August 2022 Update: The Loss Continues of Small Business Federal Suppliers

WASHINGTON, August 16, 2022 – Today, the U.S. Women’s Chamber of Commerce® (USWCC) releases a flash report entitled Stop the Loss: August 2022 Update | The Loss Continues which highlights the continued loss of small business suppliers caused primarily by “Category Management” purchasing practices. Between FY 2017 and FY 2021 America lost 26% of our small business federal suppliers across all industries and federal agencies totaling 23,742 small businesses. Currently, FY 2022 trends project a further loss of an additional 14,326 small business suppliers if the federal government does not act now to increase the number of small business suppliers leveraged for federal spending in FY 2022.

“Federal government spending with small business suppliers must be a top priority if we are to stop this downward trend and restore the small business supplier base participation in the federal market,” stated Charmagne Manning, President of the U.S. Women’s Chamber of Commerce. “A healthy, innovative and responsive industrial base is a critical part of our nation’s economy, local communities and military security.”

Originally reported May 2021, the U.S. Women’s Chamber of Commerce Stop the Loss of Small Business Federal Suppliers highlighted the negative impact the U.S. government’s unregulated purchasing practice of “Category Management” through “Best-In-Class” contracts had on the ability of small businesses to competitively participate as federal suppliers. This report and the active engagement of USWCC members with Congress and the White House led to President Biden’s Executive Order M-22-03 which aimed to create more inclusive competitive purchasing practices.

To stop the loss of small business federal suppliers, agency acquisition leaders must press forward quickly to leverage small business suppliers throughout all federal markets before the end of FY 2022. President Biden and Congressional Leaders must continue strong oversight of the acquisition process to ensure small business competitive inclusion.

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The U.S. Women’s Chamber of Commerce (USWCC) is the leading advocate for women on economic and leadership issues creating opportunities, driving progress, advancing legislation, and providing tools and solutions to support the economic growth of women across America. The USWCC ( http://www.uswcc.org/  ) is a 501(c)6 not-for-profit organization founded in 2001 with over 500,000 members; its headquarters offices are located in Washington, D.C.