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Business Management Review | Monday, March 07, 2022
Improving access to federal contracting vehicles and supporting small, disadvantaged businesses are critical parts of the equity action plans released by agencies.
FREMONT, CA: As part of the White House's effort to address structural issues affecting underrepresented communities, the General Services Administration has made government procurement the main emphasis of its first-ever equity action plan to increase investments in small disadvantaged firms. The GSA, along with more than 90 other federal agencies, revealed their equality strategy. The GSA's plan emphasized the agency's position in managing USD 75 billion in annual contracts. It stated that it would focus its equality efforts on federal procurement, federal buildings, and federal technology design and delivery.
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The strategy outlines five significant roadblocks that prevent small, disadvantaged companies (SDBs) from attaining equitable outcomes in the federal marketplace, including the lack of a centralized portal for new entrants to examine possible rewards. According to GSA, SDBs' ability to win task or delivery orders is hampered by a lack of resources and expertise about the difficulties of navigating and complying with federal procurement procedures. To overcome these obstacles, the agency announced that it is likely to search for new ways for SDBs to get on existing governmentwide acquisition contracts, develop a supplier diversity plan, and implement a "strong post-award engagement strategy" to help SDBs succeed. In addition, GSA is working to streamline the process for new entrants and increase vendor education to open up new doors to the federal government.
The GSA also indicated that it would award all remaining cohorts for the 8(a) STARS III, Polaris, and women-owned small business pools this year, supporting the White House's aim of increasing federal contract spending on SDBs by 50 percent over the next five years. Last month, the government stated that it had quadrupled its contracting opportunity goals for SDBs from the previous year. Other agencies, such as the Small Business Administration, include procurement in their equity action plans, stating that they would invest in improved technology to speed program applications and consolidate data as part of an effort to increase access to funding for minority-owned firms.
For several years, the GSA has expedited the process and increased education tools for SDBs and minority-owned firms, posting a call for input in 2020 about developing Polaris, its small business contract vehicle. Meanwhile, the Biden administration has attempted to use its procurement authority to close the racial wealth gap, proposing plans to invest USD 31 billion in various forms of aid for socially and economically disadvantaged business owners seeking to engage with the federal government.
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