What impacts might the rumored higher MPT and SAT threshold have on SB numbers since the initial indications are that SBs will only have a lock on the $100K - $250K of a larger SAT?
Great session today! Looking forward to more in the future!
Thank you! Great question! If that narrowing of the Rule of Two passes, you’d see fewer small business set asides because SBA PCRs would lack the leverage to advocate for them. PCRs use two strategies, goals and the Rule of Two, to advocate for set asides. The government easily makes the current 23% goal, so PCRs use the remaining strategy, the Rule of Two, to get small-business set-asides. If the Rule of Two is narrowed to that small range, it will be harder to advocate for the normal small business set-aside, i.e., what’s in FAR 19.5. What is interesting is that agencies don’t reach all the socioeconomic goals, so the result could be that socioeconomic set-asides displace small-business set-asides.
Good question, Brian. Overall contracting is up this year as compared to last--$399 billion this year versus $386 billion last year. So that means that not only are large businesses getting a bigger slice of the pie, but the pie is bigger.
And, in case you were wondering, no, the overall increase in contracting does not mean that small businesses have received more in dollar terms. Smalls have received $94B this year, down from $96B at this point last year. The $5B drop that I refer to above is the amount that smalls would have received this year--based on the bigger pie--had the percentage spending stayed constant.
What impacts might the rumored higher MPT and SAT threshold have on SB numbers since the initial indications are that SBs will only have a lock on the $100K - $250K of a larger SAT?
Great session today! Looking forward to more in the future!
Thank you! Great question! If that narrowing of the Rule of Two passes, you’d see fewer small business set asides because SBA PCRs would lack the leverage to advocate for them. PCRs use two strategies, goals and the Rule of Two, to advocate for set asides. The government easily makes the current 23% goal, so PCRs use the remaining strategy, the Rule of Two, to get small-business set-asides. If the Rule of Two is narrowed to that small range, it will be harder to advocate for the normal small business set-aside, i.e., what’s in FAR 19.5. What is interesting is that agencies don’t reach all the socioeconomic goals, so the result could be that socioeconomic set-asides displace small-business set-asides.
Have you compared non set-aside spending over the same time to measure an overall slowdown in federal spending (or not) over the same period?
Good question, Brian. Overall contracting is up this year as compared to last--$399 billion this year versus $386 billion last year. So that means that not only are large businesses getting a bigger slice of the pie, but the pie is bigger.
And, in case you were wondering, no, the overall increase in contracting does not mean that small businesses have received more in dollar terms. Smalls have received $94B this year, down from $96B at this point last year. The $5B drop that I refer to above is the amount that smalls would have received this year--based on the bigger pie--had the percentage spending stayed constant.