Small Business Awards Share refers to the percentage of total federal contract dollars awarded to small businesses within a defined geographic area, typically measured at the state, regional, or national level. This metric serves as a critical indicator of how effectively the federal government is engaging small businesses in public procurement and is used to evaluate both policy outcomes and agency performance in supporting the small business sector.
The Small Business Awards Share helps identify disparities, track trends over time, and support the development of targeted outreach strategies to promote equitable participation in federal contracting. It is commonly cited in annual scorecards, Congressional reports, and economic impact analyses related to government spending and small business inclusion.
How the Metric Is Calculated
The Small Business Awards Share is calculated using federal contract data reported through systems such as:
- Federal Procurement Data System (FPDS)
- USAspending.gov
- Small Business Administration (SBA) scorecards
- Agency procurement dashboards
The formula is:
(Small Business Contract Obligations / Total Contract Obligations) × 100
This percentage reflects the share of obligations (i.e., awarded dollars, not just number of contracts) attributed to small businesses, based on the prime contractor’s small business status and place of performance or contractor location.
For example, if $2 billion in federal contracts were awarded in a given state during a fiscal year, and $500 million went to small businesses, the Small Business Awards Share for that state would be 25%.
Importance of the Small Business Awards Share
This metric plays a central role in both policy evaluation and market development. Its importance includes:
- Measuring SBA goal compliance – Federal agencies are mandated to allocate a certain percentage of contracting dollars to small businesses (23% overall, with additional targets for socio-economic categories).
- Evaluating regional access – State-level analysis reveals where small businesses are thriving in federal markets and where they are underrepresented.
- Supporting small business advocacy – Lawmakers, trade groups, and economic developers use this metric to make the case for additional programs or support in underserved areas.
- Driving performance improvement – Agencies use this data to adjust their small business outreach, supplier diversity efforts, and set-aside strategies.
When a state’s Small Business Awards Share is significantly lower than the national average, it may trigger additional SBA engagement, training, or industry-specific support initiatives.
Key Data Sources and Reporting Entities
Several entities track and report on the Small Business Awards Share:
- U.S. Small Business Administration (SBA) – Publishes annual Small Business Procurement Scorecards, including government-wide and agency-level metrics.
- USAspending.gov – Allows users to search contract obligations by state, vendor type, and business size.
- GSA and FPDS – Provide granular data for researchers and government analysts.
- Congressional Research Service (CRS) – Occasionally includes state-level awards share in legislative reports.
- State procurement offices – May compile localized summaries or supplement federal data.
In some cases, the data is mapped by congressional district, providing further visibility into geographic equity and small business opportunity distribution.
How Geography Is Determined
Small Business Awards Share is most commonly associated with the state of the contractor’s business registration or headquarters, though some analyses also use the Place of Performance as the basis for location. This distinction can affect how the metric is interpreted:
- By contractor location – Focuses on the business’s official address in SAM.gov
- By place of performance – Focuses on where the work is actually performed (may benefit other local economies)
Understanding the difference is important when evaluating small business economic impact, especially in states where large contractors are headquartered but deliver services elsewhere.
Small Business Participation Goals
Federal agencies are subject to statutory small business contracting goals established by the Small Business Act, including:
- 23% of prime contract dollars to small businesses
- 5% to Women-Owned Small Businesses (WOSBs)
- 5% to Small Disadvantaged Businesses (SDBs), including 8(a) firms
- 3% to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs)
- 3% to HUBZone-certified businesses
The Small Business Awards Share helps measure how well agencies and geographic areas are contributing to these national targets.
Factors That Influence Awards Share by State
The percentage of awards going to small businesses in a given state can vary widely based on multiple factors:
- Presence of large federal contractors – States with a high concentration of large defense or technology firms may skew the share.
- Federal agency footprint – States with many federal installations often have more federal spending opportunities.
- Industry mix – States focused on construction, logistics, or professional services may see higher small business engagement.
- Small business readiness – The number of registered, qualified small businesses actively participating in the federal market.
- Agency set-aside strategies – Some agencies emphasize small business awards more aggressively than others.
For example, a state like Virginia — with a dense cluster of defense and IT contractors — may have a lower Small Business Awards Share despite high overall contracting activity, due to the volume of obligations flowing to large primes.
How the Metric Is Used in Practice
The Small Business Awards Share informs a wide range of decisions and actions, including:
- SBA outreach and training priorities
- OSDBU (Office of Small and Disadvantaged Business Utilization) planning
- Congressional oversight and budget hearings
- Agency acquisition planning and industry day focus
- State-level economic development initiatives
It also feeds into policy performance reviews at the OMB, SBA, and Government Accountability Office (GAO) levels.
Improving Small Business Awards Share
States or regions looking to increase their Small Business Awards Share can consider:
- Expanding small business participation through training and certification programs
- Supporting firms in obtaining GSA Schedules or participating in GWACs
- Encouraging joint ventures and CTAs to compete on larger projects
- Promoting SBA certifications (8(a), HUBZone, WOSB, etc.)
- Strengthening state–federal agency coordination to identify local suppliers
From a contractor’s perspective, improving the awards share means increasing visibility, proposal quality, and past performance, while aligning with agency mission needs and socio-economic goals.
Conclusion
The Small Business Awards Share is a key metric used to track and evaluate how successfully small businesses are participating in the federal procurement ecosystem. By analyzing this percentage at the state level, stakeholders can assess economic equity, guide outreach strategies, and inform policy decisions that shape the future of small business inclusion in government contracting.
For small businesses, understanding the local awards share offers a benchmark — and a motivator — for growth, competitiveness, and greater integration into the federal supply chain. For agencies and policymakers, it is a vital tool for ensuring that government spending drives not only efficiency and innovation, but also equitable opportunity.
