2016 is the Year of the USAID Small Business

By Chris O’Donnell, October 19, 2015.  2016 is the year of the USAID small business.  The year will mark mandatory implementation and reporting of small business goals for domestic–as well as overseas acquisitions. While in 2015 USAID led the US government and voluntarily established small business goals for overseas acquisitions, they are now mandatory across the USG and included in the agency score card.  Implementation combined with continued strong support from USAID’s Office of Small and Disadvantaged Business Utilization (OSDBU), could bring a significant increase in contracts to US small businesses. The USAID small business goal in 2015 was 14% up from 12.35% in 2014 with USAID achieving 20.81% in 2014–126.45% of its goal.  Maintaining the 14% goal in 2016 with 75% of USAID overseas acquisitions, could be a 300% increase in contracts to US small businesses. The same equation would apply to subcontracting goals–a 300% increase in subcontracts to US small businesses.

2015 was the first year USAID established small business goals for overseas acquisitions, but with a limited track record, USAID has preferred reaching overseas goals using Washington awarded IDIQCs with predetermined prime and subcontractors verses small business set aside solicitations that would be posted on the USAID business forecast. One promising change for the 2016 forecast–USAID is committed to including future IDIQCs Task Orders. If the prime IDIQC holder prefers not to use the predetermined subcontractors, the Task Order forecast could increase opportunities for small businesses–a process previously not publically know until the Task Order was awarded.