A panel of lawmakers has recommended increasing the 23 percent contracting goal because of the foreseen decline in government spending.
“There is a fear that the decrease will be disproportionately borne by small businesses,”
The panel wrote that less spending will affect the health of the defense industrial base and pose challenge to the economy as a whole.
Each year, the government, as whole, aims to award 23 percent of its spending from prime contracts to small businesses. The government continuously comes up short of the goal.
As the panel recommends the increase, it’s already being considered.
