WASHINGTON, USA – The United States Agency for International Development (USAID) announced the award of almost $900 million to American small businesses (SBs) in Fiscal Year (FY) 2020, the Agency’s best performance ever in supporting US entrepreneurs. Expanding investments in US small businesses is a core part of the Agency’s continuing efforts to expand and diversify this important partner base.
The $896 million USAID obligated to US small businesses in FY 2020, out of a total contract portfolio of $6.04 billion, equals 14.83 percent of the agency’s prime acquisition awards. This achievement significantly exceeded the Agency’s official small-business goal for the fiscal year of 12 percent. Preliminary data indicate this is the highest percentage of contracts overall, and largest total obligation, destined for US small businesses USAID has ever achieved in one fiscal year. The Agency increased the overall dollar amount invested in US small businesses in FY 2020 by more than $88 million over FY 2019.
In addition, USAID exceeded the goal for obligations to women-owned small businesses in FY 2020 by awarding approximately $331.6 million in this category, or 5.55 percent of worldwide obligations into prime contracts. The Agency also exceeded the goal for small disadvantaged businesses for the tenth consecutive Fiscal Year by awarding $416.9 million to these companies, or 6.90 percent of worldwide obligations into prime contracts. Furthermore, USAID made notable increases in awards to small businesses located in Historically Underutilized Business (HUB) Zones ($39.5 million, $8 million above FY 2019), and to small businesses owned by service-disabled veterans ($30 million, $9.1 million above FY 2019).
The dedication and superb collaborative spirit of USAID staff in Washington, DC, and overseas Missions were essential in identifying prime contract opportunities worldwide for US small businesses during FY 2020. USAID staff recognize US small businesses are playing an increasingly important role in helping communities in partner countries on their Journeys to Self-Reliance.
As the Agency continues the transformation to align framework and foundation to remain dynamic, results-oriented, and capable of ending the need for foreign assistance, US small businesses will continue to be a crucial part of the answer to complex development challenges.
