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Small Businesses Losing Out on Big Federal Contracts

Published 1 day, 2 hours ago
Description

Small businesses struggle to secure significant federal contracts, despite winning more small gigs. The procurement threshold increase and SME prioritization havent improved cash flow. Tech leaders criticize the system for favoring big global players and stifling local innovation. Contracts under $80k make up most of the volume for small firms but only 2.2% of spend. Mega-deals over $20m dominate, favoring firms with scale. Tiniest outfits see contract numbers rise but value plummet, the lowest share since 2017-18. Officials cite tighter SME definitions and new reporting tweaks as challenges.

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