BGOV Federal Small Business Spending

Market primed for growth in fiscal 2018 and 2019

Long-term spending trends are positive

• Most agencies are seeing a multiyear rise in contract spending
• Set-aside spending, usually flat during downturn, is rising in lock-step with year-over-year spending increases

Spending in fiscal 2018 has matched the president’s fiscal 2018 budget priorities

• Most agency spending amounts align with the president’s request
• Defense agencies accelerated spending; nondefense agencies cut back spending

Congress wanted to spend much more money on:

• Specific defense programs such as weapons and upgrades, readiness support, and upgrades to existing IT systems
• Nondefense agencies, but no detailed plans beyond border security and infrastructure

How to spend it?

• Use of multiple-award contracts
• Small-business spending
  Fiscal 2019 outlook

• Budget caps already raised, but president doesn’t have to request or spend up to them

In 2017:

• Women-owned set-aside spending rose by $276 million, or 62 percent, to $718 million
• Veteran-owned set-aside spending rose by $1.2 billion, or 19 percent, to $7.3 billion
• Indian Small Business Economic  Enterprise spending rose by        $18 million, or 28 percent, to            $85 million

Higher Budget Caps Signal More Spending

Fiscal 2018 Budget Caps

Fiscal 2019 Budget Caps

Spending Booms at the End of Year

Fourth quarter is by far when most of the money is spent

• Defense spent one-third of its annual obligations in the fourth quarter of fiscal 2017
• Civilian agencies spent 35 percent of its annual obligations in the fourth quarter of 2017

Slowest quarter

• Defense spent 21 percent of its annual obligations in the first quarter
• Civilian agencies spent 19 percent of its annual obligations in the second quarter