $20 billion, based on reported USDOT data
Source: USDOT, Disadvantaged Business Enterprise program; FHWA DBE program overview.
Corporate Supplier Diversity Benchmarks
Corporate programs operate independently of federal certification requirements and set their own diversity spend goals.
- Fortune 500 companies with formal supplier diversity programs: approximately 400+ (source: DiversityInc research, 2022–2023)
- Billion Dollar Roundtable members: companies that have achieved or exceeded $1 billion annually in Tier-1 diverse supplier spend; membership is by invitation only
- Typical Fortune 500 diverse spend target: 10–15% of addressable procurement spend (varies widely; not publicly reported by most companies)
- Tier-2 reporting: many large prime contractors are required by their corporate customers to report diverse spend with their own sub-tier suppliers; Tier-2 commitments often range from $25 million to $500 million annually
Source: DiversityInc research; Billion Dollar Roundtable program information; public corporate ESG/supplier diversity disclosures.
Federal Diverse Spending by Major Agency (FY2026)
The following data reflects partial-year FY2026 awards recorded in USASpending.gov, retrieved via the federal procurement database API. These figures represent set-aside contracts awarded through the applicable programs; they are not the total procurement budget for each agency.
| Agency | 8(a) | WOSB | SDVOSB | Total (set-asides) |
|---|---|---|---|---|
| Department of Defense | $2.28B | $2.03B | $7.12B | $11.44B |
| Department of Homeland Security | $355M | $698M | $1.40B | $2.45B |
| Department of Veterans Affairs | $237M | — | $1.90B | $2.14B |
| NASA | — | $1.62B | $406M | $2.03B |
| Department of State | $631M | $183M | $363M | $1.18B |
| General Services Administration | $265M | $546M | — | $811M |
| Department of Agriculture | $555M | $249M | — | $804M |
| Department of the Treasury | — | $425M | $242M | $667M |
| Department of Justice | $203M | — | — | $203M |
| Department of Health and Human Services | — | $207M | — | $207M |
| Department of Commerce | — | $190M | — | $190M |
"—" indicates the data pull for that agency/type returned zero records in this sample, not necessarily that no awards were made. Full-year totals are typically higher; these represent year-to-date figures for the partial FY2026 period.
Source: USASpending.gov API, FY2026 partial-year data retrieved and aggregated by SupplierDiversity.com using the federal procurement awards database.
Primary Sources and Methodology
All statistics on this page are sourced from publicly available primary sources. Where figures are drawn from program databases or annual reports, the source is noted inline.
- SBA FY2023 Small Business Goaling Report: published by the U.S. Small Business Administration at sba.gov
- USASpending.gov: the official source for federal contract award data, maintained by the Office of Management and Budget
- NMSDC: National Minority Supplier Development Council annual report and program data
- WBENC: Women's Business Enterprise National Council certification program data
- NGLCC: National LGBT Chamber of Commerce certification program
- Disability:IN: Disability:IN certification program
- USDOT DBE: U.S. Department of Transportation Disadvantaged Business Enterprise program
Statistics on this page are reviewed annually. If you spot an error or have a correction, contact us at the address on our contact page.
