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Monday, June 2, 2008

Small Business Numbers May be Falsely Inflated

A story titled "Are small-biz counts too good to be true?" was published today in Federal Computer Week, written by Matthew Weigelt. The story outlines how the Department of Homeland Security (DHS) and other federal agencies can use a single contract to represent multiple categories when it comes to meeting their small business contracting goals. For example, DHS can count a single contract that goes to a veteran-owned HUBZone small business as counting towards three subcategories: veteran-owned, HUBZone, and small business.

This practice is documented in a report that was released by the House Homeland Security Committee on May 20. Lawmakers have commented that this practice creates an inaccurate picture that artificially inflates the number of small, minority, and disadvantaged businesses that work with the federal government. This practice of double counting can be damaging for small businesses because federal agencies are able to meet their small business contracting goals while working with fewer small businesses.

To read the full story, click here


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