Agencies' Spending on 8(a) Contracts Dips in 2011
March 7, 2012
Agencies do not award many contracts to small disadvantaged businesses — or 8(a) companies, as they are technically known. Last year, only 5 percent of contract dollars went to 8(a) firms.
But when agencies do award those contracts, they tend to do so in several specific industry segments — namely, construction and facilities support.
Agencies spend more on construction contracts with 8(a) businesses than any other industry area. Of the $25 billion agencies spent with 8(a)s in fiscal 2011, nearly $5 billion, or 20 percent, was for institutional building construction, heavy and civil engineering construction and industrial building construction.