STATE

OF

SMALL

BUSINESS

A REPORT

OF THE

PRESIDENT

1999–2000

Together with the Office of Advocacy’s Annual

Report on Small Business and Competition

United States Government Printing Office

Washington: 2001
ISSN: 0735–1437

ISBN: 0–16–0540940–8
THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION5

Executive Summary 9

Chapter 1 The State of Small Business 17

Chapter 2 The Regulatory Flexibility Act: Changing the Culture of 

Federal Agencies 39

Appendix A Supplementary Tables 55

Appendix B Procurement 117

THE ANNUAL REPORT ON FEDERAL PROCUREMENT PREFERENCE GOALS* 135

GLOSSARY 247

CONTENTS OF PREVIOUS EDITIONS 251

INDEX 257

*For detailed tables of contents of The Annual Report on Small Business and Competition,

and The Annual Report on Federal Procurement Preference Goals, see pages 13 and 135.

iii
SMALL

BUSINESS

A REPORT

OF THE

PRESIDENT

To the Congress of the United States: 

This report documents the state of small business at the end of the 20th

century. Small businesses have always been the backbone of our

economy. They perennially account for most innovation and job creation, and not just when our economy is robust and growing. Small businesses have sustained the economy in weaker times as well, and put us back

on the track to long-term growth. 

It is vital that we work together to give small businesses the climate

they need to thrive. Small businesses are disproportionately affected by

Government regulations and paperwork, and my Administration is committed to reducing this burden. We should regulate only where there is a real

need, fully justified through rigorous cost-benefit analysis and clear legal

authority. And when Government must regulate, it must adopt common

sense approaches. Regulations work best when agencies anticipate and analyze the effects their proposals will have on small firms. Rules need to reflect

the ability of the regulated to comply.

Another barrier to unleashing the full potential of small business is our

tax code. My Administration is committed to reducing taxes for all

Americans—and that includes small businesses. We must eliminate the

estate tax, which so often has impeded the orderly transfer of small businesses from one generation to the next, and too often has spelled the death

of the business after the death of its founder. Our tax code should encourage investment in small businesses, and particularly in new and growing

businesses. If we remember that the innovations that drive tomorrow’s economy come from entrepreneurial small businesses, we will help them to enter

the marketplace, not impede them before they get there. Above all, small

businesses need a tax code that is understandable and stable. Fairness, simplicity, transparency, and accountability should be our goals, and my

Administration is committed to this end.
4 The State of Small Business

, 

THE WHITE HOUSE
BUSINESS

AND COMPETITION

U.S. SMALL BUSINESS

ADMINISTRATION

OFFICE OF ADVOCACY

Ton Small Business and Competition in accordance with the Small Business

Economic Policy Act of 1980. The report was prepared by the Office of

Advocacy of the U.S. Small Business Administration. The report covers the

data years of 1998–1999, but was not sent by the previous administration in

a timely manner. Subsequent reports will again be submitted annually.

We are pleased to present this report and to work with you on behalf of

this important sector of the economy.

Respectfully submitted,

JOHN WHITMORE SUSAN M. WALTHALL

Acting Administrator Acting Chief Counsel for Advocacy

Because entrepreneurial small firms are such an important part of the

American economy, what is good for the overall economy is also generally

good for small business. Small businesses fared reasonably well during the

1998–1999 period covered by this report. 

Real (inflation-adjusted) gross domestic product (GDP) rose to more than

$8.5 trillion in 1998 and to $8.9 trillion in 1999, an 8.8 percent increase over

1997. The nation’s unemployment rate fell to 4.5 percent in 1998 and 4.2 percent in 1999. Nonfarm private employment rose by 2.9 million in 1998 and 2.6

million in 1999, a 5.3-percent rise over the two-year period. Inflation, as gauged

by annual changes in the consumer price index (CPI), remained moderate at 2.2

percent in 1999, although up from 1.6 percent in 1998.

Against this backdrop, the federal budget emerged from a deficit of $22.0

billion in 1997 to a surplus of $69.2 billion in 1998 and $124.6 billion in

1999. The interest rate of 10-year U.S. Treasury notes rose slightly from 5.3

percent in 1998 to 5.7 percent in 1999, but was still lower than the 6.4 percent rate that prevailed in 1997. The prime rate, the interest rate at which

major commercial banks lend money to their best customers, declined from

8.44 percent in 1997 to 8.35 percent in 1998 to an even 8 percent by 1999. 

Business Income

After falling by 2.3 percent in 1997–1998, corporate profits, which come

primarily from large businesses, rose by a substantial 5.0 percent

between 1998 and 1999, and by a total of 2.7 percent over the 1997–1999

period. Nonfarm proprietors’ income, sometimes used as a proxy for small

business earnings, fared considerably better, increasing by 7.9 percent in

1998 and 7.2 percent in 1999—and by a total of 15.7 percent over the twoyear period. Compensation of wage-and-salary workers rose by 7.2 percent

in 1998 and 6.3 percent in 1999 and by 13.9 percent over the 1997–1999

period. Consumer confidence was reflected in an increase of 14.5 percent in

retail sales.

Growth in the Number of Businesses

I

n the economy of 1998–1999, the number of businesses, with and without

employees, continued to increase. A large share of the total and much of the

increase in the number of business tax returns was in sole proprietorships. The

number of businesses with paid employees rose by some 5 percent, from 5.5

million in 1997 to an estimated 5.8 million in 1999. 
share of the number of businesses overall, and new data from the Bureau of

the Census showed women owning 26 percent of the nation’s 20.8 million

nonfarm businesses. 

The number of businesses owned by minorities, including Hispanic and

African Americans, has also been increasing. Excluding C corporations, the

number of African-American-owned businesses increased by 26 percent over

the 1992–1997 period, compared with an increase of 7 percent in the number

of all businesses. The number of Hispanic-owned businesses, excluding C corporations, rose by 30 percent from 1992 to 1997 and their receipts rose by 49

percent, exceeding the 40 percent increase in all comparable U.S. businesses.

Small Business Employment

Total private nonfarm employment in the United States grew by 5.2 percent

between 1997 and 1999. Services led all other sectors in the number of

jobs created, adding nearly 3 million over this period. Small businesses

accounted for about 55 percent of service industry employment in 1997, the

most recent year for which employment data by firm size are available.

Financing of Small Businesses

Major domestic sectors borrowed extensively in the credit markets in

1998. Total credit use by all nonfinancial corporations increased to

$1.043 trillion, a 30 percent increase from 1997. Borrowing continued to

increase in 1999, although at slower rates, to an annual total of $1.12 trillion,

a 7.4 percent increase. 

Borrowing by noncorporate businesses changed little over the

1998–1999 period—from $107 billion in 1997 to $103 billion in 1998 and

$106 billion in 1999. The slight drop in financing among these small businesses does not seem to be an indication of inadequate supply. It is likely that

small firms were able to generate adequate internal funds to support their capital expenditures or that they were using alternative sources such as personal

or home equity credit lines, or personal credit cards.

Procurement from Small Firms

I

n FY 1998, small businesses won $71.3 billion in federal contract awards,

including $41.7 billion in direct contract awards from the federal government and an additional $29.6 billion in subcontracts from prime contractors

10 The Annual Report on Small Business and Competition
$pp

of the $200.3 billion in contract actions awarded by the federal government

in FY 1998, an increase from the previous year’s 32.6 percent small business

share. In FY 1999, the share dropped again to 34.5 percent of the $200.8 billion in total federal contract awards. 

The percentage of prime contracts awarded in FY 1998 and FY 1999 to

small minority- and women-owned businesses remained at levels consistent

with FY 1997. In FY 1998, minority-owned firms were awarded $11.9 billion

in prime contracts or 6 percent of total federal contract dollars; the amount

increased to $12 billion in FY 1999. Women-owned firms were awarded $4.1

billion in prime contracts or 2 percent of federal buys in FY 1998; again total

dollars and the women-owned share both increased in FY 1999 to $4.5 billion

and 2.2 percent respectively. 

Regulatory Flexibility: A 20-Year Success Story 

in Small Business Policy

The Regulatory Flexibility Act of 1980 is an important statute that haschanged the way federal regulatory agencies relate to small businesses in

crafting regulations. The law seeks to level the regulatory playing field for

small businesses and preserve competition in the marketplace by forcing

agencies to undertake a thorough analysis of the economic impact of their

proposed regulations and to consider alternatives that will achieve the same

public policy goals, but with more equitable impact on small entities.

Executive Summary 11

The Economy 18

Small Business Financing 20

Lending to Small Businesses by Commercial Banks 22

Lending under the SBA’s Guarantee Program 22

Lending by Finance Companies 23

Borrowing in the Public Issue Markets 23

Venture Capital Funds 26

Characteristics of U.S. Businesses 28

Number of U.S. Businesses 28

Business Formation and Dissolution 30

Men’s and Women’s Ownership of Nonfarm 

Sole Proprietorships 30

Women-Owned Businesses 30

Minority-Owned Businesses 31

Employment Change by Firm Size 33

1997–1999 Employment Change by Industry 35

Chapter 2 The Regulatory Flexibility Act: Changing the 

Culture of Federal Agencies 39

The 1980 White House Conference on Small Business 39

Congressional Response to Small Business Concerns 40

Requirements of the Regulatory Flexibility Act 40

Federal Agencies Response to the Regulatory 

Flexibility Act 41

The 1995 White House Conference on Small Business 42

Federal Agencies’ Response to the SBREFA Amendments 

to the RFA 43

Agencies are Conducting More Effective 

Small Business Outreach 43

Agencies Are Working to Comply with the RFA 45

The Advocacy Review Panel Process: Better 

Regulatory Analyses 46

Environmental Protection Agency Panels 47
Appendix B Procurement 117

Size of Federal Contract Actions 119

Sources of Small Business Awards by 

Agency/Department 119

Small Business Share of Purchasing Agency Awards 119

Product/Service Categories 120

Small Business Innovation Research 120

Procurement from Minority- and Women-Owned

Businesses 121

Changes in the Procurement Markets 122

Appendix B Tables 123

Glossary 247

Contents of Previous Editions 251

Index 257

14 Table of Contents
Administrator John Whitmore and Acting Chief Counsel for Advocacy Susan

M. Walthall. The project was managed by Kathryn J. Tobias, senior editor.

Significant editorial contributions were made by Rebecca Krafft and Robert

Kleinsteuber. Gregory Somers provided staff support. Much of the data included in the report was collected during the previous administration, but not published as required by law. Specific sections were written or prepared by the

following staff:

Chapter 1 Richard Boden, Charles Ou, Robert Berney, and 

Brian Headd

Chapter 2 Mary K. Ryan and staff of the Office of 

Interagency Affairs

Appendix A Brian Headd

Appendix B Major Clark

The Office of Advocacy appreciates the interest of all who reviewed the

report. Thanks are also extended to the U.S. Government Printing Office for

their assistance.

Acknowledgments 15

The State of Small Business

Synopsis

Small businesses represent 99 percent of businesses, employ more than

half of the American work force, and create two-thirds of the net new

jobs. Because entrepreneurial small firms are such an important part of the

American economy, what is good for the overall economy is also generally

good for small business. And the economy and small businesses fared well

during the 1998–1999 period covered by this report. Real gross domestic

product (GDP) was up; unemployment and inflation were down; interest

rates remained stable. 

The growth in employment made it difficult for some small businesses to

find qualified employees; this put some pressure on labor costs and required

firms to offer better benefit packages. Small businesses, which tend to be more

labor-intensive, felt more of the burden of this pressure than did large firms.

All major domestic sectors borrowed extensively in the credit markets

in 1998. Total credit use by all nonfinancial corporations increased to $1.043

trillion, a 30 percent increase from 1997. Borrowing continued to increase

in 1999, although at slower rates, to an annual total of $1.12 trillion, a 7.4

percent increase. 

Borrowing by noncorporate businesses changed little over the

1998–1999 period—from $107 billion in 1997 to $103 billion in 1998 and

$106 billion in 1999. The slight drop in financing among these small businesses does not seem to be an indication of inadequate supply. It is likely that

small firms were able to generate adequate internal funds to support their

capital expenditures or that they were using alternative sources such as personal or home equity credit lines, or personal credit cards.

In the economy of 1998–1999, the number of businesses, with and

without employees, continued to increase. A large share of the total and

much of the increase in the number of business tax returns was in sole proprietorships. But the number of businesses with paid employees also rose by

some 5 percent, from 5.5 million in 1997 to an estimated 5.8 million in 1999. 

Small business continued to be an important means by which women,

minorities, and immigrants entered the American economic mainstream and

managed to increase their share in the economy. Women-owned sole proprietorships increased their share of average net income as well as their

share of the number of businesses overall, and new data from the Bureau of
percent over the 19921997 period, compared with an increase of 7 percent

in the number of all businesses. The number of Hispanic-owned businesses,

excluding C corporations, rose by 30 percent from 1992 to 1997 and their

receipts rose by 49 percent, exceeding the 40 percent increase in all comparable U.S. businesses.

Total private nonfarm employment in the United States grew by 5.2

percent between 1997 and 1999. Services led all other sectors in the number of jobs created, adding nearly 3 million new jobs over this period.

Small businesses accounted for about 55 percent of service industry

employment in 1997, the most recent year for which employment data by

firm size are available.

Introduction

The 20th century witnessed the nation’s progress—much of it led by small

businesses—from an economy still dominated by its agrarian roots and

early industrialization to an economy increasingly responsive to demands for

services and customization. At the turn of the 21st century, the evidence of

entrepreneurs at work was everywhere—and proliferating, not only in information technologies, but in manufacturing processes, service delivery, and

many other industries. Small firms continued to make important contributions

to the U.S. economy.1

The Economy

The economy proved favorable to small businesses at the end of the 20th century. Real (inflation-adjusted) GDP rose to more than $8.5 trillion in 1998

and to $8.9 trillion in 1999, an 8.8 percent increase over 1997 (Table 1.1). The

nation’s unemployment rate fell to 4.5 percent in 1998 and 4.2 percent in

1999. Nonfarm private employment rose by 2.9 million in 1998 and 2.6

million in 1999, a 5.3-percent rise over the two-year period. The tight labor

market put some upward pressure on the employment cost index, despite

continued gains in labor productivity. High labor costs may be especially problematic for small businesses, which tend to be more labor-intensive than larger businesses. Yet inflation, as gauged by annual changes in the consumer price

index (CPI), remained moderate at 2.2 percent in 1999, although up from 1.6

percent in 1998.

18 The Annual Report on Small Business and Competition

1 Small businesses are defined here as businesses with fewer than 500 employees.
The State of Small Business 19

Table 1.1 Selected Macroeconomic Indicators, 1997–1999

Percent C

1997 1998 1999 1997–1998 1998–

Real Gross Domestic Product (GDP) (Billions of 1992 Dollars) 8,159.5 8,515.7 8,875.8 4.4 4.Sales (Billions of Dollars)

Manufacturing 753.4 779.4 833.1 3.5 6.Wholesale Trade 208.4 212.9 228.5 2.2 7.Retail Trade 217.5 228.8 249.6 5.2 9.

Income (Billions of Dollars)

Compensation of Employees 4,651.3 4,984.2 5,299.8 7.2 6.Nonfarm Proprietors’ Income 551.5 595.2 638.2 7.9 7.Corporate Profits 833.8 815.0 856.0 22.3 5.

Output and Productivity (1992=100)

Output 122.5 128.6 134.8 5.0 4.Hours of All Persons Worked 113.6 116.1 118.4 2.2 2.Productivity (Output per Hour) 107.8 110.8 113.8 2.8 2.

Employment and Compensation

Nonfarm Private Employment (Millions) 103.1 106.0 108.6 2.8 2.Unemployment Rate (Percent) 4.9 4.5 4.2 28.2 26.

Total Compensation Cost Index (Dec.) (June 1989=100) 135.1 139.8 144.6 3.5 3.

Bank Loans, Interest Rates, and Yields

Bank Commercial and Industrial Loans (Billions of Dollars) 855.4 949.5 1,003.0 11.0 5.Prime Rate (Percent) 8.44 8.35 8.00 21.1 24.

U.S. Treasury 10-Year Bond Yields (Percent) 6.35 5.26 5.65 217.2 7.

Federal Budget Surplus or Deficit (Fiscal Year) 222.0 69.2 124.6 2414.5 80.Consumer Price Index (Urban) (1982–1984 = 100) 160.5 163.0 166.6 1.6 2.

Source: Council of Economic Advisers, Economic Indicators, March 2001.
major commercial banks lend money to their best customers, declined from

8.44 percent in 1997 to 8.35 percent in 1998 to an even 8 percent by 1999.

Small firms found a ready supply of credit: total credit outstanding rose more

than 30 percent in 1998 and increased by about 7.4 percent in 1999. As the

stock market set new records in 1998 and 1999, the initial public offering

(IPO) market declined slightly during a volatile period in 1998, then resumed

its growth in 1999.

After falling by 2.3 percent in 1997–1998, corporate profits, which come

primarily from large businesses, rose by 5.0 percent between 1998 and 1999,

and by a total of 2.7 percent over the 1997–1999 period. Nonfarm proprietors’

income, sometimes used as a proxy for small business earnings, fared considerably better, increasing by 7.9 percent in 1998 and 7.2 percent in 1999—and

by a total of 15.7 percent over the two-year period. Compensation of wageand-salary workers rose by 7.2 percent in 1998 and 6.3 percent in 1999 and

by 13.9 percent over the 1997–1999 period. Consumer confidence was

reflected in a 14.8 percent increase in retail sales.

Small Business Financing

All major domestic sectors borrowed extensively in the credit markets in

1998. Total credit use by all nonfinancial corporations increased to

$1.043 trillion, a 30 percent increase from 1997. Borrowing continued to

increase in 1999, although at slower rates, to an annual total of $1.12 trillion,

a 7.4 percent increase.

Nonfinancial corporations did most of the borrowing in 1998 and 1999;

their borrowing increased by 56 percent in 1998, from $266 billion to $416

billion, and by another 15 percent in 1999, to $480 billion. Continued

increases in capital expenditures and a surge in merger and acquisition activity at a time of slower profit growth led to the increase in borrowing in 1998. 

Borrowing by farm and nonfarm noncorporate businesses changed little

over the 1998–1999 period—from $107 billion in 1997 to $103 billion in

1998 and $106 billion in 1999 (Tables 1.2 and 1.3). The slight drop in

demand for financing among these small businesses does not seem to be an

indication that they were experiencing difficulties locating financing, however. It is likely that they were able to generate adequate internal funds to support increases in capital expenditures or that they were using alternative

sources such as personal credit lines, home equity credit lines, or personal

credit cards.

Overall, demand for bank loans remained active in 1998 and the first two

quarters of 1999. While the supply of funds appeared to be adequate, the cost

20 The Annual Report on Small Business and Competition
The State of Small Business 21

Table 1.2 Credit Market Borrowing by Nonfinancial Borrowing Sector, 1986–1999 (Billions of Dollars)*

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

Total Domestic Borrowing 863.6 733.7 767.7 720.3 669.4 480.6 544.5 589.4 575.2 712.0 731.4 804Government

Federal 216.0 143.9 155.1 146.4 278.2 304.0 256.1 155.9 155.9 144.4 145.0 23

State and Local 73.4 91.1 54.5 246.9 46.6 81.6 31.0 74.7 246.2 251.5 26.8 56

Business

Farm 217.4 211.6 210.2 0.6 1.0 2.1 1.3 2.6 4.4 2.9 4.8 6Nonfarm Noncorporate 94.3 55.5 84.2 69.6 1.1 211.0 216.0 3.2 3.3 30.6 81.4 107

Nonfinancial Corporate 236.3 148.7 225.0 183.2 110.0 253.0 42.7 45.5 142.3 243.7 148.8 266

Total Business 313.2 192.6 299.0 253.4 112.1 261.9 28.0 51.3 150.0 277.2 235.0 379

Households 261.1 306.5 259.1 269.5 263.7 182.7 160.7 205.9 316.3 350.3 358.1 345Foreign Borrowing in the

United States 9.7 6.2 6.4 10.2 23.9 14.8 23.7 69.8 213.9 71.1 88.4 71

*Excluding equity and borrowing by financial institutions. Major revisions in estimates for several sectors in 1995–1998.Source: Board of Governors of the Federal Reserve System, Flow of Funds Accounts, Second Quarter 2000: Flows and Outstandings (November 2000).

Table 1.3 Major Sources and Uses of Funds by Nonfarm, Noncorporate Businesses, 1986–1999 (Billions of Do

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 199

Net Income 306.7 331.9 378.2 407.0 434.9 464.1 441.0 473.9 495.3 534.2 569.7 609Gross Investment 64.0 67.7 72.8 77.0 80.6 67.5 82.9 84.4 64.7 56.4 110.8 119Fixed Capital Expenditures 106.6 107.4 112.9 118.0 106.4 91.1 96.8 93.5 94.6 99.2 109.6 93Changes in Inventories 0.6 1.5 1.1 1.6 0.3 20.1 0.1 1.3 2.5 1.9 1.1 3Net Financial Investments 243.1 241.2 241.2 242.6 226.1 223.5 214.1 210.5 232.5 244.7 0.0 23

Net Increase in Credit Market Debt 48.1 25.7 87.6 61.1 13.8 215.0 216.4 3.2 3.3 23.9 81.4 107Mortgages 82.7 39.9 68.5 56.1 4.1 29.9 215.1 21.5 213.8 22.2 50.9 79

Net Investment by Proprietors 253.1 228.0 215.6 228.1 20.3 18.5 28.6 26.9 61.8 51.9 218.1 260

*Revisions for 1996–1998.Source: Board of Governors of the Federal Reserve System, Flow of Funds Accounts, Second Quarter 2000: Flows and Outstandings (November 2000).
Lending to Small Businesses by Commercial Banks

The number of banks in the United States continued to decline in 1998 and

1999, although the number of very large banks with more than $1 billion in

assets increased from 363 to 384. Just 57 large multi-billion-dollar bank holding companies held almost 70 percent of the total assets of commercial banks

and accounted for 43 percent of outstanding small business loans—those

under $1 million (Table 1.4). Although many of these very large banks are

active small business lenders, several trends seem to indicate a falling off in

their commitment to small business lending, especially the smaller loans,

including large increases in their total assets relative to increases in their small

business lending; smaller increases in their shares of small business lending

relative to their shares of assets; and declining ratios of small business loans

to total assets. Continued monitoring of bank holding companies’ commitment to small business lending is warranted. 

Small business loans continued to decline in importance in the portfolios

of commercial banks overall in 1998 and 1999. Total small business loans outstanding (under $1 million) amounted to $371 billion in June 1998 and $398

billion in June 1999, up 6.3 percent and 7.4 percent respectively from the previous year. At the same time, total business loans increased more—by 10.5 percent to $1.02 trillion in 1998 and by 12.0 percent to $1.14 trillion in June 1999

(Tables 1.5 and 1.6). The substantial increases in large business loans over $1

million overwhelmed the moderate increases in small loans. 

The very modest increases in the smallest loans were a concern. Loans

under $100,000 grew just 3.0 percent in 1998 and 2.5 percent in 1999 (Table

1.7). This small increase occurred in spite of major credit card issuers’ promotion of small business credit cards, which are included in the category of loans

under $100,000. While it is difficult to separate the growth in credit card lending from other small business lending, it is safe to argue that the non-credit card

portion of small business loans in this group showed little increase over the

1998–1999 period. The increase in credit card use contributed to an increase

in the number of small business loans: they grew by 16.7 percent in 1998 and

by 9.6 percent in 1999. Most of the increase was in the smallest loans under

$100,000, which increased by 19 and 10 percent respectively (Table 1.8). 

Lending under the SBA’s Guarantee Program

Both the number and value of loans made under the U.S. Small Business

Administration’s loan guarantee programs declined slightly from 45,288 loans

valued at $9.5 billion in FY 1997 to 42,270 worth $9.0 billion in FY 1998,

then jumped by more than 10 percent in value to 43,639 loans worth $10.1

22 The Annual Report on Small Business and Competition
All Banks Very Large Percentage All Banks Very Large Percentage 

BHCs of All Banks BHCs of All Banks

Small Business Loans

Less than $100,000 111.5 35.9 32.2 108.2 33.3 30.7

Less than $1 Million 370.8 157.3 42.4 348.7 145.9 41.8

Less than $250,000 187.8 68.7 36.6 178.8 63.6 35.6

$100,000–$250,000 76.3 32.8 43.0 70.6 30.4 43.0

$250,000–$1 Million 183.0 88.6 48.4 169.9 82.3 48.4

Total Business Loans 1,019.8 699.2 68.6 923.2 612.3 66.3

Total Assets 4,418.6 3,028.9 68.5 4,046.4 2,688.7 66.4

Note: Very large BHCs are bank holding companies whose domestic assets exceed $10 billion.

Source: U.S. Small Business Administration, Office of Advocacy: Bank Holding Company Study (March

2000).

billion in FY 1999. The value of small loans under $100,000 continued to

decline from $1.43 billion in FY 1997 to $1.27 billion in FY 1998 to $1.13 billion in FY 1999. Loans to minority-owned businesses, on the other hand,

increased significantly in FY 1999. 

Lending by Finance Companies

Lending to businesses by finance companies increased significantly, by 9.1 percent from 1997 to 1998 and by 16.6 percent from 1998 to 1999 (Table 1.9).

Because data are not available on the size of these loans, little can be said

about the extent to which small business finance company borrowing is changing relative to large business borrowing.

Borrowing in the Public Issue Markets

The U.S. stock market overcame a large correction in the fall of 1998 to end

the year on an upsurge, which continued in 1999, propelling all major stock

indices into record territory by the end of the year. However, stock price

advances were not broad-based, and more stocks declined than increased. 

A volatile, although rising secondary market provided little help to the

IPO market in 1998. The IPO market declined further from record highs

achieved in 1996. IPO volume declined almost 15 percent, from $43.3 billion in 1997 to $36.9 billion in 1998, then rebounded to a new high of $68.7

billion in 1999 (Table 1.10). Small issue offerings from companies with preoffering assets of less than $10 million showed a similar pattern, although the

The State of Small Business 23
24 The Annual Report on Small Business and Competition Table 1.5 Number and Amount of Business Loans Outstanding by Loan Size and Bank Size, June 1998 Loan Size 

Under $100,000 $100,000–$250,000 $250,000–$1 Million Under $1 Million $

Amount Amount Amount Amount 

Bank Asset Size (Billions of (Billions of (Billions of (Billions of 

(Millions of Dollars) Number Dollars) Number Dollars) Number Dollars) Number Dollars) Commercial and Industrial Loans All Banks 7,286,282 79.05 358,133 38.24 273,454 79.95 7,917,869 197.23 0–$100 969,334 16.05 30,832 3.53 16,401 4.81 1,016,567 24.39 $100–$500 1,775,818 21.04 86,679 9.48 56,628 15.80 1,919,125 46.32 $500–$1,000 1,238,573 5.64 29,522 3.14 22,200 6.29 1,290,295 15.07 $1,000–$10,000 969,830 13.94 86,961 8.71 71,408 20.22 1,128,199 42.87 Over $10,000 2,332,727 22.38 124,139 13.37 106,817 32.83 2,563,683 68.59 Nonfarm Nonresidential Real Estate Loans All Banks 735,719 32.45 293,022 38.09 269,631 103.06 1,298,372 173.60 0–$100 202,466 9.46 29,993 3.98 22,036 7.91 254,495 21.35 $100–$500 257,221 11.93 86,943 11.50 72,812 28.09 416,976 51.52 $500–$1,000 46,178 2.07 27,766 3.60 26,873 9.96 100,817 15.64 $1,000–$10,000 117,214 4.80 64,778 8.45 62,336 24.41 244,328 37.66 Over $10,000 112,640 4.18 83,542 10.56 85,574 32.69 281,756 47.43 Total Business LoansAll Banks 8,022,001 111.50 651,155 76.33 543,085 183.01 9,216,241 370.84 0–$100 1,171,800 25.51 60,825 7.52 38,437 12.72 1,271,062 45.75 $100–$500 2,033,039 32.97 173,622 20.99 129,440 43.89 2,336,101 97.84 $500–$1,000 1,284,751 7.72 57,288 6.73 49,073 16.25 1,391,112 30.70 $1,000–$10,000 1,087,044 18.74 151,739 17.16 133,744 44.63 1,372,527 80.53 Over $10,000 2,445,367 26.57 207,681 23.93 192,391 65.53 2,845,439 116.02 

Note: Loans are reported by loan size; loans under $1 million are assumed to represent small business lending.Source: Adapted by the U.S. Small Business Administration, Office of Advocacy, from special tabulations of the June 1998 call reports (Consolidated Rep

Income for U.S. Banks) prepared by James Kolari, Texas A&M University, College Station, Texas.
The State of Small Business 25

Table 1.6 Number and Amount of Business Loans Outstanding by Loan Size and Bank Size, June 1999

Loan Size

Under $100,000 $100,000–$250,000 $250,000–$1 Million Under $1 Million $

Amount Amount Amount Amount 

Bank Asset Size (Billions of (Billions of (Billions of (Billions of 

(Millions of Dollars) Number Dollars) Number Dollars) Number Dollars) Number Dollars) Commercial and Industrial LoansAll Banks 7,017,544 81.67 377,850 40.10 291,889 87.56 7,687,283 209.33 0–$100 685,183 14.75 32,920 3.62 20,610 5.20 738,713 23.57 $100–$500 1,646,618 21.38 90,189 9.85 57,697 17.29 1,794,504 48.52 $500–$1,000 233,127 4.71 28,026 3.08 20,500 6.42 281,653 14.21 $1,000–$10,000 1,484,399 12.77 83,274 8.34 70,074 19.95 1,637,747 41.07 Over $10,000 2,968,217 28.05 143,441 15.21 123,008 38.70 3,234,666 81.96 Nonfarm Nonresidential Real Estate LoansAll Banks 709,384 32.18 308,665 41.02 292,313 115.92 1,310,362 189.13 0–$100 178,371 8.57 29,935 4.08 22,714 8.38 231,020 21.03 $100–$500 246,132 11.56 90,189 12.19 78,194 31.17 415,228 54.92 $500–$1,000 44,915 2.07 26,461 3.40 26,551 10.19 97,927 15.66 $1,000–$10,000 106,661 4.31 64,485 8.63 64,394 26.21 235,540 39.16 Over $10,000 133,305 5.68 143,441 12.72 100,460 39.97 330,647 58.36 Total Business LoansAll Banks 7,726,928 113.85 686,515 81.12 584,202 203.48 8,997,645 398.45 0–$100 863,554 23.32 62,855 7.70 43,324 13.58 969,733 44.60 $100–$500 1,892,750 32.94 181,091 22.03 135,891 48.46 2,209,732 103.44 $500–$1,000 278,042 6.79 54,487 6.48 47,051 16.60 379,580 29.87 $1,000–$10,000 1,591,060 17.08 147,759 16.98 134,468 46.17 1,873,287 80.23 Over $10,000 3,101,522 33.73 240,323 27.93 223,468 78.66 3,565,313 140.32 

Note: Loans are reported by loan size; loans under $1 million are assumed to represent small business lending.Source: Adapted by the U.S. Small Business Administration, Office of Advocacy, from special tabulations of the June 1999 call reports (Consolidated Rep

Income for U.S. Banks) prepared by James Kolari, Texas A&M University, College Station, Texas.
volume of IPO issues failed to surpass the high of 1996, reaching just $4.1

billion in 1999. The market is increasingly dominated by very large deals.

Venture Capital Funds

Fundraising by venture capital firms continued to grow in 1998 and then

boomed in 1999, setting historic highs in the volume of capital commitments

for both years. Funds raised grew by 78 percent in 1998 and another 66 percent in 1999, reaching $46 billion (Table 1.11).

In line with the explosion in venture investment, disbursements to small

businesses by small business investment companies (SBICs) continued to

26 The Annual Report on Small Business and Competition

$100,000$250,000 5.7 5.2 8.1 6.3

$250,000–$1 Million 5.7 5.7 7.7 11.2

Greater than $1 Million 5.1 11.5 13 14.6

1Changes for 1996–1997 and 1997–1998 were estimated based on revised estimates for Keycorp in 1997.

2 So that 1998–1999 trends could be shown, 1998 figures were revised to exclude the credit card operation of Mountain West Financial, which was purchased by a non-bank financial intermediary and thus excluded

from 1999 data. 

Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United

States, 1999.

Table 1.8 Change in the Number of Small Business Loans by Loan Size,

1994–1999 (Percent)

Loan Size 1994–1995 1995–1996 1996–19971 1997–19981 1998–19992

Less than $100,000 8.6 8.8 26.6 19.3 10.1

$100,000–$250,000 10.7 6 8.6 1.8 5.4

$250,000–$1 Million 11.6 7.5 8 1.4 7.6

Greater than $1 Million 9.1 8.4 23.5 16.7 9.6

1Changes for 1996–1997 and 1997–1998 were estimated based on revised estimates for Keycorp in 1997.

2Data were adjusted to make the computation of changes from 1998 to 1999 meaningful. 

Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United

States, 1999.
The State of Small Business 27

Table 1.10 Common Stock Initial Public Offerings by All and Small Issuers,

1988–1999

Offerings by

Nonfinancial

Offerings by Issuers with Assets Issuers with Assets of

Offerings by All Issuers of $10 Million or Less $10 Million or Less

Amount Amount Amount 

(Millions of Average (Millions of Average (Millions of Average 

Number Dollars) Size Number Dollars) Size Number Dollars) Size

1999 543 68,663 126.5 101 4,129 40.9 95 4030 42.4

1998 375 36,865 98.3 62 1,429 23.1 60 1412 23.5

1997 630 43,253 68.7 159 2,622 16.5 148 2413 16.3

1996 871 49,878 57.3 280 5,246 18.7 268 5152 19.2

1995 580 30,013 51.7 165 2,545 15.4 158 2428 15.4

1994 610 28,447 46.6 203 2,080 10.2 186 3057 16.4

1993 707 41,283 58.4 203 2,798 13.8 190 1975 10.4

1992 517 24,139 46.7 171 2,241 13.1 189 2043 10.8

1991 368 16,846 45.8 116 1,334 11.5 164 1919 11.7

1990 177 4,822 27.2 86 1,310 15.2 108 879 8.1

1989 209 6,082 29.1 89 584 6.6 67 951 14.2

1988 228 5,940 26.1 83 656 7.9 84 562 6.7

Note: Excludes closed end funds. Registered offerings data from the Securities and Exchange Commission

are no longer available. Data provided by Securities Data Company are not as inclusive as data for offerings

registered with the SEC.

December 31, 1999 405.2 16.6 1.5

December 31, 1998 347.5 9.1 1.1

December 31, 1997 318.5 2.9 1.7

December 31, 1996 309.5 2.6 1.8

December 31, 19952 301.6 9.7 2.4

December 31, 19942 274.9 .NA 2.5

December 31, 19932 294.6 22.3 2.3

December 31, 1992 301.3 1.9 2.5

December 31, 1991 295.8 0.9 2.6

December 31, 1990 293.6 14.6 3.4

December 31, 1989 256.0 9.1 4.6

December 31, 1988 234.6 13.9 3.9

December 31, 1987 206.0 19.7 4.0

December 31, 1986 172.1 9.3 3.2

December 31, 1985 157.5 14.3 2.5

December 31, 1984 137.8 21.9 3.5

December 31, 1983 113.4 12.9 3.8

December 31, 1982 100.4 .0 5.3

December 31, 1981 100.3 11.1 8.5

December 31, 1980 90.3

NA = Not available.

1Changes from the fourth quarter of the year before.

2Major data revision for 1994–1996.

Sources: Federal Reserve Board, Federal Reserve Bulletin, various issues; U.S. Department of Commerce,

Bureau of Economic Analysis, Business Conditions Digest, various issues; and idem., Survey of Current Business,

various issues.
increase, by 37 percent to $3.2 billion in FY 1998 and by another 30 percent

to $4.2 billion in FY 1999 (Table 1.12).

Characteristics of U.S. Businesses

Number of U.S. Businesses

In the context of the healthy climate for small business growth in 1998 and

1999, the number of businesses with paid employees rose from 5.5 million in

1997 to an estimated 5.8 million in 1999 (Table 1.13). Among businesses with

28 The Annual Report on Small Business and Competition

19992 46.5 49.9 NA

19982 28.0 21.7 1,391 1,718 84.2

19972 15.7 17.4 1,410 1,418 59.6

19962 10.6 11.2 1,066 1,189 46.2

1995 8.2 6.0 635 891 38.5

1994 7.2 5.5 471 880 34.8

1993 3.9 5.3 398 901 31.9

1992 4.6 5.2 463 1,015 30.6

1991 1.5 2.9 291 900 31.6

1990 2.7 3.9 428 1,045 39.0

1989 5.2 5.8 636 1,092 33.5

1988 3.5 5.6 676 1,038 29.5

1987 4.0 4.9 752 1,170 27.0

1986 3.6 4.7 692 992 23.4

1985 3.0 3.8 551 975 19.3

1984 3.0 5.3 695 942 15.8

1983 4.1 3.7 766 740 12.2

1982 1.6 1.9 553 516 7.8

NA = not available.

1 The capital pool at year’s end should equal the total pool at the end of the previous year plus new commitments, minus the amount of net withdrawal (or liquidation) from the funds. (For 1983, an additional $600

million was identified that had not been included in the prior estimate.) 2Revised numbers, Including additional institutional funding partners.

Source: Capital Publishing Corporation, Venture Capital Journal (various issues), and NVCA, 1999 National

Venture Capital Association Yearbook.

2 There are no paid employees in the vast majority of these businesses, and many returns, such

as a 1040C (sole proprietorship return) filed by a professor who did some part-time consulting, do not

reflect what most would consider “real” businesses. Still, nonfarm business income tax returns are

associated with many businesses that represent the seedstock for future U.S. employers.
paid employees, small businesses with fewer than 500 employees account for

roughly 51 percent of total private nonfarm employment.

A broader measure of U.S. businesses is the number of nonfarm income

tax returns filed.2 Nonfarm business tax returns totaled 24.8 million in 1999,

The State of Small Business 29

Table 1.13 Number of Businesses, 1989–1999 (Millions)

Self- Nonfarm Business

Year Employer Firms Employment Tax Returns

1999 5.80e. 10.09 24.81

1998 5.58 10.30 24.29

1997 5.54 10.51 23.86

1996 5.48 10.49 23.12

1995 5.37 10.48 22.56

1994 5.28 10.65 22.19

1993 5.19 10.28 20.87

1992 5.10 9.96 20.48

1991 5.05 10.27 20.50

1990 5.07 10.10 20.22

1989 5.02 10.01 19.56

e.=estimated

Sources: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S.

Department of Commerce, Bureau of the Census; U.S. Department of Labor, Bureau of Labor Statistics; and U.S.

Department of the Treasury, Internal Revenue Service.

1999 1,379 2,926 1,717 1,295 3,096 4,221

1998 1,721 2,037 1,725 1,202 3,456 3,239

1997 1,360 1,658 1,371 711 2,731 2,369

1996 1,081 1,022 1,026 594 2,107 1,616

1995 1,322 725 899 524 2,221 1,249

1994 1,241 517 1,107 484 2,348 1,001

1993 1,086 443 906 364 1,992 806

1992 1,056 322 943 222 1,999 544

1991 1,084 285 899 205 1,983 490

1990 1,420 268 1,204 260 2,624 628

1989 1,820 466 1,813 271 2,633 736

Source: U.S. Small Business Administration, Investment Division.
The net change in the number of businesses over the course of a year masks

the churning that occurs below the surface—the numbers of businesses that

open and close. Over the 1996–1997 period, the latest period for which data

are available, 590,644 businesses opened and 530,003 closed, resulting in a

net change in the number of businesses with paid employees of 60,641 (Table

1.14).3 This net change was an increase over the 1995–1996 net change of

85,390, but lower than the net change of 97,123 between 1994 and 1995. Of

the business startups, 95.5 percent had between 1 and 19 employees.

Business closings may be voluntary or involuntary; involuntary bankruptcies reflect failed businesses. Between 1997 and 1999, business bankruptcies in

the United States declined steadily and dramatically (by 30.1 percent), from

53,800 in 1997 to 44,200 in 1998 to 37,600 in 1999. In fact, by 1999, the number of business bankruptcies was just over half the number recorded for 1991.4

Men’s and Women’s Ownership of Nonfarm Sole Proprietorships

A data series from the Internal Revenue Service based on Schedule C tax forms

permits researchers to examine sole proprietorships by the gender of the

owner. Women-owned sole proprietorships showed steady growth in their

numbers for 1982 through 1998, the most recent year for which data are available (Table 1.15).5 The women-owned shares of sole proprietorship receipts

and income have also been rising steadily. In 1998, women-owned sole proprietorships generated more than $165 billion in receipts and accrued $43.6

billion in net income (Table 1.16). Businesses owned by men generated

$731.1 billion in receipts and had total net income of $156.6 billion. Thus,

women-owned sole proprietorships accounted for about one-fifth of the

receipts and net income attributable to sole proprietorships.

30 The Annual Report on Small Business and Competition

3 The Office of Advocacy relies on a longitudinal data series to measure the formation and dissolution of U.S. businesses with paid employees. Although estimates are presented, hard data on these

business dynamics are not yet available for the years 1998 and 1999. 4 Source: Administrative Office of the U.S. Courts.

5 The figures in Table 1.15 were calculated from Schedule Cs on Internal Revenue Service Form

1040 tax returns for the year shown. Many men and women file more than one Schedule C in any

given year. 6 In 2001, the Census Bureau released its quinquennial economic census estimates on the numbers of women- and minority-owned businesses in 1997. These estimates are the products of the

Bureau’s Survey of Women-Owned Business Enterprises (SWOBE) and Survey of Minority-Owned

Business Enterprises (SMOBE). The figures on women-owned businesses used a new 51-percent ownership criterion; in contrast, for the 1992 SWOBE, a business was classified as women-owned if 50 percent or more of its owners were identified as women. In addition to firms with 51 percent ownership

by men or women, another 3.6 million were owned equally by men and women.
Women-Owned Businesses

The larger universe of women-owned businesses is reflected in 1997 data

newly available from the Bureau of the Census (Table 1.17). In 1997, 5.4

million women-owned businesses generated $818.7 billion in receipts.6

Women-owned businesses accounted for 26 percent of the nation’s 20.8

million nonfarm businesses and 4.4 percent of their total receipts. An additional 3.6 million businesses were jointly owned (50 percent each) by men

and women. Of the 5.4 million women-owned businesses, 847,000 had

employees—a total of 7.1 million of them in 1997.

The number of women-owned businesses rose by 16 percent between

1992 and 1997, compared with a 6 percent increase in the number of all U.S.

firms.7 Their receipts increased by 33 percent, compared with a 24 percent

increase in the receipts of all firms.

Minority-Owned Businesses

According to new Census information, the number of minority-owned businesses grew faster than businesses overall between 1992 and 1997.8 Of the

20.8 million nonfarm businesses in the United States in 1997, 823,500 (4 perThe State of Small Business 31

7 Comparisons for the two years were made using comparable data based on the previous 50-percent women-owned definition of women-owned firms. 8 The rate of growth for all businesses over this period was 7 percent.

9 The 1997 SMOBE included C corporations for the first time. The Census Bureau produced comparable numbers for comparisons between 1992 and 1997 at the national level.

1997 590.6 530.0 11.4 53.8

1996 597.8 512.4 16.7 53.2

1995 594.4 497.2 19.5 50.5

1994 570.6 503.6 13.3 50.8

1993 564.5 492.7 14.6 62.4

1992 544.6 521.6 4.4 69.8

1991 541.1 546.5 21.0 70.6

1990 584.9 531.4 10.1 63.9

1989 NA NA 62.4

e. = estimated

NA = Not available

Sources: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S.

Department of Commerce, Bureau of the Census; U.S. Department of Labor, Employment and Training

Administration; and Administrative Office of the U.S. Courts.
32 The Annual Report on Small Business and Competition Table 1.15 Trends in Nonfarm Sole Proprietorships by Gender, 1982–1998 Number of Nonfarm Sole Proprietorships Share of Total Operated by Women Ratio of Fe

(Thousands) (Percent) 

Owned Owned Gender Net Receipts pe

Year Total by Women by Men Unknown Number Receipts Income Proprietorsh

1998 19,377 7,126 11,947 304 37 18 22 38 1997 19,219 6,714 11,762 743 36 18 20 38 1996 19,032 6,466 11,798 768 35 17 20 37 1995 18,391 6,136 11,526 730 35 16 18 36 1994 18,109 6,047 11,276 786 35 15 18 34 1993 17,714 5,852 11,393 470 34 15 18 35 1992 17,292 5,698 11,154 440 34 15 17 34 1991 16,958 5,549 10,993 416 34 15 18 36 1990 16,596 5,348 10,807 442 33 15 16 36 1989 15,921 4,977 10,454 489 32 13 16 33 1988 15,159 4,611 10,028 520 31 14 16 34 1987 14,549 4,462 9,576 510 32 14 16 34 1986 13,798 4,121 9,244 433 31 14 16 35 1985 13,297 3,738 9,076 483 29 13 15 35 1984 12,495 3,383 8,643 469 28 11 12 33 1983 11,781 3,254 8,065 462 29 12 11 34 1982 11,170 2,942 7,788 440 27 10 10 30 

Note: Before 1998, the Internal Revenue Service recorded gender based on first name; if the name was ambiguous or if both names of spouses filing joint 

Schedule C, the name was reported as “male and female jointly operated,” shown here as “unknown.” Unknown names were excluded in calculating the fema

Source: U.S. Small Business Administration, Office of Advocacy, calculations derived from tabulations of Schedule Cs (nonfarm business income) filed w

tax returns, provided under contract by the U.S. Department of the Treasury, Internal Revenue Service (IRS) Statistics of Income Division.
cent) were owned by African Americans (Table 1.17). Black-owned businesses in the United States employed 718,300 people and accrued total receipts

of $71.2 billion. Excluding C corporations, the number of African-Americanowned businesses increased by 26 percent over this period and their receipts

increased by 33 percent.9

Businesses owned by Hispanic Americans totaled 1.2 million in 1997

and had total sales of just over $186 billion. The number of Hispanic-owned

businesses, excluding C corporations, rose by 30 percent from 1992 to 1997

and their receipts rose by 49 percent, exceeding the 40 percent increase in all

comparable U.S. businesses. There were 913,000 Asian- and Pacific Islanderowned businesses in 1997 and 197,300 firms owned by American Indians and

Alaska Natives. They had $161 billion and $34.3 billion in sales, respectively.

Employment Change by Firm Size

Employment changes by firm size can be viewed from both static and dynamic perspectives. Small business’ static shares of employment show the imporThe State of Small Business 33

10 Static and dynamic data differ in their end year classification of the employment size of firms.

Static data reclassify firms in each time period, thus providing a “snapshot” of the number in each size

category at a given time. With dynamic data, firms are classified by their initial firm size class regardless of whether they changed firm size classes, and growth is tracked for each firm. Static and dynamic firm size data are available from the Office of Advocacy’s web site at http://www.sba.gov/

advo/stats/int_data.html. 11 See Appendix A. While employment changes by industry are available with little time lag,

employment changes by firm size are available with a lag time of a few years. 12 No corresponding data are available on any measures of assets by firm employment size.

Mining, Construction, 

and Manufacturing 290.1 11,463.2 1,777.8 2,493.8 151,884.8 26,725.2

Transportation, Communications, 

and Public Utilities 170.9 5,131.2 925.4 771.9 43,320.9 6,395.3

Wholesale and Retail Trade 1,568.1 44,890.7 2,775.1 1,783.3 187,186.0 15,839.6

Finance, Insurance, and 

Real Estate 585.4 23,206.5 8,934.5 989.6 76,398.9 20,048.0

Services 4,409.8 78,288.4 28,988.8 5,426.8 247,989.8 83,966.0

Total, All Industries 7,126.4 165,098.0 43,576.6 11,946.6 731,077.7 156,619.3

Note: Excluded from these data are firms (of which there were 304,000 in 1998) for which the gender of

the owners or the proportion of joint ownership by men and women is unknown.

Source: U.S. Small Business Administration, Office of Advocacy, calculations derived from tabulations of

Schedule Cs (for nonfarm business income) filed with individual income tax returns, provided under contract

by the U.S. Department of the Treasury, Internal Revenue Service (IRS) Statistics of Income Division.
34 The Annual Report on Small Business and Competition Table 1.17 Number and Receipts of Women- and Minority-Owned Businesses by Industry Division, 1997 (Rec

Thousands of Dollars) 

Women Hispanic Black Asian/Pacific Islander 

Number of Number of Number of Number of 

Firms Receipts Firms Receipts Firms Receipts Firms Receipts 

Total, All Industries 5,417,034 818,669,084 1,199,896 186,274,582 823,499 71,214,662 912,960 306,932,982 Agriculture, Forestry and Fishing 74,444 5,852,901 40,040 2,279,397 12,464 417,169 12,988 1,140,670 Mining 20,030 7,186,113 1,909 429,446 231 21,551 660 253,329 Construction 157,173 67,632,059 152,573 21,923,384 56,508 7,712,059 27,711 7,485,505 Manufacturing 121,108 113,722,304 25,552 28,684,759 10,447 3,682,510 23,242 28,952,417 Transportation, Communications and Utilities 128,999 32,944,160 84,554 8,293,935 71,586 6,376,645 37,501 5,625,483 Wholesale Trade 125,645 188,488,639 31,480 40,386,625 8,120 5,818,734 50,400 105,466,223 Retail Trade 919,990 152,041,311 155,061 32,280,310 87,568 13,803,266 195,691 67,895,241 Finance, Insurance, and Real Estate 479,469 56,021,358 56,629 6,644,826 37,934 3,088,582 68,765 11,398,069 Services 2,981,266 186,161,274 500,449 39,177,767 437,646 25,925,092 406,010 67,762,462 Not Elsewhere Classified 411,596 8,618,965 151,931 6,174,133 101,128 4,369,056 90,509 10,953,582 

Source: U.S. Small Business Administration, Office of Advocacy, from data supplied by U.S. Department of Commerce, Bureau of the Census, 1997 Surv

Business Enterprises (SWOBE) and 1997 Survey of Minority-Owned Business Enterprises (SMOBE).
pjg 

early and mid-1990s (Table A.9).11 This trend should have continued into the

late 1990s. 

The formation and dissolution of businesses results in job turnover and

allows the economy to evolve, but employment changes associated with

births and deaths can often cancel each other out, giving the impression of a

static environment. However, the 1990s period was very positive, with

employment from firm expansions overwhelming firm contractions and with

firm births overwhelming firm deaths. 

The proportion of all firms that are small was virtually unchanged in the

1990s, while small businesses’ static share of total employment declined

slightly over this period. Small firms employed about 51 percent of workers in

the private sector economy in 1998, a slight decline from their 54 percent

share in 1990; this share changed less than one percent in any one year over

the 1990–1998 period (Table A.3.) The small business share in 1999 is

believed to have remained at about 51 percent. The decline in the share of

small firm employment may be the result of small firms growing into large

firms and/or of a general increase in entry barriers that would adversely affect

the viability of new small business ventures, or of small firms becoming more

capital-intensive and relying less on labor.12

1997–1999 Employment Change by Industry

Total private nonfarm employment in the United States grew by 5.2 percent

between 1997 and 1999 (Tables 1.18 and A.19). Services led all other sectors

in the number of jobs created, adding nearly 3 million over this period. Small

businesses accounted for about 55 percent of service industry employment in

1997, the most recent year for which data on employment by firm size are

available, but this share has been declining steadily. Between 1997 and 1999,

mining and manufacturing posted modest net declines in employment.

The five major industries that created the most jobs in 1997–1999 were

business services, engineering and management, special trade contractors,

social services, and eating and drinking places (Table 1.19). The small business shares of employment in these industries in 1997 were 45.7 percent, 62.4

percent, 92.9 percent, 80.5 percent, and 64.5 percent, respectively.

The five industries that showed the largest employment increases relative to

their overall employment size in 1997–1999 were nondepository institutions,

holding and other investment offices, unclassified service industries, business

The State of Small Business 35

13 These figures are based upon special tabulations of the Statistics of U.S. Businesses (SUSB). A

small business is defined in this context as a business with fewer than 500 employees. At the time of

the writing of this report, the most recent year for which data were available was 1997.
36 The Annual Report on Small Business and Competition

Agricultural Services 679.1 705.5 758.6 3.9 7.5 11.7

Mining 592.0 590.0 535.0 20.3 29.3 29.6

Construction 5,686.0 5,985.0 6,273.0 5.3 4.8 10.3

Manufacturing 18,657.0 18,772.0 18,432.0 0.6 21.8 21.2

Transportation, Communications,

and Public Utilities 6,395.0 6,600.0 6,792.0 3.2 2.9 6.2

Wholesale Trade 6,648.0 6,831.0 7,004.0 2.8 2.5 5.4

Retail Trade 22,011.0 22,296.0 22,787.0 1.3 2.2 3.5

Finance, Insurance, and 

Real Estate 7,091.0 7,407.0 7,632.0 4.5 3.0 7.6

Services 35,360.9 36,820.5 38,241.4 4.1 3.9 8.1

Note: Agricultural services data are for 1996 because of disclosure restrictions on the 1997 data.

Sources: U.S. Small Business Administration, Office of Advocacy, from employment data provided by the

U.S. Department of Labor, Bureau of Labor Statistics and employment firm size data from the U.S. Department

of Commerce, Bureau of the Census.

Table 1.19 Employment Growth: Fastest Growing Industries and Those

Generating the Most New Jobs, 1997–1999 (Thousands)

SIC Percent

Codes Annual Employment Absolute Percent Small

(1987) Industry 1997 1999 Change Change 1997

Fastest Growing Industries in Employment, Ranked by Percent Change

6100 Nondepository Institutions 567.2 713.7 146.5 25.8 34.9

6700 Holding and Other 

Investment Offices 221.8 266.2 44.4 20.0 52.0

8900 Services, nec 49.6 56.8 7.2 14.5 75.3

7300 Business Services 7,982.7 9,123.4 1,140.7 14.3 45.7

8700 Engineering and 

Management Services 3,004.8 3,419.5 414.7 13.8 62.4

Industries Generating the Most Jobs, Ranked by Absolute Change

7300 Business Services 7,982.7 9,123.4 1,140.7 14.3 45.7

8700 Engineering and 

Management Services 3,004.8 3,419.5 414.7 13.8 62.4

1700 Special Trade Contractors 3,574.7 3,978.0 403.3 11.3 92.9

8300 Social Services 2,513.8 2,782.3 268.5 10.7 80.5

5800 Eating and Drinking Places 7,635.8 7,904.3 268.5 3.5 64.5

nec = not elsewhere classified 

Source: Office of Advocacy, U.S. Small Business Administration from employment data provided by the

U.S. Department of Labor, Bureau of Labor Statistics and employment firm size data provided by the U.S.

Department of Commerce, Bureau of the Census.
The climate was generally supportive for the growth of small businessesover the 1998–1999 period. Consumer confidence was up, and the

major indices of U.S. stock markets created a market for initial public offerings. The supply of funds available to small businesses appeared to be adequate, although the cost of borrowing was of increasing concern in late

1999. Starting a small business continued to be a means by which women

and minorities entered the economic mainstream in growing numbers. Total

private nonfarm employment grew by 5.2 percent, and services led other

industries in the number of jobs created.

The State of Small Business 37

The Regulatory Flexibility Act: 

Changing the Culture of Federal Agencies

Synopsis

The Regulatory Flexibility Act of 1980 (RFA) is an important statute that

has changed the way federal regulatory agencies relate to small businesses in crafting regulations. The law seeks to level the regulatory playing

field for small businesses and preserve competition in the marketplace by

forcing agencies to undertake a thorough analysis of the economic impact of

their proposed regulations and to consider alternatives that will achieve the

same public policy goals, but with more equitable impact on small entities.

While it took nearly 20 years of persistent effort on the part of Congress,

the Small Business Administration’s (SBA) Office of Advocacy, and small

businesses, as well as litigation and amendments to the law, the Regulatory

Flexibility Act has changed how regulatory agencies evaluate regulations.

Introduction

Before the Regulatory Flexibility Act was enacted in 1980, federal agencies

generally did not recognize the impact their rules would have on small

businesses, nor did they readily understand the fact that small businesses

would suffer disproportionately—compared with large businesses—from

those regulations.1 More often than not, the agencies failed to recognize or

understand the important role small businesses play in the economy.

The 1980 White House Conference 

on Small Business

I

n 1980, when hundreds of small business owners from across the country

convened in Washington, D.C., to participate in the first White House

Conference on Small Business, their message to President Jimmy Carter and

the Congress was loud and clear. They demanded relief from burdensome federal government mandates and argued for more flexible regulations. 

1 The Regulatory Flexibility Act, Pub. L. No. 96–354, 94 Stat. 1164 (codified at 5 U.S.C. § 601 et

seq.), became law on September 19, 1980.
ppy gpy py

a large company is able to spread the compliance cost—such as additional

staff time and resources and fees for professional services—over larger output,

it has the ability to maintain a competitive advantage over a small company.

Additionally, because large businesses can afford to hire more people—

both within their companies and as professional representatives in

Washington—to monitor proposed agency regulations and thereby have easier,

more direct input in the regulatory process, small businesses are inherently at a

disadvantage in their ability to influence the outcome of regulatory decisions.

Congressional Response to Small Business Concerns

Recognizing the disparity in the level of input during the rulemaking

process, as well as the disparate impact on small businesses upon implementation of regulations, the U.S. Congress responded to small business concerns by enacting the RFA. Congress agreed with small businesses and made

specific findings in the preamble to the RFA that “laws and regulations

designed for application to large scale entities have been applied uniformly to

small [entities, . . . ] even though the problems that gave rise to the government action may not have been caused by those small entities.”2 As a result,

Congress found that these regulations have “imposed unnecessary and disproportionately burdensome demands” upon small businesses with limited

resources, which, in turn, have “adversely affected competition.”3

To counteract the traditional, one-size-fits-all regulatory mindset of the

regulators, the RFA establishes “as a principle of regulatory issuance that

agencies shall endeavor, consistent with the objectives of the rule and of

applicable statutes, to fit regulatory and informational requirements to the

scale of the businesses.”4 To achieve this principle, Congress mandated that

“agencies are required to solicit and consider flexible regulatory proposals

and to explain their rationale for their actions to assure that such proposals

are given serious consideration.”5

Requirements of the Regulatory Flexibility Act

S pecifically, the RFA requires agencies to review their regulatory proposals

and determine if any new rule is likely to have a “significant economic

impact on a substantial number of small entities.”6 If such impact is likely to

40 The Annual Report on Small Business and Competition

2 Findings and Purposes, Pub. L. No. 96–354.

3 Id.

4 Id.

5 Id.
y gppp

rule on small entities.8 A similarly detailed regulatory flexibility analysis is also

required for final rules, which also must be made available to the public.9

By mandating this economic analysis, the RFA seeks to ensure that agencies spend the necessary time and resources to identify and understand the

potential impact of their regulations on small entities before it is too late to pursue alternative measures. To accomplish this, agencies must solicit meaningful

input from the small business community early in the rulemaking process.

The RFA was also based on the rationale that when an agency undertakes

a careful analysis of its proposed regulations—with sufficient small business

input—the agency can, and will, identify the disproportionate economic

impact on small businesses. Once an agency realizes that a rule will have

such an impact on small businesses, it is expected to seek alternative measures to reduce or eliminate the disproportionate burden without compromising public policy objectives.

The RFA also contains measures to ensure agency compliance with the

law, such as authorizing the chief counsel for advocacy to appear as amicus

curiae (“friend of the court”) when an entity appeals an agency’s final action.10

Federal Agencies’ Response to the 

Regulatory Flexibility Act

I

n monitoring agencies’ compliance with the law over the years as RFA

mandates, the Office of Advocacy (Advocacy) found that federal agencies,

more often than not, failed to conduct the analyses mandated by the RFA.

Some agencies ignored the RFA altogether, while others asserted that the

RFA did not apply to them. Other agencies recognized the RFA’s applicability to their regulatory process yet failed to comply with the letter and spirit

of the law. For example, the RFA authorizes an agency to forego the preparation and publication of initial and final regulatory flexibility analyses for

public comment “if the head of the agency certifies that the rule will not, if

promulgated, have a significant economic impact on a substantial number

of small entities.”11 Several congressional hearings documented that many

agencies simply fell into a habit of certifying that their rules would have no

impact without demonstrating the basis for such a conclusion. It was clear

The State of Small Business 41

6 5 U.S.C. §§ 602(a)(1), 605(b).

7 Id. § 603. 8 See id. § 603(c). 9 See id. § 604. 10 Id. § 612(b). 11 Id. § 605(b).
py g

valid alternatives for their proposals even when such options were brought to

their attention by small businesses during the rulemaking process. The agencies’ failure to weigh alternatives properly not only defeats the core purpose of

the RFA; it effectively excludes small businesses from a meaningful opportunity to influence the regulatory development process as the Congress intended.

Finally, because the RFA as originally enacted in 1980 did not provide for

judicial review of compliance with the RFA, the small business community

was left with no remedy to enforce compliance. Similarly, while the RFA

authorized the SBA’s chief counsel for advocacy to file amicus briefs in regulatory appeals, the issue of agency noncompliance could not be raised

because the courts did not have jurisdiction over the question.

The 1995 White House Conference on 

Small Business

S mall businesses had an opportunity to point out these shortcomings in the

RFA at the 1995 White House Conference on Small Business. They urged

the administration and the Congress to pass amendments that would add

“teeth” to the law.

In response, in 1996, Congress enacted the Small Business Regulatory

Enforcement Fairness Act (SBREFA), which amended the RFA in several critical respects.12 With agencies’ pattern and practice of noncompliance in mind,

Congress designed the SBREFA amendments to the RFA to ensure meaningful

small business input during the earliest stages of the regulatory development

process.13 The amendments also required agencies to provide more detailed

and substantive analyses of regulatory economic impacts. SBREFA reaffirmed

the authority of the chief counsel for advocacy to file amicus curiae briefs in

regulatory appeals brought by small entities.

Most important, the SBREFA amendments added two new provisions to

the RFA:

Small Business Advocacy Review Panel Process: SBREFA mandates that

structured review panels be convened to ensure small business participation

in the development of rules by the Environmental Protection Agency (EPA)

and the Occupational Safety and Health Administration (OSHA) when such

42 The Annual Report on Small Business and Competition

12 The Small Business Regulatory Enforcement Fairness Act of 1996, Pub. L. No. 104–121, 110

Stat. 857 (codified at 5 U.S.C. § 601 et seq.), was signed by President Clinton on March 29, 1996. 13 See Findings, Pub. L. No. 104–121 (“Congress finds that—[RFA requirements] have too often

been ignored by government agencies, resulting in greater regulatory burdens on small entities than

necessitated by statute.”).
Federal Agencies’ Response to the SBREFA

Amendments to the RFA

I

n the years since SBREFA amended the RFA, the regulatory environment for

small businesses has begun to change for the better. As highlighted in the

chief counsel for advocacy’s annual reports on RFA, over the past few years,

small businesses have played active roles in bringing about some fundamental changes in the way federal agencies view the RFA and their responsibilities

under the law.14

Numerous agencies have implemented changes to their regulatory

processes, including noticeably enhanced outreach efforts to small businesses and internal training and resources committed to ensure adequate regulatory flexibility analyses. Other agencies are learning to comply with the RFA

the hard way through litigation and are carefully monitoring the latest court

cases resulting from the judicial review provisions of the RFA.

Most significantly, agencies and the Congress are paying special attention

to the changes brought about by the addition of the small business advocacy

review panel process. As a procedure for gathering public comments, this

SBREFA amendment to the RFA mandates that small business representatives

be consulted by policymakers of EPA and OSHA, two agencies that have

major impact on a wide range of industries dominated by small businesses.

The panel process allows small business to find its seat at the regulatory table,

and this new process is making a difference.

Agencies are Conducting More Effective Small Business Outreach

Thanks to the RFA and SBREFA, agency outreach to small businesses has grown

significantly. Almost every federal agency today incorporates a wide variety of

mechanisms to reach out to the communities affected by its regulations. For

example, agencies routinely participate at industry conferences; host regional

roundtable meetings; answer inquiries from small businesses via mail, fax, and

electronic mail; and use the Internet and toll-free telephone numbers to

encourage easy access to information for small businesses. 

The outreach efforts of the Department of Housing and Urban

Development (HUD) are especially noteworthy. Like many other agencies,

The State of Small Business 43

14 See, e.g., U.S. Small Business Administration, Office of Advocacy, Annual Report of the Chief

Counsel for Advocacy on Implementation of the Regulatory Flexibility Act, reports for calendar years

1996, 1997, 1998, 1999.
gy 

very beginning of the process, HUD has also taken aggressive measures to

include small businesses in “negotiated rulemakings” on regulations dealing

with manufactured housing, real estate settlement procedures, Indian housing,

lead-based paint, and public housing. 

While outreach is certainly a necessary first step, the test of the process’

effectiveness is whether the agency considers small business input in its decisions. Few agencies—although an increasing number—can cite instances in

which they changed proposed regulations as a result of discussion with small

business entities.

One independent agency, the Securities and Exchange Commission

(SEC), provides a compelling success story. The SEC has had a long history of

engaging in deregulatory efforts to assist small businesses in their capital-raising transactions. In order to determine where regulatory assistance might be

most useful, the SEC initiated a series of “town hall” meetings across the

nation to learn from the entrepreneurs they regulate. Since 1982, the SEC has

also hosted an annual forum on small business capital formation where small

business owners and their advocates spend two days with government officials to discuss regulatory changes that could address their concerns.

Members of Congress and other interested parties receive written summaries

of the discussions and the recommendations that resulted and many recommendations have been implemented. 

The SEC also actively educates its staff about small business issues. The

SEC’s internal training activities for its compliance and enforcement personnel

incorporate information on RFA and SBREFA. SEC staff, including economists,

who engage in rulemaking activities receive specialized training in all aspects

of legally required administrative procedures.

This intensive outreach effort and RFA training paid off on at least one

occasion when a proposed SEC rule was revised because of a thorough regulatory flexibility analysis. Rule 504 of the SEC regulations permitted small

companies to raise up to $1 million in “seed capital” in a twelve-month period with minimal compliance requirements.15 Because of the simplicity of the

rule’s requirements, however, unscrupulous securities promoters abused the

rule. In addressing the abuse, the SEC proposed a change that would restrict

securities issued pursuant to Rule 504 from subsequent transferability. During

the rulemaking process and its accompanying regulatory flexibility analysis,

the SEC realized the proposed revision would adversely impact companies—

especially the smallest ones—by making it more difficult to raise capital. The

44 The Annual Report on Small Business and Competition

15 17 C.F.R. § 230.504.
g py pyg , 

achieved its policy objective of protecting investors and limiting the potential

for abuse without harming small business interests. 

Agencies Are Working to Comply with the RFA

In addition to outreach, more and more agencies are asking for guidance in

complying with the RFA and redirecting agency resources to the actual task of

complying. In addition to benefiting small business, seeking compliance with

the RFA early in the regulatory process saves time, produces better regulatory

proposals, and avoids litigation for the agencies.

The Department of Agriculture (USDA) is a typical example. For a number of years, the USDA’s Agricultural Marketing Service (AMS) refused to

acknowledge that its regulations were subject to the requirements of the RFA.

Shortly after passage of SBREFA, however, AMS agreed to train its employees

in compliance with the RFA, with the result that the Organic Program Office

sought input on a new regulation to impose federal standards for labeling and

producing organic products. This organic regulation marked the first time

since the passage of the RFA in 1980 that AMS sought assistance and input on

RFA compliance prior to publishing a proposal. Subsequently, AMS has tried

to include initial or final regulatory flexibility analyses in nearly all of its proposed and final regulations. 

The Department of Health and Human Services’s Health Care Financing

Administration (HCFA) provides another example. Since SBREFA amended the

RFA, HCFA has instituted new procedures to seek input on controversial or

burdensome regulations during the earliest stages of rulemaking, and the

administrators of HCFA and SBA have met to discuss RFA compliance and

related issues. In addition, SBA conducted two day-long RFA/SBREFA training

sessions for HCFA employees. HCFA’s commitment to comply with the RFA

has been apparent on a number of occasions when HCFA submitted draft rules

for early small business impact review.

One of the best examples of the benefits to be derived from efforts to

ensure compliance with the RFA comes from the Department of Transportation

(DOT). To implement provisions of the Americans with Disabilities Act, DOT

proposed a regulation in March 1998 that would have required all newly purchased over-the-road buses to be accessible to passengers with disabilities. The

rule also would have required all motor carriers, tour bus operators, and other

transportation companies to provide accessible over-the-road bus service.

Advocacy advised DOT that its proposed rule would have a serious impact on

the small bus industry and would cause these small businesses to reduce transportation services to the entire public, especially to those residing in rural

The State of Small Business 45
analysis. The meeting provided a meaningful opportunity for small businesses

to discuss cost projections and other relevant data related to the proposed

rule. After carefully studying the entire public docket that included the information provided by small businesses, the DOT in September 1998 published

a final rule adopting an innovative approach recommended by small bus

operators. The revised rule not only achieved the agency’s objectives, but also

struck a sensible balance among all public policy concerns raised during the

public review period. Essentially, DOT transitioned the redesign of all buses

to accommodate passengers with disabilities while maintaining service for

those who rely on small bus companies for essential transportation. Small

businesses welcomed DOT’s final rule, expected to save the small business

industry about $180 million while guaranteeing transportation for the disabled.

The Advocacy Review Panel Process: Better

Regulatory Analyses

One of the more significant provisions of the 1996 SBREFA amendments to

the RFA was the establishment of the small business advocacy review

panel process. The EPA and OSHA are now required to reach out and include

small businesses in the development of regulations.16 Whenever the administrator of either agency cannot certify under the RFA that a regulatory proposal will not have a significant economic impact on a substantial number of

small entities, the SBREFA amendment requires the agency to convene a panel

and prepare a regulatory flexibility analysis.

Each panel consists of representatives from the rulemaking agency, the

chief counsel for advocacy, and the administrator of the Office of Information

and Regulatory Affairs within the Office of Management and Budget. The

panel conducts its own outreach to small entities likely to be affected by the

proposal, seeks their input on the proposed regulation, and prepares a report

to the administrator of either the EPA or OSHA with recommendations, where

appropriate and equitable, for reducing the potential impact of the rule on

small businesses. The panel, which must be convened prior to publication of

the proposed rule for public comment, has 60 days in which to prepare and

submit the report on its findings to the administrator. The report becomes a

part of the public rulemaking record. After the panel’s report is received, the

46 The Annual Report on Small Business and Competition

16 See generally 5 U.S.C. § 609(b)–(e).
OSHA, and that the time spent on the panels has been, and continues to be,

productive for both agencies and small businesses.

The panel process generates better agency analysis. By collecting and

identifying relevant economic data from the regulating agency, the panel

process provides an objective basis from which to judge the impact of the regulatory proposal upon small business, the cause and scope of the problems

addressed by the proposal, and the comparative contribution to the problem

made by different-sized firms within an industry. The quality and extent of discussions generated through the panel process have been invaluable in identifying alternatives for achieving the agency’s statutory objective while minimizing undue costs and burden on small businesses.

The direct input from small-entity representatives providing “real world”

perspectives is valuable to the panel process. Small businesses, armed with

agency data and analysis at the pre-proposal stage, have an opportunity to

provide valuable input on the potential impact of the rule and its design before

the agency becomes committed to a particular approach. Their input is particularly useful to the agency because it is based on actual experiences rather

than potentially flawed assumptions and cost analyses developed by agency

staff in a vacuum. Their input can also help the agency identify alternatives

that might accomplish the same policy objectives with much less burden on

small businesses.

The panel process does not entail any additional agency resources but

uses available resources more efficiently. Under SBREFA, a panel is convened

once an agency determines that a proposed rule is likely to have a significant

impact on a substantial number of small entities. The RFA already requires the

agency to perform a regulatory flexibility analysis once it is determined, at this

stage of rulemaking, that there will be such impact. The SBREFA panel

approach accomplishes the same objectives by reviewing impact data and

alternatives—but in a more structured process that ensures small business

input when it matters most. Thus, the panel process marshals the same

resources to undertake the same analysis that agencies already are required to

do under the RFA and does it within an early timeframe to ensure timely

development of a workable proposal. By working with small businesses on the

panel early in the rulemaking process, agencies can eliminate problematic

provisions before publishing a rule for public comment. This can actually save

agencies time and resources that would otherwise be spent on reviewing and

responding to written comments.

The State of Small Business 47
ommendations to the EPA’s administrator that address small business concerns

without compromising EPA’s environmental objectives. When EPA publishes a

rule for comment, it explicitly addresses each panel recommendation and

makes the panel report part of the public record.

The following EPA rules reviewed by SBREFA panels demonstrate how

alternative regulatory measures can indeed be less burdensome on small businesses, at the same time that they are effective in achieving public policy

objectives. 

Effluent Limitations Guidelines and Pretreatment Standards 

for the Industrial Laundries Point Source Category

Relying on data from the 1980s, the EPA identified 1,700 industrial laundries

as a potential source of hazardous waste solvents discharged to publicly

owned treatment works and initiated action in 1992 to address the problem.

Since this rulemaking involved potentially significant economic impacts

on a substantial number of small businesses, a panel was convened in June

1997. The panel issued a report in August 1997 making a number of substantive recommendations to the agency, including specific exclusion options for

small businesses. The panel recommended that the agency solicit public comment on a “no-regulation” option in the proposed rule. The recommendations

were considered and subsequently addressed in the proposed rule, published

in December 1997.

Following publication of the proposal, EPA continued to work with the

industry, which is dominated by small businesses, and supported the industry’s proposal for a strong voluntary pollution prevention program that

includes working with the industry’s customers to encourage further pollution

prevention efforts.

Comments raised by the small-entity representatives during the panel

process and by subsequent commenters on the proposal convinced the

agency that the industry discharges were not significant enough to warrant

national regulation of the entire industry. In July 1999, the EPA withdrew its

proposed rule and announced that it would not impose national clean water

standards on industrial laundries. 

The decision by the agency to select one of the alternative options generated through the panel process as the agency’s final decision is a clear

demonstration that the process established by SBREFA is effective in producing rational public policy and that consideration of small business impacts

need not compromise public policy objectives.

Tier 2 Light-Duty Vehicle and Light-Duty Truck Emission Standards,

48 The Annual Report on Small Business and Competition
Panel members visited Frontier Oil Company’s refinery in Cheyenne,

Wyoming, at the company’s invitation. The panel noted that this was a unique

opportunity to gain a firsthand perspective on what a small refinery would

have to do in order to comply with the rule.

What the panel learned was that the cost of compliance would effectively put small refiners out of business, with a resultant increase in gasoline

prices. The panel also learned that the small refiners’ product did not contribute significantly to the overall sulfur emission problem that EPA was trying

to address.

The panel then considered a wide range of options and regulatory alternatives for providing small businesses with flexibility in complying with

potential Tier 2 vehicle emission and gasoline sulfur standards. In response to

the comments received, as well as additional business and technical information gathered concerning the affected small entities, the panel ultimately recommended several alternatives. In light of the potentially severe impacts of the

regulation on small refiners, the panel agreed on a recommendation to delay

application of its rule to small refiners for several years, an option that also met

EPA’s environmental goals.

In May 1999, the EPA issued its proposed rule based on the panel’s recommendation. The EPA’s action met with approval from the regulated industries. The proposed rule that resulted from the panel process was clearly an

appropriate regulatory solution to achieving the desired environmental

results without unnecessarily jeopardizing small refiners, the major source of

competition in the industry.

Occupational Safety and Health Administration Panels

Since the 1996 SBREFA amendments to the RFA, OSHA has convened several

panels that have submitted reports to the OSHA administrator. The following is

a brief description of one OSHA panel that serves as a solid case study on the

effectiveness of the panel, not only in analyzing the impact of small entities, but

in identifying where conflicting public policies need to be reconciled.

Tuberculosis Exposure

In 1996, the first OSHA panel was convened under SBREFA to consider a proposed rule addressing occupational exposure to tuberculosis (TB). TB is a disease that afflicts the most vulnerable members of our society—the sick, the

poor, the elderly, and the homeless.

In order to control and reduce instances of on-the-job employee exposure

to TB, OSHA proposed a series of specific workplace safety requirements for

The State of Small Business 49
use respirators when performing certain job functions or providing patient care.

The fact that potential exposure to TB is most likely to occur, if at all, at very

small organizations such as homeless shelters, nursing facilities, home health

care units, and clinics raised concerns about the potential significant economic

impact of this proposed rule on small entities. Economic analysis indicated that

the average cost to comply with this rule for homeless shelters alone would be

about $1,000 per year, and the compliance cost for a homeless shelter confronted with an active case of TB would be about $41,000. Hospices, substance

abuse treatment centers, and personnel service providers, also very small entities, faced similar and equally devastating compliance costs. 

These costs raised the specter that compliance would conflict with equally important public policy objectives—namely, providing shelter for the

homeless, dealing with substance abuse, and providing cost-effective services

that allow patients to stay at home.

The panel finalized its report in November 1996, and OSHA subsequently published its proposed rule in October 1997. The documentation

provided in support of the published proposal indicated that OSHA did take

into consideration some of the panel’s concerns and adopted some changes

from those recommended by the panel, such as clarifying definitions of

ambiguous terms. OSHA also agreed to undertake an extensive study on the

effects of the rule on nonprofit organizations that provide services to the

homeless.

In anticipation of the public comment period on the rule, OSHA staff met

with representatives of various small entities that had earlier submitted comments to the panel. As expected, the representatives of homeless shelters, nursing facilities, home health care, and clinics continued to express strong objections to the proposed rule because of the potential burden imposed on the

small entities. Not only did the rule propose requirements that needlessly duplicate local infectious disease control efforts for which small entities are already

responsible, but the health care organizations were concerned that OSHA was

mandating procedures that may conflict with the need for medical care.

The entities that would face dramatic impacts from the rule urged OSHA

to view this rulemaking in a new light and to consider the practical limitations

of the small entities that must comply with the rule. For example, would the

hospices, substance abuse centers, and homeless shelters be able to allocate

their very limited resources to manage TB exposure through costly engineering controls and patient outplacement? Would the OSHA-mandated controls

be enforceable in these workplaces, which are dependent on volunteer workers and charitable financial support, or would the rule simply impose greater

compliance and enforcement problems?

50 The Annual Report on Small Business and Competition
society at large by keeping the homeless on the streets rather than in shelters. 

OSHA was encouraged to view the issue in a broader context than chiefly

workplace safety and to engage both public and private health care specialists in a search for the best approach to controlling the disease overall—to

bring conflicting national policies into balance. In thinking “outside the box”

from its role as a government regulator, OSHA could serve as a change agent,

not only in developing controls that employers could implement in their workplaces but in helping to limit the general public’s exposure to TB, work that

could be done cooperatively with state and local health care agencies.

As a result of these meetings and discussions, a larger coalition of small

and large health care entities, nonprofit service providers, epidemiologists,

infectious disease experts, and other health care officials was formed to provide more comments on OSHA’s proposed rule.

As of November 1999, OSHA was continuing to review additional public comments before finalizing this rule. It is clear, however, that the SBREFA

panel process provided the critical venue that allowed for more extensive

analysis to be received during the regulatory development process.

Judicial Review under SBREFA is an Incentive for

Agencies to Comply with the Law

As amended by SBREFA, the RFA now allows courts to review agency compliance with the RFA in appeals from final agency actions.17 A review of litigation on the RFA over the past three years reveals that small entities are not

hesitant to initiate court challenges in appropriate cases, usually through their

trade associations. In addition, a significant body of legal precedents has already

developed under the RFA, and more cases are sure to arise in the future.

Adding value to the RFA litigation is the role of the chief counsel and the

Office of Advocacy. As part of its congressionally mandated responsibilities

under the RFA, Advocacy routinely critiques agencies’ regulatory proposals

and their compliance with the RFA. These communications are a matter of

public record that can be used—and have in fact been cited—in judicial

appeals. As a result of SBREFA’s judicial review amendment, the chief counsel’s comments on agencies’ regulatory proposals are having greater impact

and agencies are now taking them more seriously than ever before.

One agency noted for its RFA reforms is the National Oceanic and

Atmospheric Administration’s National Marine Fisheries Service (NMFS) withThe State of Small Business 51

17 Id. § 611.
y

p pyg 

is to identify the problem, then it is clear that agencies such as NMFS have

learned from SBREFA that regulations affecting small businesses deserve serious and appropriate analysis.

This was further reinforced by a court decision in a case in which the

chief counsel filed the first amicus curiae brief as authorized by the RFA.19 In

Northwest Mining v. Babbitt,20 the District Court for the District of Columbia

ruled in favor of small businesses. The case, brought by a trade association

against the Department of the Interior’s Bureau of Land Management (BLM),

raised an issue about BLM’s failure to use the proper size standard for determining the number of small businesses that may be harmed by the regulation.

In an amicus brief filed in January 1998, the chief counsel challenged the

agency’s use of a small business size standard that was not in compliance with

the SBA’s standards published under the authority of the Small Business Act.21

The brief also raised concerns about the agency’s failure to comply with the

Administrative Procedure Act22 and about the quality of the economic analysis put on the record by BLM.

In May 1998, the District Court issued its ruling and agreed with the

issues raised by the chief counsel, holding that BLM’s certification in its final

rule violated the RFA by failing to incorporate the correct definition of “small

entity.” Accordingly, the Court remanded the case to the agency so that the

plaintiff small business trade association would have an opportunity to provide input into the regulatory process.23 Filing the amicus brief in this case

unquestionably increased agency awareness of the risks in failing to comply

with the RFA.

In addition to the direct influence that an amicus brief can have, as in the

above example, even the mere possibility of the chief counsel’s intervention

in litigation can have tremendous impact on the agency’s regulatory process.

For example, in the case of Grand Canyon Air Tour Coalition v. FAA,24 the

chief counsel filed a “Notice of Intent to File an Amicus Curiae Brief.” The

case involved a DOT, Federal Aviation Administration (FAA) rule that restricted access to the Grand Canyon National Park by small aircraft tour operators.

52 The Annual Report on Small Business and Competition

18 Regulatory Flexibility Act Implementation: Hearings Before the Subcomm. on Fisheries,

Conservation, Wildlife and Oceans, Comm. on Resources, 106th Cong., 1st Sess. (1999) (Statement of

Penelope D. Dalton, Assistant Administrator for Fisheries, National Marine Fisheries Service, National

Oceanic and Atmospheric Admin., U.S. Department. of Commerce). 19 5 U.S.C. § 612. 20 F. Supp. 2d 9 (D.D.C. 1998). 21 15 U.S.C. § 631 et seq. 22 5 U.S.C. § 551 et seq. 23 5 F. Supp. 2d 9 at 14–15. 24 332 U.S. Ct. App. D.C. 133 (1998).
g p

In response to the imminent threat of the chief counsel’s court intervention, DOT agreed that the FAA would submit to the court a statement detailing its analysis of new data regarding the number of aircraft subject to the regulation, as well as a clear statement that the agency erroneously certified

under the RFA that the rule would not have a significant economic impact on

small businesses. The notice of intent to file the brief was then withdrawn and

the court subsequently found that the FAA satisfied the requirements necessary

to demonstrate a rational decision-making process as required by the RFA.25

Conclusion

Federal agencies have begun to respond positively to the RFA as amendedby SBREFA. While some agencies still are not totally in compliance with

the law, it is clear that many of them now see the value of the analytical

process mandated by the RFA and that the analyses produce better and more

informed regulatory decisions. Many have demonstrated that they are more

eager than ever before to meet their compliance obligations.

Compliance with the RFA, as amended by SBREFA, can result in a winwin situation for all parties. The DOT rule on over-the-road-buses, the SEC

rule on raising capital, the EPA rule on industrial laundries, and the OSHA rule

on tuberculosis all demonstrate that less burdensome regulations that minimize economic impact on small business can be equally effective in achieving public policy objectives.

Because of the 1996 SBREFA amendments and diligent oversight and

active involvement by Congress, the courts, small businesses, the SBA’s Office

of Advocacy and the administration, federal agencies are doing a better job of

analyzing how best to solve social problems without harming competition or

unduly burdening small businesses—the major source of competition and

innovation in the U.S. economy.

The State of Small Business 53

25 Id. at 154.

Table A.1 U.S. Macroeconomic Data, 1990, 1997–1999 57

Table A.2 U.S. Data Related to Small Business, 1990, 

1997–1999 58

Table A.3 Employer Firms, Establishments, Employment, and

Annual Payroll by Employment Size, 1988–1998 59

Table A.4 Employers by State and Employment Size, 1998 61

Table A.5 Employers by Metropolitan Statistical Area and

Employment Size, 1998 68

Table A.6 Employers by Industry and Employment Size, 1998 78

Table A.7 Establishments, Employment, Payroll, and Receipts 

by Employment, Receipts Size, and Major 

Industry 1997 81

Table A.8 Business Income Tax Returns by Receipt Size of

Tax Return, 1990 and 1995–1998 83

Table A.9 Employer Firm Births and Deaths by Employment

Size of Firm, 1989–1997 84

Table A.10 Employer Firms by State, 1998 and 1999 86

Table A.11 Business Turnover by State, 1998 and 1999 87

Table A.12 Women-Owned Businesses and their Employment

by State, 1997 89

Table A.13 Minority-Owned Businesses, Employment, Sales,

and Payroll by Race or Ethnicity and State, 1997 90

Table A.14 Growth in Women-Owned and Minority-Owned 

Firms, 1992–1997 102

Table A.15 Characteristics of Self-Employed Individuals, 

1991, 1997–1999 103

Table A.16 Characteristics of the Private Sector Work Force by

Employment Size of Firm, 1998 104
56 The Annual Report on Small Business and Competition
Supplementary Tables 57

Manufacturing 545.9 753.4 779.4 833.1 6.9

Wholesale Trade 149.5 208.4 212.9 228.5 7.3

Retail Trade 153.7 217.5 228.8 249.6 9.1

Income (Billions of Dollars)

Compensation of Employees2 3,352.8 4,651.3 4,984.2 5,299.8 6.3

Nonfarm Proprietors’ Income 338.6 551.3 595.2 638.2 7.2

Farm Proprietors’ Income 35.4 29.7 25.4 25.3 20.4

Corporate Profits3 397.1 833.8 815.0 856.0 5.0

Output and Productivity 

(Business Sector Indexes, 1992=100)

Output 97.6 122.5 128.6 134.8 4.8

Hours of All Persons Worked 102.6 113.6 116.1 118.4 2.0

Productivity (Output per Hour) 95.2 107.8 110.8 113.8 2.7

Employment and Compensation

Nonfarm Private Employment (Millions)2 91.1 103.1 106.0 108.5 2.3

Unemployment Rate (Percent) 5.6 4.9 4.5 4.2 26.7

Total Compensation Cost Index (Dec.) 

(June 1989=100) 107.0 135.1 139.8 144.6 3.4

Wage and Salary Index (Dec) 

(June 1989=100) 106.1 132.3 137.4 142.2 3.5

Employee Benefits Cost Index (Dec.) 

(June 1989=100) 109.4 141.8 145.2 150.2 3.4

Bank Loans, Interest Rates, and Yields

Bank Commercial and Industrial Loans 

(Billions of Dollars) 645.8 855.4 949.5 1,003.0 5.6

Prime Rate (Percent) 10.01 8.44 8.35 8.00 24.2

U.S. Treasury 10-Year Bond Yields (Percent) 8.55 6.35 5.26 5.65 7.4

Investments by Nonfarm Nonfinancial Corporate Business

Capital Expenditures 430.5 783.6 847.1 907.0 7.1

Increase in Financial Assets 107.9 150.3 347.1 691.4 99.2

Federal Budget (Fiscal Year)

Receipts 1,032.0 1,579.3 1,721.8 1,827.5 6.1

Outlays 1,253.2 1,601.3 1,652.6 1,703.0 3.0

Surplus or Deficit 2221.2 222.0 69.2 124.5 79.9

Price Indices (Inflation Measures)

Consumer Price Index (Urban) 

(1982–1984=100) 130.7 160.5 163.0 166.6 2.2

Producer Price Index (Finished Goods) (1982=100) 119.2 131.8 130.7 133.0 1.8

GDP Implicit Price Deflator (1996=100) 86.5 102.0 103.2 104.7 1.5

1 Small Business Share of Private, Nonfarm Gross Domestic Product by Joel Popkin and Company found

small businesses (fewer than 500 employees) created 51 percent of the total nonfarm private output in 1992. 2 Statistics of U.S. Businesses, Bureau of the Census, showed that in 1997, small firms (fewer than 500

employees) accounted for 24.8 percent of manufacturing sales, 52.6 percent of retail sales, 46.8 percent of

wholesale sales, 45.6 percent of annual payroll, and 51.8 percent of total nofarm private employment. 3With inventory valuation adjustment and capital consumption adjustments.

Source: U.S. Small Business Administration, Office of Advocacy, from the Council of Economic Advisers,

Economic Indicators, March 2000 and March 2001.
58 The Annual Report on Small Business and Competition

Employer Firm Births

584,892 590,644 591,200 e. 588,900 e. 20.4

Employer Firm Terminations2 531,400 530,003 537,900 e. 528,600 e. 21.7

Bankruptcies 63,912 53,819 44,197 37,639 214.8

Income (Billions of Constant 1999 Dollars)

Wage-and-Salary Income 3,511.2 4,036.7 4,280.2 4,467.8 4.4

Nonfarm Proprietors’ Income 449.4 572.4 608.4 638.2 4.9

State Corporate Taxes 27.7 31.7 31.8 30.7 23.5

Private Sector Employment (Millions)3

Total NA 113.6 115.1 117.1 1.8

Small Business (<500 Employees) NA 65.6 66.9 68.2 —

Large Business (500+ Employees) NA 48.0 48.2 48.9 —

e.=estimated; NA=not available

1 Self-employment represents individuals whose primary occupation is self-employment and who might

have employees (about another 1 million have self-employment as secondary occupations). 2Data for 1998 and 1999 are estimated from 1997 data from the Bureau of the Census; yearly percent

changes in similar data provided by the Department of Labor, Employment and Training Administration and

rounded. Births and terminations are from prior year’s March through current year’s March. 3 Size of employer determined from employee responses. Year-to-year changes do not necessarily represent job creation as firms can change size classes.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S.

Department of Commerce, Bureau of the Census and Bureau of Economic Analysis; U.S. Department of Labor,

Bureau of Labor Statistics, Employment and Training Administration; and Administrative Office of the U.S. Courts.
Supplementary Tables 59

Table A.3 Employer Firms, Establishments, Employment, and Annual Payroll by Employment Size, 1988

Employment Size of Firm

Item Year Total 0 * 0–4 * 5–9 10–19 ,20 20–99 100–499 Employer Firms 1998 5,579,129 711,892 3,376,330 1,011,843 600,157 4,988,330 574,421 80,072 

1997 5,541,918 719,978 3,358,048 1,006,897 593,696 4,958,641 487,491 79,707 1996 5,478,047 717,991 3,327,783 996,356 585,844 4,909,983 476,312 76,136 1995 5,369,068 688,584 3,249,573 981,094 576,866 4,807,533 469,869 76,222 1994 5,276,964 691,141 3,208,235 964,985 563,097 4,736,317 452,383 73,267 1993 5,193,642 671,306 3,139,518 962,481 559,602 4,661,601 445,900 71,512 1992 5,095,356 644,453 3,075,280 945,802 551,912 4,572,994 439,084 69,156 1991 5,051,025 NA 3,036,304 941,296 551,299 4,528,899 439,811 68,338 1990 5,073,795 NA 3,020,935 952,030 562,610 4,535,575 453,732 70,465 1989 5,021,315 NA 3,003,224 937,202 553,449 4,493,875 443,959 69,608 1988 4,954,645 NA 2,979,905 923,580 540,988 4,444,473 430,640 66,708 

Establishments 1998 6,941,739 713,505 3,382,798 1,025,898 639,793 5,048,489 981,768 307,277 

1997 6,894,869 721,844 3,364,434 1,022,901 639,090 5,026,425 682,580 308,633 1996 6,738,476 720,241 3,338,051 1,013,353 624,610 4,976,014 636,285 280,635 1995 6,612,721 690,772 3,259,795 998,264 618,268 4,876,327 638,616 283,993 1994 6,509,065 693,992 3,218,076 982,695 608,804 4,809,575 631,324 283,782 1993 6,401,233 673,408 3,147,991 980,865 608,922 4,737,778 631,873 285,184 1992 6,319,300 646,065 3,082,325 964,863 606,276 4,653,464 634,713 283,719 1991 6,200,859 NA 3,048,830 961,391 593,302 4,603,523 593,248 260,595 1990 6,175,559 NA 3,032,253 970,580 599,529 4,602,362 590,496 254,747 1989 6,106,922 NA 3,014,009 956,347 592,901 4,563,257 586,494 252,335 1988 6,016,367 NA 2,989,964 943,442 583,301 4,516,707 581,622 244,697 

Employment 1998 108,117,731 0 5,584,470 6,643,285 8,047,650 20,275,405 19,377,614 15,411,390 

1997 105,299,123 0 5,546,306 6,610,374 7,962,136 20,118,816 19,109,691 15,316,863 1996 102,187,297 0 5,485,712 6,541,288 7,854,502 19,881,502 18,643,192 14,649,808 1995 100,314,946 0 5,395,432 6,440,349 7,734,080 19,569,861 18,422,228 14,660,421 
60 The Annual Report on Small Business and Competition Table A.3 Employer Firms, Establishments, Employment, and Annual Payroll by Employment Size, 1988

Employment Size of Firm Item Year Total 0 * 0–4 * 5–9 10–19 ,20 20–99 100–499 

Employment 1994 96,721,594 0 5,318,961 6,332,580 7,543,777 19,195,318 17,693,995 14,118,375 

1993 94,773,913 0 5,258,195 6,313,651 7,498,345 19,070,191 17,420,634 13,825,238 1992 92,825,797 0 5,178,909 6,202,861 7,390,874 18,772,644 17,121,010 13,307,187 1991 92,307,559 0 5,151,143 6,174,730 7,386,939 18,712,812 17,146,411 13,143,390 1990 93,469,275 0 5,116,914 6,251,632 7,543,360 18,911,906 17,710,042 13,544,849 1989 91,626,094 0 5,054,429 6,152,151 7,420,196 18,626,776 17,353,444 13,373,640 1988 87,844,303 0 5,006,203 6,060,724 7,252,715 18,319,642 16,833,702 12,761,379 

Annual Payroll 1998 3,309,406 31,635 168,433 159,689 207,063 535,185 531,231 446,353 (Millions of 1997 3,047,907 29,732 158,448 150,877 193,805 503,130 494,617 418,453 Dollars) 1996 2,848,623 27,583 150,825 144,692 185,491 481,009 465,230 384,020 

1995 2,665,922 25,787 141,538 137,083 175,388 454,009 437,065 361,061 1994 2,487,960 24,081 134,649 131,667 166,476 432,792 408,053 335,574 1993 2,363,208 22,362 128,968 127,133 159,153 415,255 385,005 316,184 1992 2,272,392 21,433 124,592 122,382 152,831 399,805 368,969 298,174 1991 2,145,016 NA 118,234 116,794 146,517 381,545 352,033 279,437 1990 2,103,971 NA 116,857 114,006 144,451 375,314 352,391 279,452 1989 1,989,942 NA 112,462 108,003 136,795 357,260 332,733 264,144 1988 1,858,652 NA 108,801 103,041 130,326 342,168 315,751 244,647 

NA=not available.* Employment is measured in March, thus some firms (start-ups after March, closures before March, and seasonal firms) will have zero employmNote: Establishments are locations with active payroll in any quarter. Firms are an aggregation of all establishments owned by a parent compan

changing importance of firm sizes over time. It does not illustrate job growth as firms can grow or decline and change firm size cells over time.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of the Cens
Supplementary Tables 61

Table A.4 Employers by State and Employment Size, 1998 (Annual Payroll in Thousands of Dollars)

Employment Size of Firm

State Total 0* ,20 20–99 100–499 United States Firms 5,579,177 711,899 4,988,367 494,357 80,075 

Establishments 6,941,822 713,512 5,048,528 674,503 307,294 Employment 108,117,731 0 20,275,405 19,377,614 15,411,390 5Annual Payroll 3,309,405,533 31,634,539 535,184,511 531,231,157 446,353,485 1,51

Alabama Firms 81,096 8,693 69,650 7,523 1,776 

Establishments 100,316 8,700 70,335 10,091 4,918 Employment 1,604,110 0 297,134 277,593 215,113 Annual Payroll 40,330,597 295,049 6,415,408 6,521,152 5,200,596 1

Alaska Firms 15,677 2,916 13,878 1,087 245 

Establishments 18,212 2,916 14,102 1,594 687 Employment 196,135 0 52,119 38,558 27,915 Annual Payroll 6,883,920 93,249 1,608,388 1,209,164 941,954 

Arizona Firms 90,374 12,847 77,292 8,454 2,131 

Establishments 110,245 12,880 78,181 10,756 5,101 Employment 1,763,508 0 315,754 311,122 247,376 Annual Payroll 49,052,246 561,089 8,029,520 7,696,139 6,342,762 2

Arkansas Firms 52,094 5,981 45,262 4,309 1,004 

Establishments 62,353 5,995 45,701 5,890 2,861 Employment 944,935 0 184,419 155,900 123,566 Annual Payroll 21,764,625 165,577 3,709,278 3,256,660 2,614,810 

California Firms 642,156 85,126 563,623 61,285 11,834 

Establishments 773,925 85,322 570,118 78,884 32,720 Employment 12,026,989 0 2,285,494 2,344,306 1,791,143 Annual Payroll 406,481,070 5,222,880 68,580,568 69,782,811 58,696,525 19

Colorado Firms 110,993 16,385 96,913 9,151 2,183 

Establishments 130,354 16,412 97,759 11,700 4,845 Employment 1,757,628 0 368,521 332,321 229,912 Annual Payroll 53,790,978 616,089 9,962,125 8,973,509 6,757,956 2

Connecticut Firms 78,821 8,870 67,976 7,084 1,739 

Establishments 92,362 8,879 68,613 8,816 3,929 Employment 1,493,964 0 280,085 261,578 208,788 Annual Payroll 58,225,763 449,424 9,457,094 9,226,230 7,419,354 2
Table A.4 Employers by State and Employment Size, 1998 (Annual Payroll in Thousands of Dollars)—Co

Employment Size of Firm

State Total 0* ,20 20–99 100–499 Delaware Firms 19,487 2,724 15,980 1,708 562 

Establishments 22,871 2,725 16,134 2,095 1,046 Employment 354,643 0 61,184 59,322 44,001 Annual Payroll 11,831,134 120,633 1,624,949 1,669,140 1,197,356 

District of Columbia Firms 16,411 1,526 12,608 1,959 792 

Establishments 19,571 1,534 12,685 2,287 1,376 Employment 402,070 0 54,012 65,091 73,060 Annual Payroll 17,358,137 134,199 2,353,572 2,668,933 3,015,486 

Florida Firms 348,523 48,714 314,174 24,866 5,465 

Establishments 420,638 48,831 317,016 31,614 14,565 Employment 5,756,353 0 1,159,695 924,403 707,703 Annual Payroll 149,936,849 1,857,345 29,778,905 23,302,505 18,592,113 7

Georgia Firms 156,431 20,849 135,235 13,717 3,660 

Establishments 194,213 20,881 136,464 17,443 8,550 Employment 3,198,950 0 535,596 493,430 404,912 Annual Payroll 94,687,270 1,061,775 14,451,060 13,375,434 11,397,727 3

Hawaii Firms 23,977 2,337 20,496 2,200 505 

Establishments 29,603 2,343 20,883 3,197 1,761 Employment 416,571 0 88,093 81,757 63,215 Annual Payroll 11,291,978 107,262 2,244,923 1,989,986 1,625,028 

Idaho Firms 31,140 4,588 27,145 2,532 540 

Establishments 35,961 4,589 27,412 3,480 1,482 Employment 423,615 0 108,631 87,820 53,550 Annual Payroll 10,595,285 121,242 2,231,786 1,900,547 1,205,695 

Illinois Firms 252,757 30,959 217,729 24,670 6,047 

Establishments 304,533 31,025 219,990 31,103 13,515 Employment 5,221,782 0 888,521 925,796 759,821 Annual Payroll 175,703,556 1,402,826 26,295,457 28,328,156 23,912,749 7

Indiana Firms 117,141 12,409 99,502 11,864 2,913 

Establishments 146,197 12,431 100,642 15,861 7,999 Employment 2,540,866 0 437,052 444,095 375,978 Annual Payroll 71,435,864 492,612 9,955,651 11,147,806 9,875,553 3

62 The Annual Report on Small Business and Competition
Iowa Firms 66,078 7,170 56,982 6,041 1,424 

Establishments 80,838 7,175 57,751 8,796 4,354 Employment 1,213,285 0 237,172 227,101 181,923 Annual Payroll 30,409,574 178,495 4,751,137 5,211,434 4,358,455 1

Kansas Firms 61,212 6,661 52,253 5,694 1,380 

Establishments 74,019 6,666 52,915 7,858 3,502 Employment 1,081,941 0 213,646 208,103 164,592 Annual Payroll 28,747,577 208,351 4,691,267 4,972,605 4,143,941 1

Kentucky Firms 72,795 7,727 61,867 7,041 1,748 

Establishments 89,593 7,750 62,464 9,363 4,332 Employment 1,443,015 0 265,161 255,362 211,900 Annual Payroll 36,889,001 275,256 5,580,864 5,874,790 5,053,613 1

Louisiana Firms 82,138 8,361 69,915 8,312 1,862 

Establishments 100,667 8,382 70,737 10,806 4,848 Employment 1,577,220 0 304,347 317,616 238,637 Annual Payroll 40,802,387 334,218 6,731,245 7,038,813 5,790,838 1

Maine Firms 33,273 5,102 29,445 2,435 586 

Establishments 38,334 5,103 29,705 3,290 1,668 Employment 456,715 0 111,526 90,709 76,332 Annual Payroll 11,559,136 130,309 2,441,426 2,104,663 1,895,319 

Maryland Firms 104,750 13,213 89,735 10,063 2,465 

Establishments 126,577 13,237 90,595 12,694 5,404 Employment 1,938,727 0 372,699 366,117 293,099 Annual Payroll 59,817,673 576,021 10,326,270 10,372,661 8,814,873 2

Massachusetts Firms 140,843 16,590 121,191 13,475 3,323 

Establishments 167,929 16,611 122,404 16,532 8,557 Employment 2,924,913 0 499,538 509,612 447,669 Annual Payroll 105,871,311 940,520 15,704,566 16,764,805 15,277,496 4

Michigan Firms 193,730 24,581 167,781 18,969 3,955 

Establishments 235,403 24,618 169,569 24,870 11,252 Employment 3,919,567 0 720,603 721,257 579,851 Annual Payroll 128,649,484 1,002,394 19,541,703 20,663,265 17,414,760 5

Minnesota Firms 113,297 15,553 97,288 11,087 2,545 

Establishments 134,981 15,623 98,321 14,479 6,821 Employment 2,271,671 0 398,400 420,002 352,314 Annual Payroll 70,094,975 519,746 10,139,865 11,378,837 9,936,699 3

Supplementary Tables 63
Table A.4 Employers by State and Employment Size, 1998 (Annual Payroll in Thousands of Dollars)—Co

Employment Size of Firm

State Total 0* ,20 20–99 100–499 Mississippi Firms 49,016 5,347 42,313 4,177 1,023 

Establishments 59,771 5,353 42,704 5,595 3,187 Employment 937,023 0 174,158 150,424 124,811 Annual Payroll 21,066,790 162,428 3,406,181 3,224,808 2,660,047 

Missouri Firms 118,282 13,289 101,791 11,212 2,587 

Establishments 143,912 13,319 102,923 14,838 6,708 Employment 2,310,122 0 414,168 419,827 314,869 Annual Payroll 64,669,474 475,859 9,733,905 10,542,440 8,417,020 2

Montana Firms 27,342 3,939 24,456 1,917 370 

Establishments 30,957 3,943 24,667 2,624 1,085 Employment 277,144 0 93,333 67,742 38,593 Annual Payroll 5,960,687 87,382 1,720,420 1,337,649 847,910 

Nebraska Firms 40,841 4,551 35,187 3,577 810 

Establishments 48,655 4,553 35,630 4,979 2,358 Employment 720,252 0 146,050 131,832 95,951 Annual Payroll 18,178,238 178,520 3,035,606 3,081,085 2,425,023 

Nevada Firms 37,717 5,936 31,408 3,606 1,097 

Establishments 44,613 5,981 31,734 4,400 2,177 Employment 800,861 0 125,878 127,949 103,112 Annual Payroll 21,847,334 321,682 3,616,114 3,541,628 2,847,497 1

New Hampshire Firms 31,879 3,987 27,268 2,903 671 

Establishments 36,842 3,993 27,510 3,550 1,551 Employment 518,526 0 110,733 104,427 75,893 Annual Payroll 14,863,829 152,845 3,052,521 2,944,224 2,052,769 

New Jersey Firms 201,167 26,146 178,085 16,145 3,830 

Establishments 230,860 26,167 179,300 18,841 7,651 Employment 3,368,365 0 675,276 597,759 475,460 Annual Payroll 125,787,145 1,258,712 22,022,938 19,942,020 16,043,247 5

New Mexico Firms 35,775 4,236 30,485 3,186 777 

Establishments 42,608 4,260 30,787 4,218 2,010 Employment 540,186 0 124,799 112,636 80,415 Annual Payroll 13,133,707 162,260 2,616,859 2,352,003 1,912,777 

64 The Annual Report on Small Business and Competition
New York Firms 418,277 54,197 374,713 32,439 6,971 

Establishments 481,962 54,243 377,351 39,123 16,962 Employment 6,993,814 0 1,395,677 1,224,694 1,054,362 Annual Payroll 274,634,982 2,955,483 44,320,159 41,203,071 37,443,347 12

North Carolina Firms 160,381 19,223 139,743 14,172 3,284 

Establishments 198,690 19,263 141,241 19,082 9,286 Employment 3,223,178 0 575,528 522,556 425,832 Annual Payroll 86,780,877 753,811 13,658,750 12,920,785 11,069,000 3

North Dakota Firms 17,416 1,936 14,919 1,571 398 

Establishments 20,288 1,939 15,131 2,156 996 Employment 249,476 0 61,228 58,344 43,767 Annual Payroll 5,533,810 62,328 1,179,296 1,147,503 931,081 

Ohio Firms 214,406 23,220 183,137 22,586 4,985 

Establishments 270,343 23,273 185,564 29,971 13,515 Employment 4,806,046 0 806,155 861,749 701,134 Annual Payroll 140,265,358 975,872 19,917,173 22,877,804 19,134,543 6

Oklahoma Firms 70,491 7,863 61,218 6,103 1,372 

Establishments 84,881 7,883 61,875 8,173 3,600 Employment 1,167,709 0 245,491 225,896 165,821 Annual Payroll 28,667,008 235,030 5,148,088 4,945,992 3,787,270 1

Oregon Firms 84,387 11,147 73,480 7,287 1,665 

Establishments 99,183 11,174 74,166 9,666 4,772 Employment 1,310,750 0 296,147 261,468 199,723 Annual Payroll 37,722,920 326,493 6,938,264 6,822,860 5,449,658 1

Pennsylvania Firms 237,142 24,432 205,088 23,090 5,133 

Establishments 292,659 24,474 207,528 30,005 13,807 Employment 4,906,190 0 873,000 872,413 727,430 Annual Payroll 145,569,019 1,089,211 21,675,350 23,543,569 20,451,566 6

Rhode Island Firms 25,378 3,000 21,840 2,167 551 

Establishments 28,245 3,006 21,989 2,488 1,152 Employment 402,485 0 84,624 80,265 68,081 Annual Payroll 11,115,638 90,239 2,154,084 2,088,341 1,764,615 

South Carolina Firms 77,017 9,109 66,510 6,691 1,675 

Establishments 94,985 9,128 67,227 8,831 4,389 Employment 1,526,106 0 278,113 240,259 193,175 Annual Payroll 38,559,169 344,032 6,186,252 5,351,255 4,696,411 1

Supplementary Tables 65
Table A.4 Employers by State and Employment Size, 1998 (Annual Payroll in Thousands of Dollars)—Co

Employment Size of Firm

State Total 0* ,20 20–99 100–499 South Dakota Firms 20,445 2,528 17,667 1,713 435 

Establishments 23,521 2,530 17,906 2,299 1,249 Employment 289,422 0 71,584 60,555 46,511 Annual Payroll 6,403,476 58,960 1,334,952 1,261,071 1,028,597 

Tennessee Firms 104,027 11,198 88,633 10,003 2,541 

Establishments 131,110 11,207 89,534 13,124 6,292 Employment 2,299,348 0 371,759 369,624 307,838 Annual Payroll 62,441,176 525,848 8,921,416 9,726,964 7,990,948 2

Texas Firms 366,250 43,252 319,782 34,338 7,320 

Establishments 462,875 43,368 323,721 46,067 21,075 Employment 7,570,820 0 1,326,798 1,291,671 982,605 Annual Payroll 229,185,833 2,430,685 35,310,915 33,644,352 27,381,834 9

Utah Firms 44,037 6,842 37,193 4,317 965 

Establishments 52,025 6,859 37,541 5,441 2,340 Employment 866,146 0 152,631 158,056 110,909 Annual Payroll 22,199,933 244,029 3,511,846 3,748,959 2,749,526 1

Vermont Firms 19,005 2,458 16,697 1,418 331 

Establishments 21,261 2,460 16,823 1,873 932 Employment 239,034 0 64,925 50,250 43,358 Annual Payroll 5,907,989 61,658 1,392,035 1,191,542 1,095,450 

Virginia Firms 137,486 16,078 118,863 12,499 3,117 

Establishments 172,182 16,160 120,180 16,551 7,861 Employment 2,700,589 0 491,310 453,629 377,502 Annual Payroll 81,261,075 602,149 12,380,844 12,411,446 11,103,293 3

Washington Firms 136,813 19,214 120,147 11,580 2,564 

Establishments 161,473 19,220 121,342 15,766 6,731 Employment 2,134,598 0 474,025 419,945 307,174 Annual Payroll 73,268,188 605,807 11,905,628 11,602,291 9,369,590 3

66 The Annual Report on Small Business and Competition
West Virginia Firms 34,354 3,617 29,666 2,904 659 

Establishments 41,703 3,622 29,989 3,884 1,973 Employment 547,234 0 122,705 104,188 72,317 Annual Payroll 13,278,895 89,329 2,304,949 2,258,774 1,495,424 

Wisconsin Firms 115,373 13,332 98,552 11,972 2,579 

Establishments 138,635 13,354 99,680 15,886 6,951 Employment 2,319,343 0 426,597 453,252 379,952 Annual Payroll 64,912,499 467,818 10,093,420 11,283,342 10,212,009 3

Wyoming Firms 15,808 2,152 13,863 1,141 268 

Establishments 17,888 2,152 13,989 1,573 591 Employment 163,791 0 53,311 37,233 22,425 Annual Payroll 3,980,094 49,508 1,039,519 805,334 511,375 

* Employment is measured in March, thus some firms will have zero employment and some annual payroll.Notes: For state data, a firm is defined as an aggregation of all establishments owned by a parent company within a state. Establishments are loc

quarter.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of the Cens

Supplementary Tables 67
68 The Annual Report on Small Business and Competition Table A.5 Employers by Metropolitan Statistical Area and Employment Size, 1998 Firms E

Employment Size of Firm 

Metropolitan Statistical Area Total ,20 ,500 5001 Total ,20 Abilene, TX 3,112 2,407 2,810 302 48,503 10,103 Akron, OH 14,932 11,982 14,095 837 287,987 53,326 Albany, GA 2,516 1,830 2,183 333 47,439 8,325 Albany-Schenectady-Troy, NY 16,979 13,989 16,047 932 323,468 58,542 Albuquerque, NM 15,037 12,024 14,010 1,027 276,365 49,348 Alexandria, LA 2,760 2,095 2,481 279 45,683 9,419 Allentown-Bethlehem-Easton, PA 12,905 10,550 12,112 793 249,627 45,788 Altoona, PA 2,897 2,236 2,621 276 49,527 9,888 Amarillo, TX 4,921 3,872 4,491 430 79,684 16,237 Anchorage, AK 6,874 5,664 6,455 419 107,084 23,005 Ann Arbor, MI 12,427 10,170 11,806 621 222,798 42,871 Anniston, AL 2,279 1,767 2,042 237 39,928 7,640 Appleton-Oshkosh-Neenah, WI 7,849 6,017 7,279 570 180,515 27,367 Asheville, NC 5,875 4,711 5,385 490 95,337 18,916 Athens, GA 3,235 2,550 2,902 333 51,474 10,998 Atlanta, GA 88,326 74,550 85,094 3,232 1,894,836 281,407 Atlantic-Cape May, NJ 9,284 8,104 8,882 402 146,021 28,396 Auburn-Opelika, AL 1,847 1,384 1,634 213 30,235 6,114 Augusta-Aiken, GA-SC 8,179 6,541 7,472 707 165,449 27,446 Austin-San Marcos, TX 25,434 20,757 23,991 1,443 479,731 83,125 Bakersfield, CA 9,311 7,491 8,693 618 142,507 31,551 Baltimore, MD 51,663 43,311 49,781 1,882 991,749 181,383 Bangor, ME 2,581 1,970 2,346 235 42,864 8,662 Barnstable-Yarmouth, MA 5,047 4,377 4,839 208 48,894 15,865 Baton Rouge, LA 12,566 9,902 11,718 848 247,957 43,821 Beaumont-Port Arthur, TX 7,085 5,633 6,525 560 129,920 24,319 Bellingham, WA 4,973 4,142 4,678 295 55,623 16,616 Benton Harbor, MI 3,692 2,978 3,465 227 60,344 12,802 Bergen-Passaic, NJ 41,354 35,921 40,197 1,157 611,339 132,405 Billings, MT 4,348 3,445 3,987 361 53,847 14,241 
Supplementary Tables 69

Biloxi-Gulfport-Pascagoula, MS 6,256 5,126 5,830 426 123,677 21,356 Binghamton, NY 4,384 3,417 4,012 372 92,610 15,277 Birmingham, AL 19,100 15,374 17,912 1,188 423,492 67,434 Bismarck, ND 2,679 2,094 2,486 193 40,019 8,588 Bloomington, IN 2,579 2,002 2,351 228 45,630 9,208 Bloomington-Normal, IL 3,095 2,272 2,718 377 76,943 9,890 Boise City, ID 10,606 8,666 9,904 702 176,686 35,564 Boston, MA–NH 83,233 70,320 80,888 2,345 1,863,513 290,176 Boulder-Longmont, CO 9,685 8,118 9,161 524 136,146 30,508 Brazoria, TX 3,373 2,672 3,074 299 56,950 11,407 Bremerton, WA 4,585 3,886 4,318 267 45,673 14,535 Bridgeport, CT 10,019 8,223 9,442 577 174,003 34,210 Brockton, MA 4,681 3,775 4,422 259 79,531 15,902 Brownsville-Harlingen-San Benito, TX 4,860 3,869 4,522 338 79,534 15,631 Bryan-College Station, TX 2,878 2,210 2,579 299 42,899 9,742 Buffalo-Niagara Falls, NY 22,817 18,824 21,747 1,070 466,370 80,965 Burlington, VT 5,339 4,358 4,982 357 85,147 18,591 Canton-Massillon, OH 8,628 6,883 8,097 531 166,770 30,489 Casper, WY 2,399 1,872 2,157 242 24,563 7,593 Cedar Rapids, IA 4,572 3,385 4,099 473 110,504 15,231 Champaign-Urbana, IL 3,568 2,685 3,215 353 67,242 11,601 Charleston, WV 5,976 4,667 5,390 586 106,243 20,297 Charleston-North Charleston, SC 11,638 9,400 10,845 793 204,989 39,294 Charlotte-Gastonia-Rock Hill, NC-SC 33,547 27,256 31,606 1,941 726,913 112,937 Charlottesville, VA 4,154 3,357 3,827 327 63,682 13,578 Chattanooga, TN–GA 9,562 7,527 8,827 735 198,319 32,517 Cheyenne, WY 2,150 1,675 1,927 223 25,338 6,983 Chicago, IL 173,865 147,963 170,185 3,680 3,741,075 594,461 Chico-Paradise, CA 4,068 3,343 3,808 260 49,894 13,513 Cincinnati, OH–KY–IN 32,733 26,117 31,027 1,706 789,795 114,954 Clarksville-Hopkinsville, TN–KY 3,236 2,505 2,891 345 52,325 10,407 Cleveland-Lorain-Elyria, OH 49,530 41,142 47,641 1,889 1,043,092 176,253 Colorado Springs, CO 11,461 9,410 10,700 761 194,751 35,475 Columbia, MO 3,371 2,641 3,039 332 58,592 11,012 Columbia, SC 11,664 9,254 10,735 929 233,393 39,526 Columbus, GA–AL 4,872 3,837 4,402 470 101,005 16,744 Columbus, OH 29,518 23,569 27,882 1,636 724,046 102,105 
Table A.5 Employers by Metropolitan Statistical Area and Employment Size, 1998—Continued

Firms E

Employment Size of Firm 

Metropolitan Statistical Area Total ,20 ,500 5001 Total ,20 Corpus Christi, TX 7,740 6,093 7,108 632 128,979 26,590 Corvallis, Oregon 1,857 1,517 1,737 120 29,170 6,306 Cumberland, MD–WV 2,090 1,684 1,909 181 29,036 7,161 Dallas, TX 71,325 58,718 68,467 2,858 1,747,902 239,341 Danbury, CT 5,941 4,942 5,572 369 83,625 18,979 Danville, VA 2,231 1,788 2,020 211 37,618 7,420 Davenport-Moline-Rock Island, IA–IL 7,970 6,172 7,340 630 159,134 26,992 Daytona Beach, FL 10,261 8,873 9,765 496 134,415 32,810 Dayton-Springfield, OH 17,297 13,670 16,236 1,061 414,619 63,031 Decatur, AL 2,938 2,267 2,658 280 51,824 9,513 Decatur, IL 2,473 1,830 2,196 277 54,225 8,290 Denver, CO 53,500 45,016 51,196 2,304 969,914 170,374 Des Moines, IA 10,757 8,348 9,876 881 245,713 35,693 Detroit, MI 86,848 73,428 84,573 2,275 1,927,121 314,437 Dothan, AL 3,272 2,541 2,958 314 56,966 10,703 Dover, DE 2,680 2,050 2,410 270 42,453 8,569 Dubuque, IA 2,311 1,741 2,085 226 47,588 7,559 Duluth-Superior, MN–WI 5,859 4,806 5,502 357 89,666 21,499 Dutchess County, NY 6,026 5,161 5,670 356 82,574 19,148 Eau Claire, WI 3,391 2,597 3,092 299 58,683 11,599 El Paso, TX 10,394 8,308 9,618 776 198,571 34,552 Elkhart-Goshen, IN 4,416 3,328 4,093 323 109,830 16,291 Elmira, NY 1,690 1,211 1,472 218 36,456 5,617 Enid, OK 1,564 1,208 1,396 168 20,739 5,075 Erie, PA 5,906 4,618 5,469 437 116,678 20,649 Eugene-Springfield, OR 8,778 7,210 8,324 454 114,500 29,962 Evansville-Henderson, IN–KY 6,799 5,222 6,233 566 143,201 24,146 Fargo-Moorhead, ND–MN 4,608 3,485 4,244 364 85,860 15,613 Fayetteville, NC 4,583 3,557 4,153 430 86,766 15,951 Fayetteville-Springdale-Rogers, AR 6,344 5,199 5,904 440 123,754 20,528 

70 The Annual Report on Small Business and Competition
Fitchburg-Leominster, MA 2,851 2,256 2,647 204 48,080 9,632 

Flagstaff, UT–AZ 3,227 2,621 2,986 241 38,488 11,123 Flint, MI 7,857 6,387 7,400 457 149,767 27,573 Florence, AL 3,110 2,512 2,852 258 49,097 10,832 Florence, SC 2,939 2,220 2,618 321 54,875 9,806 Fort Collins-Loveland, CO 7,026 5,793 6,573 453 87,930 22,899 Fort Lauderdale, FL 44,085 38,894 42,683 1,402 585,668 132,147 Fort Myers-Cape Coral, FL 10,312 8,620 9,639 673 134,701 32,413 Fort Pierce-Port St. Lucie, FL 7,108 6,089 6,700 408 85,342 22,082 Fort Smith, AR–OK 4,394 3,451 4,037 357 89,985 14,660 Fort Walton Beach, FL 4,170 3,359 3,818 352 55,450 13,042 Fort Wayne, IN 10,971 8,543 10,210 761 250,226 38,840 Fort Worth-Arlington, TX 30,538 24,940 29,030 1,508 637,361 105,179 Fresno, CA 14,728 12,090 13,930 798 228,001 50,779 Gadsden, AL 1,993 1,544 1,791 202 33,001 6,846 Gainesville, FL 4,579 3,656 4,164 415 75,584 16,103 Galveston-Texas City, TX 4,201 3,353 3,838 363 68,024 13,286 Gary, IN 11,669 9,515 11,012 657 224,929 42,494 Glens Falls, NY 2,947 2,424 2,734 213 41,344 8,425 Goldsboro, NC 2,113 1,609 1,907 206 36,626 6,855 Grand Forks, ND–MN 2,348 1,766 2,156 192 36,323 7,913 Grand Junction, CO 3,297 2,682 3,052 245 39,408 11,059 Grand Rapids-Muskegon-Holland, MI 22,635 18,296 21,617 1,018 515,774 84,226 Great Falls, MT 2,319 1,853 2,125 194 26,152 7,770 Greeley, CO 3,464 2,821 3,211 253 52,895 11,222 Green Bay, WI 5,384 4,065 4,985 399 121,799 18,447 Greensboro-Winston-Salem-High Pt., NC 26,980 22,131 25,672 1,308 598,402 92,300 Greenville, NC 2,731 2,050 2,447 284 50,143 8,787 Greenville-Spartanburg-Anderson, SC 20,347 16,687 19,182 1,165 466,291 70,309 Hagerstown, MD 2,841 2,153 2,534 307 51,788 9,687 Hamilton-Middletown, OH 5,472 4,301 5,106 366 102,274 19,102 Harrisburg-Lebanon-Carlisle, PA 12,425 9,828 11,535 890 296,313 44,243 Hartford, CT 25,535 21,168 24,332 1,203 545,578 90,341 Hattiesburg, MS 2,536 1,948 2,273 263 40,966 8,119 Hickory-Morganton, NC 6,889 5,526 6,470 419 158,148 23,785 Honolulu, HI 17,177 14,401 16,443 734 309,487 61,848 Houma, LA 3,960 3,181 3,711 249 68,532 14,172 

Supplementary Tables 71
Table A.5 Employers by Metropolitan Statistical Area and Employment Size, 1998—Continued

Firms E

Employment Size of Firm 

Metropolitan Statistical Area Total ,20 ,500 5001 Total ,20 Houston, TX 78,892 66,059 76,232 2,660 1,761,037 272,592 Huntington-Ashland, WV–KY–OH 5,890 4,747 5,466 424 98,156 20,945 Huntsville, AL 7,113 5,522 6,501 612 136,188 23,338 Indianapolis, IN 33,708 27,284 31,942 1,766 762,800 117,904 Iowa City, IA 2,371 1,790 2,135 236 45,266 7,917 Jackson, MI 3,116 2,399 2,847 269 53,517 11,036 Jackson, MS 9,430 7,321 8,628 802 199,211 30,669 Jackson, TN 2,628 1,898 2,300 328 53,047 8,268 Jacksonville, FL 22,634 18,766 21,256 1,378 459,459 75,057 Jacksonville, NC 2,297 1,823 2,103 194 28,155 7,671 Jamestown, NY 2,804 2,250 2,589 215 46,937 9,416 Janesville-Beloit, WI 2,987 2,320 2,722 265 60,340 10,257 Jersey City, NJ 11,907 10,028 11,395 512 210,152 36,324 Johnson City-Kingsport-Bristol, TN–VA 8,693 7,096 8,102 591 171,863 30,092 Johnstown, PA 4,792 3,941 4,490 302 70,402 16,892 Jonesboro, AR 2,083 1,602 1,889 194 32,834 6,760 Joplin, MO 3,623 2,888 3,314 309 70,204 11,397 Kalamazoo-Battle Creek, MI 8,953 7,029 8,355 598 186,237 31,932 Kankakee, IL 2,117 1,629 1,887 230 57,571 6,878 Kansas City, MO–KS 39,081 32,027 37,212 1,869 825,691 132,855 Kenosha, WI 2,819 2,173 2,562 257 46,908 9,141 Killeen-Temple, TX 3,994 3,176 3,663 331 80,253 13,910 Knoxville, TN 15,542 12,510 14,511 1,031 292,374 52,481 Kokomo, IN 2,105 1,581 1,862 243 47,828 7,334 La Crosse, WI–MN 3,006 2,306 2,734 272 59,931 10,512 Lafayette, IN 3,369 2,565 3,021 348 72,232 11,717 Lafayette, LA 8,728 6,983 8,217 511 136,772 30,524 Lake Charles, LA 3,730 2,818 3,354 376 71,390 13,008 Lakeland-Winter Haven, FL 8,320 6,772 7,712 608 151,889 26,826 Lancaster, PA 9,827 7,722 9,216 611 201,341 35,021 

72 The Annual Report on Small Business and Competition
Lansing-East Lansing, MI 8,958 7,018 8,332 626 166,071 32,019 

Laredo, TX 3,579 2,839 3,287 292 46,888 12,039 Las Cruces, NM 2,893 2,292 2,649 244 34,739 9,670 Las Vegas, NV–AZ 25,732 21,002 24,406 1,326 585,646 85,918 Lawrence, KS 2,448 1,929 2,252 196 35,809 7,885 Lawrence, MA–NH 8,199 6,726 7,723 476 142,227 27,068 Lawton, OK 1,958 1,536 1,766 192 27,604 6,398 Lewiston-Auburn, ME 2,293 1,806 2,129 164 38,289 7,562 Lexington, KY 10,461 8,187 9,656 805 217,622 35,752 Lima, OH 3,466 2,653 3,142 324 68,686 12,261 Lincoln, NE 5,889 4,627 5,455 434 117,339 20,507 Little Rock-North Little Rock, AR 13,419 10,793 12,512 907 266,651 45,410 Longview-Marshall, TX 4,972 3,869 4,543 429 79,200 16,720 Los Angeles-Long Beach, CA 191,051 164,304 187,949 3,102 3,693,537 642,390 Louisville, KY–IN 22,461 17,979 21,165 1,296 493,737 78,278 Lowell, MA–NH 5,658 4,561 5,308 350 108,268 19,317 Lubbock, TX 5,731 4,463 5,231 500 90,311 19,458 Lynchburg, VA 4,717 3,816 4,365 352 87,448 15,788 Macon, GA 6,259 4,871 5,669 590 118,841 20,719 Madison, WI 10,345 8,046 9,676 669 214,837 35,603 Manchester, NH 5,233 4,011 4,718 515 92,739 17,331 Mansfield, OH 3,636 2,788 3,295 341 68,412 11,880 McAllen-Edinburg-Mission, TX 7,036 5,770 6,647 389 101,510 24,581 Medford-Ashland, OR 4,733 3,918 4,442 291 58,195 15,608 Melbourne-Titusville-Palm Bay, FL 9,875 8,400 9,324 551 154,136 32,330 Memphis, TN–AR–MS 20,044 15,596 18,577 1,467 511,190 69,173 Merced, CA 2,617 2,078 2,403 214 37,537 8,328 Miami, FL 60,836 54,130 59,350 1,486 835,903 191,541 Middlesex-Somerset-Hunterdon, NJ 29,472 24,931 28,180 1,292 568,456 94,174 Milwaukee-Waukesha, WI 33,406 27,031 31,982 1,424 769,342 120,472 Minneapolis-St. Paul, MN–WI 68,037 56,789 65,932 2,105 1,538,957 228,152 Missoula, MT 3,298 2,676 3,082 216 37,491 10,813 Mobile, AL 11,239 8,937 10,444 795 200,357 37,864 Modesto, CA 7,145 5,759 6,679 466 113,536 24,491 Monmouth-Ocean, NJ 26,166 23,308 25,470 696 305,726 84,675 Monroe, LA 3,670 2,854 3,341 329 61,306 12,404 Montgomery, AL 6,801 5,296 6,218 583 122,349 23,728 

Supplementary Tables 73
Table A.5 Employers by Metropolitan Statistical Area and Employment Size, 1998—Continued

Firms E

Employment Size of Firm 

Metropolitan Statistical Area Total ,20 ,500 5001 Total ,20 Muncie, IN 2,382 1,707 2,094 288 49,162 7,895 Myrtle Beach, SC 6,210 5,094 5,798 412 80,708 20,770 Naples, FL 7,376 6,329 6,985 391 82,383 22,844 Nashua, NH 4,789 3,740 4,395 394 91,172 15,507 Nashville, TN 27,118 22,019 25,497 1,621 612,035 92,339 Nassau-Suffolk, NY 80,330 72,374 79,038 1,292 1,019,809 255,343 New Bedford, MA 3,655 3,019 3,433 222 56,288 12,270 New Haven-Meriden, CT 12,909 10,656 12,228 681 238,167 44,035 New London-Norwich, CT–RI 6,252 5,206 5,895 357 118,707 22,235 New Orleans, LA 26,623 21,669 25,271 1,352 534,086 92,495 New York, NY 215,579 192,640 212,937 2,642 3,557,965 688,625 Newark, NJ 52,358 45,400 50,822 1,536 896,342 171,882 Newburgh, NY–PA 7,818 6,651 7,372 446 93,288 25,316 Norfolk-Virginia Beach-Newpt. News, VA 27,108 22,334 25,826 1,282 546,903 97,925 Oakland, CA 48,523 40,389 46,722 1,801 886,967 165,599 Ocala, FL 4,809 3,891 4,404 405 69,245 14,717 Odessa-Midland, TX 6,372 5,082 5,891 481 87,376 22,108 Oklahoma City, OK 24,897 20,809 23,678 1,219 426,425 81,522 Olympia, WA 4,592 3,820 4,300 292 49,668 14,810 Omaha, NE–IA 15,681 12,528 14,644 1,037 357,254 52,009 Orange County, CA 65,400 54,105 63,218 2,182 1,274,074 222,022 Orlando, FL 35,651 29,882 33,870 1,781 745,905 111,869 Owensboro, KY 2,141 1,597 1,894 247 39,917 7,385 Panama City, FL 3,735 2,970 3,423 312 54,230 12,836 Parkersburg-Marietta, WV–OH 3,503 2,757 3,180 323 59,359 12,018 Pensacola, FL 7,372 5,944 6,768 604 125,967 24,059 Peoria-Pekin, IL 7,162 5,599 6,614 548 157,458 24,980 Philadelphia, PA–NJ 103,652 88,593 100,992 2,660 2,112,593 367,440 Phoenix-Mesa, AZ 58,547 48,802 56,311 2,236 1,274,299 196,374 Pine Bluff, AR 1,493 1,144 1,339 154 26,837 4,909 

74 The Annual Report on Small Business and Competition
Pittsburgh, PA 48,543 40,783 46,814 1,729 1,006,882 175,770 

Pittsfield, MA 2,377 1,863 2,165 212 37,701 8,194 Pocatello, ID 1,698 1,279 1,512 186 23,376 5,933 Portland, ME 8,037 6,512 7,487 550 126,534 25,673 Portland-Vancouver, OR–WA 47,361 39,889 45,598 1,763 835,549 159,284 Portsmouth-Rochester, NH–ME 6,357 5,224 5,956 401 98,305 21,346 Providence-Fall River-Warwick, RI–MA 27,312 23,325 26,418 894 458,066 91,591 Provo-Orem, UT 5,858 4,686 5,485 373 132,096 18,873 Pueblo, CO 2,868 2,313 2,605 263 45,760 10,209 Punta Gorda, FL 2,664 2,211 2,452 212 30,868 8,247 Racine, WI 3,845 3,004 3,558 287 76,877 13,045 Raleigh-Durham-Chapel Hill, NC 26,942 22,197 25,521 1,421 540,152 90,453 Rapid City, SD 2,908 2,318 2,683 225 38,208 10,031 Reading, PA 7,066 5,598 6,567 499 143,449 25,349 Redding, CA 4,007 3,289 3,732 275 44,494 13,600 Reno, NV 9,680 7,778 8,945 735 161,330 30,899 Richland-Kennewick-Pasco, WA 3,922 3,097 3,578 344 60,632 13,091 Richmond-Petersburg, VA 21,692 17,577 20,386 1,306 452,442 73,916 Riverside-San Bernardino, CA 42,897 35,662 41,306 1,591 766,953 149,022 Roanoke, VA 6,050 4,655 5,451 599 121,911 19,564 Rochester, MN 2,554 1,879 2,281 273 68,663 8,081 Rochester, NY 19,878 16,446 18,898 980 455,352 69,699 Rockford, IL 7,768 6,119 7,215 553 159,158 27,188 Rocky Mount, NC 2,848 2,193 2,554 294 57,771 9,466 Sacramento, CA 30,109 25,140 28,796 1,313 504,427 102,417 Saginaw-Bay City-Midland, MI 8,169 6,488 7,617 552 158,208 29,348 Salem, OR 7,676 6,362 7,273 403 104,344 26,081 Salinas, CA 7,587 6,272 7,143 444 101,381 26,265 Salt Lake City-Ogden, UT 27,873 22,813 26,497 1,376 589,820 94,168 San Angelo, TX 2,291 1,785 2,070 221 34,098 7,183 San Antonio, TX 26,974 22,076 25,544 1,430 572,897 91,683 San Diego, CA 54,832 46,416 53,044 1,788 961,014 186,238 San Francisco, CA 53,585 45,161 51,951 1,634 962,037 181,022 San Jose, CA 38,557 31,377 36,989 1,568 946,363 131,240 San Luis Obispo-Atascadero-Paso Robles, CA 6,008 5,134 5,748 260 69,698 21,565 Santa Barbara-Santa Maria-Lompoc, CA 9,455 7,799 8,967 488 129,260 33,003 Santa Cruz-Watsonville, CA 6,216 5,295 5,943 273 74,213 21,993 

Supplementary Tables 75
Table A.5 Employers by Metropolitan Statistical Area and Employment Size, 1998—Continued

Firms E

Employment Size of Firm 

Metropolitan Statistical Area Total ,20 ,500 5001 Total ,20 Santa Fe, NM 4,622 3,869 4,314 308 50,260 15,026 Santa Rosa, CA 11,909 10,089 11,396 513 154,187 40,307 Sarasota-Bradenton, FL 14,337 12,323 13,598 739 238,738 43,808 Savannah, GA 6,430 4,972 5,819 611 112,080 20,762 Scranton-Wilkes Barre-Hazleton, PA 12,913 10,620 12,261 652 245,900 43,306 Seattle-Bellevue-Everett, WA 64,492 54,790 62,466 2,026 1,169,062 215,680 Sharon, PA 2,657 2,024 2,391 266 44,553 8,764 Sheboygan, WI 2,351 1,822 2,170 181 53,132 8,404 Sherman-Denison, TX 2,290 1,804 2,048 242 38,179 7,415 Shreveport-Bossier City, LA 7,781 6,135 7,171 610 146,661 27,168 Sioux City, IA–NE 2,998 2,244 2,716 282 60,627 9,971 Sioux Falls, SD 4,923 3,755 4,490 433 96,691 15,768 South Bend, IN 5,785 4,329 5,239 546 120,449 20,237 Spokane, WA 10,198 8,217 9,572 626 161,001 34,401 Springfield, IL 5,006 3,914 4,548 458 82,178 16,303 Springfield, MA 11,432 9,317 10,818 614 223,989 40,963 Springfield, MO 8,201 6,591 7,647 554 144,195 27,532 St. Cloud, MN 4,157 3,246 3,863 294 76,696 14,249 St. Joseph, MO 2,348 1,808 2,112 236 36,831 7,307 St. Louis, MO–IL 54,806 45,603 52,844 1,962 1,193,331 192,305 Stamford-Norwalk, CT 13,600 11,428 12,902 698 217,393 43,558 State College, PA 2,765 2,114 2,519 246 44,202 8,986 Steubenville-Weirton, OH–WV 2,538 2,046 2,340 198 42,809 8,528 Stockton-Lodi, CA 8,750 6,937 8,129 621 143,285 29,038 Sumter, SC 1,748 1,329 1,551 197 34,515 5,969 Syracuse, NY 14,063 11,386 13,212 851 287,709 48,347 Tacoma, WA 13,540 11,275 12,896 644 190,567 44,281 Tallahassee, FL 6,048 4,748 5,491 557 94,778 19,669 Tampa-St. Petersburg-Clearwater, FL 50,519 43,625 48,570 1,949 976,883 161,736 Terre Haute, IN 3,092 2,386 2,783 309 55,704 10,198 Texarkana, TX–Texarkana, AR 2,576 1,968 2,320 256 39,921 8,651 

76 The Annual Report on Small Business and Competition
Toledo, OH 12,488 9,768 11,666 822 284,220 45,277 

Topeka, KS 4,088 3,141 3,706 382 81,210 13,315 Trenton, NJ 8,365 6,761 7,778 587 156,991 27,465 Tucson, AZ 15,532 12,672 14,646 886 268,142 53,663 Tulsa, OK 18,802 15,401 17,753 1,049 357,212 63,378 Tuscaloosa, AL 3,571 2,771 3,285 286 65,228 12,542 Tyler, TX 4,407 3,425 4,020 387 70,510 14,528 Utica-Rome, NY 5,364 4,435 5,011 353 100,353 18,231 Vallejo-Fairfield-Napa, CA 8,742 7,097 8,202 540 133,172 29,964 Ventura, CA 14,711 12,030 13,917 794 217,737 48,300 Victoria, TX 2,045 1,556 1,823 222 29,345 7,082 Vineland-Millville-Bridgeton, NJ 2,830 2,302 2,631 199 44,863 9,972 Visalia-Tulare-Porterville, CA 5,268 4,285 4,928 340 73,205 17,892 Waco, TX 4,225 3,244 3,802 423 82,466 14,028 Washington, DC–MD–VA–WV 101,638 86,113 98,997 2,641 2,055,459 352,257 Waterbury, CT 4,806 3,900 4,489 317 73,834 16,603 Waterloo-Cedar Falls, IA 2,793 2,052 2,493 300 58,478 9,562 Wausau, WI 3,064 2,298 2,800 264 58,831 10,248 West Palm Beach-Boca Raton, FL 31,473 27,600 30,371 1,102 414,845 96,975 Wheeling, WV–OH 3,418 2,727 3,139 279 52,268 11,906 Wichita Falls, TX 3,178 2,501 2,877 301 47,654 10,349 Wichita, KS 11,593 9,119 10,803 790 256,215 38,390 Williamsport, PA 2,593 2,002 2,347 246 47,148 8,531 Wilmington, NC 6,943 5,714 6,494 449 88,404 23,602 Wilmington-Newark, DE–MD 14,821 11,855 13,688 1,133 283,521 44,924 Worcester, MA–CT 10,112 8,119 9,487 625 206,031 34,060 Yakima, WA 4,377 3,512 4,107 270 58,832 14,144 Yolo, CA 3,018 2,249 2,698 320 53,870 10,411 York, PA 6,949 5,427 6,452 497 149,419 24,276 Youngstown-Warren, OH 11,907 9,800 11,352 555 214,495 43,547 Yuba City, CA 2,242 1,799 2,063 179 25,657 7,196 Yuma, AZ 2,197 1,673 1,981 216 30,497 7,345 

NA = Not available.Notes: For metropolitan statistical areas, a firm is defined as an aggregation of all establishments owned by a parent company within an MSA. E

active payroll in any quarter. Employment is measured in March; thus, some firms will have no employment and some annual payroll.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of the Cens

Supplementary Tables 77
78 The Annual Report on Small Business and Competition Table A.6 Employers by Industry and Employment Size, 1998 (Thousands, except Payroll in Millions of 

Employment Size of Firm Industry (NAICS basis) Total 0* ,20 20–99 100–499 

Total Firms 5,579.2 711.9 4,988.4 494.4 80.1 

Establishments 6,941.8 713.5 5,048.5 674.5 307.3 Employment 108,117.7 0.0 20,275.4 19,377.6 15,411.4 Annual Payroll 3,309,405.5 31,634.5 535,184.5 531,231.2 446,353.5 

Agriculture, Forestry, Firms 26.6 4.7 24.9 1.3 0.2 

Fishing, and Hunting Establishments 27.3 4.7 25.0 1.4 0.3 

Employment 187.1 0.0 90.0 46.1 27.7 Annual Payroll 4,654.3 131.8 2,157.7 1,102.7 581.3 

Mining Firms 19.8 2.0 16.7 2.3 0.5 

Establishments 24.7 2.0 17.0 2.9 1.2 Employment 497.8 0.0 69.1 86.2 63.9 Annual Payroll 21,941.9 119.7 2,204.6 3,057.1 2,754.9 

Utilities Firms 6.6 0.4 5.2 0.9 0.3 

Establishments 15.9 0.4 5.3 1.4 1.0 Employment 682.2 0.0 20.0 38.1 45.3 Annual Payroll 38,097.2 72.5 600.5 1,554.3 2,098.3 

Construction Firms 686.3 106.3 630.4 49.6 5.4 

Establishments 693.0 106.3 630.5 50.3 6.8 Employment 5,798.9 0.0 2,400.0 1,838.4 881.5 Annual Payroll 198,547.0 3,777.3 69,463.6 65,268.8 34,863.9 

Manufacturing Firms 318.5 24.4 230.8 66.3 16.5 

Establishments 366.4 24.4 231.2 70.3 26.4 Employment 16,946.1 0.0 1,308.2 2,747.0 2,959.6 Annual Payroll 607,342.4 2,160.4 36,084.9 83,491.5 94,511.5 

Wholesale Trade Firms 363.5 35.7 310.8 41.4 7.9 

Establishments 454.0 35.8 316.0 58.2 24.7 Employment 5,885.2 0.0 1,393.6 1,494.7 961.6 Annual Payroll 233,924.5 1,790.3 48,905.5 53,715.1 36,755.6 
Supplementary Tables 79

Retail Trade Firms 738.9 76.2 667.6 60.4 8.5 

Establishments 1,113.9 76.5 683.6 102.8 52.2 Employment 14,241.5 0.0 2,946.9 2,227.8 1,215.1 Annual Payroll 260,349.7 2,125.5 52,464.4 53,637.8 29,919.3 

Transportation and Warehousing Firms 154.7 23.5 136.2 14.6 2.8 

Establishments 186.4 23.5 137.2 18.0 8.3 Employment 3,462.6 0.0 507.6 559.7 439.7 Annual Payroll 108,597.5 775.7 12,698.0 14,700.4 12,667.6 

Information Firms 75.3 12.2 64.0 8.4 1.9 

Establishments 120.6 12.2 64.6 10.4 5.6 Employment 3,142.0 0.0 263.8 320.8 318.5 Annual Payroll 146,824.7 1,154.5 10,282.4 12,078.6 14,525.6 

Finance and Insurance Firms 222.0 25.4 201.7 15.1 3.6 

Establishments 412.4 25.5 206.8 33.3 25.8 Employment 5,770.3 0.0 672.9 604.3 603.4 Annual Payroll 290,008.8 1,520.9 26,967.1 26,771.7 27,504.7 

Real Estate and Rental and Firms 242.5 33.7 228.5 10.4 2.3 Leasing Establishments 292.5 33.8 232.8 18.7 10.4 

Employment 1,812.7 0.0 688.0 364.8 255.2 Annual Payroll 49,888.0 1,220.4 17,358.7 9,887.5 7,453.8 

Professional, Scientific, and Firms 641.6 96.1 601.4 32.8 5.2 Technical Services Establishments 688.0 96.1 604.7 42.1 14.6 

Employment 6,052.4 0.0 1,960.3 1,210.2 840.9 Annual Payroll 277,676.6 4,828.2 77,826.5 59,211.3 42,538.9 

Management of Companies and Firms 26.4 1.4 6.5 5.8 7.6 Enterprises Establishments 43.7 1.4 6.6 6.1 8.6 

Employment 2,703.8 0.0 16.1 66.3 222.0 Annual Payroll 175,648.7 290.9 1,140.3 2,982.5 10,857.7 

Administration and Support and Firms 302.9 52.1 266.8 25.7 7.6 Waste Management and Establishments 351.1 52.1 268.0 29.4 13.6 Remediation Services Employment 7,775.0 0.0 974.7 1,020.2 1,353.4 

Annual Payroll 163,707.4 2,291.6 24,012.9 22,940.3 26,259.0 
80 The Annual Report on Small Business and Competition Table A.6 Employers by Industry and Employment Size, 1998 (Thousands, except Payroll in Millions of 

Employment Size of Firm Industry (NAICS basis) Total 0* ,20 20–99 100–499 

Educational Services Firms 58.5 7.3 44.3 10.6 2.6 

Establishments 64.9 7.3 44.7 12.1 5.0 Employment 2,323.8 0.0 199.3 441.2 452.3 Annual Payroll 52,287.4 265.8 3,766.1 8,369.4 9,801.7 

Health Care and Social Firms 527.7 42.7 465.6 45.7 13.0 Assistance Establishments 649.7 42.9 472.8 67.7 49.9 

Employment 13,758.4 0.0 2,174.6 1,814.6 2,464.3 Annual Payroll 395,478.4 3,476.1 76,795.7 51,080.3 55,021.0 

Arts, Entertainment, and Firms 96.3 19.7 81.9 11.8 2.0 Recreation Establishments 102.9 19.7 82.2 12.8 3.3 

Employment 1,583.8 0.0 305.5 471.5 331.2 Annual Payroll 36,046.8 1,445.4 9,319.7 8,140.1 9,303.7 

Accommodation and Food Firms 418.3 58.7 338.2 70.7 7.9 Services Establishments 544.6 59.1 340.8 85.0 32.5 

Employment 9,466.7 0.0 1,770.0 2,662.0 1,376.1 Annual Payroll 109,595.3 2,298.0 19,098.5 27,788.6 15,143.3 

Other Services (except Public Firms 659.3 56.0 616.1 37.9 4.0 Administration) Establishments 719.4 56.1 621.8 50.1 15.0 

Employment 5,038.7 0.0 2,450.1 1,343.7 556.5 Annual Payroll 96,012.9 1,346.3 42,761.2 24,978.5 12,316.5 

Auxiliaries, except Corporate, Firms 5.3 0.0 0.4 1.1 1.6 Subsidiary, and Regional Establishments 13.8 0.0 0.4 1.2 2.1 Managing Offices Employment 916.3 0.0 1.1 11.5 43.2 

Annual Payroll 41,475.7 0.7 43.3 407.1 1,475.3 

Unclassified Firms 56.8 33.5 56.5 0.3 0.0 

Establishments 56.8 33.5 56.5 0.3 0.0 Employment 72.0 0.0 63.3 8.7 0.0 Annual Payroll 1,300.4 542.5 1,232.9 67.5 0.0 

NA = not available.* Employment is measured in March, thus some firms (start-ups after March, closures before March, and seasonal firms) will have zero employmNote: Firms are an aggregation of all establishments owned by a parent company within an industry. Industry designations are based on the No

Classification System (NAICS)

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of the Cens
Supplementary Tables 81

Table A.7 Employer Firms, Establishments, Employment, Payroll, and Receipts by Employment and ReceMajor Industry, 1997 (Annual Payroll and Receipts in Millions of Dollars)

Receipts Size of Firm 

$5 Million– $7.5 Million– $100 Million 

Industry (SIC basis) Total ,$1 Million ,$5 Million $7.49 Million $99.9 Million or More 0–19 Total Firms 5,541,918 4,496,925 5,281,033 81,169 166,728 12,988 4,958,6

Establishments 6,894,869 4,541,475 5,472,017 131,505 486,198 805,149 5,026,4Employment 105,299,123 18,524,017 35,199,715 3,955,855 21,166,189 44,977,364 20,118,8Annual Payroll 3,047,907 324,234 746,843 112,920 644,174 1,543,970 503,1Receipts 18,242,633 1,162,508 2,799,719 492,532 3,554,561 11,395,820 2,786,8

Agricultural Services, Firms 115,039 107,053 113,959 337 607 136 109,3Forestry, Fishing Establishments 116,973 107,087 114,115 387 1,041 1,430 109,4

Employment 727,465 396,991 561,178 17,841 68,968 79,478 393,9Annual Payroll 15,068 6,938 10,851 489 1,711 2,018 7,8Receipts 51,398 23,613 36,193 1,957 7,592 5,656 30,3

Mining Firms 20,685 14,824 18,548 498 1,206 433 17,4

Establishments 26,853 15,051 19,276 660 2,407 4,510 17,9Employment 586,239 51,785 119,092 17,839 96,897 352,411 71,3Annual Payroll 27,818 1,277 3,533 668 4,201 19,417 2,3Receipts 172,832 4,027 12,051 2,885 21,029 136,868 12,8

Construction Firms 663,082 537,078 637,041 9,648 15,635 758 609,9

Establishments 669,380 537,133 637,399 9,793 17,509 4,679 610,0Employment 5,513,414 1,748,067 3,343,488 350,366 1,284,406 535,154 2,329,3Annual Payroll 175,987 35,718 85,358 12,871 53,338 24,420 62,3Receipts 835,144 143,268 352,129 57,940 274,422 150,653 322,6

Manufacturing Firms 333,670 203,483 286,764 12,338 29,828 4,740 243,7

Establishments 393,840 203,668 288,720 13,477 45,356 46,287 244,1Employment 18,633,065 1,009,931 2,972,893 641,872 4,105,579 10,912,721 1,359,7Annual Payroll 688,657 19,279 73,105 19,591 132,303 463,658 36,7Receipts 3,990,994 64,589 251,222 73,650 617,870 3,048,253 163,4

Transportation, Firms 218,654 177,833 207,012 3,264 6,822 1,556 191,7Communications, Establishments 301,628 179,304 213,460 5,178 21,337 61,653 193,8and Utilities Employment 6,246,969 679,216 1,348,151 175,034 898,740 3,825,044 746,4

Annual Payroll 226,053 12,475 29,797 5,107 28,834 162,315 17,8Receipts 1,263,952 43,076 103,536 18,909 125,187 1,016,320 86,2
82 The Annual Report on Small Business and Competition Table A.7 Employer Firms, Establishments, Employment, Payroll, and Receipts by Employment and Rece

Major Industry, 1997 (Annual Payroll and Receipts in Millions of Dollars)—Continued Receipts Size of Firm 

$5 Million– $7.5 Million– $100 Million 

Industry (SIC basis) Total ,$1 Million ,$5 Million $7.49 Million $99.9 Million or More 0–19 Wholesale Trade Firms 413,690 209,868 335,781 21,304 51,243 5,362 354,3

Establishments 530,967 210,587 343,712 25,418 86,869 74,968 361,6Employment 6,810,413 608,681 1,788,147 367,149 1,999,513 2,655,604 1,626,6Annual Payroll 255,888 12,626 47,597 12,620 75,901 119,770 52,9Receipts 4,222,553 76,960 363,506 126,412 1,011,379 2,721,256 788,7

Retail Trade Firms 1,097,657 881,278 1,050,875 12,746 31,401 2,635 962,2

Establishments 1,592,292 895,366 1,113,706 28,532 130,848 319,206 983,9Employment 22,003,645 4,518,570 8,042,788 601,961 3,285,905 10,072,991 4,431,6Annual Payroll 330,385 46,425 96,951 9,663 65,445 158,326 61,5Receipts 2,578,150 254,700 586,260 73,840 653,155 1,264,895 493,1

Finance, Insurance, Firms 460,568 382,420 437,708 5,781 13,720 3,359 426,8and Real Estate Establishments 678,129 386,873 456,559 10,987 55,225 155,358 436,4

Employment 7,367,192 1,041,486 1,843,657 191,810 1,128,659 4,203,066 1,307,8Annual Payroll 313,290 24,801 52,242 7,269 45,234 208,545 41,1Receipts 2,468,070 93,767 206,523 33,391 255,969 1,972,187 235,4

Services Firms 2,224,348 1,954,088 2,170,826 17,637 31,553 4,332 2,016,2

Establishments 2,553,603 1,975,416 2,253,881 37,068 125,596 137,058 2,037,8Employment 37,384,595 8,445,277 15,154,893 1,591,977 8,296,830 12,340,895 7,830,9Annual Payroll 1,014,186 164,183 346,846 44,643 237,195 385,502 219,5Receipts 2,657,047 456,514 885,981 103,520 587,815 1,079,732 651,5

Unclassified Firms 31,204 30,990 31,189 5 10 0 31,0

Establishments 31,204 30,990 31,189 5 10 0 31,0Employment 26,126 24,013 25,428 6 692 0 20,9Annual Payroll 576 512 563 1 12 0 5Receipts 2,492 1,993 2,319 29 145 0 2,3

NA = Not available.Notes: Employment is measured in March, thus some firms (start-ups after March, closures before March, and seasonal firms) will have 

aggregation of all establishments owned by a parent company within an industry. Industry classifications here are based on the older Standard Indust

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of the Cens
Supplementary Tables 83

500,000–999,999 610.8 719.5 749.1 760.8 NA

1,000,000 or More 763.8 942.5 990.9 1,030.3 NA

Corporations, Total 3,716.7 4,441.2 4,631.4 4,710.2 NA

Under 25,0002 878.7 1,030.0 1,059.7 1,106.1 NA

25,000–49,999 252.0 288.4 286.0 305.6 NA

50,000–99,999 358.9 446.8 480.4 453.4 NA

100,000–499,999 1,161.7 1,360.0 1,444.1 1,450.4 NA

500,000–999,999 416.0 512.7 520.8 532.8 NA

1,000,000 or More 649.4 803.3 840.4 861.9 NA

Partnerships, Total3 1,553.6 1,580.9 1,654.2 1,758.6 1,855.3 

Under 25,0002 962.6 931.3 956.2 987.4 1,037.6 

25,000–49,999 126.0 133.5 140.6 151.2 157.3 

50,000–99,999 133.4 142.3 145.7 164.6 156.8 

100,000–499,999 222.4 245.1 268.4 293.6 320.2 

500,000–999,999 52.1 59.4 63.6 68.0 76.6 

1,000,000 or More 57.1 69.3 79.7 93.8 106.8 

Nonfarm Sole 

Proprietorships, Total 14,782.6 16,423.9 16,955.1 17,176.6 17,408.8 

Under 2,5002 3,750.1 4,139.5 4,261.2 4,292.7 4,246.4 

2,500–4,999 1,714.5 1,954.1 1,963.9 1,994.1 2,055.6 

5,000–9,999 2,011.7 2,254.4 2,258.6 2,309.1 2,407.0 

10,000–24,999 2,719.8 2,969.3 3,093.7 3,107.3 3,058.3 

25,000–49,999 1,660.2 1,982.7 2,090.9 2,110.7 2,111.9 

50,000–99,999 1,282.1 1,392.6 1,472.8 1,491.4 1,590.1 

100,000–499,999 1,444.2 1,514.0 1,578.5 1,636.7 1,686.3 

500,000–999,999 142.7 147.4 164.7 160.0 175.1 

1,000,000 or More 57.3 69.9 70.8 74.6 78.1 

NA = Not available.

1Size classes are based on the sum of business receipts (gross amounts from sales and operations and gross

rents for all industries) except for the finance, insurance, and real estate industry. For this industry, positive net

rental income is included, which is the sum of business receipts and investment income. 2Includes returns with no receipts as defined above.

3Total receipts include, in part, only the net income or loss from farming and rentals. An effort is made to

include rental (although not farm) gross receipts in the receipts used for the size distribution.

Note: Business tax returns overcount the number of businesses when businesses file more than one tax

return.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department

of the Treasury, Internal Revenue Service.
g,,,

1995–1996 Firm Births 597,792 572,442 597,503 289 95.8 100.0

Firm Deaths 512,402 485,509 512,024 378 94.8 99.9

Net Change 85,390 86,933 85,479 289 — —

1994–1995 Firm Births 594,369 568,896 594,119 250 95.7 100.0

Firm Deaths 497,246 472,441 496,874 372 95.0 99.9

Net Change 97,123 96,455 97,245 2122 99.3 —

1993–1994 Firm Births 570,587 546,437 570,337 250 95.8 100.0

Firm Deaths 503,563 476,667 503,125 438 94.7 99.9

Net Change 67,024 69,770 67,212 2188 — —

1992–1993 Firm Births 564,504 539,601 564,093 411 95.6 99.9

Firm Deaths 492,651 466,550 492,266 385 94.7 99.9

Net Change 71,853 73,051 71,827 26 — 100.0

1991–1992 Firm Births 544,596 519,014 544,278 318 95.3 99.9

Firm Deaths 521,606 492,746 521,176 430 94.5 99.9 

Net Change 22,990 26,268 23,102 2112 — —

1990–1991 Firm Births 541,141 515,870 540,889 252 95.3 100.0

Firm Deaths 546,518 516,964 546,149 369 94.6 99.9

Net Change 25,377 21,094 25,260 2117 — —

1989–1990 Firm Births 584,892 558,478 584,660 232 95.5 100.0

Firm Deaths 531,400 502,685 530,991 409 94.6 99.9

Net Change 53,492 55,793 53,669 2177 — —

1990–1995 Firm Births 1,797,117 1,679,831 1,795,661 1,456 93.5 99.9 

Firm Deaths 1,546,705 1,426,040 1,545,007 1,698 92.2 99.9

Net Change 250,412 253,791 250,654 2242 — —

Employment

1996–1997 Firm Births 3,227,556 1,813,539 3,029,666 197,890 56.2 93.9

Firm Deaths 3,274,604 1,620,797 2,960,814 313,790 49.5 90.4

Continuing Firms 3,151,331 1,364,954 2,285,350 865,981 43.3 72.5

Net Change 3,104,283 1,557,696 2,354,202 750,081 50.2 75.8

1995–1996 Firm Births 3,255,676 1,844,516 3,055,596 200,080 56.7 93.9

Firm Deaths 3,099,589 1,559,598 2,808,493 291,096 50.3 90.6

Continuing Firms 1,711,158 1,150,535 1,212,409 498,749 67.2 70.9

Net Change 1,867,245 1,435,453 1,459,512 407,733 76.9 78.2

1994–1995 Firm Births 3,322,001 1,836,153 3,049,456 272,545 55.3 91.8

Firm Deaths 2,822,627 1,516,552 2,633,587 189,040 53.7 93.3

Continuing Firms 3,092,193 1,358,182 2,197,436 894,757 43.9 71.1

Net Change 3,591,567 1,677,783 2,613,305 978,262 46.7 72.8

84 The Annual Report on Small Business and Competition
,,,,,,,

Continuing Firms 448,605 1,041,557 875,026 2426,421 — —

Net Change 523,111 1,142,469 844,698 2321,587 — —

1990–1991 Firm Births 3,105,363 1,712,856 2,907,351 198,012 55.2 93.6

Firm Deaths 3,208,099 1,723,159 3,044,470 163,629 53.7 94.9

Continuing Firms 21,058,980 561,228 2570,399 2488,581 — —

Net Change 21,161,716 550,925 2707,518 2454,198 — —

1989–1990 Firm Births 3,211,064 1,886,311 3,090,643 120,421 58.7 96.2

Firm Deaths 3,198,829 1,683,174 2,988,436 210,393 52.6 93.4

Continuing Firms 1,830,946 1,313,100 1,300,511 530,435 71.7 71.0

Net Change 1,843,181 1,516,237 1,402,718 440,463 82.3 76.1

1990–1995 Firm Births 13,304,645 6,514,382 12,126,607 1,178,038 49.0 91.1

Firm Deaths 11,808,721 5,611,968 11,113,149 695,572 47.5 94.1

Continuing Firms 5,357,860 2,457,482 4,228,021 1,129,839 45.9 78.9

Net Change 6,853,784 3,359,896 5,241,479 1,612,305 49.0 76.5

Notes: 1990–1995 represents firm births that survived until 1995, and firm deaths are firms that existed

in 1990. The data represent activity from March of the beginning year to March of the ending year.

Establishments with no employment in the first quarter of the beginning year were excluded. New firm births

are classified by their employment size at the first quarter. Percent of size class is not calculated when size classes change in opposite directions. New firms represent new original establishments and deaths represent closed

original establishments.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S.

Department of Commerce, Bureau of the Census.

Supplementary Tables 85
86 The Annual Report on Small Business and Competition

Colorado 124,948 128,889 3.2 9

Connecticut 94,517 95,351 0.9 34

Delaware 23,537 24,178 2.7 14

District of Columbia 25,181 25,986 3.2 8

Florida 373,610 374,867 0.3 44

Georgia 178,172 184,458 3.5 5

Hawaii 27,496 27,489 0.0 49

Idaho 36,780 38,025 3.4 6

Illinois 275,207 277,313 0.8 39

Indiana 124,386 123,620 20.6 50

Iowa 68,324 68,859 0.8 38

Kansas 65,681 66,773 1.7 24

Kentucky 85,473 86,644 1.4 28

Louisiana 93,915 95,947 2.2 20

Maine 36,961 37,785 2.2 19

Maryland 126,313 127,817 1.2 29

Massachusetts 164,343 164,803 0.3 46

Michigan 212,401 219,552 3.4 7

Minnesota 124,538 126,451 1.5 26

Mississippi 51,475 52,907 2.8 13

Missouri 126,399 126,699 0.2 47

Montana 30,286 31,223 3.1 10

Nebraska 43,672 44,142 1.1 30

Nevada 41,196 42,922 4.2 2

New Hampshire 37,460 39,004 4.1 3

New Jersey 221,548 221,548 e. 0.0 48

New Mexico 40,622 41,712 2.7 16

New York 450,255 462,473 2.7 15

North Carolina 164,930 169,351 2.7 17

North Dakota 18,524 18,661 0.7 40

Ohio 232,249 238,755 2.8 12

Oklahoma 73,571 73,812 0.3 45

Oregon 97,643 98,027 0.4 43

Pennsylvania 246,154 250,367 1.7 23

Rhode Island 31,724 32,215 1.5 25

South Carolina 84,853 86,924 2.4 18

South Dakota 21,702 22,141 2.0 22

Tennessee 108,774 109,688 0.8 36

Texas 379,071 383,148 1.1 31

Utah 49,619 52,507 5.8 1

Vermont 19,976 20,391 2.1 21

Virginia 156,098 157,469 0.9 35

Washington 182,678 189,769 3.9 4

West Virginia 38,441 38,701 0.7 41

Wisconsin 120,266 121,400 0.9 32

Wyoming 18,181 18,347 0.9 33

e. = estimated.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department

of Labor, Employment and Training Administration and Bureau of Labor Statistics; U.S. Department of Commerce,

Bureau of the Census.
Supplementary Tables 87

Table A.11 Business Turnover by State, 1998 and 1999

New Employer Firms Business Terminations 

Percent Percent 

1998 1999 Change Rank 1998 1999 Change Rank 1998 

United States 591,200 e. 588,900 e. 20.4 537,900 e. 528,600 e. 21.7 44,197 

Alabama 10,158 10,847 6.8 6 12,006 13,390 11.5 8 603 

Alaska 2,319 2,374 2.4 17 2,501 2,651 6.0 13 127 

Arizona 12,506 12,513 0.1 29 14,957 14,996 0.3 22 762 Arkansas 5,374 5,531 2.9 14 6,905 4,850 229.8 50 408 

California 158,571 155,707 21.8 33 117,412 107,745 28.2 41 8,546 

Colorado 20,671 19,109 27.6 46 16,603 10,138 238.9 51 402 

Connecticut 9,169 9,375 2.2 18 12,132 11,523 25.0 37 164 

Delaware 3,324 3,767 13.3 4 2,768 3,442 24.3 3 372 District of Columbia 3,532 3,556 0.7 28 3,359 4,716 40.4 1 88 

Florida 59,445 61,118 2.8 15 56,535 59,582 5.4 15 1,867 

Georgia 29,261 30,133 3.0 13 27,417 26,800 22.3 28 1,197 

Hawaii 3,242 3,563 9.9 5 3,222 3,888 20.7 4 114 

Idaho 5,637 5,877 4.3 11 6,408 6,176 23.6 34 435 

Illinois 28,882 28,222 22.3 36 29,868 30,885 3.4 18 1,474 

Indiana 14,304 13,515 25.5 44 15,870 16,797 5.8 14 613 

Iowa 5,474 5,842 6.7 7 6,667 7,404 11.1 9 283 

Kansas 7,758 5,755 225.8 51 8,809 6,194 229.7 49 264 

Kentucky 9,498 9,158 23.6 40 9,050 9,111 0.7 20 356 

Louisiana 10,477 10,333 21.4 32 10,064 11,086 10.2 10 600 

Maine 5,136 5,007 22.5 37 6,086 4,720 222.4 47 244 

Maryland 19,436 18,820 23.2 38 20,264 18,631 28.1 40 1,231 

Massachusetts 16,693 16,375 21.9 34 17,528 19,667 12.2 7 739 

Michigan 26,183 23,512 210.2 47 19,765 19,221 22.8 31 721 

Minnesota 12,231 12,783 4.5 10 12,066 10,274 214.9 46 1,975 

Mississippi 6,180 7,353 19.0 3 7,357 7,622 3.6 16 244 

Missouri 14,286 13,685 24.2 41 19,602 18,898 23.6 33 424 

Montana 3,904 3,977 1.9 22 4,280 3,946 27.8 39 145 

Nebraska 4,117 4,179 1.5 24 5,422 5,203 24.0 35 129 
88 The Annual Report on Small Business and Competition Table A.11 Business Turnover by State, 1998 and 1999 New Employer Firms Business Terminations 

Percent Percent 

1998 1999 Change Rank 1998 1999 Change Rank 1998 

Nevada 8,344 8,405 0.7 27 7,766 7,567 22.6 30 428 

New Hampshire 5,103 4,256 216.6 50 5,261 6,165 17.2 6 417 

New Jersey 26,059 26,059 e. 0.0 30 27,167 27,167 e. 0.0 23 876 New Mexico 4,519 5,703 26.2 2 6,949 6,351 28.6 42 338 

New York 57,290 60,674 5.9 9 60,115 53,566 210.9 44 2,279 

North Carolina 25,007 23,724 25.1 43 23,700 23,218 22.0 27 534 

North Dakota 1,527 1,550 1.5 23 2,396 2,212 27.7 38 87 

Ohio 23,447 22,918 22.3 35 24,419 24,151 21.1 24 1,161 

Oklahoma 9,690 8,427 213.0 49 9,463 8,198 213.4 45 833 

Oregon 12,876 13,685 6.3 8 15,458 16,665 7.8 11 2,660 Pennsylvania 29,418 29,741 1.1 26 31,284 32,359 3.4 17 1,685 

Rhode Island 3,600 3,572 20.8 31 3,944 3,985 1.0 19 130 

South Carolina 11,564 10,910 25.7 45 11,647 11,086 24.8 36 254 

South Dakota 1,938 2,013 3.9 12 2,346 1,749 225.4 48 186 

Tennessee 15,951 15,445 23.2 39 17,566 17,046 23.0 32 869 

Texas 51,767 52,999 2.4 16 56,756 56,919 0.3 21 2,696 

Utah 9,688 9,874 1.9 21 7,267 9,572 31.7 2 460 Vermont 1,933 2,530 30.9 1 2,603 2,543 22.3 29 88 

Virginia 20,842 21,270 2.1 19 20,689 22,031 6.5 12 1,138 

Washington 37,362 38,105 2.0 20 34,953 41,059 17.5 5 996 

West Virginia 4,432 4,214 24.9 42 5,562 5,493 21.2 25 329 

Wisconsin 13,865 12,447 210.2 48 14,764 13,358 29.5 43 1,137 

Wyoming 2,245 2,271 1.2 25 2,888 2,842 21.6 26 89 

Notes: U.S. totals for new firms and terminations are estimated from 1996 Bureau of the Census data, percent changes in the state totals and round

as firms can be in more than one state. New firms are firms that plan to begin to hire employees, terminations are business closings, and bankruptcies with the U.S. court system. New Jersey fourth quarter 1998 and 1999 figures were estimated.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by U.S. Department of Labor, Employment and Training Adm

of the U.S. Courts; and Advocacy estimates.
Supplementary Tables 89

Colorado 114,800 132,506

Connecticut 72,400 78,598

Delaware 13,700 19,192

District of Columbia 14,000 17,320

Florida 337,800 371,412

Georgia 145,600 190,577

Hawaii 25,800 30,138

Idaho 25,800 25,873

Illinois 239,700 392,569

Indiana 107,100 131,778

Iowa 57,500 71,724

Kansas 54,500 58,497

Kentucky 66,000 95,453

Louisiana 70,600 116,063

Maine 30,600 28,263

Maryland 115,800 139,616

Massachusetts 142,700 155,191

Michigan 184,600 288,132

Minnesota 180,400 124,616

Mississippi 38,300 54,183

Missouri 103,600 134,301

Montana 22,400 22,240

Nebraska 33,500 42,044

Nevada 33,300 49,477

New Hampshire 27,300 33,911

New Jersey 155,300 247,040

New Mexico 38,700 48,236

New York 394,000 461,127

North Carolina 139,900 221,973

North Dakota 12,400 13,482

Ohio 205,000 291,361

Oklahoma 67,500 82,531

Oregon 80,500 91,379

Pennsylvania 203,000 257,841

Rhode Island 19,900 28,678

South Carolina 64,200 100,284

South Dakota 14,100 14,323

Tennessee 99,800 142,080

Texas 381,500 548,756

Utah 42,000 54,135

Vermont 17,000 13,524

Virginia 132,200 172,227

Washington 123,000 139,032

West Virginia 30,200 33,724

Wisconsin 89,300 146,450

Wyoming 11,100 11,296

Source: U.S. Department of Commerce, Bureau of the Census, Survey of Women-Owned Business

Enterprises, 1997.
Table A.13 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 

(Sales and Payroll in Thousands of Dollars)

Number of Sales of Number of Sales of Number of Annual 

State Minority/Nonminority Group Firms All Firms Employer Firms Employer Firms Employees* Payroll United States

All Firms 20,821,934 18,553,243,047 5,295,151 17,907,940,321 103,359,815 2,936,492,94American Indian/Alaska Native 197,300 34,343,907 33,277 29,226,260 298,661 6,624,23Asian 893,590 302,794,625 286,976 274,569,397 2,169,032 45,395,27Black 823,499 71,214,662 93,235 56,377,860 718,341 14,322,31Hispanic 1,199,896 186,274,582 211,884 158,674,537 1,388,746 29,830,02Pacific Islander 19,370 4,138,357 3,023 3,724,948 34,047 784,24White Non-Hispanic 17,316,796 7,763,010,611 4,372,817 7,252,270,327 54,084,357 1,395,150,23

Alabama

All Firms in the State 285,206 237,406,593 75,987 228,632,577 1,530,488 36,646,33American Indian/Alaska Native 3,513 459,539 592 382,184 4,001 75,89Asian 3,278 1,383,041 1,441 NA 10,000–24,999 NA Black 19,077 1,008,966 2,266 728,041 13,232 231,86Hispanic 2,919 396,775 426 355,509 3,950 91,36Pacific Islander 37 3,918 17 NA 250–499 NA White Non-Hispanic 250,639 115,109,012 66,389 107,972,826 845,795 18,962,58

Alaska

All Firms in the State 64,134 36,911,657 14,948 35,275,916 182,184 5,829,80American Indian/Alaska Native 6,820 1,709,448 828 1,505,318 8,131 264,92Asian 1,661 NA 592 NA 2,500–4,999 NA Black 876 55,713 117 44,394 704 13,09Hispanic 1,385 192,077 331 155,239 1,802 31,44Pacific Islander 155 NA 55 NA 100–249 NA White Non-Hispanic 51,018 14,649,540 11,442 13,354,694 95,751 2,941,23

Arizona

All Firms in the State 329,031 247,191,482 86,302 237,960,022 1,666,364 41,788,36American Indian/Alaska Native 5,510 752,520 848 673,949 8,703 163,62Asian 6,898 1,882,400 2,540 NA 10,000–24,999 NA Black 3,582 314,497 503 252,736 5,704 92,40Hispanic 28,894 4,226,654 6,320 3,712,514 42,791 770,96Pacific Islander 246 119,440 92 NA 500–999 NA White Non-Hispanic 276,147 111,744,406 70,116 104,013,965 868,393 20,081,02

90 The Annual Report on Small Business and Competition
Arkansas

All Firms in the State 193,424 143,570,776 49,341 135,575,701 915,826 19,926,38American Indian/Alaska Native 2,308 438,170 351 369,989 3,456 63,57Asian 1,502 NA 608 NA 2,500–4,999 NA Black 6,721 386,958 761 264,831 2,464 40,97Hispanic 2,586 189,955 365 121,645 2,044 30,48Pacific Islander 27 NA 8 NA 20–99 NA White Non-Hispanic 175,715 68,928,986 43,610 64,256,804 516,081 10,350,42

California

All Firms in the State 2,565,734 2,178,292,213 618,232 2,086,547,724 11,474,180 358,473,98American Indian/Alaska Native 26,603 5,835,958 5,039 5,067,499 77,803 1,894,67Asian 312,956 121,055,596 93,557 109,630,780 791,632 15,076,92Black 79,110 6,395,311 7,377 4,552,255 56,252 1,081,29Hispanic 336,405 51,682,136 50,223 42,872,261 392,434 8,082,90Pacific Islander 3,092 509,981 191 436,705 6,136 125,27White Non-Hispanic 1,762,449 851,616,827 424,264 787,626,267 5,630,572 163,647,88

Colorado

All Firms in the State 410,249 277,629,997 104,989 266,136,186 1,646,273 45,736,51American Indian/Alaska Native 3,390 515,072 405 415,046 3,539 110,07Asian 8,733 2,010,148 2,904 1,767,465 18,783 348,41Black 4,926 512,868 740 423,043 4,204 88,48Hispanic 20,859 3,068,288 4,102 2,665,587 27,620 603,75Pacific Islander 295 49,690 46 43,917 378 9,45White Non-Hispanic 361,601 122,290,677 89,119 112,470,172 902,840 22,678,96

Connecticut

All Firms in the State 284,022 314,909,364 76,539 304,204,471 1,473,721 51,816,98American Indian/Alaska Native 1,311 407,124 418 350,652 3,748 100,73Asian 5,820 2,506,940 2,146 NA 10,000–24,999 NA Black 7,251 528,164 857 403,166 4,761 135,29Hispanic 6,594 1,162,806 1,078 879,929 9,670 266,01Pacific Islander NA NA NA NA NA NA White Non-Hispanic 255,021 125,539,640 65,714 117,133,443 761,202 25,003,04

Delaware

All Firms in the State 56,586 89,318,585 18,385 87,509,700 346,302 10,780,04American Indian/Alaska Native 288 55,226 56 49,898 1,423 18,54Asian 1,499 NA 732 472,660 2,976 73,54Black 2,707 184,549 322 144,443 3,450 43,25Hispanic 898 503,859 159 426,546 1,517 33,28Pacific Islander 3 NA 0 0 0 White Non-Hispanic 47,034 21,028,393 13,578 19,487,688 162,477 4,003,71

Supplementary Tables 91
Table A.13 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 

(Sales and Payroll in Thousands of Dollars)—Continued

Number of Sales of Number of Sales of Number of Annual 

State Minority/Nonminority Group Firms All Firms Employer Firms Employer Firms Employees* Payroll District of Columbia

All Firms in the State 45,297 52,900,995 14,500 51,303,513 345,685 13,482,41American Indian/Alaska Native 66 NA 32 NA 250–499 NA Asian 2,412 NA 1,529 NA 5,000–9,999 NA Black 10,909 1,334,651 1,232 NA 10,000–24,999 NA Hispanic 2,153 663,650 377 619,753 4,349 163,57Pacific Islander 11 NA 6 NA 0–19 NA White Non-Hispanic 25,562 19,614,137 7,929 18,678,258 141,756 5,737,85

Florida

All Firms in the State 1,301,920 828,429,130 335,393 789,239,505 5,449,574 133,351,37American Indian/Alaska Native 10,546 1,518,789 1,789 1,265,839 10,593 201,62Asian 32,280 10,341,917 12,563 9,433,034 95,924 1,496,92Black 59,732 4,092,155 6,424 2,925,260 31,035 556,18Hispanic 193,902 35,351,266 40,877 31,634,998 192,761 4,591,36Pacific Islander 1,489 125,391 159 93,388 995 20,17White Non-Hispanic 983,675 358,641,382 254,246 327,075,306 2,558,429 61,444,54

Georgia

All Firms in the State 568,552 580,344,999 146,841 561,811,488 3,047,650 81,591,28American Indian/Alaska Native 4,470 495,465 682 345,077 4,203 81,45Asian 17,957 6,308,641 7,162 NA 25,000–49,999 NA Black 55,766 4,110,716 6,073 3,111,892 40,593 741,50Hispanic 11,741 1,887,924 1,772 1,612,910 12,543 292,33Pacific Islander 201 107,600 34 NA 500–999 NA White Non-Hispanic 466,483 205,307,853 121,222 189,975,262 1,447,019 35,090,80

Hawaii

All Firms in the State 93,981 55,361,257 23,415 52,869,179 412,304 10,418,07American Indian/Alaska Native 458 48,134 33 19,168 142 3,06Asian 43,710 13,557,741 11,269 12,540,709 113,002 2,794,63Black 638 34,165 168 20,562 561 7,50Hispanic 4,153 277,047 360 178,206 2,276 45,30Pacific Islander 6,924 965,430 962 848,589 10,642 220,23White Non-Hispanic 34,260 12,626,844 7,125 11,646,743 111,108 2,581,56

92 The Annual Report on Small Business and Competition
Supplementary Tables 93

Idaho

All Firms in the State 109,758 65,838,870 29,920 62,822,154 401,125 9,642,72American Indian/Alaska Native 1,239 301,126 260 271,031 1,883 41,48Asian 991 188,027 349 NA 2,500–4,999 NA Black 164 17,535 16 14,220 231 7,32Hispanic 2,844 240,303 444 195,451 2,617 47,19Pacific Islander 37 4,303 3 NA 20–99 NA White Non-Hispanic 101,787 34,093,278 26,839 31,328,053 243,927 4,958,29

Illinois

All Firms in the State 882,053 993,116,732 240,024 965,260,429 4,994,344 155,799,46American Indian/Alaska Native 3,945 664,108 650 570,584 4,879 137,51Asian 36,292 14,680,727 13,163 13,646,665 80,327 2,247,92Black 41,244 3,913,240 3,747 3,253,027 35,034 787,77Hispanic 31,010 4,814,853 6,320 4,173,772 71,692 1,551,67Pacific Islander 565 46,826 42 32,585 263 14,25White Non-Hispanic 748,671 395,865,517 200,046 372,801,755 2,601,815 73,560,95

Indiana

All Firms in the State 413,400 407,270,539 109,795 397,394,356 2,413,379 63,638,24American Indian/Alaska Native 2,898 396,221 422 332,342 2,776 53,38Asian 4,667 1,902,381 1,910 1,778,509 17,134 359,01Black 11,107 1,192,143 1,440 1,035,570 10,775 199,60Hispanic 4,277 817,765 782 704,987 6,692 145,41Pacific Islander NA NA NA NA NA NA White Non-Hispanic 381,083 168,355,673 97,709 159,386,534 1,297,165 29,838,86

Iowa

All Firms in the State 227,562 206,328,836 61,633 201,282,401 1,147,538 27,249,32American Indian/Alaska Native 949 96,501 176 86,990 748 11,02Asian 1,703 339,617 708 NA 2,500–4,999 NA Black 1,353 233,466 262 216,904 1,931 41,38Hispanic 1,343 232,858 329 214,655 2,500 41,30Pacific Islander 38 2,551 11 NA 0–19 NA White Non-Hispanic 215,946 91,072,540 55,238 86,462,489 652,367 14,148,54

Kansas

All Firms in the State 213,392 184,199,987 57,541 179,136,345 1,025,466 25,867,97American Indian/Alaska Native 2,318 453,199 540 408,324 3,231 71,08Asian 2,442 724,695 1,008 662,862 7,549 131,41Black 3,396 593,636 524 547,688 5,834 174,20Hispanic 3,547 403,045 728 350,937 5,755 86,96Pacific Islander 184 2,959 13 1,159 43 32White Non-Hispanic 195,648 80,539,519 49,958 75,902,644 589,929 13,974,63
Table A.13 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 

(Sales and Payroll in Thousands of Dollars)—Continued

Number of Sales of Number of Sales of Number of Annual 

State Minority/Nonminority Group Firms All Firms Employer Firms Employer Firms Employees* Payroll Kentucky

All Firms in the State 281,551 245,795,924 68,328 238,602,609 1,389,368 33,299,96American Indian/Alaska Native 3,069 242,694 391 149,055 2,257 35,86Asian 2,515 NA 1,076 NA 10,000–24,999 NA Black 5,629 658,535 611 588,703 7,717 121,35Hispanic 1,481 282,916 388 249,136 3,085 67,29Pacific Islander 80 NA 39 NA 20–99 NA White Non-Hispanic 262,554 101,440,102 60,840 94,789,711 744,390 15,774,87

Louisiana

All Firms in the State 295,679 285,022,192 78,477 277,061,824 1,474,855 36,288,31American Indian/Alaska Native 3,230 561,178 300 473,514 3,942 86,17Asian 6,437 1,364,058 2,103 NA 10,000–24,999 NA Black 25,782 1,917,295 3,050 1,451,135 27,441 464,47Hispanic 6,645 1,282,958 1,359 1,121,441 9,356 249,92Pacific Islander 52 8,875 9 NA 20–99 NA White Non-Hispanic 246,695 110,196,854 66,135 103,370,493 848,349 18,835,21

Maine

All Firms in the State 127,467 63,626,180 31,539 59,925,775 447,772 10,830,41American Indian/Alaska Native 1,417 160,997 204 117,439 867 19,27Asian 642 NA 276 NA 1,000–2,499 NA Black 257 28,088 36 23,600 346 6,87Hispanic 545 51,941 139 46,004 677 9,89Pacific Islander 4 NA 3 NA 0–19 NA White Non-Hispanic 121,422 35,049,479 28,371 31,939,411 273,160 6,280,34

Maryland

All Firms in the State 400,203 285,924,027 99,761 274,434,271 1,906,435 54,616,80American Indian/Alaska Native 2,421 330,961 443 275,900 2,605 64,51Asian 21,977 5,665,949 7,707 NA 50,000–99,999 NA Black 47,614 3,964,600 4,214 3,180,637 41,755 946,38Hispanic 11,158 1,567,197 1,793 1,334,552 13,688 398,01Pacific Islander 186 128,387 69 NA 2,500–4,999 NA White Non-Hispanic 305,403 126,532,347 77,944 118,014,850 994,453 25,940,35

94 The Annual Report on Small Business and Competition
Supplementary Tables 95

Massachusetts

All Firms in the State 537,150 517,291,479 135,309 498,376,149 2,852,762 93,491,90American Indian/Alaska Native 3,428 295,317 579 195,226 2,668 82,55Asian 12,598 NA 4,375 NA 25,000–49,999 NA Black 11,834 1,013,134 1,239 804,314 8,267 188,73Hispanic 12,725 1,622,815 1,627 1,316,470 11,146 287,51Pacific Islander 131 NA 3 NA 0–19 NA White Non-Hispanic 482,684 217,628,929 117,043 202,162,370 1,399,440 41,300,85

Michigan

All Firms in the State 677,473 715,375,586 184,849 696,806,219 3,823,973 117,302,53American Indian/Alaska Native 5,802 720,384 1,016 594,295 7,055 127,83Asian 11,560 5,456,647 4,261 4,918,464 40,671 1,091,51Black 24,954 4,623,414 2,843 4,157,785 37,688 921,76Hispanic 9,997 1,967,086 1,487 1,745,979 13,763 330,97Pacific Islander 117 34,610 36 33,696 219 5,68White Non-Hispanic 611,030 302,347,579 164,185 286,028,336 2,078,945 55,800,34

Minnesota

All Firms in the State 410,634 382,363,126 104,802 369,836,727 2,138,561 60,829,88American Indian/Alaska Native 2,413 514,907 350 404,218 2,310 57,50Asian 5,330 1,697,579 1,683 1,506,698 15,753 259,43Black 4,024 523,126 472 459,125 4,352 99,93Hispanic 3,616 391,714 414 294,093 4,960 63,33Pacific Islander 105 14,514 42 8,039 169 1,82White Non-Hispanic 385,034 181,755,414 94,005 172,208,098 1,240,172 31,581,32

Mississippi

All Firms in the State 167,907 122,887,932 45,615 118,235,010 866,254 18,434,39American Indian/Alaska Native 1,088 209,854 222 179,764 1,648 30,65Asian 2,386 714,788 851 NA 5,000–9,999 NA Black 17,617 852,824 2,205 559,182 9,773 121,52Hispanic 988 124,079 169 99,015 1,325 23,52Pacific Islander NA NA NA NA NA NA White Non-Hispanic 141,862 62,706,180 38,945 58,619,064 494,465 10,139,90

Missouri

All Firms in the State 411,403 382,797,052 111,852 372,254,747 2,196,997 57,986,06American Indian/Alaska Native 4,106 625,993 774 506,782 5,839 112,35Asian 4,834 1,279,682 2,229 NA 10,000–24,999 NA Black 13,678 1,261,398 2,142 1,060,253 14,503 252,76Hispanic 4,107 586,821 786 460,460 6,141 146,26Pacific Islander 140 70,580 46 NA 500–999 NA White Non-Hispanic 374,198 158,363,396 97,989 149,511,319 1,149,500 27,175,87
Table A.13 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 

(Sales and Payroll in Thousands of Dollars)—Continued

Number of Sales of Number of Sales of Number of Annual 

State Minority/Nonminority Group Firms All Firms Employer Firms Employer Firms Employees* Payroll Montana

All Firms in the State 93,677 37,668,225 25,974 35,570,987 269,469 5,447,94American Indian/Alaska Native 1,912 165,265 438 130,417 1,504 22,67Asian 369 NA 137 NA 1,000–2,499 NA Black 62 NA 15 NA 20–99 NA Hispanic 1,006 114,897 184 92,300 785 10,26Pacific Islander 74 NA 35 NA 100–249 NA White Non-Hispanic 87,739 22,677,959 23,218 20,708,770 182,078 3,400,90

Nebraska

All Firms in the State 138,762 137,755,012 38,594 134,465,728 687,525 16,035,06American Indian/Alaska Native 799 99,826 107 90,889 1,157 21,77Asian 869 NA 389 NA 2,500–4,999 NA Black 1,565 129,219 238 110,006 1,874 29,72Hispanic 1,437 141,202 346 109,844 2,357 29,14Pacific Islander 8 NA 1 NA 0–19 NA White Non-Hispanic 130,254 57,874,707 34,529 54,851,288 381,931 8,261,07

Nevada

All Firms in the State 129,757 102,813,070 35,131 97,814,925 757,255 19,291,13American Indian/Alaska Native 1,231 244,734 183 202,138 1,475 36,78Asian 4,835 1,842,413 1,290 1,662,499 19,785 437,14Black 2,796 225,880 344 183,015 2,344 53,82Hispanic 6,565 1,220,858 1,661 1,064,118 11,487 243,00Pacific Islander 170 25,341 54 21,193 145 4,87White Non-Hispanic 109,282 53,465,671 28,204 49,521,490 429,870 10,803,48

New Hampshire

All Firms in the State 115,747 79,303,771 30,452 75,916,752 507,990 13,494,25American Indian/Alaska Native 1,038 156,740 123 126,752 897 19,74Asian 1,114 NA 586 NA 5,000–9,999 NA Black 326 32,351 54 26,200 506 11,13Hispanic 735 116,696 122 98,137 1,043 25,74Pacific Islander 51 NA 27 NA 20–99 NA White Non-Hispanic 109,311 38,988,681 27,038 35,781,187 290,934 7,186,89

96 The Annual Report on Small Business and Competition
Supplementary Tables 97

New Jersey

All Firms in the State 654,227 690,007,714 194,118 667,137,703 3,298,375 113,091,95American Indian/Alaska Native 2,375 364,056 461 300,492 2,347 57,73Asian 40,999 16,666,235 15,065 15,376,327 79,174 2,304,25Black 26,500 2,160,441 3,236 1,580,808 16,862 375,87Hispanic 36,116 5,107,287 7,355 4,276,407 28,134 665,53Pacific Islander 433 67,836 89 59,989 466 10,04White Non-Hispanic 534,493 275,937,451 155,731 257,739,817 1,702,519 50,932,92

New Mexico

All Firms in the State 131,685 79,752,084 34,170 76,492,214 506,662 11,570,10American Indian/Alaska Native 6,838 579,671 566 473,630 3,398 85,47Asian 2,384 544,889 961 488,803 5,972 129,24Black 1,132 142,847 165 130,131 1,121 20,05Hispanic 28,285 3,667,526 6,737 3,143,851 39,951 651,71Pacific Islander 164 33,100 60 31,282 402 3,55White Non-Hispanic 90,202 30,229,000 22,900 28,042,314 256,471 5,313,06

New York

All Firms in the State 1,509,829 1,488,912,652 402,266 1,438,125,325 6,799,764 248,006,93American Indian/Alaska Native 6,443 1,417,279 1,074 1,206,603 5,270 155,33Asian 122,753 31,441,072 34,086 28,372,628 184,855 4,195,10Black 86,469 5,067,265 7,822 3,445,063 45,703 1,005,20Hispanic 104,189 10,311,271 13,667 8,120,010 56,464 1,607,50Pacific Islander 506 170,036 44 162,903 263 25,01White Non-Hispanic 1,169,250 590,377,219 317,303 552,447,405 3,493,092 110,964,69

North Carolina

All Firms in the State 570,484 518,648,589 149,186 500,546,338 3,067,214 77,145,24American Indian/Alaska Native 7,148 911,903 1,275 737,230 7,942 141,36Asian 7,894 2,453,872 3,211 NA 10,000–24,999 NA Black 39,901 2,299,285 5,441 1,701,399 33,914 441,41Hispanic 7,270 1,080,439 1,384 908,909 8,305 193,27Pacific Islander 156 7,306 17 NA 20–99 NA White Non-Hispanic 496,340 215,325,597 128,389 201,980,139 1,619,411 36,727,81

North Dakota

All Firms in the State 55,266 35,005,958 16,357 33,831,667 237,347 4,959,82American Indian/Alaska Native 752 147,068 178 118,990 1,111 16,72Asian 276 NA 89 60,182 797 11,94Black 99 NA 8 NA 100–249 NA Hispanic 444 22,459 78 17,050 614 3,21Pacific Islander 3 NA 0 0 0 White Non-Hispanic 51,976 20,874,963 14,508 19,781,402 150,183 2,991,77
Table A.13 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 

(Sales and Payroll in Thousands of Dollars)—Continued

Number of Sales of Number of Sales of Number of Annual 

State Minority/Nonminority Group Firms All Firms Employer Firms Employer Firms Employees* Payroll Ohio

All Firms in the State 781,284 796,505,791 202,528 775,731,513 4,647,653 128,334,52American Indian/Alaska Native 5,124 1,074,343 682 932,874 9,357 204,93Asian 11,021 4,336,430 4,678 NA 25,000–49,999 NA Black 26,970 3,946,848 3,486 3,499,457 32,719 788,52Hispanic 6,448 1,512,809 1,199 1,283,564 11,353 310,61Pacific Islander 377 266,723 90 NA 1,000–2,499 NA White Non-Hispanic 713,720 323,898,636 179,124 305,404,652 2,492,930 61,591,73

Oklahoma

All Firms in the State 280,722 172,370,196 66,272 164,997,318 1,077,678 25,171,03American Indian/Alaska Native 15,066 2,645,736 2,794 2,266,674 19,276 380,08Asian 3,892 882,845 1,401 NA 5,000–9,999 NA Black 5,309 333,094 618 259,565 4,847 77,95Hispanic 4,349 771,529 648 690,334 5,985 125,24Pacific Islander 108 14,711 31 NA 250–499 NA White Non-Hispanic 244,306 88,558,638 55,743 82,201,265 634,057 13,410,51

Oregon

All Firms in the State 291,596 220,084,989 80,443 211,804,567 1,277,418 34,397,00American Indian/Alaska Native 2,861 372,608 431 299,502 2,505 55,87Asian 7,172 2,033,444 2,492 NA 10,000–24,999 NA Black 2,219 436,156 357 398,916 2,968 66,79Hispanic 6,022 1,073,638 1,225 950,676 9,665 210,79Pacific Islander 341 55,282 70 NA 250–499 NA White Non-Hispanic 265,360 109,598,124 70,144 102,532,738 753,922 18,619,00

Pennsylvania

All Firms in the State 837,756 802,492,149 222,450 778,115,447 4,740,610 132,473,59American Indian/Alaska Native 5,161 505,273 951 388,532 5,288 73,59Asian 17,264 4,922,046 6,006 4,323,899 42,852 1,142,04Black 19,791 1,993,512 2,909 1,652,223 19,979 437,81Hispanic 7,893 1,273,320 1,785 984,265 10,090 227,00Pacific Islander 133 21,846 22 20,461 131 3,77White Non-Hispanic 769,496 359,182,314 196,492 337,081,308 2,503,221 64,496,31

98 The Annual Report on Small Business and Competition
Supplementary Tables 99

Rhode Island

All Firms in the State 80,934 52,930,316 24,373 50,755,745 386,544 10,040,59American Indian/Alaska Native 625 80,213 80 NA 250–499 NA Asian 1,065 NA 381 NA 2,500–4,999 NA Black 1,269 124,434 181 104,097 1,935 26,80Hispanic 2,186 207,036 447 157,405 1,890 31,26Pacific Islander 45 NA 39 NA 250–499 NA White Non-Hispanic 73,600 30,290,091 21,363 28,361,707 228,233 5,505,51

South Carolina

All Firms in the State 260,342 213,486,429 71,547 206,431,441 1,425,681 33,619,10American Indian/Alaska Native 2,229 199,917 409 153,006 3,066 41,64Asian 3,450 NA 1,524 NA 10,000–24,999 NA Black 23,216 1,408,925 3,148 1,030,411 17,713 234,66Hispanic 2,036 250,730 505 212,435 2,783 40,14Pacific Islander 81 NA 4 NA 20–99 NA White Non-Hispanic 222,772 91,765,211 61,179 85,567,750 752,420 16,401,35

South Dakota

All Firms in the State 65,791 50,181,052 19,093 48,715,035 275,019 5,553,10American Indian/Alaska Native 955 221,916 178 198,998 2,773 37,17Asian 300 NA 125 51,460 1,299 15,68Black 150 17,294 22 NA 20–99 NA Hispanic 261 58,514 75 54,803 346 6,63Pacific Islander 3 NA 0 0 0 White Non-Hispanic 62,241 25,182,766 17,117 23,799,990 174,306 3,393,75

Tennessee

All Firms in the State 415,934 362,587,045 98,063 347,224,486 2,199,361 55,445,18American Indian/Alaska Native 3,746 546,041 568 471,084 4,518 101,93Asian 5,176 1,749,406 2,017 NA 10,000–24,999 NA Black 20,196 1,644,529 2,730 1,276,080 17,583 334,20Hispanic 3,639 684,426 702 557,852 7,330 139,06Pacific Islander 120 13,483 17 NA 20–99 NA White Non-Hispanic 374,323 162,791,052 84,991 151,725,038 1,150,447 27,609,88

Texas

All Firms in the State 1,525,972 1,415,535,633 348,166 1,362,352,328 7,074,209 196,697,29American Indian/Alaska Native 15,668 3,320,188 2,747 2,853,049 26,941 481,11Asian 59,317 18,225,704 18,881 16,174,945 146,348 2,421,42Black 60,427 6,857,330 6,684 5,695,691 70,904 1,469,45Hispanic 240,396 39,481,767 44,837 33,854,797 289,142 5,659,88Pacific Islander 908 623,629 252 612,632 1,853 62,94White Non-Hispanic 1,125,932 509,068,565 254,372 472,125,809 3,419,893 85,679,44
Table A.13 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 

(Sales and Payroll in Thousands of Dollars)—Continued

Number of Sales of Number of Sales of Number of Annual 

State Minority/Nonminority Group Firms All Firms Employer Firms Employer Firms Employees* Payroll Utah

All Firms in the State 169,164 119,100,391 42,076 114,377,759 797,153 19,272,46American Indian/Alaska Native 1,428 140,070 187 108,884 1,317 20,04Asian 2,083 529,736 793 480,059 6,869 101,05Black 440 23,005 35 16,831 327 5,48Hispanic 4,740 455,385 847 372,776 5,947 85,31Pacific Islander 296 68,982 71 62,286 285 6,79White Non-Hispanic 156,050 60,739,644 37,149 56,424,794 472,078 10,649,86

Vermont

All Firms in the State 67,488 33,469,226 18,181 31,930,872 232,647 5,502,89American Indian/Alaska Native 751 178,902 116 159,164 732 18,05Asian 297 NA 139 NA 500–999 NA Black 168 37,324 36 35,449 341 4,48Hispanic 898 184,130 157 168,964 1,551 29,79Pacific Islander 7 NA 4 NA 20–99 NA White Non-Hispanic 63,321 18,619,355 16,060 17,167,111 143,062 3,079,42

Virginia

All Firms in the State 480,122 415,092,587 128,850 402,260,820 2,571,489 69,930,77American Indian/Alaska Native 3,280 621,617 646 571,739 5,924 178,26Asian 22,126 4,408,583 6,673 3,910,627 46,706 1,080,96Black 33,539 3,408,165 4,956 2,878,899 46,971 905,84Hispanic 13,703 1,808,975 2,189 1,596,173 19,375 529,58Pacific Islander 315 30,259 48 21,407 213 5,72White Non-Hispanic 395,262 168,456,870 104,982 158,166,287 1,312,868 32,668,52

Washington

All Firms in the State 447,433 357,322,932 129,780 344,895,438 2,023,814 60,792,79American Indian/Alaska Native 4,689 1,202,989 974 1,096,283 14,242 313,59Asian 22,890 7,818,212 7,254 7,154,502 47,438 924,74Black 5,553 504,109 893 411,968 8,321 125,62Hispanic 10,009 1,711,293 2,286 1,516,628 18,830 350,38Pacific Islander 420 189,304 96 184,936 914 37,31White Non-Hispanic 391,175 182,980,476 108,809 172,423,683 1,168,967 33,319,95

100 The Annual Report on Small Business and Competition
Supplementary Tables 101

West Virginia

All Firms in the State 111,737 77,527,532 31,789 75,364,314 529,192 12,397,23American Indian/Alaska Native 1,017 127,306 171 111,356 1,078 17,91Asian 1,235 NA 678 NA 5,000–9,999 NA Black 1,148 87,649 129 76,923 1,018 14,20Hispanic 940 95,910 179 81,758 1,160 26,58Pacific Islander 5 NA 2 NA 0–19 NA White Non-Hispanic 103,994 35,182,918 28,029 33,176,378 292,673 5,884,51

Wisconsin

All Firms in the State 366,436 367,841,279 109,409 358,863,640 2,246,488 59,198,86American Indian/Alaska Native 2,338 1,135,975 699 1,080,481 6,738 202,16Asian 3,620 1,414,290 1,405 1,249,378 14,414 368,03Black 4,848 550,114 798 462,623 8,179 139,50Hispanic 3,020 816,817 494 719,827 5,358 149,62Pacific Islander 133 73,517 30 71,183 582 16,58White Non-Hispanic 343,287 184,601,435 98,558 176,647,182 1,330,545 32,443,27

Wyoming

All Firms in the State 49,376 26,742,915 14,920 25,722,961 153,878 3,504,43American Indian/Alaska Native 477 NA 95 NA 500–999 NA Asian 284 NA 146 NA 1,000–2,499 NA Black 232 12,670 64 NA 100–249 NA Hispanic 1,239 116,882 319 99,606 1,645 26,59Pacific Islander 10 NA 10 NA 100–249 NA White Non-Hispanic 45,487 13,298,759 12,887 12,394,272 98,747 1,980,52

NA = Not available because of small sample size. Note: Where a range is shown, data are not available to provide a specific estimate.Source: U.S. Department of Commerce, Bureau of the Census, Survey of Minority-Owned Business Enterprises.
Receipts per Firm 352,684 410,568 16.4

Women-Owned Firms 6,403,000 7,452,000 16.4

Receipts (Millions) 1,236,605 1,642,556 32.8

Receipts per Firm 193,129 220,418 14.1

Firms by Race and Origin2

U.S. Firms 17,253,143 18,431,456 6.8

Receipts (Millions) 3,324,200 4,661,018 40.2

Receipts per Firm 192,672 252,884 31.3

African American-Owned Firms 620,912 780,770 25.7

Receipts (Millions) 32,197 42,671 32.5

Receipts per Firm 51,854 54,652 5.4

Asian / Pacific Islander-Owned Firms 603,426 785,480 30.2

Receipts (Millions) 95,714 161,142 68.4

Receipts per Firm 158,618 205,151 29.3

American-Owned Indian /

Aleut Eskimo-Owned Firms 102,271 187,921 83.7

Receipts (Millions) 8,057 22,441 178.5

Receipts per Firm 78,781 119,417 51.6

Hispanic-Owned Firms 862,605 1,121,433 30.0

Receipts (Millions) 76,842 114,431 48.9

Receipts per Firm 89,081 102,040 14.5

1Excludes agricultural, publicly held, nonprofit and foreign-owned firms.

2Excludes C corporations and agricultural, nonprofit and foreign-owned firms.

NA = Not available.

Note: The definitions of the categories reported in this table were changed between 1992 and 1997; for

purposes of comparison, the Census Bureau tabulated adjusted figures based on comparable definitions, which

are reported here. Most of these differ from totals shown elsewhere.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department

of Commerce, Bureau of the Census.

102 The Annual Report on Small Business and Competition
Supplementary Tables 103

Table A.15 Characteristics of Self-Employed Individuals, 1991, 1997–1999

1991 1997 1998 1999

Characteristic Number Percent Number Percent Number Percent Number Total 12,379.4 100.0 12,301.2 100.0 12,110.1 100.0 11,631.6 

Gender

Female 4,406.8 35.6 4,689.2 38.1 4,678.4 38.6 4,564.6 Male 7,972.6 64.4 7,612.0 61.9 7,431.7 61.4 7,067.0 

Race

Asian / American Indian 461.2 3.7 542.4 4.4 552.7 4.6 550.7 Black 597.8 4.8 706.2 5.7 770.5 6.4 818.3 White 11,320.4 91.4 11,052.6 89.8 10,786.9 89.1 10,262.6 

Origin or Descent

Hispanic 607.3 4.9 748.2 6.1 790.5 6.5 792.1 Other 11,772.1 95.1 11,553.0 93.9 11,319.7 93.5 10,839.5 

Age

,25 577.2 4.7 628.9 5.1 621.8 5.1 587.4 25–34 2,645.2 21.4 2,089.5 17.0 2,100.8 17.3 2,006.0 

35–44 3,774.0 30.5 3,647.6 29.7 3,562.0 29.4 3,451.2 

45–54 2,723.8 22.0 3,209.6 26.1 3,150.6 26.0 3,012.9 55–64 1,736.0 14.0 1,874.6 15.2 1,799.7 14.9 1,792.4 651 923.2 7.5 850.9 6.9 875.2 7.2 781.7 

Educational Level

High School or Less 5,519.8 44.6 4,975.9 40.5 4,755.1 39.3 4,637.5 

Some College 3,063.7 24.7 3,396.7 27.6 3,305.1 27.3 3,184.0 Bachelor’s Degree 2,154.1 17.4 2,427.8 19.7 2,541.5 21.0 2,301.2 Master’s Degree or Above 1,641.9 13.3 1,500.7 12.2 1,508.4 12.5 1,508.9 

Veteran Status 2,372.7 19.2 1,901.9 15.5 1,714.5 14.2 1,612.3 

Disability 637.7 5.2 645.4 5.2 607.9 5.0 561.9 

Born in the United States NA 10,890.0 88.5 10,620.0 87.7 10,210.0 

NA = Not available.Notes: Data represent individuals with any self-employment earnings in the year. Asian / American Indian = Asian, Pacific, American Indian, a

sists of disabilities or health problems that restrict or prevent the amount or kind of work. The rate is the percent with any self-employment earnings othat had any job during the year.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department of Commerce, Bureau of the Cens
Gender

Female 46.5 46.8 44.1 43.7 46.2 45.3 48.1

Male 53.5 53.2 55.9 56.3 53.8 54.7 51.9

Race or Origin (Descent)

Asian/American Indian 4.7 5.3 4.2 4.3 4.2 4.5 5.0

Black 11.3 7.9 8.7 10.7 11.8 9.8 13.3

White 84.0 86.8 87.1 85.0 84.0 85.7 81.7

Hispanic 10.9 12.8 12.4 12.2 11.5 12.2 9.0

Age

,25 19.3 19.7 24.1 19.3 15.0 19.2 19.5

25–34 24.1 21.3 24.8 25.3 25.7 24.2 24.1

35–44 25.9 24.8 23.3 25.9 28.6 25.8 26.1

45–54 18.5 17.8 15.7 17.8 19.1 17.7 19.6

55–64 9.1 10.8 8.5 9.0 9.2 9.5 8.7

651 3.0 5.6 3.7 2.6 2.5 3.6 2.0

Educational Level

High School or Less 49.0 53.6 53.2 52.1 50.0 52.2 44.6

Some College 28.5 27.0 28.4 27.2 27.7 27.5 30.0

Bachelor’s Degree 16.4 13.8 13.0 15.6 16.1 14.7 18.7

Master’s Degree or Above 6.1 5.7 5.4 5.1 6.2 5.6 6.8

Assistance

Financial Assistance 1.0 1.4 1.0 0.9 0.9 1.0 0.9

Public Assistance 1.0 0.8 0.9 0.9 0.9 0.9 1.1

Notes: Asian/American Indian includes Asian, Pacific Islander, American Indian, and Aleut Eskimo.

Financial assistance is money (excluding loans) regularly received from outside the household during the year.

Public assistance is assistance (excluding food stamps and supplemental security income) received from the

government at any time in the year.

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department

of Commerce, Bureau of the Census.

104 The Annual Report on Small Business and Competition
Supplementary Tables 105

Gender

Female 46.5 46.8 44.5 43.8 45.5 45.2 48.2

Male 53.5 53.2 55.5 56.2 54.5 54.8 51.8

Race or Origin (Descent)

Asian/American Indian 4.8 5.0 4.9 4.3 4.4 4.6 4.9

Black 11.4 8.4 7.9 9.9 12.3 9.7 13.8

White 83.9 86.6 87.2 85.9 83.4 85.7 81.3

Hispanic 11.3 12.0 13.7 13.7 11.8 12.7 9.3

Age

,25 19.6 20.0 23.2 20.2 15.6 19.5 19.6

25–34 23.3 21.1 22.2 23.9 25.2 23.1 23.5

35–44 25.8 23.4 25.6 26.8 28.2 25.9 25.7

45–54 19.0 18.5 16.8 17.9 19.4 18.2 20.1

55–64 9.2 10.8 8.6 8.0 9.6 9.3 8.9

651 3.1 6.2 3.6 3.1 2.1 3.8 2.1

Educational Level

High School or Less 48.1 52.9 53.8 51.3 48.3 51.5 43.3

Some College 29.1 26.9 27.8 28.4 28.3 27.8 30.9

Bachelor’s Degree 16.5 13.9 13.8 15.2 16.9 15.0 18.7

Master’s Degree or Above 6.3 6.3 4.7 5.1 6.6 5.7 7.1

Assistance

Financial Assistance 1.0 1.4 1.0 0.9 0.9 1.0 0.9

Public Assistance 1.0 0.8 0.9 0.9 0.9 0.9 1.1

Notes: Asian / American Indian includes Asian, Pacific Islander, American Indian, and Aleut Eskimo.

Financial assistance is money (excluding loans) regularly received from outside the household during the year.

Public assistance is assistance (excluding food stamps and supplemental security income) received from the

government at any time in the year

Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Department

of Commerce, Bureau of the Census.
NA = Not available.

Notes: Excludes farms and companies starting with multi-establishments (a relatively rare occurrence). All

industries includes firms that opened and closed so quickly that an industry classification was not established

and this group had a survival rate of 15.2 percent after two years and 9.4 percent after four years. 

Source: U.S. Small Business Administration, Office of Advocacy, from an Advocacy–produced working

paper, Business Success, published by the U.S. Department of Commerce, Bureau of the Census, Center for

Economic Studies.

106 The Annual Report on Small Business and Competition

Table A.19 Historical U.S. Business Measures, 1980–1999

Self- Self- Nonfarm New 

Employment Employment Business Employer Employer 

Year Employer Firms Establishments* (Thousands) Rate (Percent) Tax Returns Firms Terminations Bankruptcies

1999 5,797,500 e. NA 10,087 7.2 24,809,200 588,900 e. 528,600 e. 37,639

1998 5,579,129 6,941,739 10,303 7.5 24,285,900 591,200 e. 537,900 e. 44,197

1997 5,541,918 6,894,869 10,513 7.7 23,857,100 590,644 530,003 53,819

1996 5,478,047 6,738,476 10,490 7.8 23,115,300 597,792 512,402 53,200

1995 5,369,068 6,612,721 10,482 7.9 22,555,200 594,369 497,246 50,516

1994 5,276,964 6,509,065 10,648 8.1 22,191,000 570,587 503,563 50,845

1993 5,193,642 6,401,233 10,280 8.0 20,874,796 564,504 492,651 62,399

1992 5,095,356 6,319,300 9,960 7.8 20,476,775 544,596 521,606 69,848

1991 5,051,025 6,200,859 10,274 8.1 20,498,855 541,141 546,518 70,605

1990 5,073,795 6,175,559 10,097 8.0 20,219,400 584,892 531,400 63,912

1989 5,021,315 6,106,922 10,008 8.1 19,560,700 NA NA 62,449

1988 4,954,645 6,016,367 9,917 8.2 18,619,400 NA NA 62,845

1987 NA 5,937,061 9,624 8.0 18,351,400 NA NA 81,463

1986 NA 5,806,973 9,327 7.9 17,524,600 NA NA 79,926

1985 NA 5,701,485 9,269 8.0 16,959,900 NA NA 70,644

1984 NA 5,517,715 9,338 8.2 16,077,000 NA NA 64,211

1983 NA 5,306,787 9,143 8.2 15,245,000 NA NA 62,412

1982 NA 4,633,960 8,898 8.1 14,546,000 NA NA 69,242

1981 NA 4,586,510 8,735 8.0 13,858,000 NA NA 48,086

1980 NA 4,543,167 8,643 8.1 13,021,600 NA NA 43,252

NA = Not Available 

e. = estimate

*Units with paid employees in the fourth quarter through 1983. 1984 on includes units active in any

quarter of the year.

Sources: U.S. Small Business Administration, Office of Advocacy, from the following data sources: employer firms and establishments from the U.S. Department of Commerce, Bureau of the Census, with estimates for

1999; self-employment (primary occupation) from the U.S. Department of Labor, Bureau of Labor Statistics; nonfarm business tax returns from the U.S. Department of the Treasury, Internal Revenue Service; new employer firms

from the U.S. Department of Commerce, Bureau of the Census, with estimates for 1998 and 1999; employer terminations from the U.S. Department of Commerce, Bureau of the Census, with estimates for 1998 and 1999;

bankruptcies from the Administrative Office of the U.S. Courts, Statistical Analysis and Reports Division.
Supplementary Tables 107

Table A.20 Nonfarm Private Employment by Industry, 1997 and 1999 (Thousands of Jobs unless Specifi

Employment Employment Absolute 

SIC Codes (1987) 1997 1999 Change Total Private 103,120.0 108,455.0 5,335.0 Major Industries

Agricultural Services 679.1 758.6 79.5 Mining 592.0 535.0 257.0 

Construction 5,686.0 6,273.0 587.0 Manufacturing 18,657.0 18,432.0 2225.0 

Transportation, Communications 

and Public Utilities 6,395.0 6,792.0 397.0 

Wholesale Trade 6,648.0 7,004.0 356.0 Retail Trade 22,011.0 22,787.0 776.0 Finance, Insurance, and Real Estate 7,091.0 7,632.0 541.0 Services 35,360.9 38,241.4 2,880.5 

Specific Industries740 Veterinary Services 181.6 201.8 20.2 780 Landscape and Horticultural Services 447.1 503.2 56.1 1000 Metal Mining 53.7 48.7 25.0 

1010 Iron Ores 8.6 8.0 20.6 

1020 Copper Ores 15.9 14.6 21.3 

1200 Coal Mining 95.8 84.8 211.0 

1220 Bituminous Coal and Lignite Mining 90.0 78.9 211.1 

1300 Oil and Gas Extraction 334.6 293.1 241.5 

1310 Crude Petroleum and Natural Gas 142.6 126.8 215.8 

1380 Oil and Gas Field Services 187.0 162.6 224.4 

1400 Nonmetallic Minerals, except Fuels 107.5 108.7 1.2 1420 Crushed and Broken Stone 41.3 42.8 1.5 1440 Sand and Gravel 35.8 36.1 0.3 1470 Chemical and Fertilizer Minerals 11.8 11.6 20.2 

1500 General Building Contractors 1,316.3 1,433.7 117.4 1520 Residential Building Construction 681.7 742.2 60.5 1530 Operative Builders 27.0 28.6 1.6 1540 Nonresidential Building Construction 607.6 663.0 55.4 1600 Heavy Construction, except Building 795.2 861.8 66.6 1610 Highway and Street Construction 241.8 263.7 21.9 1620 Heavy Construction, except Highway 553.3 598.1 44.8 
Table A.20 Nonfarm Private Employment by Industry, 1997–1999 (Thousands of Jobs unless Specified O

Employment Employment Absolute 

SIC Codes (1987) 1997 1999 Change 1700 Special Trade Contractors 3,574.7 3,978.0 403.3 1710 Plumbing, Heating, and Air Conditioning 792.3 865.0 72.7 1720 Painting and Paper Hanging 199.0 211.5 12.5 1730 Electrical Work 681.4 767.8 86.4 1740 Masonry, Stonework, and Plastering 468.4 534.7 66.3 1750 Carpentry and Floor Work 253.9 290.2 36.3 1760 Roofing, Siding, and Sheet Metal Work 241.0 261.4 20.4 2000 Food and Kindred Products 1,691.0 1,684.7 26.3 

2010 Meat Products 489.2 500.9 11.7 2020 Dairy Products 141.9 141.0 20.9 

2030 Preserved Fruits and Vegetables 232.1 226.5 25.6 

2040 Grain Mill Products 125.3 124.3 21.0 

2050 Bakery Products 207.4 207.3 20.1 

2060 Sugar and Confectionery Products 98.0 93.3 24.7 

2070 Fats and Oils 32.9 34.3 1.4 2080 Beverages 180.8 183.1 2.3 2090 Miscellaneous Food and Kindred Products 183.4 174.0 29.4 

2100 Tobacco Products 41.2 38.6 22.6 

2110 Cigarettes 28.0 25.7 22.3 

2200 Textile Mill Products 615.5 561.6 253.9 

2210 Broadwoven Fabric Mills, Cotton 72.3 64.7 27.6 

2220 Broadwoven Fabric Mills, Synthetics 64.3 59.6 24.7 

2230 Broadwoven FabricMills, Wool 14.3 10.2 24.1 

2240 Narrow Fabric Mills 21.4 21.1 20.3 

2250 Knitting Mills 172.9 143.0 229.9 

2260 Textile Finishing, except Wool 67.0 61.0 26.0 

2270 Carpets and Rugs 63.5 65.5 2.0 2280 Yarn and Thread Mills 86.0 82.7 23.3 

2290 Miscellaneous Textile Goods 54.0 53.8 20.2 

2300 Apparel and Other Textile Products 825.6 684.6 2141.0 2310 Men’s and Boys’ Suits and Coats 29.4 23.3 26.1 

2320 Men’s and Boys’ Furnishings 207.1 156.5 250.6 

2330 Women’s and Misses’ Outerwear 252.2 203.2 249.0 2340 Women’s and Children’s Undergarments 35.2 27.2 28.0 

2360 Girls’ and Children’s Outerwear 30.6 20.9 29.7 

2380 Miscellaneous Apparel and Accessories 34.0 30.1 23.9 

108 The Annual Report on Small Business and Competition
Supplementary Tables 109

2390 Miscellaneous Fabricated Textile Products 219.4 208.1 211.3 

2400 Lumber and Wood Products 793.1 826.2 33.1 2410 Logging 81.9 76.6 25.3 

2420 Sawmills and Planing Mills 182.0 180.3 21.7 

2430 Millwork, Plywood, and Structural Members 293.6 324.9 31.3 2440 Wood Containers 53.7 55.0 1.3 2450 Wood Buildings and Mobile Homes 92.5 101.0 8.5 2490 Miscellaneous Wood Products 89.4 88.4 21.0 

2500 Furniture and Fixtures 510.1 540.1 30.0 2510 Household Furniture 276.8 285.7 8.9 2520 Office Furniture 63.4 69.2 5.8 2530 Public Building and Related Furniture 43.3 49.0 5.7 2540 Partitions and Fixtures 87.1 94.6 7.5 2590 Miscellaneous Furniture and Fixtures 39.5 41.6 2.1 2600 Paper and Allied Products 685.1 659.0 226.1 

2620 Paper Mills 158.7 148.8 29.9 

2630 Paperboard Mills 50.0 46.9 23.1 

2650 Paperboard Containers and Boxes 220.0 214.7 25.3 

2670 Miscellaneous Converted Paper Products 244.4 237.1 27.3 

2700 Printing and Publishing 1,552.6 1,553.3 0.7 2710 Newspapers 441.1 442.2 1.1 2720 Periodicals 135.8 140.6 4.8 2730 Books 128.0 122.5 25.5 

2740 Miscellaneous Publishing 87.8 92.1 4.3 2750 Commercial Printing 572.3 578.3 6.0 2760 Manifold Business Forms 43.0 40.0 23.0 

2780 Blankbooks and Bookbinding 66.3 60.9 25.4 

2790 Printing Trade Services 50.0 48.9 21.1 

2800 Chemicals and Allied Products 1,033.8 1,034.7 0.9 2810 Industrial Inorganic Chemicals 117.2 111.5 25.7 

2820 Plastics, Materials and Synthetics 158.3 151.2 27.1 

2830 Drugs 267.2 289.5 22.3 2840 Soap, Cleaners, and Toilet Goods 156.0 152.4 23.6 

2850 Paints and Allied Products 51.6 53.1 1.5 2860 Industrial Organic Chemicals 138.3 133.9 24.4 

2870 Agricultural Chemicals 51.6 51.6 0.0 2890 Miscellaneous Chemical Products 93.7 91.6 22.1 

2900 Petroleum and Coal Products 139.7 137.4 22.3 

2910 Petroleum Refining 97.0 92.1 24.9 

2950 Asphalt Paving and Roofing Materials 28.5 30.4 1.9 3000 Rubber and Miscellaneous Plastics Products 995.1 1,018.6 23.5 
Table A.20 Nonfarm Private Employment by Industry, 1997–1999 (Thousands of Jobs unless Specified O

Employment Employment Absolute 

SIC Codes (1987) 1997 1999 Change 3010 Tires and Inner Tubes 77.6 77.0 20.6 

3020 Rubber and Plastics Footwear 6.9 5.4 21.5 

3050 Hose, Belting, Gaskets, and Packing 69.2 70.4 1.2 3060 Fabricated Rubber Products, nec 111.7 111.4 20.3 

3080 Miscellaneous Plastics Products, nec 729.7 754.5 24.8 3100 Leather and Leather Products 90.2 73.7 216.5 

3110 Leather Tanning and Finishing 12.9 10.8 22.1 

3140 Footwear, except Rubber 40.5 31.4 29.1 

3160 Luggage 10.3 7.9 22.4 

3170 Handbags and Personal Leather Goods 9.6 7.8 21.8 

3200 Stone, Clay, and Glass Products 552.3 569.4 17.1 3210 Flat Glass 16.8 16.8 0.0 3220 Glass and Glassware, Pressed or Blown 72.0 69.6 22.4 

3230 Products of Purchased Glass 62.7 63.0 0.3 3240 Cement, Hydraulic 17.3 17.5 0.2 3250 Structural Clay Products 34.1 33.6 20.5 

3260 Pottery and Related Products 39.2 37.3 21.9 

3270 Concrete, Gypsum, and Plaster Products 216.8 237.7 20.9 3290 Miscellaneous Nonmetallic Mineral Products 78.6 78.1 20.5 

3300 Primary Metal Industries 710.7 689.6 221.1 

3310 Blast Furnaces and Basic Steel Products 235.4 222.1 213.3 

3320 Iron and Steel Foundries 130.0 126.1 23.9 

3330 Primary Nonferrous Metals 39.3 37.2 22.1 

3350 Nonferrous Rolling and Drawing 168.4 167.5 20.9 

3360 Nonferrous Foundries (Castings) 91.3 90.7 20.6 

3400 Fabricated Metal Products 1,474.9 1,488.5 13.6 3410 Metal Cans and Shipping Containers 37.7 35.5 22.2 

3420 Cutlery, Handtools, and Hardware 125.4 124.0 21.4 

3430 Plumbing and Heating, except Electric 58.6 58.3 20.3 

3440 Fabricated Structural Metal Products 450.9 467.7 16.8 3450 Screw Machine Products, Bolts, etc. 104.4 103.8 20.6 

3460 Metal Forgings and Stampings 254.8 256.6 1.8 3470 Metal Services, nec 138.2 141.7 3.5 3480 Ordnance and Accessories, nec 43.1 39.6 23.5 

3490 Miscellaneous Fabricated Metal Products 262.0 261.5 20.5 

3500 Industrial Machinery and Equipment 2,163.4 2,129.2 234.2 

110 The Annual Report on Small Business and Competition
Supplementary Tables 111

3510 Engines and Turbines 83.1 84.0 0.9 3520 Farm and Garden Machinery 104.1 95.7 28.4 

3530 Construction and Related Machinery 243.3 243.4 0.1 3540 Metalworking Machinery 348.9 339.1 29.8 

3550 Special Industry Machinery 180.0 169.5 210.5 

3560 General Industrial Machinery 262.5 260.9 21.6 

3570 Computer and Office Equipment 374.6 360.2 214.4 

3580 Refrigeration and Service Machinery 202.4 201.0 21.4 

3590 Miscellaneous Industrial and Commercial Machinery 364.6 375.6 11.0 3600 Electronic and Other Electrical Equipment 1,687.7 1,661.4 226.3 

3610 Electric Distribution Equipment 82.3 82.3 0.0 3620 Electrical Industrial Apparatus 154.1 146.8 27.3 

3630 Household Appliances 114.6 118.0 3.4 3640 Electric Lighting and Wiring Equipment 180.5 176.8 23.7 

3650 Household Audio and Video Equipment 79.1 81.8 2.7 3660 Communications Equipment 275.8 274.5 21.3 

3670 Electronic Components and Accessories 652.3 638.9 213.4 

3690 Miscellaneous Electrical Equipment and Supplies 149.0 142.2 26.8 

3700 Transportation Equipment 1,841.8 1,855.0 13.2 3710 Motor Vehicles and Equipment 985.1 1,000.1 15.0 3720 Aircraft and Parts 500.3 489.7 210.6 

3730 Ship and Boat Building and Repairing 157.0 164.0 7.0 3740 Railroad Equipment 33.3 34.9 1.6 3760 Guided Missiles, Space Vehicles, and Parts 90.6 86.9 23.7 

3790 Miscellaneous Transportation Equipment 53.1 56.9 3.8 3800 Instruments and Related Products 863.3 838.8 224.5 

3810 Search and Navigation Equipment 160.5 155.0 25.5 

3820 Measuring and Controlling Devices 299.4 294.2 25.2 

3840 Medical Instruments and Supplies 275.9 276.7 0.8 3850 Ophthalmic Goods 35.3 33.4 21.9 

3860 Photographic Equipment and Supplies 84.4 73.2 211.2 

3870 Watches, Clocks, Watchcases, and Parts 7.8 6.3 21.5 

3900 Miscellaneous Manufacturing Industries 389.3 387.4 21.9 

3910 Jewelry, Silverware, and Plated Ware 48.9 49.6 0.7 3930 Musical Instruments 15.9 16.4 0.5 3940 Toys and Sporting Goods 109.8 101.2 28.6 

3950 Pens, Pencils, Office and Art Supplies 30.9 29.8 21.1 

3960 Costume Jewelry and Notions 23.6 20.5 23.1 

3990 Miscellaneous Manufactures 160.2 169.8 9.6 4000 Railroad Transportation 226.9 230.2 3.3 4100 Local and Interurban Passenger Transit 450.6 482.1 31.5 
Table A.20 Nonfarm Private Employment by Industry, 1997–1999 (Thousands of Jobs unless Specified O

Employment Employment Absolute 

SIC Codes (1987) 1997 1999 Change 4110 Local and Suburban Transportation 229.8 242.3 12.5 4120 Taxicabs 30.6 31.4 0.8 4130 Intercity and Rural Bus Transportation 21.2 28.1 6.9 4150 School Buses 135.7 145.9 10.2 4200 Trucking and Warehousing 1,667.2 1,812.9 145.7 4210 Trucking and Courier Services, except Air 1,506.9 1,630.9 124.0 4220 Public Warehousing and Storage 155.0 176.4 21.4 4400 Water Transportation 180.4 180.9 0.5 4440 Water Transportation of Freight, nec 14.2 15.1 0.9 4490 Water Transportation Services 121.2 119.9 21.3 

4500 Transportation by Air 1,127.9 1,237.3 109.4 4510 Air Transportation, Scheduled 964.8 1,051.5 86.7 4580 Airports, Flying Fields, and Services 119.5 136.0 16.5 4600 Pipelines, except Natural Gas 14.3 13.3 21.0 

4700 Transportation Services 438.6 468.6 30.0 4720 Passenger Transportation Arrangement 216.3 221.8 5.5 4730 Freight Transportation Arrangement 174.8 195.1 20.3 4800 Communications 1,423.5 1,521.9 98.4 4810 Telephone Communications 975.1 1,047.7 72.6 4830 Radio and Television Broadcasting 242.6 247.5 4.9 4840 Cable and Other Pay Television Services 175.2 189.2 14.0 4900 Electric, Gas, and Sanitary Services 865.9 844.6 221.3 

4910 Electric Services 368.3 361.5 26.8 

4920 Gas Production and Distribution 142.5 131.7 210.8 

4930 Combination Utility Services 160.4 153.3 27.1 

4950 Sanitary Services 162.2 164.3 2.1 5000 Wholesale Trade–Durable Goods 3,935.0 4,146.0 211.0 5010 Motor Vehicles, Parts, and Supplies 513.6 532.4 18.8 5020 Furniture and Home Furnishings 156.9 170.9 14.0 5030 Lumber and Other Construction Materials 256.2 275.9 19.7 5040 Professional and Commercial Equipment 862.7 981.6 118.9 5050 Metals and Minerals, except Petroleum 147.0 154.6 7.6 5060 Electrical Goods 538.0 553.9 15.9 5070 Hardware, Plumbing, and Heating Equipment 300.6 307.3 6.7 5080 Machinery, Equipment, and Supplies 816.7 838.8 22.1 5090 Miscellaneous Wholesale Trade Durable Goods 343.4 330.2 213.2 

112 The Annual Report on Small Business and Competition
Supplementary Tables 113

5100 Nondurable Goods 2,713.0 2,858.0 145.0 5110 Paper and Paper Products 264.7 289.3 24.6 5120 Drugs, Proprietaries, and Sundries 212.7 258.0 45.3 5130 Apparel, Piece Goods, and Notions 221.6 225.9 4.3 5140 Groceries and Related Products 903.5 936.8 33.3 5150 Farm-Product Raw Materials 106.6 109.9 3.3 5160 Chemicals and Allied Products 151.0 161.0 10.0 5170 Petroleum and Petroleum Products 156.0 153.5 22.5 

5180 Beer, Wine, and Distilled Beverages 153.6 162.6 9.0 5190 Miscellaneous Wholesale Trade Nondurable Goods 543.2 561.2 18.0 5200 Building Materials and Garden Supplies 936.7 987.3 50.6 5210 Lumber and Other Building Materials 567.6 603.6 36.0 5230 Paint, Glass, and Wallpaper Stores 67.8 66.9 20.9 

5250 Hardware Stores 163.2 168.9 5.7 5260 Retail Nurseries and Garden Stores 94.8 102.1 7.3 5300 General Merchandise Stores 2,717.9 2,774.6 56.7 5310 Department Stores 2,388.7 2,472.1 83.4 5330 Variety Stores 139.4 119.0 220.4 

5390 Miscellaneous General Merchandise Stores 189.7 183.5 26.2 

5400 Food Stores 3,495.7 3,483.1 212.6 

5410 Grocery Stores 3,073.3 3,059.2 214.1 

5420 Meat and Fish Markets 48.3 48.0 20.3 

5450 Dairy Products Stores 14.3 14.4 0.1 5460 Retail Bakeries 209.5 206.2 23.3 

5500 Automotive Dealers and Service Stations 2,313.9 2,405.7 91.8 5510 New and Used Car Dealers 1,050.8 1,081.4 30.6 5530 Auto and Home Supply Stores 395.2 405.3 10.1 5540 Gasoline Service Stations 671.1 701.5 30.4 5590 Automotive Dealers, nec 9.5 10.1 0.6 5600 Apparel and Accessory Stores 1,097.7 1,179.8 82.1 5610 Men’s and Boys’ Clothing Stores 81.0 79.6 21.4 

5620 Women’s Clothing Stores 281.8 276.4 25.4 

5650 Family Clothing Stores 347.3 404.1 56.8 5660 Shoe Stores 200.7 221.3 20.6 5700 Home Furniture, Furnishings, and Equipment Stores 1,009.0 1,085.0 76.0 5710 Furniture and Home Furnishings Stores 517.5 548.7 31.2 5720 Household Appliance Stores 71.5 68.3 23.2 

5730 Radio, Television, and Computer Stores 419.9 468.0 48.1 5800 Eating and Drinking Places 7,635.8 7,904.3 268.5 5900 Miscellaneous Retail Establishments 2,804.1 2,967.5 163.4 5910 Drug Stores and Proprietary Stores 627.5 674.9 47.4 
Table A.20 Nonfarm Private Employment by Industry, 1997–1999 (Thousands of Jobs unless Specified O

Employment Employment Absolute 

SIC Codes (1987) 1997 1999 Change 5920 Liquor Stores 111.4 110.9 20.5 

5930 Used Merchandise Stores 114.5 126.3 11.8 5940 Miscellaneous Shopping Goods Stores 991.8 1,051.3 59.5 5960 Nonstore Retailers 344.5 345.5 1.0 5980 Fuel Dealers 98.1 97.6 20.5 

5990 Retail Stores, nec 516.3 561.1 44.8 6000 Depository Institutions 2,027.0 2,046.5 19.5 6020 Commercial Banks 1,460.1 1,464.7 4.6 6030 Savings Institutions 261.5 255.7 25.8 

6060 Credit Unions 171.7 185.9 14.2 6100 Nondepository Institutions 567.2 713.7 146.5 6140 Personal Credit Institutions 179.6 193.3 13.7 6150 Business Credit Institutions 114.2 132.1 17.9 6160 Mortgage Bankers and Brokers 252.5 364.7 112.2 6200 Security and Commodity Brokers 596.8 679.1 82.3 6210 Security Brokers and Dealers 444.8 506.6 61.8 6230 Commodity Contracts Brokers, Dealers, Exchanges 25.1 25.6 0.5 6280 Security and Commodity Services 126.9 146.9 20.0 6300 Insurance Carriers 1,535.4 1,634.6 99.2 6310 Life Insurance 517.7 545.5 27.8 6320 Medical Service and Health Insurance 339.4 367.4 28.0 6330 Fire, Marine, and Casualty Insurance 537.8 553.4 15.6 6360 Title Insurance 71.6 90.9 19.3 6400 Insurance Agents, Brokers, and Service 724.4 767.0 42.6 6510 Real Estate Operators and Lessors 580.8 584.0 3.2 6530 Real Estate Agents and Managers 688.7 771.0 82.3 6550 Subdividers and Developers 115.9 129.4 13.5 6700 Holding and Other Investment Offices 221.8 266.2 44.4 6710 Holding Offices 106.1 115.5 9.4 7000 Hotels and Other Lodging Places 1,744.2 1,798.6 54.4 7010 Hotels and Motels 1,692.6 1,736.7 44.1 7200 Personal Services 1,181.9 1,205.9 24.0 7210 Laundry, Cleaning, and Garment Services 438.8 433.8 25.0 

7220 Photographic Studios, Portrait 70.8 51.9 218.9 

7230 Beauty Shops 397.0 420.0 23.0 7260 Funeral Service and Crematories 97.5 99.8 2.3 

114 The Annual Report on Small Business and Competition
Supplementary Tables 115

7290 Miscellaneous Personal Services 162.0 186.6 24.6 7300 Business Services 7,982.7 9,123.4 1,140.7 7310 Advertising 254.7 281.2 26.5 7320 Credit Reporting and Collection 134.0 149.8 15.8 7330 Mailing, Reproduction, and Stenographic Services 305.9 324.6 18.7 7340 Services to Buildings 937.4 988.2 50.8 7350 Miscellaneous Equipment Rental and Leasing 250.7 267.9 17.2 7360 Personnel Supply Services 2,968.4 3,404.7 436.3 7370 Computer and Data Processing Services 1,410.6 1,780.7 370.1 7380 Miscellaneous Business Services 1,720.9 1,926.4 205.5 7500 Auto Repair, Services, and Parking 1,124.3 1,184.5 60.2 7510 Automotive Rentals, without Drivers 197.5 207.8 10.3 7520 Automobile Parking 72.3 74.9 2.6 7530 Automotive Repair Shops 621.5 663.2 41.7 7540 Automotive Services, except Repair 232.9 238.7 5.8 7600 Miscellaneous Repair Services 375.9 396.7 20.8 7620 Electrical Repair Shops 115.1 118.7 3.6 7800 Motion Pictures 548.1 600.1 52.0 7810 Motion Picture Production and Services 233.4 265.4 32.0 7830 Motion Picture Theaters 131.8 144.2 12.4 7840 Video Tape Rental 162.9 170.5 7.6 7900 Amusement and Recreation Services 1,572.9 1,695.9 123.0 7930 Bowling Centers 81.4 82.0 0.6 7990 Miscellaneous Amusement and Recreation Services 1,152.0 1,268.4 116.4 8000 Health Services 9,719.5 9,972.6 253.1 8010 Offices and Clinics of Medical Doctors 1,742.9 1,865.2 122.3 8020 Offices and Clinics of Dentists 628.2 666.6 38.4 8040 Offices and Clinics of other Health Practitioners 439.3 452.4 13.1 8050 Nursing and Personal Care Facilities 1,754.5 1,755.1 0.6 8060 Hospitals 3,868.7 3,969.7 101.0 8070 Medical and Dental Laboratories 198.5 202.1 3.6 8080 Home Health Care Services 712.5 654.6 257.9 

8100 Legal Services 947.3 1,001.9 54.6 8200 Educational Services 2,114.2 2,269.5 155.3 8210 Elementary and Secondary Schools 627.8 688.1 60.3 8220 Colleges and Universities 1,225.6 1,281.8 56.2 8240 Vocational Schools 82.1 93.8 11.7 8300 Social Services 2,513.8 2,782.3 268.5 8320 Individual and Family Services 675.3 755.0 79.7 8330 Job Training and Related Services 351.7 390.4 38.7 8350 Child Day Care Services 569.5 632.3 62.8 
Table A.20 Nonfarm Private Employment by Industry, 1997–1999 (Thousands of Jobs unless Specified O

Employment Employment Absolute 

SIC Codes (1987) 1997 1999 Change 

8360 Residential Care 716.8 780.7 63.9 

8390 Social Services, nec 200.5 224.0 23.5 8400 Museums and Botanical and Zoological Gardens 89.9 94.4 4.5 8600 Membership Organizations 2,248.2 2,401.6 153.4 8610 Business Associations 107.8 111.6 3.8 8620 Professional Organizations 59.1 65.7 6.6 8630 Labor Organizations 142.3 146.2 3.9 8640 Civic and Social Associations 443.2 472.7 29.5 8700 Engineering and Management Services 3,004.8 3,419.5 414.7 8710 Engineering and Architectural Services 869.1 943.9 74.8 8720 Accounting, Auditing, and Bookkeeping 599.5 668.8 69.3 8730 Research and Testing Services 592.4 649.0 56.6 8740 Management and Public Relations 943.7 1,157.9 214.2 8900 Services, nec 49.6 56.8 7.2 

nec = Not elsewhere classified.NA = Not available. Some data are withheld to avoid disclosing individual company data.Note: Agricultural services employment levels by firm size were withheld for 1997 so the 1996 percent for small business was used.Source: U.S. Small Business Administration, Office of Advocacy, from employment data provided by the U.S.Department of Labor, Bureau of Labor Statistics, and employment firm size data provided by the U.S. Department of Commerce,Bureau of the Census

116 The Annual Report on Small Business and Competition
Procurement

Synopsis

The federal government spends about $200 billion a year on the procurement of goods and services. Small firms annually receive more than 20

percent of all prime contract dollars and another 10–14 percent of the federal procurement pie in subcontracts. Large firms receive more than 60 percent of all federal procurement dollars. 

Federal contract markets are changing at an unparalleled pace. Two

laws, the Federal Acquisition Streamlining Act (FASA), enacted in 1994, and

the Federal Acquisition Reform Act (FARA) or Clinger-Cohen Act, enacted in

1996, have had an unprecedented impact on the federal procurement

process. Additional reforms were enacted in December 1997 in the

HUBZone and contract bundling legislation.

The 1994 and 1996 laws were designed to make the government operate more like a commercial buyer and make it easier and more appealing

for businesses to participate in government markets. Many of the implemented changes are benefiting small firms, although some longstanding

small business protections have been weakened or eliminated in the

process. From this standpoint, the Office of Advocacy is now analyzing the

use of such acquisition tools as credit card purchases, federal supply

schedules, and contract bundling to determine their impact on small business purchases. As an example, data show that agencies have increased

their credit card purchases from about $5 billion in FY 1997 to nearly $13

billion in FY 2000. For the same period, the number of actions has doubled

from 11 million to nearly 22 million. Small businesses have historically

been the beneficiary of small purchase orders. But reports suggest this may

not be the case with credit cards.

In FY 1998, small businesses won $71.3 billion in federal contract

awards, including $41.7 billion in direct contract awards from the federal

government and an additional $29.6 billion in subcontracts from prime contractors working directly for the federal government. Although the FY 1998

totals were increases from FY 1997, they decreased again in FY 1999 to

$69.3 billion in overall contract awards, $41.5 billion in prime contract

awards and $27.9 billion in subcontracts from prime contractors working for

the federal government. 

The FY 1998 $71.3 billion small business total represented 35.6 percent

of the $200.3 billion in contract actions awarded by the federal government
sistent with FY 1997. In FY 1998, minority-owned firms were awarded

$11.9 billion in prime contracts or 6 percent of total federal contract dollars; the amount and share both increased—to $12.1 billion, or 6 percent

of the total in FY 1999. Women-owned firms were awarded $4.1 billion in

prime contracts or 2 percent of federal buys in FY 1998; again total dollars

and the women-owned share both increased in FY 1999 to $4.5 billion and

2.2 percent respectively. 

Introduction

I

n fiscal year 1998, the federal government awarded $200.3 billion in contract actions for the purchase of goods; the total increased to $200.8 billion

in FY 1999. These totals include contracting for the purchase of goods and

services such as research and development, educational and training courses,

paint, tools, toiletries, military weapons, housing, and hardware. Costs associated with payment for these goods and services support federal civilian and

military personnel around the world.

The government awarded small businesses $41.7 billion in prime contract dollars in FY 1998, including $34.1 billion in actions over $25,000 and

$7.5 billion in actions of $25,000 or less (Table B.1).1 Slightly less, $41.5

billion, went to small firms in FY 1999, of which $34.7 billion was in actions

over $25,000 and $6.9 billion was in actions of $25,000 or less. In both

years, small businesses received about 21 percent of all prime contract dollars awarded, including those in contracts for foreign military sales, directed sources of supply (National Industries for the Blind/National Industries

for the Severely Handicapped), and educational institutions, nonprofit

organizations, and state and local governments. Adding the dollar value of

small business subcontracts increases the total by an additional $29.6 billion, to $71.3 billion in FY 1998 and by $27.9 billion, to $69.3 billion in FY

1999. The small business share of this total in FY 1998 was 35.6 percent; in

FY 1999 it was 34.5 percent.2

118 The Annual Report on Small Business and Competition

1A small firm is defined for procurement purposes by size standards established by the U.S. Small

Business Administration. Typically, for most purposes, the SBA’s Office of Advocacy defines a small

business as having fewer than 500 employees and not dominant in its field. For detailed definitions for

procurement purposes, see SBA’s small business size regulations at 13 CFR 121.9, published January

1, 1996. 2Data on subcontracting awards are based on federal agency reports required by Public Law

95–507, Section 221(h).
These large transactions, however, accounted for only 3 percent of the contract

actions executed during the period. Conversely, 97 percent of the total number

of contract actions were issued in contract actions of $25,000 or less; these contracts were valued at $16.4 billion in FY 1998 and $15.7 billion in FY 1999. 

Small businesses are significantly more successful in competing for smaller awards than they are in competing for larger contracts. They were awarded just under one-half (46 percent in FY 1998 and 44 percent in FY 1999) of

total federal dollars in contract actions of $25,000 or less, but just 18.6 percent in FY 1998 increasing slightly to 18.7 percent in FY 1999 of the dollar

value of the larger awards over $25,000. The financial returns are, of course,

much greater for the small businesses that win larger awards.

The Federal Acquisition Streamlining Act of 1994 (FASA), signed into law

on October 13, 1994, simplified the federal contracting process. Prior to enactment of FASA, only procurements of $25,000 or less could be set aside for

small businesses with limited competition. Government procurement personnel may now follow a simplified small business acquisition process for purchases between $2,500 and $100,000 as long as there is a reasonable expectation of bids being received from two or more responsible small businesses

whose bids are competitive and commensurate with market expectations.

Sources of Small Business Awards by

Agency/Department

J

ust under 60 percent of the total $34.1 billion in FY 1998 and $34.6 billion in

FY 1999 of prime contract dollars over $25,000 awarded to small businesses

resulted from Department of Defense (DOD) awards (Table B.3). The next

largest source of federal contracting awards to small businesses was the General

Services Administration, which accounted for 8.4 percent in FY 1998 ($2.9 billion) and 8.0 percent in FY 1999 ($2.6 billion) of the total dollars awarded to

small businesses, followed by the Department of Transportation with 5 percent

($1.7 billion) in FY 1998 and 4.9 percent ($1.6 billion) in FY 1999.

Small Business Share of Purchasing 

Agency Awards

The small business share of agency procurement budgets is one measure of

small businesses’ ability to win contracts from the principal procurement

centers of the federal government. For example, although the Department of

Defense accounted for 59 percent of all contract dollars over $25,000 awarded

Procurement 119
1998. In FY 1999, small businesses were most successful at the Office of

Personnel Management, the Department of the Interior, and the Department

of Transportation (Table B.5).

Product/Service Categories

The federal contracting markets encompass three major categories of goods

and services: supplies and equipment, research and development, and

other services and construction (Table B.6). The volume of award dollars in

each of the three major procurement categories shifted slightly as a percentage of total awards from FY 1998 to FY 1999. 

The services and construction category, which includes activities as

diverse as architectural and engineering services, data processing, telecommunications, general construction, and management support services,

increased slightly from 50.5 percent in FY 1998 to 51.8 percent in FY 1999.

Expenditures for supplies and equipment, the second largest category,

decreased, from 35.5 percent in FY 1998 to 34.9 percent in FY 1999. Research

and development (R&D) continued to lose some ground, accounting for 14.0

percent of awards in FY 1998 and 13.3 percent in FY 1999.

The small business market shares shifted from declines over the FY

1997–FY 1998 period to increases over the FY 1998–FY 1999 period in two

major categories. Small businesses increased their share of research and

development from 12.3 percent in FY 1998 to 14.3 percent in FY 1999 (Table

B.7). Their share of services and construction contract actions increased from

22.2 percent to 22.4 percent. Small firms, however, decreased their market

share of supplies and equipment from 15.9 percent to 15.4 percent.

Small Business Innovation Research

FY 1999 was the seventeenth year of the Small Business Innovation

Research (SBIR) program. Ten government agencies with extramural R&D

obligations over $100 million participate by setting aside a small percentage

of their external R&D budgets for the program.3 The required percentage was

1.25 percent in FY 1992, 1.5 percent in FY 1993 and FY 1994, 2.0 percent in

FY 1995 and FY 1996, and 2.5 percent continuously beginning in FY 1997.

120 The Annual Report on Small Business and Competition

3 The Small Business Innovation Research (SBIR) program began as a government-wide program

in FY 1983. The program was most recently reauthorized through the Consolidated Appropriations Act

of 2001 (P.L. 106–554), which was signed into law December 21, 2000. It reauthorized the program

for a period of eight years, through September 30, 2008.
y gppy 

II, the detailed research and development phase that lasts about two years and

often ends with the development of a prototype product or process. Commercial

potential also receives increased emphasis in Phase II. The amount that can be

awarded in Phase II has been raised from $500,000 to $750,000.

Small businesses conduct Phase III with non-SBIR funds to pursue commercial applications of the R&D funded in Phases I and II. Phase III is the keystone of the program and involves private sector investment and support for

introducing the innovation into the marketplace. Phase III may involve nonSBIR R&D or production contracts with a federal agency for products or

processes intended for use by the federal government.

In the first 17 years of the program, more than $9.8 billion has been

awarded to small businesses in 52,113 Phase I and II projects (Table B.8). The

program has been very competitive. Participating agencies received a total of

21,255 Phase I and Phase II proposals in FY 1998 and 21,492 proposals in FY

1999. A total of 37,458 Phase I and 14,655 Phase II awards have been made

since the beginning of the program.

Agencies using SBIR contracts include the Departments of Commerce,

Defense, Education, and Transportation, the Environmental Protection

Agency, the National Aeronautics and Space Administration, the Nuclear

Regulatory Commission and, initially, the Department of the Interior. SBIR

awards are made in the form of grants at the Departments of Agriculture,

Energy, and Health and Human Services, and the National Science

Foundation, and thus are not included in any R&D data in other tables in this

appendix.

In both FY 1998 and FY 1999, awards were made in every state, the

District of Columbia, and Puerto Rico, with concentrations in technology-rich

California and Massachusetts (Table B.9). 

Procurement from Minority- and 

Women-Owned Businesses

Relative to their representation in the business population, small women- and

minority-owned businesses still account for a small percentage of total federal award dollars. The gap is greatest for women-owned businesses, which

constitute approximately one-third of the total nonagricultural business population of the United States. Small women-owned businesses obtained only 2 percent of federal contract dollars in both FY 1998 and FY 1999 (Table B.10).

Minority-owned businesses make up 9 percent of the business population of the

United States; however, small minority-owned businesses won just 6 percent of

Procurement 121
gyy, p

award dollars to small women-owned businesses in FY 1998 and just 12.2

percent in FY 1999 were in smaller awards of less than $25,000. Only about

4.5 percent of minority-owned contractors’ awards were in this category of

smaller awards in both years. The percentage of contract dollars awarded in

both FY 1998 and FY 1999 to small minority- and women-owned businesses

remained at levels consistent with FY 1997. 

Changes in the Procurement Markets

Federal contract markets continue to change. The Federal AcquisitionStreamlining Act (FASA), enacted in 1994, and the Federal Acquisition

Reform Act (FARA), enacted in 1996, have had unprecedented impacts on the

federal procurement process. The 1994 and 1996 laws were designed to save

money, reduce paperwork burdens on federal contractors, facilitate the acquisition of commercial products, enhance the use of simplified procedures for

small purchases, transform the acquisition process to electronic commerce,

and improve the efficiency of the laws governing the procurement of goods

and services. Additional reforms implemented in the December 1997 enactment of both HUBZone and contract bundling legislation are also affecting

the small business procurement markets.5

The Small Business Administration has instituted an electronic gateway to

procurement information, the Procurement Marketing and Access Network, or

Pro-Net. This Internet-based data base of information on small, small disadvantaged, and women-owned businesses serves as an automated source list

for contracting officers, a marketing tool for small firms, and a link to procurement opportunities and important information on federal contracting.

122 The Annual Report on Small Business and Competition

4 For additional information, see Harry J. Chmelynski and Jonathan Skolnik, The Pattern of Federal

Procurement from Minority and Women-Owned Small Business, report no. PB93–182582, prepared

by Jack Faucett Associates for the U.S. Small Business Administration, Office of Advocacy (Springfield,

Va.: National Technical Information Service, 1993). The Faucett study indicates that women-owned

firms, after adjustments were made for comparable procurement/industry characteristics, competed for

and won contracts over a five-year period with a value that exceeded the annual rate of growth in federal contracting overall and in the gross domestic product. The latest Bureau of the Census data available indicate that there were 5.9 million women-owned businesses in 1992 and 1.2 million minorityowned businesses in the United States in 1987. See also U.S. Department of Commerce, Bureau of the

Census, 1987 Survey of Minority-Owned Business Enterprises, Summary (Washington, D. C.: U. S.

Government Printing Office, August 1991) and idem; Women-Owned Business, 1992, (Washington,

D. C.: U.S. Government Printing Office, August 1993). 5 The contract bundling legislation that was enacted is intended to restrict unnecessary contract

consolidations. The HUBZone legislation is intended to provide federal contracting opportunities for

small businesses located in historically underutilized business zones. Both the HUBZone and contract

bundling provisions were included in the Small Business Reauthorization Act of 1997 (P.L. 105–135),

signed into law on December 2, 1997.
Table B.3 Distribution of Small Business Share of Dollars in

Contract Actions over $25,000 by Procuring 

Agency Source, FY 1998 and FY 1999 125

Table B.4 Procurement Dollars in Contract Actions over 

$25,000 by Major Agency Source, 

FY 1984–FY 1999 127

Table B.5 Small Business Share of Dollars in Contract Actions 

over $25,000 by Top 25 Major Procuring Agencies, 

Fiscal Years 1998 and 1999 128

Table B.6 Distribution of Prime Contract Actions over 

$25,000 by Major Product or Service Category 

for FY 1998 and FY 1999 129

Table B.7 Small Business Share of Dollars in Contract Actions 

over $25,000 by Major Product or Service Category, 

FY 1998 and FY 1999 129

Table B.8 Small Business Innovation Research Program, 

FY 1983–FY 1999 130

Table B.9 SBIR Awards by State, FY 1999 131

Table B.10 Total Federal Contract Actions to Small, WomenOwned, and Minority-Owned Businesses, 

FY 1998 and FY 1999 132

Table B.11 Annual Change in the Dollar Volume of Contract 

Actions over $25,000 Awarded to Small, WomenOwned, and Minority-Owned Businesses, 

FY 1980–FY 1999 133

Table B.12 Contract Actions over $25,000. FY 1984–FY 1999,

with Annual 8(a) Set-Aside Breakout 134
Total, FY 1998 200,266,757 41,676,080 20.8

Actions under $25,000 16,383,684 7,541,821 46.0

Actions over $25,000* 183,883,073 34,134,259 18.6

*Reported individually.

Source: General Services Administration, Federal Procurement Data Center.

124 The Annual Report on Small Business and Competition

Table B.2 Federal Contract Actions over $25,000, FY 1984–FY 1999

Thousands of Dollars

Fiscal Small Business

Year Total Small Business Share (Percent)

1999 185,124,691 34,664,335 18.7

1998 183,883,073 34,134,259 18.6

1997 178,817,245 33,070,824 18.5

1996 183,418,403 33,709,450 18.4

1995 185,101,960 33,909,283 18.3

1994 181,500,339 30,318,281 16.7

1993 184,426,948 30,548,921 16.6

1992 183,081,207 29,523,629 16.1

1991 193,550,425 30,121,644 15.6

1990 179,286,902 27,565,861 15.4

1989 172,612,189 25,753,580 14.9

1988 176,544,042 26,481,763 15.0

1987 181,750,326 28,046,374 15.4

1986 183,681,389 28,863,410 15.7

1985 188,186,629 26,708,810 14.2

1984 168,101,394 25,536,585 15.2

Note: Starting in FY 1983, the dollar threshold for reporting detailed information on DOD procurement

actions increased from $10,000 to $25,000. For civilian agencies, a similar change was made starting in FY

1986.

Source: General Services Administration, Federal Procurement Data Center, and Special Report S89522C,

prepared for the U.S. Small Business Administration, Office of Advocacy (Washington, D.C.: U.S. Government

Printing Office, June 12, 1989).
Procurement 125

Table B.3 Distribution of Small Business Share of Dollars in Contract Actions over $25,000 by Procuring FY 1998 and FY 1999

Total Small Business Small Business 

(Thousands of Dollars) Distribution (Percent) 

FY 1999 FY 1998 FY 1999 FY 1998 

Total, All Agencies 34,664,335 34,134,259Advisory Committee on Federal Prevailing Rate 75 757 * * Agency for International Development 95,255 78,141 0.27 0.23 Commodity Futures Trading Commission 95 * Consumer Product Safety Commission 2,058 1,448 0.01 * Corporation for National and Community Service 2,275 1,694 0.01 * Department of Agriculture 1,198,059 1,081,653 3.46 3.17 Department of Commerce 407,803 370,991 1.18 1.09 Department of Defense 21,454,705 19,963,720 61.89 58.49 Department of Education 79,427 78,978 0.23 0.23 Department of Energy 466,256 464,678 1.35 1.36 Department of Health and Human Services 1,108,201 1,134,045 3.20 3.32 Department of Housing and Urban Development 255,738 87,752 0.74 0.26 Department of Justice 759,460 776,487 2.19 2.27 Department of Labor 202,178 179,279 0.58 0.53 Department of State 391,148 182,420 1.13 0.53 Department of the Interior 549,142 686,739 1.58 2.01 Department of the Treasury 779,976 684,485 2.25 2.01 Department of Transportation 1,380,086 1,714,328 3.98 5.02 Department of Veterans Affairs 789,115 983,531 2.28 2.88 Environmental Protection Agency 280,326 243,998 0.81 0.71 Equal Employment Opportunity Commission 3,047 1,926 0.01 0.01 Executive Office of the President 16,180 14,296 0.05 0.04 Federal Communications Commission 287 * Federal Election Commission 244 54,619 * 0.16 Federal Emergency Management Agency 60,531 47,370 0.17 0.14 Federal Labor Relations Authority 250 0.00 
126 The Annual Report on Small Business and Competition Table B.3 Distribution of Small Business Share of Dollars in Contract Actions over $25,000 by Procuring 

FY 1998 and FY 1999 Total Small Business Small Business (Thousands of Dollars) Distribution (Percent) 

FY 1999 FY 1998 FY 1999 FY 1998 

Federal Trade Commission 6,948 3,775 0.02 0.01 General Services Administration 2,691,928 2,871,509 7.77 8.41 International Trade Commission 1,467 1,137 * * Merit Systems Protection Board 59 * National Aeronautics and Space Administration 1,186,185 1,100,854 3.42 3.23 National Archives and Records Administration 9,718 9,753 0.03 0.03 National Capital Planning Commission 349 * National Foundation on the Arts and the Humanities 813 551 * * National Labor Relations Board 3,982 6,847 0.01 0.02 National Mediation Board 1,657 1,096 * * National Science Foundation 20,067 15,626 0.06 0.05 Nuclear Regulatory Commission 28,778 48,752 0.08 0.14 Office of Personnel Management 102,954 103,604 0.30 0.30 Peace Corps 3,737 3,860 0.01 0.01 Railroad Retirement Board 1,591 2,373 * 0.01 Securities and Exchange Commission 9,934 10,443 0.03 0.03 Selective Service System 600 495 * * Small Business Administration 21,650 21,806 0.06 0.06 Smithsonian Institution 45,470 46,831 0.13 0.14 Social Security Administration 144,991 170,638 0.42 0.50 Tennessee Valley Authority 71,991 856,088 0.21 2.51 U.S. Arms Control and Disarmament Agency 1,949 1,538 0.01 * U.S. Holocaust Memorial Museum 701 715 * * U.S. Information Agency 19,647 16,504 0.06 0.05 U.S. Soldiers’ and Airmen’s Home 2,918 2,387 0.01 0.01 U.S. Trade and Development Agency 3,374 2,702 0.01 0.01 

* Less than 0.01 percentSource: General Services Administration, Federal Procurement Data Center.
1997 178.8 65.5 8.9 6.3 19.3

1996 183.4 66.5 8.7 6.2 18.6

1995 185.1 64.4 9.1 6.3 20.2

1994 181.5 65.4 9.9 6.3 18.4

1993 184.4 66.7 10.0 6.4 16.8

1992 183.1 66.3 10.1 6.6 16.9

1991 193.6 70.2 9.5 6.1 14.2

1990 179.3 72.0 9.7 6.4 11.9

1989 172.6 75.0 8.8 5.7 10.6

1988 176.5 76.9 8.2 4.9 10.0

1987 181.8 78.6 7.7 4.2 9.5

1986 183.7 79.6 7.3 4.0 9.0

1985 188.2 80.0 7.7 4.0 8.3

1984 168.1 79.3 7.9 3.9 9.0

Note: DOD = Department of Defense; DOE = Department of Energy; NASA = National Aeronautics and

Space Administration. Starting in FY 1983, the dollar threshold for reporting detailed information on DOD procurement actions increased from $10,000 to $25,000. For civilian agencies, a similar change was made starting in FY 1986. 

Source: General Services Administration, Federal Procurement Data Center and Special Report 87458A,

prepared for the U.S. Small Business Administration, Office of Advocacy (Washington, D.C.: U.S. Government

Printing Office, May 19, 1988).

Procurement 127
p,,,,

Department of Energy 15,638,402 466,256 2.97 2.98 25

National Aeronautics and 

Space Administration 10,937,232 1,186,185 10.07 10.85 23

General Services Administration 6,949,932 2,691,928 41.32 38.73 6

Department of Health and 

Human Services 4,393,700 1,108,201 25.81 25.22 14

Department of the Treasury 3,281,670 779,976 20.86 23.77 15

Department of Agriculture 3,253,642 1,198,059 33.24 36.82 8

Department of Justice 3,215,795 759,460 24.15 23.62 16

Department of Transportation 2,839,558 1,380,086 60.37 48.60 3

Department of Veterans Affairs 2,604,289 789,115 37.77 30.30 12

Department of Labor 1,100,165 202,178 16.30 18.38 19

Department of Commerce 1,095,243 407,803 33.87 37.23 7

Department of the Interior 1,085,841 549,142 63.24 50.57 2

Environmental Protection Agency 1,066,198 280,326 22.88 26.29 13

Department of State 955,203 391,148 19.10 40.95 5

Department of Housing and 

Urban Development 775,334 255,738 11.32 32.98 10

Department of Education 694,182 79,427 11.38 11.44 22

Agency for International 

Development 513,116 95,255 15.23 18.56 18

Social Security Administration 458,480 144,991 37.22 31.62 11

Smithsonian Institution 377,904 45,470 12.39 12.03 21

Federal Emergency 

Management Agency 289,572 60,531 16.36 20.90 17

National Science Foundation 213,015 20,067 7.34 9.42 24

Office of Personnel Management 158,406 102,954 65.40 64.99 1

Nuclear Regulatory Commission 67,443 28,778 72.29 42.67 4

U.S. Information Agency 54,816 19,647 30.11 35.84 9

Note: All agencies are represented in the total dollars for FY 1999; the organizations listed are those

agencies that awarded at least $100 million in individual contract actions over $25,000 in FY 1999.

Source: General Services Administration, Federal Procurement Data Center.

128 The Annual Report on Small Business and Competition
Procurement 129

Supplies and Equipment 35.5 34.9

Source: General Services Administration, Federal Procurement Data Center.

Table B.7 Small Business Share of Dollars in Contract Actions over $25,000

by Major Product or Service Category, FY 1998 and FY 1999

FY 1998 FY 1999

Thousands Small Business Thousands Small Business

of Dollars Share (Percent) of Dollars Shar

(Percent)

Research and Development

Total 25,752,111 24,595,627

Small Business 3,162,881 12.3 3,518,418 14.3

Other Services and Construction

Total 92,879,736 95,834,678

Small Business 20,586,258 22.2 21,511,690 22.4

Supplies and Equipment

Total 65,251,226 64,694,386

Small Business 10,385,120 15.9 9,634,227 14.9

Source: General Services Administration, Federal Procurement Data Center.
1997 19,585 3,371 2,420 1,404 1,066.7

1996 18,378 2,841 2,678 1,191 916.3

1995 20,185 3,085 2,856 1,263 981.7

1994 25,588 3,102 2,244 928 717.6

1993 23,640 2,898 2,532 1,141 698.0

1992 19,579 2,559 2,311 916 508.4

1991 20,920 2,553 1,734 788 483.1

1990 20,957 2,346 2,019 837 460.7

1989 17,233 2,137 1,776 749 431.9

1988 17,039 2,013 1,899 711 389.1

1987 14,723 2,189 2,390 768 350.5

1986 12,449 1,945 1,112 564 297.9

1985 9,086 1,397 765 407 199.1

1984 7,955 999 559 338 108.4

1983 8,814 686 127 74 44.5

Note: Phase I evaluates the scientific and technical merit and feasibility of an idea. Phase II expands on

the results and further pursues the development of Phase I. Phase III commercializes the results of Phase II and

requires the use of private or non-SBIR federal funding. The Phase II proposals and awards in FY 1983 were

pursuant to predecessor programs that qualified as SBIR funding.

Source: U.S. Small Business Administration, Office of Innovation, Research and Technology (annual

reports for FY 1983–FY 1999).

130 The Annual Report on Small Business and Competition
Connecticut 70 6,270 23 12,756 93 19,026

Delaware 14 1,364 4 1,838 18 3,202

District of Columbia 17 1,577 8 4,629 25 6,207

Florida 67 5,639 29 16,110 96 21,750

Georgia 28 2,404 18 10,399 46 12,803

Hawaii 21 1,665 6 1,875 27 3,540

Idaho 5 339 2 755 7 1,094

Illinois 53 4,927 20 8,203 73 13,130

Indiana 21 1,811 10 5,298 31 7,109

Iowa 6 502 3 1,454 9 1,955

Kansas 14 1,155 3 1,720 17 2,875

Kentucky 7 523 5 2,279 12 2,802

Louisiana 6 418 1 400 7 818

Maine 15 1,261 3 823 18 2,084

Maryland 186 17,397 57 32,817 243 50,214

Massachusetts 516 47,206 192 115,297 708 162,503

Michigan 51 4,868 20 10,231 71 15,099

Minnesota 42 3,633 19 10,046 61 13,679

Mississippi 11 896 0 0 11 896

Missouri 16 1,082 5 2,920 21 4,003

Montana 12 1,041 4 2,497 16 3,537

Nebraska 3 287 2 667 5 954

Nevada 7 570 2 1,157 9 1,727

New Hampshire 41 3,363 14 8,106 55 11,468

New Jersey 106 9,528 39 23,535 145 33,064

New Mexico 65 5,659 28 18,485 93 24,144

New York 129 11,997 50 29,436 179 41,433

North Carolina 36 3,642 15 9,450 51 13,092

North Dakota 4 339 1 225 5 564

Ohio 110 10,146 47 29,744 157 39,889

Oklahoma 6 569 5 2,802 11 3,371

Oregon 39 3,610 20 9,710 59 13,321

Pennsylvania 91 8,220 49 28,685 140 36,905

Puerto Rico 1 62 0 0 1 62

Rhode Island 7 559 4 1,783 11 2,341

South Carolina 5 456 3 1,205 8 1,661

South Dakota 4 399 3 1,244 7 1,643

Tennessee 25 2,091 9 4,815 34 6,906

Texas 112 9,963 51 28,921 163 38,884

Utah 37 3,358 12 6,130 49 9,488

Vermont 12 1,097 5 2,187 17 3,283

Virginia 164 14,062 77 48,988 241 63,051

Washington 86 8,520 32 16,841 118 25,361

West Virginia 3 265 2 1,479 5 1,744

Wisconsin 39 3,657 12 6,421 51 10,078

Wyoming 9 779 0 0 9 779

Note: Based on awards issued and funding obligations for new awards only.

Source: U.S. Small Business Administration, Office of Advocacy, based on data from SBA’s Office of

Technology.

Procurement 131
132 The Annual Report on Small Business and Competition Table B.10 Total Federal Contract Actions to Small, Women-Owned, and Minority-Owned Businesses, F

(Thousands of Dollars) Total Actions Actions Over $25,000 

Thousands of Share of Total Thousands of Share of Total T

Dollars (Percent) Dollars (Percent) 

Total, FY 1998 200,266,757 183,883,073 16Small Business 41,675,857 20.8 34,134,259 18.6 7Women-Owned Business 4,059,993 2.0 3,509,469 1.9 Minority-Owned Business 11,941,271 6.0 11,396,554 6.2 Total, FY 1999 200,802,875 185,124,691 15Small Business 41,520,431 20.7 34,664,335 18.7 6Women-Owned Business 4,510,489 2.2 3,959,722 2.1 Minority-Owned Business 12,099,543 6.0 11,560,128 6.2 

Source: General Services Administration, Federal Procurement Data Center.
Procurement 133

Table B.11 Annual Change in the Dollar Volume of Contract Actions Over $25,000 Awarded to Small, WMinority-Owned Businesses, FY 1980–FY 1999 (Thousands of Dollars)

Total, All Business Small Business Women-Owned Business 

Change from Prior Year Change from Prior Year Change from Prior Year 

Year

Total Total Total 

(Thousands Thousands (Thousands Thousands (Thousands Thousands (T

of Dollars) of Dollars Percent of Dollars) of Dollars Percent of Dollars) of Dollars Percent o

1999 187,973,230 3,862,225 2.1 35,745,192 1,485,753 4.3 4,027,739 485,838 13.7 11998 184,111,005 211,175,936 25.7 34,259,439 27,013,742 217.0 3,541,901 248,406 21.3 1

1997 195,286,941 17,218,902 9.7 41,273,181 8,082,760 24.4 3,590,307 621,845 20.9 11996 178,068,039 22,783,936 21.5 33,190,421 1,383,158 4.3 2,968,462 148,214 5.3 1

1995 180,851,975 6,164,024 3.5 31,807,263 3,384,230 11.9 2,820,248 508,700 22.0 11994 174,687,951 23,649,028 22.0 28,423,033 475,592 1.7 2,311,548 262,828 12.8 

1993 178,336,979 550,598 0.3 27,947,441 2282,308 21.0 2,048,720 56,155 2.8 1992 177,786,381 211,815,839 26.2 28,229,749 2617,609 22.1 1,992,565 227,399 12.9 

1991 189,602,220 18,301,330 10.7 28,847,358 3,445,732 13.6 1,765,166 287,272 19.4 1990 171,300,890 2,605,909 1.5 25,401,626 1,685,455 7.1 1,477,894 74,955 5.3 1989 168,694,981 25,402,604 23.1 23,716,171 21,955,147 27.6 1,402,939 75,215 5.7 1988 174,097,585 27,441,007 24.1 25,671,318 22,256,401 28.1 1,327,724 74,839 6.0 1987 181,538,592 22,111,635 21.1 27,927,719 2852,373 23.0 1,252,885 56,034 4.7 

1986 183,650,227 24,335,239 22.3 28,780,092 2,077,397 7.8 1,196,851 102,643 9.4 

1985 187,985,466 20,051,980 11.9 26,702,695 1,196,672 4.7 1,094,208 238,077 27.8 

1984 167,933,486 12,345,380 7.9 25,506,023 3,425,999 15.5 856,131 244,755 40.0 1983 155,588,106 3,190,222 2.1 22,080,024 21,478,539 26.3 611,376 60,775 11.0 

1982 152,397,884 23,533,140 18.3 23,558,563 3,489,774 17.4 550,601 2534,772 249.3 

1981 128,864,744 27,971,359 27.7 20,068,789 4,742,668 30.9 1,085,373 297,844 37.8 1980 100,893,385 — — 15,326,121 — — 787,529 — — 

Source: Federal Procurement Data System, “Special Report S89522C” (prepared for the U.S. Small Business Administration, Office of Advocacy, Ju
1998 183,883,073 6,498,002 3.5

1997 178,817,245 6,501,253 3.6

1996 183,418,403 6,754,441 3.7

1995 185,101,960 6,895,881 3.7

1994 181,500,339 5,977,455 3.3

1993 184,426,948 5,483,544 3.0

1992 183,081,207 5,205,080 2.8

1991 193,550,425 4,147,148 2.1

1990 179,286,902 3,743,970 2.1

1989 172,612,189 3,449,860 2.0

1988 176,544,042 3,528,790 2.0

1987 181,750,326 3,341,841 1.8

1986 183,681,389 2,935,633 1.6

1985 188,186,629 2,669,174 1.4

1984 168,101,394 2,517,738 1.5

Source: General Services Administration, Federal Procurement Data Center.

134 The Annual Report on Small Business and Competition
FEDERAL

PROCUREMENT

PREFERENCE GOALS

THE

U.S. SMALL BUSINESS

ADMINISTRATION

OFFICE OF

GOVERNMENT

CONTRACTING AND

MINORITY ENTERPRISE

DEVELOPMENT

Washington, DC 20500 

Dear Mr. President:

We are pleased to present, for your consideration, the FYs 1998 and 1999report on participation in Federal procurement by small business concerns, including those owned and controlled by women and socially and economically disadvantaged individuals, and those firms participating in the 8(a)

Business Development (8(a) BD) program. 

The efforts of the Small Business Administration (SBA) in the goaling program during FY 1999 have been to enhance the validity and emphasis on the

program through creation of an Internet Website and the creation of a new

award program. The procurement preference goaling Website contains both

current and historical goaling data, frequently asked questions, program

information, methodology for establishing goals, agencies’ proposed goals,

and of course the annual achievements. The goaling Website is located at:

http://www.sba.gov/GC/goals/. The new Gold Star Award for Excellence program was established to recognize the exemplary performance of the Federal

personnel within the Office of Small and Disadvantaged Business Utilization

(OSDBU) who have the primary responsibility for the aggressive goals and

strategic initiatives that ensure small business a role in the Federal marketplace. These will be annual awards presented at SBA’s Annual Procurement

Conference held in Washington, DC.

In FY 1998, the Executive Branch of the Federal Government exceeded

the government-wide small business goal of 23 percent and the small disadvantaged business (SDB) goal of 5 percent established by the Small Business

Act 15(g)(1), but failed to achieve the 5 percent women-owned small business

goal. The agencies exceeded the small business prime contract goal by awarding 23.4 percent ($42.5 billion) to small businesses out of the $181.7 billion

awarded in FY 1998. The agencies exceeded the government-wide small disadvantaged business prime contract goal of 5 percent by awarding 6.5 percent

($11.8 billion, which includes SDB and 8(a) contracts) to those firms. Federal

agencies, however, failed to achieve the 5 percent women-owned small business prime contract goal, awarding only 2.2 percent ($4.0 billion) to womenowned small businesses.

The Federal Government’s large business prime contractors subcontracted $67.8 billion in FY 1998. While there is no statutory government-wide

small business subcontract goal, the aggregate achievement by Federal prime

contractors was 40.4 percent ($27.4 billion) to small businesses. Although the

subcontracting share percentage to small businesses was slightly below the

projection, small businesses received nearly $4.4 billion more than projected.

Fiscal Year 1998 137
, 

the government-wide small business goal of 23 percent and the small disadvantaged business (SDB) goal of 5 percent established by the Small Business

Act 15(g)(1), but failed to achieve the 5 percent women-owned small business

goal. The agencies exceeded the small business prime contract goal by awarding 23.1 percent ($42.9 billion) to small businesses out of the $185.7 billion

awarded in fiscal year 1998. The agencies exceeded the government-wide

small disadvantaged business prime contract goal of 5 percent by awarding

6.7 percent ($12.4 billion, which includes SDB and 8(a) contracts) to those

firms. Federal agencies, however, failed to achieve the 5 percent womenowned small business prime contract goal, awarding only 2.5 percent ($4.6

billion) to women-owned small businesses.

The Federal Government’s large business prime contractors subcontracted

$69 billion in FY 1999. While there is no statutory government-wide small

business subcontract goal, the aggregate achievement by Federal prime contractors was 40.4 percent ($27.9 billion) to small businesses. Although the subcontracting share percentage to small businesses was below the projection,

small businesses received nearly $4.2 billion more than projected. The small

disadvantaged business subcontracting goal of 6.2 percent was also exceeded

by the awarding of 6.5 percent ($4.5 billion). The Federal Government’s large

prime contractors failed to achieve the women-owned small business subcontracting goal of 5 percent, awarding 4.3 percent ($3 billion) to women-owned

small businesses.

The main reasons cited by all the Federal agencies as the barriers to

achieving their small business goals were the result of procurement reform,

reduction in the number of procurement personnel, bundling, governmentwide agency contracts with large businesses, and the increased use of the

credit card for micro-purchases.

Please note that while we are reporting the accomplishments of each of the

departments and agencies that establish goals, we have restricted our analysis

and comments to data from 20 Federal agencies with the largest contracting

budgets. These 20 agencies represent approximately 99 percent of Federal

prime and subcontracts awarded.

Respectfully submitted,

AIDA ALVAREZ

Administrator

Enclosure

138 The Annual Report on Federal Procurement Preference Goals
SBA Guidance 142

PART I—Fiscal Year 1998 Report 145

Small Business Prime Contract Awards 145

Small Business Subcontract Awards 149

Minority Small Business Awards: The 8(a) Program 153

Small Disadvantaged Business Prime Contracts 158

Small Disadvantaged Business Subcontracts 162

Women-Owned Small Business Prime Contracts 166

Women-Owned Small Business Subcontracts 172

Appendix: Guidance on Goal Setting Under Procurement Preference Programs 175

Tables 179

PART II—Fiscal Year 1999 Report 195

Small Business Prime Contract Awards 195

Small Business Subcontract Awards 201

Minority Small Business Awards: The 8(a) Program 205

Small Disadvantaged Business Prime Contracts 210

Small Disadvantaged Business Subcontracts 213

Women-Owned Small Business Prime Contracts 217

Women-Owned Small Business Subcontracts 222

Appendix: Guidance on Goal Setting under Procurement Preference Programs 227

Tables 231

Fiscal Year 1998 139

yp

By law, federal agencies are required to provide small, women-owned

small businesses, and small disadvantaged businesses the “maximum

practicable opportunity” to participate in federal contracts for goods and

services. To this end, agencies consult annually with the U.S. Small Business

Administration (SBA) and set goals for the percentage of dollars to be awarded through prime contracts or subcontracts to small firms, small disadvantaged firms (including those participating in the 8(a) Business Development

(8(a) BD) program, and small women-owned firms. At the end of the year,

agencies report to the SBA on their success in meeting the goals. SBA has

Procurement Center Representatives (PCRs) assigned to the largest federal

agencies to work with the agencies to develop proactive strategies that will

open new areas of opportunity to the small business community.

This report includes both FY 1998 and FY 1999 procurement preference

goaling information. Part I of this report addresses FY 1998 and Part II of this

report addresses FY 1999.

Introduction

The policy of the United States, as stated in the Small Business Act, is that

all small businesses, small business concerns owned and controlled by

socially and economically disadvantaged individuals, and small business concerns owned and controlled by women are to have the maximum practicable

opportunity to participate in providing goods and services to the government.

To ensure that small businesses get their fair share, the SBA negotiates annual

procurement preference goals with each federal agency and reviews each

agency’s results. To that end, Public Law 95–507, as amended, requires the

head of each federal agency, after consultation with the SBA, to establish

aggressive, yet achievable, goals for the award of contracts to small, small disadvantaged and women-owned small businesses.

The statutory goals are established on a government-wide basis on the

aggregate of all federal dollars expected during the fiscal year. It is important

to note that proposed goals differ from agency to agency. Goals are established on an individual agency-by agency basis because each agency has a

different procurement mix based on its specific mission. For example, the

Department of Defense (DOD) purchases a large number of aircraft, and there

are not many small businesses providing this end product, whereas the

General Services Administration (GSA) purchases common commodities like

paper clips, paper, computers, etc., where there are numerous small business

suppliers. It is therefore appropriate to establish different dollar and percentFiscal Year 1998 141
y p, pg

et or mission changes affecting their procurement needs, changes in acquisition

procedures, and anticipated major acquisitions that will deviate from “usual”

award practices. If these goals are not set at recommended levels consistent with

our analysis, the SBA will not concur with the agency, and a goal at a more

appropriate level will be negotiated and subsequently established.

SBA Guidance

Each year, federal agencies provide the SBA with estimates of the total dollar

amount of (1) all prime contracts to be awarded during the year and (2) subcontracts to be awarded by all of the agency’s “reporting prime contractors.”1

All goals are expressed in terms of dollars and percentages. However, if there

is a variance, up or down, from the projected base amounts upon which goals

are established, the percentage goal is the controlling factor and will be used

to measure actual attainment. The individual goaling categories are:

• Prime contract awards to small businesses;

• Prime contract awards under the authority of Section 8(a) of the Small

Business Act;

• Prime contract awards to small businesses owned and controlled by

socially and economically disadvantaged individuals, other than 8(a);

• Prime contract awards to small businesses owned and controlled by

women;

• Subcontracts awarded by prime contractors to small businesses;

• Subcontracts awarded by prime contractors to small businesses

owned and controlled by socially and economically disadvantaged

individuals; and,

• Subcontracts awarded by prime contractors to small businesses owned

and controlled by women.

In the unlikely event that consultations between SBA and an agency fail

to result in a mutually agreeable goal, the Office of Federal Procurement

Policy (OFPP) at the Office of Management and Budget (OMB) shall make the

final determination of what goals are appropriate under the circumstances.

142 The Annual Report on Federal Procurement Preference Goals

1 “Reporting prime contractors” are defined in the Federal Government’s Standard Form 295. See

the appendix for detailed instructions provided to agencies.
qg (

103–355 signed October 13, 1994), more commonly known as FASA, requires

a 5 percent government-wide goal for women-owned small businesses.

Women-owned small businesses were incorporated into the procurement preference goaling process and added as a class for subcontract plan goals.

The SBA’s detailed analysis and comments cover only the 20 federal

agencies with the largest contracting budgets. These 20 agencies represent

approximately 99 percent of federal procurement awards reported to the

Federal Procurement Data Center. Tabular data on many of the smaller agencies are also included.

Fiscal Year 1998 143

2 Public Law 100–656 requires this information in the annual state of small business report.

I

n FY 1998, the executive branch of the federal government met or exceeded the three government-wide statutory contract goaling categories (Table A).

SBA negotiates seven individual goaling categories with each federal

department and agency. Agency projections or goals may be compared with

the actual achievements toward each category in both the prime and subcontract categories (Tables B and C).

In this report, the SBA summarizes federal agency performance in meeting their goals and provides detailed comments from the 20 federal agencies

with the largest contracting budgets, which represent over 99.4 percent of the

total dollars awarded. In the goal-setting process, agencies are encouraged to

set aggressive goals and make determined efforts to meet them. Most agencies

were able to do that in many of the categories. In addition, many agencies

have developed innovative small business initiatives and they have been

included to recognize the special efforts made by the agencies to meet their

small business goals. 

Small Business Prime Contract Awards

I

n FY 1998, the federal government awarded 23.4 percent, or $42.5 billion of

a total $181.7 billion, in prime contract dollars to small businesses (Tables 1

and 2). The total dollar amount exceeded the projected goal and the 23.4 percent awarded to small businesses, met the projected goals: small firms gained

$3.6 billion more than had been estimated. For purposes of this report, the

General Services Administration’s Federal Supply Service (FSS) projections and

achievements will be evaluated as part of each agencies’ expenditures and are

not included as part of GSA projections and achievements, as appropriate. 

The Departments of Agriculture, Education, Health and Human Services,

Housing and Urban Development, Justice, Transportation, Treasury, Veterans

Affairs, the Environmental Protection Agency, the General Services

Administration, the National Aeronautics and Space Administration, the Social

Security Administration, and the Tennessee Valley Authority all either met or

exceeded their percentage goals for prime contracting to small business. Eleven

of those agencies also exceeded their dollar goals. 

The largest single agency percentage increase over the projected total

came from the Department of Transportation, which achieved 24.9 percentage points more than projected, awarding 55.4 percent of its prime contract

awards to small business. The next largest percentage gain was from the

Department of Education, which awarded 34.9 percent—11.9 percentage

points higher than projected.
146 The Annual Report on Federal Procurement Preference Goals

Small Disadvantaged Business 5 12.7

(Includes prime and subcontract data, 

8(a) program prime and subcontract data)

Women-Owned Small Business 5 6.8

(Includes prime and subcontract data)

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development.

Table C. Subcontracts, FY 1998

Small Disadvantaged Women-owned 

Small Business Business Small Business

Goal Actual Goal Actual Goal Actual

Millions of 

Dollars 22,989.4 27,375.2 3,348.1 4,212.5 2,846.2 3,094.4

Percent 41.0 40.4 6.0 6.2 5.1 4.6

Notes: Goals are based on $56,085.8 projected subcontracting projections. Actuals are based on

$67,758.9 reported subcontracting obligations.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development.

Table B. Prime Contracts, FY 1998

Small Disadvantaged Women-owned 

Small Business Business 8(a) Small Business

Goal Actual Goal Actual Goal Actual Goal Actual

Millions of 

Dollars 38,885.8 42,494.5 7,213.8 5,288.3 2,758.0 6,947.0 7,560.6 4,012.8

Percent 23.3 23.4 4.3 2.9 1.6 3.6 4.5 2.2

Notes: Goals are based on projected procurement obligations of $167,234.2 (100 percent). Actuals are

based on reported procurement obligations of $181,714.8 (100 percent).

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development.
$pj

Agency Shortfalls

The Small Business Administration is charged in Public Law 95–507, as amended, with the responsibility to analyze and comment on shortfalls by major

reporting agencies. The Departments of Commerce, Defense, Energy, Interior,

Labor, State, and the U.S. Agency for International Development missed their

percentage goals for prime contract awards to small business concerns.

Department of Commerce

The U.S. Department of Commerce (Commerce) failed to reach its small business prime contract goal of 44 percent by 5.5 percentage points. The goal for

dollars to small businesses was also missed by $109.2 million. The actual

prime contract dollar amount awarded to small businesses in FY 1998 was

slightly less than $500 million. 

Commerce stated that procurements to small businesses have decreased

as a result of procurement reform, bundling, government-wide agency contracts with large businesses, and micro-purchases. The Commerce management team recognized the decline in awards to small businesses and implemented a plan called “SDB 2000 Program in FY 1999.” Some of the SDB 2000

initiatives include: 

• Bureau chief financial officer’s performance plans that include language focusing on small, minority and women-owned business goals; 

• Bureau-specific small business goals negotiated between the

Commerce chief financial officer/assistant secretary for administration

and bureau chief financial officers; 

• Awards of government-wide agency contracts for high-end information

technology solutions to small, minority (including 8(a) firms) and

women-owned small businesses; 

• Streamlined acquisitions under $100,000 (pilot program); 

• Establishment of a quick reaction task ordering program with minority

firms for management consulting services; 

• Monitoring of the top 20 upcoming contracts to ensure maximum

inclusion of small, minority-owned and women-owned firms; 

• Hosting of focus groups with Commerce’s top large business contractors to increase subcontracting opportunities for small, minority and

women-owned firms 

Fiscal Year 1998 147
just under $24.2 billion.

Department of Energy

The Department of Energy (DOE) failed to reach its small business prime contract goal of 21 percent by 2.9 percentage points. DOE also missed its small

business prime contract dollar goal of $3.2 billion by $405 million. The actual prime contract dollar amount awarded to small businesses in FY 1998 was

$2.7 billion. According to DOE’s report, the shortfall can be attributed to the

overall downsizing of the federal sector, along with various federal procurement mechanisms and practices, e.g., government-wide acquisition contracts

and consolidation of requirements, may have contributed to the decline in

small business contracting opportunities. 

DOE stated that in FY 1998, they continued to work aggressively to

increase achievement in all small business categories with a significant portion funded by DOE entities and programs which are involved in nonnuclear

research, development, and demonstration. 

Department of the Interior

The Department of the Interior (DOI) failed to reach its small business prime

contract goal of 58 percent by 3.6 percentage points; however, DOI exceeded its small business prime contract dollar goal of $454.8 million by $349.9

million. The actual small business prime contract dollar amount awarded was

$804.7 million. 

Department of Labor

The Department of Labor (DOL) missed its small business prime contract goal

by 5.7 percentage points, awarding 17.5 percent of its prime contracts to

small business concerns. In addition, DOL failed to meet its small business

prime contract dollar goal of $205.6 million by $9.7 million. The actual

prime contract dollar amount awarded to small businesses in FY 1998 was

$195.9 million. DOL reported that the failure to reach the FY 1998 goals

stemmed from a significant increase in funds to large businesses for the

award of two large optical character recognition contracts and for the operation of job training centers. (Training centers primarily account for the

Department’s subcontracting successes.) In addition, in the fourth quarter of

FY 1998, DOL awarded two contracts for a “fluff” in the design and operation of an optical character recognition system. The decision to award two

contracts resulted in an increase to DOL’s awards to large businesses and

148 The Annual Report on Federal Procurement Preference Goals
Department of State

The Department of State (State) missed its small business prime contract goal

by 2 percentage points, awarding 41.9 percent of its prime contracts to small

business concerns. In addition, the department failed to meet its small business prime contract dollar goal of $276.6 million by $39.8 million. The

actual prime contract dollar amount awarded to small businesses in FY 1998

was $236.8 million. The State Department reported that the failure to reach

their FY 1998 goals was attributable to several things, including the increase

in credit card purchases, which are not captured by the Federal

Procurement Data Center, and the department spent more than $16 million

in credit card purchases in FY 1998. The State Department also attributed

the failure to reach their FY 1998 goals to the increase in government-wide

area contracts available to agencies as tools for the expedient award of task

or delivery orders. Despite missing their FY 1998 goals for small business,

the department has some examples of substantial achievements that have

ensured small business participation in State Department procurement contracts above the Small Business Act requirements. For example, the department uses the 8(a) program for major construction projects abroad and voluntarily complies with subcontracting plan requirements for construction

projects over $1 million that will be performed entirely outside the United

States. The State Department planned to continue their outreach to small

businesses in FY 1999 and to focus on accurate reporting of contract award

statistics.

U.S. Agency for International Development

The U.S. Agency for International Development (USAID) failed to reach its

small business prime contract goal of 35.2 percent by 12 percentage points

and missed its small business prime contract dollar goal of $169 million by

$89.5 million. The actual prime contract dollar amount awarded to small

businesses in FY 1998 was $79.5 million.

Small Business Subcontract Awards 

Federal prime contractors awarded almost $68 billion in federal funds to

subcontractors in FY 1998 (Tables 3 and 4). Of this total, over $27 billion—

40.4 percent—went to small firms. This share was 0.6 percentage point lower

than projected. Despite barely missing the small business subcontract percentage, the total subcontract dollars awarded exceeded that projected by

Fiscal Year 1998 149
g gpg

tracting goals to small business: the Departments of Agriculture, Commerce,

Defense, Education, Energy, Housing and Urban Development, Interior,

Transportation, Treasury, National Aeronautics and Space Administration, and

the Social Security Administration. All of these agencies, except the

Department of Education, also exceeded the dollar goal for subcontract

awards to small business concerns. The Department of Education missed its

dollar goal by about $4 million.

Despite missing the percentage goal for subcontract awards to small businesses, the Departments of Health and Human Services, Labor, State, and

Veterans Affairs, the Environmental Protection Agency, and the U.S. Agency

for International Development exceeded their projected dollar goals.

The largest single agency percentage increase over the projected total

came from the Social Security Administration, which awarded 38 percentage

points more than projected, making 63 percent of its subcontract awards to

small business. The next largest percentage gain was from the Department of

Interior, which subcontracted 66.7 percent—28.7 percentage points higher

than projected.

The largest dollar increase over the projected total came from the

Department of Defense. Its prime contractors increased the dollar total for

small business by almost $4.3 billion, to over $22.2 billion. The second largest

dollar share gain was from the Department of Veterans Affairs, whose prime

contractors awarded $605.3 billion to small businesses—almost $500 million

more than projected.

Of all the agencies, the Department of the Interior achieved the highest

percentage goal for small business subcontracts at 66.7 percent. The Social

Security Administration achieved the second highest percentage at 63 percent. 

Agency Shortfalls

The following agencies failed to meet their percentage goals for subcontract

dollars to small businesses: the Departments of Health and Human Services,

Justice, Labor, State, and Veterans Affairs, the Environmental Protection Agency,

the General Services Administration, the Tennessee Valley Authority, and the

U.S. Agency for International Development. Despite missing the percentage

goal for small business subcontracts, the Departments of Health and Human

Services, Labor, State, and Veterans Affairs, the Environmental Protection

Agency, and the U.S. Agency for International Development exceeded the dollar totals projected for small business subcontract awards. Only the

Department of Justice, the General Services Administration, and the Tennessee

Valley Authority missed both their percentage and dollar goals for subcontract

150 The Annual Report on Federal Procurement Preference Goals
centage goal for subcontract awards to small business concerns. Despite missing its percentage goal by 2.9 percent, HHS exceeded the dollar goal by $17

million. In total, HHS’s prime contractors awarded $138 million in subcontracts—30.7 percent—to small businesses in FY 1998.

Department of Justice

The Department of Justice (DOJ) failed to reach its small business subcontract

share goal of 53 percent by 10.1 percentage points and its dollar goal of $450.5

million by $209.9 million. The actual dollar amount subcontracted to small

businesses in FY 1998 was $240.6 million. DOJ attributed the failure to reach

the FY 1998 goals to the department’s prime contractors falling short of both dollars and percentages pertaining to goals. DOJ is currently reviewing a new automated system for monitoring subcontracting plans as well as other procurement

goals. If the system is instituted, DOJ anticipates increased opportunities for

small businesses as subcontractors and more accurate data collection. 

Department of Labor

The Department of Labor (DOL) failed to reach its small business subcontract

goal of 59.3 percent by 0.8 percentage point, but exceeded its small business

subcontract dollar goal of $101.8 million by $46.7 million. The actual dollar

amount subcontracted to small businesses in FY 1998 was $148.5 million.

Department of State

The Department of State missed its percentage goal for small business subcontract awards by 3.9 percentage points, awarding 44.3 percent, but

exceeded its dollar goal by $20.3 million. Its prime contractors reported small

business subcontract awards totaling $44.3 million in FY 1998. The State

Department has planned to combat this failure to meet the goal by ensuring

that its large prime contractors understand the importance of accurate subcontract reporting through annual subcontract training seminars for its large

prime contractors. 

Department of Veterans Affairs

The Department of Veterans Affairs (VA) missed its percentage goal for small

business subcontract awards by 15.9 percentage points, awarding 18.1 percent.

However, VA exceeded its dollar goal by $469.3 million. Its prime contractors

reported small business subcontract awards totaling $605.3 million in FY 1998.

VA stated that as a result of “reinventing government” and downsizing, VA

Fiscal Year 1998 151
ensure more accurate reporting.

Environmental Protection Agency

The Environmental Protection Agency (EPA) missed its percentage goal for

small business subcontract awards by 3.1 percentage points—awarding 46.9

percent. However, EPA exceeded its dollar goal by $16.9 million. Its prime

contractors reported small business subcontract awards totaling $106.9 million

in FY 1998. 

General Services Administration

The General Services Administration’s (GSA) Non-Federal Supply Service (NFSS)

failed to reach its small business subcontract percentage and dollar goals. GSA

missed its percentage goal for small business subcontract awards by 1 percent—

awarding 41 percent. GSA missed its dollar goal by $838.7 million. Its prime

contractors reported small business subcontract awards totaling $631.3 million

in FY 1998. When it had a major acquisition, GSA convened presolicitation

conferences for the small business community. These conferences allowed participants the opportunity to meet and talk with some of the potential prime contractors for the procurement to explore the possibility of teaming and subcontracting opportunities. Prime contractors are required to establish aggressive

small business goals and GSA consistently monitors the subcontracting program.

In addition, in 1998, GSA held its second annual national Subcontract Report

Process Workshop for GSA Prime Contractors, in which GSA explained subcontracting plan reporting requirements and compliance initiatives.

Tennessee Valley Authority

The Tennessee Valley Authority (TVA) failed to reach its small business subcontract percentage and dollar goals. TVA missed its percentage goal for small

business subcontract awards by 3 percentage points, awarding 32 percent.

TVA missed its dollar goal by $84.9 million. Its prime contractors reported

small business subcontract awards totaling $37.6 million in FY 1998. Over the

past four years, total TVA procurement for materials and services has

decreased more than 30 percent. As a result, TVA experienced a significant

reduction in the total number of suppliers, which made it difficult for TVA to

meet its subcontracting goal. TVA is currently reviewing and planning to

strengthen second-tier requirements to help in achieving subcontracting goals.

152 The Annual Report on Federal Procurement Preference Goals
$85.8 million in FY 1998. 

Minority Small Business Awards: The 8(a) Program

The 8(a) Business Development (BD) program helps eligible small disadvantaged business concerns compete in the American economy through

business development. The 8(a) BD program provides federal government contracts to small companies owned and controlled by socially and economically

disadvantaged individuals who are certified by the U.S. Small Business

Administration (SBA). Under the program, the SBA, which acts as the prime

contractor in the process, works with other federal agencies to identify requirements suitable for the 8(a) BD program. The federal agencies, with SBA assistance, then negotiate subcontracts with certified 8(a) BD program participants. 

The federal government awarded almost $6.5 billion (or 3.6 percent) of

the total amount awarded in prime contracts through the SBA to firms participating in the 8(a) BD program in FY 1998 (Tables 5 and 6). The total exceeded both the percentage and dollar goals established for awards to 8(a) firms.

The following three agencies either met or exceeded their percentage

goals for 8(a) BD: The Departments of State, Transportation and Veterans

Affairs. The following eight agencies either met or exceeded their dollar goals:

the Departments of Agriculture, Health and Human Services, Interior, Labor,

State, Transportation, Treasury, and Veterans Affairs. Despite missing their percentage goals, the Departments of Agriculture, Health and Human Services,

Interior, and Labor exceeded their dollar goals for awards to 8(a) firms.

The Department of Defense (DOD) has, by specific legislation, a goal of

5 percent for participation of small disadvantaged business and it does not

provide a separate goal for 8(a) and other SDB awards, but sets a single goal

for total SDB participation. When both 8(a) and SDB are combined, DOD

achieved 5.8 percent, exceeding the SDB goal of 5 percent by almost one percentage point.

The largest single agency percentage increase over the projected total

came from the Department of Veterans Affairs, which awarded 4.6 percentage

points more than projected, allocating 7.1 percent to 8(a) firms. The next

largest gain was from the Department of State, which awarded 12.3 percent,

3.5 percentage points higher than projected.

The largest dollar increase over the projected total came from the

Department of Veterans Affairs, which increased its total for 8(a) contracts by

$238.7 million, to $301.4 million. The second largest dollar share gain was

from the Department of Health and Human Services, which awarded $440

million to 8(a) firms, $203 million more than projected. 

Fiscal Year 1998 153
National Aeronautics and Space Administration, the Social Security

Administration, the Tennessee Valley Authority, and the U.S. Agency for

International Development. 

The following agencies failed to achieve their dollar goals for 8(a) contracts: the Departments of Commerce, Education, Energy, Housing and Urban

Development, and Justice, the Environmental Protection Agency, the General

Services Administration, the National Aeronautics and Space Administration,

the Social Security Administration, the Tennessee Valley Authority, and the

U.S. Agency for International Development. 

Department of Agriculture

The Department of Agriculture (USDA) missed its 8(a) contract percentage

goal, but exceeded its dollar goal. USDA projected a percentage goal of 5 percent of its prime contract awards to 8(a) firms, but achieved only 4.1 percent.

It should be noted that USDA increased its awards to 8(a) firms by $8.5 million by awarding $120.4 million in 8(a) prime contract awards. 

Department of Commerce

The Department of Commerce (DOC) failed to reach its 8(a) contract percentage goal of 12 percent by 4.7 percentage points. DOC also missed its 8(a)

contract dollar goal of $94.3 million by $7.5 million. The actual dollar

amount to 8(a) contracts was $86.9 million. DOC stated that its procurements

to small business have decreased as a result of procurement reform, bundling,

government-wide agency contracts with large businesses, and micro-purchases. DOC recognizes the decline in the awards and has developed a plan to be

implemented for small and minority-owned businesses. 

Department of Education

The Department of Education (DOEd) failed to reach its 8(a) prime contract

goal of 4 percent by 2.1 percentage points. DOEd also missed its 8(a) contract

dollar goal of $25.8 million by $7.2 million. The actual dollar amount to 8(a)

contracts was $18.6 million. Specifically, DOEd plans to emphasize the use of

tools recently implemented to streamline business processes for the award of

contracts under the Section 8(a) authority.

Department of Energy

The Department of Energy (DOE) did not make its 8(a) contract goal, missing

it by 0.3 percentage point. DOE also failed to reach its 8(a) dollar goal of $375

154 The Annual Report on Federal Procurement Preference Goals
percentage goal for awards to 8(a) firms, missing it by 4 percentage points.

HUD also missed its dollar goal for awards to 8(a) firms by $25.5 million.

HUD awarded $13.6 million in prime contracts to 8(a) firms. To increase

small business participation in HUD prime contracts, the department has instituted an aggressive outreach program. The outreach efforts are focused and

specifically targeted to underrepresented minority-owned businesses and to

geographic areas where underrepresented minority-owned businesses contracting with HUD and with HUD grantees are evident. HUD has hired a new

staff person to focus on this effort.

Department of the Interior

The Department of the Interior (DOI) missed its 8(a) contract percentage goal,

but exceeded its dollar goal. DOI projected a percentage goal of 9.3 percent

of its prime contract awards to 8(a) firms and narrowly missed its goal. It

should be noted that DOI increased its awards to 8(a) firms by $59.5 million

by awarding $132.4 million in 8(a) prime contract awards.

Department of Justice

The Department of Justice (DOJ) missed its percentage goal for awards to 8(a)

firms by 2.4 percentage points. DOJ also missed its dollar goal for awards to

8(a) firms by $12.8 million, nevertheless awarding $190.9 million in prime

contracts to 8(a) firms. DOJ staff believe they missed the goal because of a

coding problem in the data submitted to the Federal Procurement Data

System. DOJ has reviewed coding procedures and anticipates these problems

will be corrected in the next fiscal year.

Department of Labor

The Department of Labor (DOL) missed its 8(a) contract percentage goal, but

exceeded its dollar goal. DOL projected a percentage goal of 3.4 percent of

its prime contract awards to 8(a) firms and missed its goal by just 0.1 percentage point. It should be noted that DOL increased its awards to 8(a) firms

by $7.2 million by awarding $37.1 million in 8(a) prime contract awards. 

DOL reported that the failure to reach its FY 1998 goals was because of

a significant increase in funds to large businesses for the award of two large

optical character recognition contracts and for the operation of job training

centers. (Training centers account primarily for the department’s subcontracting successes.) In addition, in the fourth quarter of FY 1998, DOL awarded

two contracts for a “fluff” in the design and operation of an optical character

Fiscal Year 1998 155
ppp

business goals. Most of DOL’s contracting activity is performed in the

Employment and Training Administration’s Job Corps program. These contracts are primarily for operating Job Corps training centers and outreach

admission and placement contracts. In FY 1999, DOL will award its first 100

percent small business set-aside contract for the operation of a Job Corps training center. In addition, DOL has been working with SBA on the 8(a) mentorprotégé program to assist in locating and developing 8(a) firms to meet Job

Corps procurement requirements. In FY 1999, DOL will be issuing its first

competitive 8(a) requirement for the operation of a Job Corps training center. 

Department of the Treasury

The Department of the Treasury exceeded its dollar goal of prime contract

awards to 8(a) firms by $23 million. Treasury awarded $129.4 million in

prime contracts to 8(a) concerns. However, the department missed its 8(a)

percentage goal by 2.2 percentage points. Treasury awarded 7.3 percent of

its prime contracting opportunities to 8(a) firms. Treasury is committed to an

effective small business program, and plans to continue to work to promote

small, small disadvantaged, and women-owned small business participation

in its procurement program. 

Environmental Protection Agency

The Environmental Protection Agency (EPA) failed to reach its 8(a) contract

goal of 6 percent by 2.3 percentage points. EPA also missed its 8(a) contract

dollar goal of $72 million by $30.8 million. The actual dollar amount in 8(a)

contracts was $41.2 million. EPA has undertaken many initiatives to improve

its performance in awards to 8(a) firms. Specifically, EPA plans to commit to a

“rule of one” to encourage solicitation of at least one minority-owned business in each procurement under the simplified acquisition threshold. EPA

plans to continue its outreach efforts to continuously improve upon its programs for small businesses.

General Services Administration

The General Services Administration’s (GSA) Non-Federal Supply Service

missed both its percentage and dollar goals for awards to 8(a) firms. GSA failed

to meet its percentage goal by 1.5 percentage points, while missing its dollar

goal by $92 million. GSA awarded $415.5 million—5.2 percent—in prime

contract awards to 8(a) firms. When GSA had a major acquisition, the agency

convened presolicitation conferences for the small business community. These

156 The Annual Report on Federal Procurement Preference Goals
pp ,

where the agency explains subcontracting plan reporting requirements and

compliance initiatives.

National Aeronautics and Space Administration

The National Aeronautics and Space Administration (NASA) missed both its

percentage and dollar goals for awards to 8(a) firms. NASA failed to meet its

percentage goal by 0.6 percentage point, while missing its dollar goal by

$13.9 million. NASA awarded $317.1 million—2.9 percent—in prime contract awards to 8(a) firms. 

Social Security Administration

The Social Security Administration (SSA) missed both its percentage and dollar

goals for awards to 8(a) firms. SSA failed to meet its percentage goal by 1.7 percentage points and missed its dollar goal by $28.2 million, awarding $58.4 million—11.3 percent—in prime contract awards to 8(a) firms. SSA has made continual efforts throughout the year to promote the socioeconomic programs. SSA

staff attend several procurement fairs and one-on-one conferences with potential small business vendors and participate in panels during the year. In addition,

SSA has hosted conferences for local small business vendors. According to SSA,

the most significant influence on the ability to reach the fiscal year goals has

been the use of GSA schedules. SSA also stated that the downsizing of staff,

combined with more and more services being provided through GSA, has

caused a decline in the overall share awarded to small businesses. SSA plans to

continue to actively pursue methods to increase buyers’ awareness of the need

to support the small business community.

Tennessee Valley Authority

The Tennessee Valley Authority (TVA) missed its 8(a) percentage goal by 0.3 percentage point. TVA also missed its 8(a) contract dollar goal of $6.7 million by

$6.3 million. The actual dollar amount awarded in 8(a) contracts was $0.4 million. According to TVA, material and services expenditures have decreased

more than 30 percent annually, which has significantly reduced the number of

suppliers providing material and services. To increase its awards to small businesses, TVA has incorporated aggressive minority business goals in business

plans and made them part of TVA managers’ performance appraisal. TVA plans

to make significant efforts to increase minority business participation and

emphasize planning, sourcing, communication, and commitment regarding

minority business involvement. In addition, TVA plans to increase joint-venture

Fiscal Year 1998 157
The U.S. Agency for International Development (USAID) failed to reach its

8(a) contract goal of 10.4 percent by 7.1 percentage points. USAID also

missed its 8(a) contract dollar goal of $50 million by $38.6 million. The actual dollar amount in 8(a) contracts was $11.4 million.

Small Disadvantaged Business Prime Contracts

I

n FY 1998, the federal government awarded almost $5.3 billion or 2.9 percent of the total $181.7 billion in prime contract dollars to small disadvantaged businesses (SDBs). These accomplishments do not include contracts

awarded through the 8(a) program (Tables 7 and 8). The federal agencies

missed the overall projected percentage goal by 1.4 percentage points and the

projected dollar amount for SDB firms by $1.9 billion in FY 1998. 

The following 11 federal agencies met or exceeded their percentage goals

for SDB: the Departments of Health and Human Services, Interior, Justice,

Transportation, Treasury, and Veterans Affairs, the General Services

Administration, the National Aeronautics and Space Administration, and the U.

S. Agency for International Development. The following 12 federal agencies

also exceeded their dollar goals: the Departments of Commerce, Education,

Health and Human Services, Interior, Justice, Transportation, Treasury, and

Veterans Affairs, the General Services Administration, the National Aeronautics

and Space Administration, the Tennessee Valley Authority, and the U. S. Agency

for International Development.

The largest single agency percentage increase over the projected total

came from the U. S. Agency for International Development, which awarded

5.3 percentage points more than projected, achieving 11 percent in SDB prime

contracts. The next largest gain was from the Department of the Treasury, which

awarded 6.9 percent—4.6 percentage points higher than projected.

The largest dollar increase over the projected total came from the General

Services Administration (GSA). GSA increased its dollar total of prime contract

awards to SDB firms by $166.3 million—awarding $431.4 million to SDB

firms in FY 1998. The second largest dollar increase was posted by the

Department of Health and Human Services (HHS) for SDB prime contracts.

HHS increased its dollar total of Federal Supply Schedule SDB prime contracts

by $118.6 million, to $208.6 million. 

Of all the agencies, the Department of Commerce established the highest

percentage goal for SDB prime contracts at 6 percent. It achieved 5.5 percent

for SDB contracts. 

158 The Annual Report on Federal Procurement Preference Goals
SBA has reviewed and provided specific comments on the reports of the

agencies that did not achieve their percentage goals for SDB prime contracts

in FY 1998. 

Two agencies exceeded their percentage goal for SDB prime contract

awards, but missed their dollar goal in FY 1998: the Department of Housing

and Urban Development and the Environmental Protection Agency. 

Department of Agriculture

The Department of Agriculture (USDA) failed to reach its SDB prime contract

goal of 5 percent by 2.5 percentage points. USDA also missed its SDB prime

contract dollar goal of $111.9 million by $38.7 million. The actual SDB prime

contract dollar amount awarded was $73.2 million. USDA gave several reasons for the shortfall. Commodities account for more than 50 percent of

USDA’s total procurement budget and there are relatively few, if any, minority- or women-owned food processing plants, largely because of high startup

costs. USDA also stated that government-wide automation contracts and the

practice of bundling automation requirements are on the rise at USDA, and

accounted for significant shortfalls in the 8(a) and SDB achievements. The

expanded use of credit cards has not helped the small business programs, and

these transactions accounted for more than $150 million in purchases in FY

1998. USDA plans to continue to put forth every effort to meet or exceed all

of its procurement goals. For example, they will use tools such as memorandums of understanding with the SBA, the mentor-protégé initiative, partnerships with professional associations that represent SDBs, annual outreach

plans for each USDA agency, and getting the small business programs included in senior management officials’ performance appraisals.

Department of Commerce

The Department of Commerce (DOC) failed by 0.5 percentage point to reach

its SDB prime contract percentage goal of 6 percent. Despite missing its percentage goal, DOC exceeded its SDB contract dollar goal of $47.1 million by

$18.2 million. The actual dollar amount to SDB contracts was $65.3 million.

DOC said its procurements to small disadvantaged businesses have decreased

as a result of procurement reform, bundling, government-wide agency contracts with large businesses, and micro-purchases. DOC recognizes the

decline in the awards and has developed a plan to be implemented for

increasing awards to small and minority-owned businesses. 

Fiscal Year 1998 159
percent, exceeding the SDB goal of 5 percent by almost 1 percentage point.

When the SDB goal is reviewed separately from the 8(a) achievements, DOD

achieved 2.8 percentage points for a total amount in SDB contracts of

$3,284.7 million, more than 62 percent of total federal dollars that go to small

disadvantaged businesses.

Department of Education

The Department of Education (DOEd) failed to reach its SDB prime contract goal

of 1 percent by 0.3 percentage points. However, DOEd exceeded its SDB contract dollar goal of $6.5 million by $0.8 million. The actual dollar amount in 8(a)

contracts was $7.3 million. DOEd plans to increase attention to the individual

goal components for each program area and emphasize the use of tools recently implemented to streamline business processes for the award of contracts.

Department of Energy

The Department of Energy (DOE) missed its SDB contract goal by 1.1 percentage point. DOE also failed to reach its SDB dollar goal of $450 million by

$164.6 million. The actual dollar amount in SDB contracts in FY 1998 was

$285.4 million. DOE stated that the decline in small business achievements

parallels the decline in the agency’s budget. Other factors that contributed to

the decline in small business contracting opportunities were the overall downsizing of the federal sector and various federal procurement mechanisms and

practices such as government-wide acquisition contracts and consolidation of

requirements. DOE has established a plan to ensure success of small businesses in the future and is committed to ensure that a fair share of its prime

contracts and subcontracts are awarded to small, small disadvantaged, and

women-owned small businesses.

Department of Labor

The Department of Labor (DOL) missed both its SDB contract percentage goal

and its dollar goal. DOL projected a percentage goal of 5.1 percent of its prime

contract awards to SDB firms and missed its goal by 3 percentage points. The

department missed its projected dollar goal to SDB firms by $21.4 million,

awarding $23.7 million in SDB prime contract awards. DOL attributed its failure to reach the FY 1998 goals to a significant increase in funds to large businesses for the award of two large optical character recognition contracts and

for the operation of job training centers. (Training centers primarily account for

the Department’s subcontracting successes.) In addition, in the fourth quarter

160 The Annual Report on Federal Procurement Preference Goals
cerns, the shortfall was matched by a marked increase in small business sub

contracting achievements. DOL has developed a plan to achieve the

department’s small business goals. The majority of DOL’s contracting activity is

performed in the Employment and Training Administration’s Job Corps program. These contracts are primarily for operating Job Corps training centers and

outreach admission and placement contracts. In FY 1999, DOL will award its

first 100 percent small business set-aside contract for the operation of a Job

Corps training center. In addition, the department has been working with the

SBA on the 8(a) mentor-protégé program to assist in locating and developing

8(a) firms to meet Job Corps procurement requirements. In FY 1999, DOL will

be issuing its first competitive 8(a) requirement for the operation of a Job Corps

training center. 

Department of State

The Department of State missed its SDB prime contract goal by 1.2 percentage points, awarding 3.8 percent of its prime contracts to SDB concerns. In

addition, the department fell short by $9.9 million of meeting its SDB prime

contract dollar goal of $31.5 million. The actual prime contract dollar

amount awarded to SDB concerns in FY 1998 was $21.6 million. The State

Department attributed its failure to reach the FY 1998 goals to several factors,

including an increase in credit card purchases, which are not captured by the

Federal Procurement Data Center. The department spent more than $16 million in credit card purchases in FY 1998. The State Department also attributed part of its failure to reach the FY 1998 goals to the increase in government-wide area contracts available to agencies as tools for the expedient

awarding of task or delivery orders. Despite missing the FY 1998 goals for

SDB, State has some examples of substantial achievements that have ensured

small business participation in State Department procurement contracts

above the Small Business Act requirements. For example, the department

uses the 8(a) program for major construction projects abroad and voluntarily

complies with subcontracting plan requirements for construction projects

over $1 million that will be performed entirely outside the United States. The

State Department planned to continue outreach to small businesses in FY

1999 and to focus on accurate reporting of contract award statistics.

Social Security Administration

The Social Security Administration (SSA) missed both its percentage and dollar goals for awards to SDB concerns. SSA failed to meet its percentage goal

by 0.6 percentage point, while missing its dollar goal by $10.9 million, awardFiscal Year 1998 161
gp

agency’s ability to meet the FY 1998 goals was the use of GSA schedules. Also

downsizing of staff, combined with more and more services being provided

through GSA, has caused a decline in the overall percentage to small businesses. SSA plans to continue pursuing methods to increase buyers’ awareness

of the need to support the small business community.

Tennessee Valley Authority

The Tennessee Valley Authority (TVA) missed its SDB percentage goal by 1.2

percentage points. Despite missing its percentage goal, TVA exceeded its SDB

contract dollar goal of $60.2 million by $17.1 million. The actual dollar

amount in SDB contracts was $77.3 million. TVA stated that one of the major

impacts to its small business program is that material and services expenditures have decreased more than 30 percent annually, which has significantly

reduced the number of suppliers providing material and services. To increase

its awards to small businesses, TVA has incorporated aggressive minority business goals in business plans and made them part of TVA managers’ performance appraisals. TVA plans to make significant efforts to increase minority

business participation by emphasizing planning, sourcing, communication,

and commitment to minority business involvement. In addition, TVA plans to

increase joint-venture partnerships and alliances with large businesses and

other minority suppliers, which have already resulted in increased new procurement opportunities for several minority suppliers.

Small Disadvantaged Business Subcontracts

Federal prime contractors awarded almost $68 billion in federal funds to

subcontractors in FY 1998. Of this total, a little more than $4.2 billion—6.2

percent—went to small disadvantaged business subcontractors (Tables 9 and

10). This share was 0.2 percentage point higher than projected. Subcontracts

to SDBs totaled $864.5 million more than projected.

The following 12 federal agencies met or exceeded their percentage goals

for SDB subcontracts: The Departments of Defense, Education, Energy, Housing

and Urban Development, Interior, State, Transportation, and Treasury, the

Environmental Protection Agency, the General Services Administration, the

Tennessee Valley Authority, and the U.S. Agency for International Development.

In addition, all except the following two agencies also exceeded their dollar

goals: the General Services Administration and the Tennessee Valley Authority.

The largest single agency percentage increase over the projected total

came from the Department of the Interior, which awarded 25.7 percent of its

162 The Annual Report on Federal Procurement Preference Goals
gy 

The following eight of the 20 agencies missed their projected percentage and

dollar goals for subcontract dollars to SDBs: the Departments of Agriculture,

Commerce, Health and Human Services, Justice, Labor, and Veterans Affairs,

the National Aeronautics and Space Administration, and the Social Security

Administration. An analysis and comments on those agencies that missed their

SDB subcontracting goals are provided below.

Department of Agriculture

The Department of Agriculture (USDA) exceeded its subcontract percentage

goal to SDBs by 2 percentage points and actually awarded 3 percent of its subcontract dollars to SDB firms. USDA failed by $7.8 million to meet its dollar

goal to SDB firms. USDA’s prime contractors awarded $26.1 million in subcontracts to SDB firms in FY 1998. The agency said there are many reasons that

it fell short in its achievement of its goals, the primary one being in the food

commodity area, which accounts for more than 50 percent of USDA’s total procurement budget. There are relatively few, if any, minority- or women-owned

food processing plants, because of high start-up costs. USDA also stated that

government-wide automation contracts and the practice of bundling automation requirements is on the upswing at USDA; this accounts for a significant

impact on 8(a) and SDB achievements. The expanded use of credit cards has

not helped the record for the small business programs; credit cards accounted

for more than $150 million in purchases in FY 1998. USDA plans to continue

to put forth every effort to meet or exceed all of its procurement goals. For

example, they will use tools such as their memorandum of understanding with

the SBA, the mentor-protégé initiative, partnerships with professional associations that represent SDBs, annual outreach plans for each USDA agency, and

inclusion of the small business programs in senior management officials’ performance appraisals.

Department of Commerce

The Department of Commerce (DOC) failed to reach its SDB subcontracting

share goal of 18 percent by 9.3 percentage points and its dollar goal of $28.2

million by $12.3 million. The actual dollar amount subcontracted to SDB in FY

1998 was $15.9 million. DOC stated that procurements to small disadvantaged

businesses have decreased as a result of procurement reform, bundling, government-wide agency contracts with large businesses, and micro-purchases.

DOC recognizes the decline in the awards and has developed a plan to

improve its procurement from small and minority-owned businesses. 

Fiscal Year 1998 163
lion. In FY 1998, HHS awarded 4.4 percent, or $19.7 million, of its subcontracts to SDB firms. HHS said that there are many programmatic impacts

on small business participation in HHS procurements. A primary reason for

the decline in the percentage of awards is contract bundling—the trend

toward increasing the size and scope of federal sector contracts to a size

often too large to be performed by small businesses. In addition, HHS said

that GWAC, IDIQ, and task order contracts are also decreasing prime contract opportunities for small businesses. HHS said that supporting the SDB

program continues to be a top priority and the agency is constantly seeking

innovative ways to take advantage of recent procurement reforms while

maximizing its dollars awarded to small, disadvantaged, HUBZone, and

women-owned small businesses.

Department of Justice

The Department of Justice (DOJ) did not meet either its SDB subcontract percentage or dollar goal in FY 1998. DOJ projected that 6 percent of its SDB

subcontract awards would be made to SDB firms but missed the goal by 0.9

percentage point. DOJ also missed its SDB subcontract dollar goal of $51 million by $22.2 million. The actual dollar amount subcontracted to SDBs in FY

1998 was $28.8 million. The department said its prime contractors have fallen short of both dollar and percentage goals. DOJ accepts the Standard Form

295 data as accurate. They are currently reviewing a new automated system

for monitoring subcontracting plans as well as other procurement goals. If the

system is instituted, DOJ anticipates increased business opportunities for small

business subcontractors.

Department of Labor

The Department of Labor (DOL) exceeded its SDB subcontract dollar goal of

$20.3 million by $1.8 million, but missed its percentage goal by 3.1 percentage points. The actual percentage amount subcontracted to SDBs in FY 1998

was 8.7 percent. The DOL is taking steps to reverse changes relating to its

shortfalls and reports that the failure to reach FY 1998 goals was attributable

to a significant increase in funds awarded to large businesses for two large

optical character recognition contracts and for the operation of job training

centers. (Training centers primarily account for the department’s subcontracting successes.) In addition, in the fourth quarter of FY 1998, DOL awarded

two contracts for a “fluff” in the design and operation of an optical character

recognition system. The decision to award two contracts resulted in an

increase in DOL’s awards to large businesses and thus a decrease in the small

164 The Annual Report on Federal Procurement Preference Goals
Jppgpy p

ing Job Corps training centers and outreach admission and placement contracts. In FY 1999, DOL will award its first 100 percent small business setaside contract for the operation of a Job Corps training center. In addition,

DOL has been working with the SBA on the 8(a) mentor-protégé program to

assist in locating and developing 8(a) firms to meet Job Corps procurement

requirements. In FY 1999, DOL will be issuing its first competitive 8(a)

requirement for the operation of a Job Corps training center. 

Department of Veterans Affairs

The Department of Veterans Affairs (VA) missed its percentage goal for SDB

subcontract awards by 2.5 percentage points—awarding 2.5 percent.

However, VA exceeded its dollar goal by $62.8 million. Its prime contractors

reported SDB subcontract awards totaling $82.8 million in FY 1998. VA stated that as a result of “reinventing government” and downsizing, VA acquisition operations are being merged with each other geographically and with

other administrative functions within medical centers. The trend in VA is to

consolidate acquisition opportunities. The VA is the largest provider of health

care in the country, and purchases and products are being standardized and

consolidated into national contracts. VA works with its prime contractors to

ensure more accurate reporting.

National Aeronautics and Space Administration

The National Aeronautics and Space Administration (NASA) exceeded the

projected dollar value of SDB subcontract awards by $24.2 million. NASA’s

prime contractors awarded $635.4 million in subcontracts to SDB firms.

However, NASA missed its percentage goal for SDB subcontracts by 0.4 percentage point, awarding 14.2 percent of its FY 1998 subcontracts to SDB

firms. 

Social Security Administration

The Social Security Administration (SSA) missed both its percentage and dollar goals for SDB subcontract awards. SSA barely missed its percentage goal

by 0.2 percentage point, while missing its dollar goal by $0.1 million. SSA

awarded $0.1 million—4.8 percent—in SDB subcontract awards. SSA has

made continual efforts throughout the year to promote the socioeconomic

programs. SSA staff attended several procurement fairs and one-on-one conferences with potential small business vendors and participated in panels during the year. In addition, SSA has hosted conferences for local small business

Fiscal Year 1998 165
ersawareness of the need to support the small business community.

Women-Owned Small Business Prime Contracts

I

n FY 1998, the federal government awarded 2.2 percent, or more than $4

billion of a total of 181.7 billion, in prime contracts to women-owned small

businesses (Tables 11 and 12). Both the total dollar amount and the percentage awarded to women-owned small businesses fell below the projected goals

established by the agencies. Women-owned small businesses received $3.5

billion less than projected and 2.3 percentage points less than the overall

share of the goal of 4.5 percent projected by the agencies.

The following three federal agencies met or exceeded their percentage

goals for awards to women-owned small businesses (WOSB): the

Departments of State and Veterans Affairs, and the National Aeronautics and

Space Administration. The following four agencies exceeded their total dollar goal awards to WOSB even though they missed their percentage goal for

awards to WOSB: The Departments of Interior, Justice, Treasury, and the

Tennessee Valley Authority. 

The largest single agency percentage increase over the projected total

came from the Department of Veterans Affairs (VA), which awarded 1.4 percentage points more than projected, allocating 5.4 percent to WOSBs. The

next largest percentage gain was from the Department of State, which awarded 1 percentage point more than projected.

The largest dollar increase over the projected total came from the VA. It

increased its dollar total for women-owned small businesses by $131.4 million. VA awarded $231.4 million to WOSBs. The second largest dollar share

gain was from the Department of State, which awarded $33.7 million, $2.2

million more than originally projected.

Agency Shortfalls

Seventeen of the 20 major agencies missed their percentage goal for prime

contracts to women-owned small businesses: the Departments of Agriculture,

Commerce, Defense, Education, Energy, Health and Human Services, Housing

and Urban Development, Interior, Justice, Labor, Transportation, and Treasury,

the Environmental Protection Agency, the General Services Administration, the

Social Security Administration, the Tennessee Valley Authority, and the U.S.

Agency for International Development. 

166 The Annual Report on Federal Procurement Preference Goals
were many reasons it fell short of achieving its goals. The most significant was

in the food commodity area, which accounts for more than 50 percent of

USDA’s total procurement budget. Relatively few, if any, processing plants are

minority- or women-owned, because of the immense start-up costs. USDA also

stated that government-wide automation contracts and the practice of bundling

automation requirements are on the upswing at USDA and account for a significant share of the decrease in 8(a) and SDB achievements. USDA also said

that the expanded use of credit cards has not helped the small business programs and accounted for more than $150 million in purchases in FY 1998.

USDA will continue to put forth every effort to meet or exceed all of its procurement goals. For example, they will use tools such as MOUs with SBA, the

mentor-protégé initiative, partnerships with professional associations that represent women-owned businesses, annual outreach plans for each USDA

agency, and inclusion of small business programs in senior management officials’ performance appraisals.

Department of Commerce

The Department of Commerce (DOC) failed to meet both its percentage and

dollar goals for awards to WOSBs, awarding 5 percent—3 percentage points

less than projected. DOC missed its dollar goal by $3.3 million, awarding

$59.5 million in prime contracts to WOSBs in FY 1998. DOC said that WOSB

procurements have decreased as a result of procurement reform, bundling,

government-wide agency contracts with large businesses, and micro-purchases. DOC recognizes the decline in the awards and has developed a plan to

increase awards to small minority- and women-owned businesses. 

Department of Defense

The Department of Defense (DOD) failed by 3.2 percentage points to reach

its WOSB prime contract goal. DOD also missed its prime contract dollar goal

of $5.6 billion by $3.5 billion. The actual prime contract dollar amount

awarded to WOSBs in FY 1998 was $2.1 billion. DOD’s report states that

although the department did not achieve the prime contract goal for awards

to WOSBs, it was able to maintain a respectable level of dollar awards to these

firms despite a decline in total business awards. Although DOD spending

decreased at an annual rate of 2.2 percent from FY 1985 to FY 1998, prime

contract awards to WOSBs grew. DOD awarded more than half of the total $4

billion awarded to WOSBs in 1998.

Fiscal Year 1998 167
most of the agency’s spending is in the area of student financial aid delivery

services and they plan to increase their emphasis on finding opportunities for

the small business community in this program. DOEd plans to improve its performance by communicating the department’s goals to each assistant secretary

and program area. In addition, DOEd plans to increase emphasis on advanced

acquisition planning to ensure that small businesses are included and to monitor each principal office in meeting their objectives and proactively identify

potential opportunities. DOEd is committed to meeting its responsibilities to

maximize opportunities for the small business community.

Department of Energy

The Department of Energy (DOE) narrowly missed its WOSB prime contract

goal of 3 percent by 0.1 percentage point. DOE also missed its WOSB prime

contract dollar goal of $450 million by $9.9 million. The actual prime contract dollar total awarded to WOSBs in FY 1998 was $440.1 million. DOE’s

report stated that the decline in small business achievements parallels the

decline in the agency’s budget. Other factors that contributed to the decline

in small business contracting opportunities were the overall downsizing of the

federal sector, along with various federal procurement mechanisms and practices, such as government-wide acquisition contracts and consolidation of

requirements. DOE has established a plan to increase small business contracting in the future and is committed to ensuring that a fair share of its prime

contracts and subcontracts are awarded to small, small disadvantaged and

women-owned small businesses.

Department of Health and Human Services

The Department of Health and Human Services (HHS) failed to meet both its

percentage and dollar goals for prime contract awards to WOSB firms in FY

1998. HHS fell short of its percentage goal by 1.9 percent, and missed its dollar

goal by $6.1 million. In FY 1998, HHS awarded 3.4 percent or $145.9 million

of its prime contracts to WOSB firms. The agency’s report noted that there are

many programmatic impacts on small business participation at HHS, a primary

one being a trend to increase the size and scope of federal sector contracts or

contract bundling, which are too large to be performed by small businesses. In

addition, HHS noted that GWAC, IDIQ, and task order contracts are also

decreasing prime contract opportunities for small business. The HHS report said

that supporting the SDB program continues to be a top priority and they are constantly seeking innovative ways to take advantage of recent procurement

168 The Annual Report on Federal Procurement Preference Goals
percentage nor its dollar goal for prime contract awards to WOSBs. HUD

missed its percentage goal by 2.5 percent, awarding 5.6 percent of its prime

contracts to WOSB firms. The department also failed to meet its dollar goal for

prime contracts to WOSBs by $13.9 million. HUD awarded $5.6 million in

prime contracts to WOSBs. In order to increase small business participation in

HUD prime contracts, the department has instituted an aggressive outreach

program. HUD plans to launch a department-wide WOSB campaign to provide outreach, marketing, and training assistance. The agency will establish

10 more mentor-protégé agreements between the department and businesses.

HUD efforts are focused and specifically targeted to underrepresented minority-owned businesses and to geographic areas where underrepresented minority-owned businesses contracting with HUD and HUD grantees are evident.

HUD has hired a new staff person to focus on this effort.

Department of the Interior

The Department of the Interior (DOI) missed its WOSB prime contract percentage goal, but exceeded its dollar goal. DOI projected a percentage goal of 5.1

percent of its prime contract awards to WOSB firms and missed its goal by 1 percentage point. It should be noted that DOI increased its awards to WOSB firms

by $20.3 million by awarding $60.3 million in WOSB prime contract awards.

Department of Justice

The Department of Justice (DOJ) missed its WOSB prime contract goal of 3

percent by just 0.1 percentage point. However, DOJ exceeded its WOSB

prime contract dollar goal of $74.5 million by $21.1 million. The actual prime

contract dollar amount awarded to WOSB firms in FY 1998 was $95.6 million. DOJ staff believe they missed the goal because of a coding problem in

the data that were submitted to the Federal Procurement Data System. DOJ

has reviewed its coding procedures and anticipates these problems will be

corrected in the next fiscal year.

Department of Labor

The Department of Labor (DOL) failed to reach its WOSB prime contract goal

of 5.6 percent by 4.2 percentage points. DOL also missed its WOSB prime contract dollar goal of $34 million. The actual prime contract dollar amount

awarded to WOSBs in FY 1998 was $15.3 million. DOL reported that the failure to reach the FY 1998 goals was attributable to a significant increase in

funds to large businesses for the award of two large optical character recogniFiscal Year 1998 169
nesses and thus a decrease in the percentage to small businesses. Although this

negatively impacted DOL’s prime contract awards to small business concerns,

it was matched by a marked increase in their subcontract achievements to

small business. DOL has developed a plan to achieve the Department’s small

business goals. Most of DOL’s contracting activity is performed in the

Employment and Training Administration’s Job Corps program. These contracts

are primarily for operating Job Corps training centers and outreach admission

and placement contracts. In FY 1999, DOL will award its first 100 percent

small business set-aside contract for the operation of a Job Corps training center. In addition, DOL has been working with SBA on the 8(a) mentor-protégé

program to assist in locating and developing 8(a) firms to meet the Job Corps

procurement requirements. In FY 1999, DOL will be issuing its first competitive 8(a) requirement for the operation of a Job Corps training center. 

Department of Transportation

The Department of Transportation (DOT) failed to reach its WOSB prime contract goal of 5 percent by 1.3 percentage points. DOT also missed its WOSB

prime contract dollar goal of $77.9 million by $8.2 million. The actual prime

contract dollar amount awarded to WOSBs in FY 1998 was $69.7 million.

DOT stated that although the agency did not achieve its WOSB goal, research

and training efforts did place a high priority and emphasis on WOSB contracting. In fact, DOT was the first agency to sign a memorandum of understanding with SBA committing to specific initiatives to increase contracts

awarded to WOSBs. One of the most significant initiatives was that the goals

were to be made part of the performance plans of key department officials.

DOT has set up specific marketing, outreach, and training for WOSBs. DOT

continues to maintain its national information clearinghouse procurement

database to assist WOSBs in identifying potential contracting opportunities. In

addition, DOT provided funds to the National Women’s Business Council to

promote and encourage WOSBs in procuring federal contracts. Finally, DOT’s

ongoing bonding assistance program and its short-term lending program have

improved WOSB access to financing.

Department of the Treasury

The Department of the Treasury (Treasury) exceeded its dollar goal of prime

contract awards to WOSBs by $10.3 million; however, the department failed

by 1.3 percentage points to achieve its percentage goal. Treasury awarded

$66.3 million in prime contracts and 3.7 percent of its prime contracting

opportunities to WOSB concerns. Treasury is committed to an effective small

170 The Annual Report on Federal Procurement Preference Goals
The Environmental Protection Agency (EPA) missed its WOSB prime contract

goal of 3.5 percent by 0.9 percentage point. EPA also missed its WOSB prime

contract dollar goal of $42 million by $12.6 million. The actual prime contract dollar amount awarded to WOSBs in FY 1998 was $29.4 million.

General Services Administration

The General Services Administration (GSA) Non-Federal Supply Schedule

contract program failed to reach its WOSB prime contract goal of 5 percent

by 1.7 percentage points. GSA also missed its WOSB prime contract dollar

goal of $378.8 million by $110.1 million. The actual prime contract dollar

amount awarded to WOSBs in FY 1998 was $268.7 million. During FY 1998,

GSA has launched a number of new initiatives designed to showcase new procurement opportunities across the country. GSA believes that these initiatives

will assist the small business community, including WOSB firms, in successfully contracting with the agency.

Social Security Administration

The Social Security Administration (SSA) missed both its WOSB prime contract percentage goal of 5 percent by 0.6 percentage point and its WOSB

prime contract dollar goal of $33.3 million by $10.3 million. Actual prime

contract dollars awarded to WOSBs in FY 1998 totaled $23 million. SSA has

made continual efforts throughout the year to promote the socioeconomic

programs. SSA staff attended several procurement fairs and one-on-one conferences with potential small business vendors and participated in panels during the year. In addition, SSA has hosted conferences for local small business

vendors. SSA stated that the most significant impact on its ability to reach its

goals for the fiscal year has been the use of GSA schedules. The downsizing

of the agency, combined with more and more services being provided through

GSA, have caused a decline in the overall percentage to small businesses. SSA

will actively pursue methods to increase the buyers’ awareness of the need to

support the small business community.

Tennessee Valley Authority

The Tennessee Valley Authority (TVA) came very close to reaching its WOSB

prime contract goal of 1.9 percent but missed it by 0.8 percentage point; however, TVA exceeded its WOSB prime contract dollar goal of $42.1 million by

awarding $52.4 million to WOSBs. TVA stated that material and services

expenditures have decreased more than 30 percent annually, which has sigFiscal Year 1998 171
y , pj

ture partnerships and alliances with large businesses and other minority suppliers; such efforts have already resulted in new procurement opportunities for

several minority suppliers.

U.S. Agency for International Development

The U.S. Agency for International Development (USAID) barely missed its

WOSB prime contract goal of 5 percent by 0.5 percentage point. USAID

also missed its WOSB prime contract dollar goal of $24 million by $8.6 million. Actual prime contract dollars awarded to WOSBs in FY 1998 totaled

$15.4 million.

Women-Owned Small Business Subcontracts

Federal prime contractors awarded $67.8 billion in federal funds to subcontractors in FY 1998 (Tables 13 and 14). Of this total, almost $3.1 billion—4.6 percent—went to women-owned small businesses (WOSB). This

share was 0.5 percentage point less than projected. However, subcontracts

awarded to WOSBs totaled $248.2 million more than the amount initially projected.

The following federal agencies met or exceeded their percentage goals for

awards to women-owned small businesses (WOSB): the Departments of

Education, Health and Human Services, Housing and Urban Development,

Interior, Labor, State, Treasury, and Veterans Affairs, the Environmental

Protection Agency, the National Aeronautics and Space Administration, the

Social Security Administration, and the U.S. Agency for International

Development.

The largest single agency percentage increase over the projected total

came from the Social Security Administration, which awarded 11.3 percentage points more than projected, achieving 16.3 percent. The next largest percentage gain was from the Department of Housing and Urban Development,

which subcontracted 14.1 percent—9 percentage points more than projected.

The largest dollar increase over the projected total came from the

Department of Defense. It increased its dollar total for subcontracts to WOSBs

by $221 million, to almost $2.4 billion. The second largest dollar share gain

was from the Department of Veterans Affairs, which awarded $69.8 million in

subcontracts to WOSBs, or $65.8 million more than projected. 

Of all the 20 agencies, the Department of Commerce (DOC) set the highest percentage goal for subcontracts to WOSBs at 8 percent, but achieved only

4.6 percent of its projected amount.

172 The Annual Report on Federal Procurement Preference Goals
Department of Agriculture

The Department of Agriculture (USDA) missed its percentage goal for subcontract awards to WOSBs. USDA’s prime contractors awarded 2.9 percent, which

was 2.1 percentage points less than the 5 percent projected for award to WOSB

firms. USDA also missed its dollar goal by $9 million, awarding $24.9 million

in subcontracts to WOSBs in FY 1998. USDA said there were many reasons it

fell short, the most significant being in the food commodity areas, which

accounts for more than 50 percent of USDA’s total procurement budget. There

are relatively few, if any, minority- and women-owned food processing plants,

largely because of immense start-up costs. USDA also stated that governmentwide automation contracts and the practice of bundling automation requirements is on the upswing at USDA; these practices account for a significant

impact on its 8(a) and SDB achievements. USDA also said that the expanded use

of credit cards has not helped the small business programs and accounted for

more than $150 million in purchases in FY 1998. USDA plans to continue to put

forth every effort to meet or exceed all of its procurement goals, using tools such

as memorandums of understanding with SBA, the mentor-protégé initiative,

partnerships with professional associations that represent SDBs, annual outreach

plans for each USDA agency, and inclusion of small business programs in senior management officials’ performance appraisals.

Department of Commerce

The Department of Commerce (DOC) missed its WOSB subcontract goal by

3.4 percentage points, subcontracting 4.6 percent of its award dollars to

WOSBs. DOC also failed by $4.1 million to reach its WOSB dollar goal of

$12.5 million. The actual dollar amount subcontracted to WOSBs in FY 1998

was $8.4 million. DOC procurements to WOSBs have declined as a result of

procurement reform, bundling, government-wide agency contracts with large

businesses, and micro-purchases. DOC recognizes the decline in the awards

and has developed a plan to be implemented to increase awards to small and

minority-owned businesses.

Department of Defense

The Department of Defense (DOD) failed to reach its WOSB subcontract goal

of 5 percent by 0.5 percentage point, but substantially exceeded its WOSB subcontract dollar goal of almost $2.2 billion by $221 million. The actual dollar

amount subcontracted to women-owned small businesses in FY 1998 was

almost $2.4 billion.

Fiscal Year 1998 173
said the decline in small business achievements parallels the decline in its

overall budget. Other factors contributing to the decline in small business contracting opportunities were overall downsizing of the federal sector, along

with various federal procurement mechanisms and practices, such as, for

example, government-wide acquisition contracts and consolidation of

requirements. DOE has established a plan to support the success of small businesses in the future and is committed to ensuring that a fair share of its prime

contracts and subcontracts are awarded to small, small disadvantaged, and

small women-owned businesses.

Department of Justice

The Department of Justice (DOJ) missed its WOSB subcontract goal of 7 percent by 2 percentage points and its dollar goal of $59.5 million by $31.3 million. The actual dollar amount subcontracted to WOSB firms in FY 1998 was

$28.2 million. DOJ staff believe the data are accurate, but anticipate that DOJ’s

new system for monitoring subcontracting plans and procurement goals will

aid them is assisting companies to meet their negotiated goals.

Department of Transportation

The Department of Transportation (DOT) exceeded its WOSB subcontract

dollar goal of $15.1 million by $3.7 million. The actual dollar amount subcontracted to WOSB firms in FY 1998 was $18.8 million. However, DOT

missed its WOSB goal of 5 percent by 1.2 percentage points, achieving 3.8

percent. Although DOT did not achieve its goal for WOSB subcontracts, the

agency did place high priority and emphasis on WOSBs in their outreach and

training efforts, according to the DOT report. In fact, DOT was the first

agency to sign a memorandum of understanding (MOU) with SBA committing to specific initiatives to increase contracts awarded to WOSBs. One of

the most significant initiatives DOT incorporated was that the goals were to

be made part of the performance plans of key department officials. DOT has

set up specific marketing, outreach, and training for WOSBs and continues

to maintain a national information clearinghouse procurement database to

assist WOSBs in identifying potential contracting opportunities. In addition,

DOT provided funds to the National Women’s Business Council to promote

and encourage WOSBs in procuring federal contracts. Finally, DOT’s ongoing bonding program and short-term lending programs have improved

WOSB access to financing.

174 The Annual Report on Federal Procurement Preference Goals
The General Services Administration (GSA) Non-Federal Supply Service

(NFSS) failed to reach its women-owned small business goal of 5 percent by

0.8 percentage point. GSA also missed its women-owned small business subcontract dollar goal of $175 million by $110.7 million. The actual dollar

amount subcontracted to women-owned small businesses in FY 1998 was

$64.3 million. GSA launched a number of new initiatives in FY 1998 designed

to showcase new procurement opportunities across the country. GSA believes

that these initiatives will assist the small business community, including

WOSB firms.

Fiscal Year 1998 175
FY 1998

Guidance on Goal Setting 

under Procurement Preference Programs

Background

Section 221 of Public Law 95–507 and Public Law 100–656, Sections 502

and 503, require the head of each federal agency, after consultation with

the Small Business Administration, to establish realistic goals for the award of

contracts to small business concerns and to small business concerns owned

and controlled by socially and economically disadvantaged individuals. A

government-wide goal of 20 percent of all prime contract awards for small

business concerns was established, in addition to a government-wide goal of

5 percent of the total value of all prime contract and subcontract awards for

each fiscal year for small business concerns owned and controlled by socially and economically disadvantaged individuals.

Public Law 103–355, dated October 13, 1994, established a governmentwide goal of 5 percent of the total value of all prime contract and subcontract

awards for small business concerns owned and controlled by women.

The SBA will not accept individual agency goals until the mandatory government-wide goals stated above are established.

Specific Guidance on Goal Setting Under Procurement Preference

Programs

The head of each federal agency having procurement powers shall submit to the Administrator of the Small Business Administration, not later than

December 20, 1996, the following information for fiscal year 1998:

(1) an estimate of the total dollar amount of all prime contracts regardless

of dollar value to be awarded during the fiscal year, including awards to nonprofit organizations, educational institutions, all transportation services, and real

property leases, but excluding foreign military sales, nonappropriated funds

contracts, contracts to be awarded and performed entirely outside the United

States and, except for the General Services Administration (see Special

Instruction (2) on page 3), all Federal Supply Service Schedule Orders.

Purchases made with credit cards are exempt (see Special Instruction (6) on

page 3);

(2)a goal for prime contract awards to be made to small business

concerns during the fiscal year, expressed in numbers, dollars, and as a

176 The Annual Report on Federal Procurement Preference Goals
(p() pg);

(4) a goal for prime contract awards to be made to small business concerns owned and controlled by socially and economically disadvantaged individuals, other than 8(a), expressed in numbers, dollars, and as a percentage of

(1) above (see Special Instruction (9) on page 3);

(5) a goal for prime contract awards to be made to small business concerns owned and controlled by women, expressed in numbers, dollars, and as

a percentage of (1) above;

(6) an estimate of the total dollar amount of subcontracts to be awarded

by all of an agency’s “reporting prime contractors” (as identified in Standard

Form 295) during the fiscal year;

(7) a goal for subcontracts to be awarded by prime contractors to small

business concerns, expressed in numbers, dollars, and as a percentage of (6)

above (Note: This dollar amount includes dollar goals in (8) and (9) below.);

(8) a goal for subcontracts to be awarded by prime contractors to small

business concerns owned and controlled by socially and economically disadvantaged individuals, expressed in numbers, dollars, and as a percentage

of (6) above;

(9) a goal for subcontracts to be awarded by prime contractors to small

business concerns owned and controlled by women, expressed in numbers,

dollars, and as a percentage of (6) above;

(10) a detailed written presentation of the method used to establish the

estimates and goals submitted pursuant to paragraphs (1) through (9), along

with copies of the historical data upon which the estimates and goals are

based. Information about the numbers of contracts involved in the estimates

submitted pursuant to paragraphs (2) through (9) is required. This information

is needed to evaluate the estimates and the goals related thereto. In establishing contracting goals, identification and justification should be provided for

each class of contracts and the projected total value thereof determined by an

agency to have little or no subcontract possibilities.

Special Instructions

(1) Fiscal year 1998 goals are expected to reflect measurable improvement.

(2) Do not include Federal Supply Service (FSS) Schedule contracting

dollars in proposed goals. In line with the policy established in FY 1981, GSA

will submit separate, consolidated proposed figures and goals, i.e., for items

(1) through (5) above, for all FSS contracts, which will include all order

requirements of all federal agencies.

Fiscal Year 1998 177
p, g

ed to express the numbers of 8(a) contracts as well as the dollars and percentages.

(5) In the event of extraordinary circumstances such as unexpected budget changes, requests for revised goals will be considered by SBA if received by

December 31, 1996.

(6) Purchases paid with credit cards do not require the reporting of socioeconomic status of the supplier or vendor. Establishing a system to track these

transactions for procurement preference goal setting and reporting may not be

cost effective and could create an unreasonable administrative paperwork

burden. Credit card purchases are therefore exempt; however, if agencies do

have a system for tracking these transactions they may be included.

(7) The close of fiscal year 1996 marked the first year that a governmentwide goal for business concerns owned by women was in place. With the

extraordinary growth in women-owned firms in the last few years, we believe

that this goal has become even more important and achievable and we ask

that you double your commitment to achieving this goal in fiscal year 1998.

(8) Reporting agencies are encouraged to coordinate goals required by

Section 221(g) with the Minority Business Development Plans mandated by

Executive Order 12432 dated July 14, 1983.

(9) Consistent with the Department of Justice affirmative action proposal

published in the Federal Register last May, small disadvantaged business

(SDB) (prime and subcontracting) goals may be adjusted in the latter part of

this fiscal year, if appropriate, to reflect estimated industry benchmarks.

Referrals to OFPP

The Administrator of the Small Business Administration shall, within 30 days

of receipt of the agency goals, respond to each agency expressing agreement

or indicating reasons for disagreement. If interagency consultation fails to

resolve differences, such cases of disagreement shall be submitted by the

Administrator of the Small Business Administration to the Administrator of the

Office of Federal Procurement Policy (OFPP) for final determination.

Reports on Agency Achievements Against Established Goals

1. The head of each federal agency having procurement powers shall report

to the Administrator of the Small Business Administration on the extent of

achievements against the goals established in paragraphs (2) through (9). With

the exception of subcontract goals, agency reports of goal achievements shall be

based upon official SF–279/SF–281 data as recorded at the Federal Procurement

Data Center. Agency reports of goal achievements in subcontracting shall be

178 The Annual Report on Federal Procurement Preference Goals
Table 3 Small Business Share of Federal Subcontracts:

Performance by Prime Contractors to Major Federal

Agencies, FY 1998 183

Table 4 Small Business Share of Federal Subcontracts:

Performance by Prime Contractors to Other Federal

Agencies, FY 1998 184

Table 5 8(a) Program Share of Federal Prime Contracts:

Performance by Major Federal Agencies, FY 1998 185

Table 6 8(a) Program Share of Federal Prime Contracts:

Performance by Other Federal Agencies, FY 1998 186

Table 7 Small Disadvantaged Business Share of Federal Prime

Contracts: Performance by Major Federal 

Agencies, FY 1998 187

Table 8 Small Disadvantaged Business Share of Federal Prime

Contracts: Performance by Other Federal 

Agencies, FY 1998 188

Table 9 Small Disadvantaged Business Share of Federal

Subcontracts: Performance by Prime Contractors 

to Major Federal Agencies, FY 1998 189

Table 10 Small Disadvantaged Business Share of Federal

Subcontracts: Performance by Prime Contractors 

to Other Federal Agencies, FY 1998 190

Table 11 Women-Owned Small Business Share of Federal 

Prime Contracts: Performance by Major Federal 

Agencies, FY 1998 191

Table 12 Women-Owned Small Business Share of Federal 

Prime Contracts: Performance by Other Federal 

Agencies, FY 1998 192

Table 13 Women-Owned Small Business Share of Federal

Subcontracts: Performance by Prime Contractors 

to Major Federal Agencies, FY 1998 193
180 The Annual Report on Federal Procurement Preference Goals
Agriculture 2,237.3 936.1 41.8 2,958.4 1,258.0 42.5

Commerce 785.5 345.6 44.0 1,182.0 454.8 38.5

Defense 112,600.0 24,772.0 22.0 115,656.8 24,166.1 20.9

Education 645.0 148.4 23.0 964.9 336.8 34.9

Energy 15,000.0 3,150.0 21.0 15,142.9 2,745.0 18.1

Health and Human Services 2,851.3 863.5 30.3 4,244.7 1,423.5 33.5

Housing and Urban Development 391.0 121.2 31.0 228.2 93.3 40.9

Interior 784.1 454.8 58.0 1,478.9 804.7 54.4

Justice 2,483.8 807.2 32.5 3,309.9 1,139.7 34.4

Labor 887.4 205.6 23.2 1,120.1 195.9 17.5

State 630.0 276.6 43.9 565.7 236.8 41.9

Transportation 1,557.0 474.9 30.5 1,897.2 1,050.6 55.4

Treasury 1,120.3 358.5 32.0 1,784.2 666.0 37.3

Veterans Affairs 2,500.0 887.5 35.5 4,250.0 1,573.2 37.0

Environmental Protection Agency 1,200.0 276.0 23.0 1,109.8 294.7 26.6

General Services Administration (NFSS) 7,575.0 2,651.2 35.0 8,039.6 3,162.6 39.3

National Aeronautics and 

Space Administration 9,600.0 1,018.0 10.6 10,972.3 1,239.1 11.3

Social Security Administration 666.2 233.2 35.0 517.7 201.2 38.9

Tennessee Valley Authority 2,228. 401.1 18.0 5,013.2 959.5 19.1

U.S. Agency for International 

Development 480.0 169.0 35.2 342.2 79.5 23.2

All Other Agencies—Total 1,012.1 335.4 33.1 936.2 413.6 44.2

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.

Fiscal Year 1998 181
182 The Annual Report on Federal Procurement Preference Goals

Commission on Civil Rights — — 0.0 285.0 167.0 58.6

Commodity Futures Trading 

Commission 10,000.0 1,700.0 17.0 10,886.0 1,112.0 10.2

Consumer Product Safety Commission 3,291.4 1,974.8 60.0 5,585.0 2,545.0 45.6

Corporation for National Service 26,850.0 5,390.0 20.1 11,684.0 3,308.0 28.3

Equal Employment Opportunity 

Commission 11,450.0 5,152.5 45.0 38,792.0 5,362.0 13.8

Executive Office of the President 30,000.0 11,500.0 38.3 35,888.0 19,020.0 53.0

Federal Communications Commission 39,819.3 18,419.5 46.3 7,677.0 5,506.0 71.7

Federal Election Commission — — 0.0 3,004.0 1,321.0 44.0

Federal Emergency Management 

Agency 200,000.0 41,000.0 20.5 225,413.0 45,438.0 20.2

Federal Energy Regulatory Commission 17,922.5 5,938.3 33.1 25,536.0 9,769.0 38.3

Federal Maritime Commission 259.0 129.0 49.8 336.0 285.0 84.8

Federal Mediation and Conciliation 

Service — — 0.0 3,047.0 1,016.0 33.3

Federal Mine Safety and Health 

Review Commission 175.0 100.0 57.1 401.0 383.0 95.5

Federal Trade Commission 8,000.0 5,200.0 65.0 7,716.0 5,350.0 69.3

International Trade Commission 3,426.0 685.2 20.0 4,076.0 2,315.0 56.8

Merit Systems Protection Board — — 0.0 1,358.0 637.0 46.9

National Archives and Records

Administration 46,800.0 14,101.6 30.1 26,394.0 11,229.0 42.5

National Capital Planning Commission — — 0.0 771.0 495.0 64.2

National Endowment for the Arts — — 0.0 1,213.0 850.0 70.1

National Endowment for the 

Humanities 1,100.0 800.0 72.7 1,330.0 1,088.0 81.8

National Labor Relations Board 3,999.0 2,051.0 51.3 11,849.0 8,071.0 68.1

National Science Foundation 192,285.5 15,594.4 8.1 49,975.0 18,471.0 37.0

National Transportation Safety Board 4,000.0 320.0 8.0 — — 0.0

Nuclear Regulatory Commission 65,000.0 29,000.0 44.6 56,461.0 23,562.0 41.7

Occupational Safety and Health

Review Commission — — 0.0 627.0 341.0 54.4

Office of Personnel Management 115,130.0 82,344.0 71.5 165,486.0 114,411.0 69.1

Securities and Exchange Commission 33,057.0 8,330.0 25.2 41,924.0 17,993.0 42.9

Selective Service System 1,449.0 742.5 51.2 2,238.0 880.0 39.3

Small Business Administration 30,000.0 16,500.0 55.0 32,474.0 24,075.0 74.1

Smithsonian Institution 120,000.0 54,000.0 45.0 86,769.0 54,764.0 63.1

U.S. Arms Control and 

Disarmament Agency 4,270.0 1,432.1 33.5 5,560.0 2,014.0 36.2

United States Information Agency 43,800.0 13,000.0 29.7 71,168.0 31,678.0 44.5

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Agriculture 678.6 226.1 33.3 862.8 366.8 42.5

Commerce 156.4 68.8 44.0 181.8 82.7 45.5

Defense 43,400.0 17,967.6 41.4 53,119.0 22,237.0 41.9

Education 160.0 36.8 23.0 128.2 33.2 25.9

Energy 700.0 280.0 40.0 761.7 314.5 41.3

Health and Human Services 361.0 121.0 33.5 450.2 138.0 30.7

Housing and Urban Development 95.5 39.9 41.8 211.3 103.0 48.7

Interior 40.0 15.2 38.0 91.3 60.9 66.7

Justice 850.0 450.5 53.0 560.6 240.6 42.9

Labor 171.8 101.8 59.3 254.2 148.5 58.4

State 60.0 24.0 40.0 122.7 44.3 36.1

Transportation 303.0 151.5 50.0 496.7 248.9 50.1

Treasury 303.3 97.0 32.0 437.8 166.8 38.1

Veterans Affairs 400.0 136.0 34.0 3,335.3 605.3 18.1

Environmental Protection Agency 180.0 90.0 50.0 227.9 106.9 46.9

General Services Administration (NFSS) 3,500.0 1,470.0 42.0 1,540.6 631.3 41.0

National Aeronautics and 

Space Administration 4,187.0 1,516.0 36.2 4,469.4 1,632.5 36.5

Social Security Administration 3.8 1.0 25.0 2.7 1.7 63.0

Tennessee Valley Authority 350.0 122.5 35.0 117.4 37.6 32.0

U.S. Agency for International 

Development 8.6 4.5 52.3 202.5 85.8 42.4

All Other Agencies—Total 176.8 69.3 39.2 184.8 88.9 48.1

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.

Fiscal Year 1998 183
184 The Annual Report on Federal Procurement Preference Goals

Commission — — 0.0 — — 0.0

Commission on Civil Rights — — 0.0 — — 0.0

Commodity Futures Trading 

Commission — — 0.0 — — 0.0

Consumer Product Safety Commission — — 0.0 — — 0.0

Corporation for National Service 6,034.3 313.8 5.2 — — 0.0

Equal Employment Opportunity 

Commission — — 0.0 57.6 31.0 53.8

Executive Office of the President 957.0 387.9 40.5 233.0 130.7 56.1

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission — — 0.0 — — 0.0

Federal Emergency Management 

Agency 9,000.0 7,000.0 77.8 59,711.4 42,030.2 70.4

Federal Energy Regulatory 

Commission 13,364.9 5,478.9 41.0 681.9 293.8 43.1

Federal Maritime Commission — — 0.0 — — 0.0

Federal Mediation and Conciliation 

Service — — 0.0 — — 0.0

Federal Mine Safety and Health 

Review Commission — — 0.0 — — 0.0

Federal Trade Commission — — 0.0 — — 0.0

International Trade Commission — — 0.0 — — 0.0

Merit Systems Protection Board — — 0.0 — — 0.0

National Archives and Records 

Administration 4,000.0 920.0 23.0 — — 0.0

National Capital Planning 

Commission — — 0.0 — — 0.0

National Endowment for the Arts — — 0.0 — — 0.0

National Endowment for the Humanities — — 0.0 — — 0.0

National Labor Relations Board — — 0.0 — — 0.0

National Science Foundation 115,405.2 41,765.1 36.2 93,486.5 30,748.6 32.9

National Transportation Safety Board — — 0.0 — — 0.0

Nuclear Regulatory Commission 8,000.0 5,248.1 65.6 14,660.2 8,053.2 54.9

Occupational Safety and Health 

Review Commission — — 0.0 — — 0.0

Office of Personnel Management 9,094.0 7,126.0 78.4 9,348.5 6,054.3 64.8

Securities and Exchange Commission 2,336.1 281.2 12.0 6,623.3 1,584.8 23.9

Selective Service System — — 0.0 — — 0.0

Small Business Administration — — 0.0 — — 0.0

Smithsonian Institution 1,500.0 750.0 50.0 — — 0.0

U.S. Arms Control and 

Disarmament Agency — — 0.0 — — 0.0

United States Information Agency 7,100.0 — 0.0 37.6 4.8 12.8

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Commerce 785.5 94.3 12.0 1,182.0 86.9 7.3

Defense 112,600.0 — — 115,656.8 3,433.2 3.0

Education 645.0 25.8 4.0 964.9 18.6 1.9

Energy 15,000.0 375.0 2.5 15,142.9 333.3 2.2

Health and Human Services 2,851.3 241.0 8.5 4,244.7 444.0 10.5

Housing and Urban Development 391.0 39.1 10.0 228.2 13.6 6.0

Interior 784.1 72.9 9.3 1,478.9 132.4 9.0

Justice 2,483.8 203.7 8.2 3,309.9 190.9 5.8

Labor 887.4 29.9 3.4 1,120.1 37.1 3.3

State 630.0 55.4 8.8 565.7 69.5 12.3

Transportation 1,557.0 179.1 11.5 1,897.2 270.6 14.3

Treasury 1,120.3 106.4 9.5 1,784.2 129.4 7.3

Veterans Affairs 2,500.0 62.8 2.5 4,250.0 301.4 7.1

Environmental Protection Agency 1,200.0 72.0 6.0 1,109.8 41.2 3.7

General Services Administration (NFSS) 7,575.0 507.5 6.7 8,039.6 415.5 5.2

National Aeronautics and 

Space Administration 9,600.0 331.0 3.4 10,972.3 317.1 2.9

Social Security Administration 666.2 86.6 13.0 517.7 58.4 11.3

Tennessee Valley Authority 2,228.2 6.7 0.3 5,013.2 0.4 0.0

U.S. Agency for International

Development 480.0 50.0 10.4 342.2 11.4 3.3

All Other Agencies—Total 1,012.1 106.9 10.6 936.2 71.8 7.7

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.

Fiscal Year 1998 185
186 The Annual Report on Federal Procurement Preference Goals

Commission — — 0.0 247.0 — 0.0

Commission on Civil Rights — — 0.0 285.0 — 0.0

Commodity Futures Trading 

Commission 10,000.0 306.0 3.1 10,886.0 — 0.0

Consumer Product Safety 

Commission 3,291.4 822.9 25.0 5,585.0 989.0 17.7

Corporation for National Service 26,850.0 9,500.0 35.4 11,684.0 12.0 0.1

Equal Employment Opportunity 

Commission 11,450.0 801.5 7.0 38,792.0 430.0 1.1

Executive Office of the President 30,000.0 6,000.0 20.0 35,888.0 4,278.0 11.9

Federal Communications Commission 39,819.3 9,647.6 24.2 7,677.0 460.0 6.0

Federal Election Commission — — 0.0 3,004.0 — 0.0

Federal Emergency Management 

Agency 200,000.0 12,000.0 6.0 225,413.0 15,166.0 6.7

Federal Energy Regulatory Commission 17,922.5 4,428.9 24.7 25,536.0 759.0 3.0

Federal Maritime Commission 259.0 — 0.0 336.0 — 0.0

Federal Mediation and Conciliation 

Service — — 0.0 3,047.0 — 0.0

Federal Mine Safety and Health 

Review Commission 175.0 — 0.0 401.0 — 0.0

Federal Trade Commission 8,000.0 960.0 12.0 7,716.0 441.0 5.7

International Trade Commission 3,426.0 171.3 5.0 4,076.0 255.0 6.3

Merit Systems Protection Board — — 0.0 1,358.0 30.0 2.2

National Archives and Records 

Administration 46,800.0 1,750.0 3.7 26,394.0 858.0 3.3

National Capital Planning Commission — — 0.0 771.0 — 0.0

National Endowment for the Arts — — 0.0 1,213.0 160.0 13.2

National Endowment for the 

Humanities 1,100.0 — 0.0 1,330.0 — 0.0

National Labor Relations Board 3,999.0 1,395.0 34.9 11,849.0 707.0 6.0

National Science Foundation 192,285.5 6,730.0 3.5 49,975.0 7,305.0 14.6

National Transportation Safety Board 4,000.0 160.0 4.0 — — 0.0

Nuclear Regulatory Commission 65,000.0 16,000.0 24.6 56,461.0 4,155.0 7.4

Occupational Safety and Health Review

Commission — — 0.0 627.0 — 0.0

Office of Personnel Management 115,130.0 5,983.0 5.2 165,486.0 7,057.0 4.3

Securities and Exchange Commission 33,057.0 330.0 1.0 41,924.0 1,202.0 2.9

Selective Service System 1,449.0 74.8 5.2 2,238.0 — 0.0

Small Business Administration 30,000.0 12,000.0 40.0 32,474.0 16,371.0 50.4

Smithsonian Institution 120,000.0 12,000.0 10.0 86,769.0 9,475.0 10.9

U.S. Arms Control and Disarmament 

Agency 4,270.0 476.6 11.2 5,560.0 354.0 6.4

United States Information Agency 43,800.0 5,400.0 12.3 71,168.0 1,313.0 1.8

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1998 187

Agriculture 2,237.3 111.9 5.0 2,958.4 73.2 2.5

Commerce 785.5 47.1 6.0 1,182.0 65.3 5.5

Defense 112,600.0 5,630.0 5.0 115,656.8 3,284.7 2.8

Education 645.0 6.5 1.0 964.9 7.3 0.8

Energy 15,000.0 450.0 3.0 15,142.9 285.4 1.9

Health and Human Services 2,851.3 90.0 3.2 4,244.7 208.6 4.9

Housing and Urban Development 391.0 11.7 3.0 228.2 10.2 4.5

Interior 784.1 34.1 4.3 1,478.9 64.3 4.3

Justice 2,483.8 62.1 2.5 3,309.9 97.5 2.9

Labor 887.4 45.1 5.1 1,120.1 23.7 2.1

State 630.0 31.5 5.0 565.7 21.6 3.8

Transportation 1,557.0 31.1 2.0 1,897.2 52.4 2.8

Treasury 1,120.3 25.8 2.3 1,784.2 122.5 6.9

Veterans Affairs 2,500.0 62.8 2.5 4,250.0 123.8 2.9

Environmental Protection Agency 1,200.0 36.0 3.0 1,109.8 33.2 3.0

General Services Administration (NFSS) 7,575.0 265.1 3.5 8,039.6 431.4 5.4

National Aeronautics and 

Space Administration 9,600.0 115.0 1.2 10,972.3 203.7 1.9

Social Security Administration 666.2 36.0 5.4 517.7 25.1 4.8

Tennessee Valley Authority 2,228.2 60.2 2.7 5,013.2 77.3 1.5

U.S. Agency for International 

Development 480.0 27.0 5.6 342.2 37.5 11.0

All Other Agencies—Total 1,012.1 34.8 3.4 936.2 39.6 4.2

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
188 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments Commission — — 0.0 247.0 — 0.0

Commission on Civil Rights — — 0.0 285.0 — 0.0

Commodity Futures Trading 

Commission 10,000.0 — 0.0 10,886.0 35.0 0.3

Consumer Product Safety Commission 3,291.4 329.1 10.0 5,585.0 120.0 2.1

Corporation for National Service 26,850.0 9,575.0 35.7 11,684.0 609.0 5.2

Equal Employment Opportunity

Commission 11,450.0 801.5 7.0 38,792.0 278.0 0.7

Executive Office of the President 30,000.0 1,500.0 5.0 35,888.0 3,770.0 10.5

Federal Communications Commission 39,819.3 500.0 1.3 7,677.0 809.0 10.5

Federal Election Commission — — 0.0 3,004.0 — 0.0

Federal Emergency Management 

Agency 200,000.0 7,000.0 3.5 225,413.0 6,145.0 2.7

Federal Energy Regulatory Commission 17,922.5 421.6 2.4 25,536.0 5,735.0 22.5

Federal Maritime Commission 259.0 — 0.0 336.0 10.0 3.0

Federal Mediation and Conciliation

Service — — 0.0 3,047.0 — 0.0

Federal Mine Safety and Health

Review Commission 175.0 — 0.0 401.0 — 0.0

Federal Trade Commission 8,000.0 80.0 1.0 7,716.0 36.0 0.5

International Trade Commission 3,426.0 33.6 1.0 4,076.0 191.0 4.7

Merit Systems Protection Board — — 0.0 1,358.0 — 0.0

National Archives and Records 

Administration 46,800.0 700.0 1.5 26,394.0 1,488.0 5.6

National Capital Planning Commission — — 0.0 771.0 5.0 0.6

National Endowment for the Arts — — 0.0 1,213.0 174.0 14.3

National Endowment for the 

Humanities 1,100.0 33.0 3.0 1,330.0 55.0 4.1

National Labor Relations Board 3,999.0 850.0 21.3 11,849.0 378.0 3.2

National Science Foundation 192,285.5 903.7 0.5 49,975.0 1,557.0 3.1

National Transportation Safety Board 4,000.0 600.0 15.0 — — 0.0

Nuclear Regulatory Commission 65,000.0 432.0 0.7 56,461.0 4,664.0 8.3

Occupational Safety and Health Review

Commission — — 0.0 627.0 — 0.0

Office of Personnel Management 115,130.0 1,655.0 1.4 165,486.0 547.0 0.3

Securities and Exchange Commission 33,057.0 — 0.0 41,924.0 1,907.0 4.5

Selective Service System 1,449.0 80.0 5.5 2,238.0 256.0 11.4

Small Business Administration 30,000.0 3,000.0 10.0 32,474.0 2,391.0 7.4

Smithsonian Institution 120,000.0 3,000.0 2.5 86,769.0 5,261.0 6.1

U.S. Arms Control and Disarmament 

Agency 4,270.0 720.6 16.9 5,560.0 756.0 13.6

United States Information Agency 43,800.0 2,600.0 5.9 71,168.0 2,459.0 3.5

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1998 189

Total 56,085.8 3,348.1 6.0 67,758.9 4,212.5 6.2

Agriculture 678.6 33.9 5.0 862.8 26.1 3.0

Commerce 156.4 28.2 18.0 181.8 15.9 8.7

Defense 43,400.0 2,170.0 5.0 53,119.0 2,984.5 5.6

Education 160.0 8.5 5.3 128.2 15.5 12.1

Energy 700.0 35.0 5.0 761.7 46.7 6.1

Health and Human Services 361.0 20.0 5.5 450.2 19.7 4.4

Housing and Urban Development 95.5 12.4 13.0 211.3 28.3 13.4

Interior 40.0 1.6 3.9 91.3 23.5 25.7

Justice 850.0 51.0 6.0 560.6 28.8 5.1

Labor 171.8 20.3 11.8 254.2 22.1 8.7

State 60.0 3.0 5.0 122.7 8.3 6.8

Transportation 303.0 31.8 10.5 496.7 56.8 11.4

Treasury 303.3 15.2 5.0 437.8 36.0 8.2

Veterans Affairs 400.0 20.0 5.0 3,335.3 82.8 2.5

Environmental Protection Agency 180.0 18.0 10.0 227.9 25.4 11.1

General Services Administration (NFSS) 3,500.0 245.0 7.0 1,540.6 115.9 7.5

National Aeronautics and 

Space Administration 4,187.0 611.2 14.6 4,469.4 635.4 14.2

Social Security Administration 3.8 0.2 5.0 2.7 0.1 4.8

Tennessee Valley Authority 350.0 8.8 2.5 117.4 4.3 3.7

U.S. Agency for International 

Development 8.6 1.0 11.4 202.5 23.7 11.7

All Other Agencies—Total 176.8 13.1 7.4 184.8 12.7 6.9

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
190 The Annual Report on Federal Procurement Preference Goals

Total 176,791.5 13,055.8 7.4 184,840.0 12,719.6 6.9

American Battle Monuments

Commission — — 0.0 — — 0.0

Commission on Civil Rights — — 0.0 — — 0.0

Commodity Futures Trading Commission — — 0.0 — — 0.0

Consumer Product Safety Commission — — 0.0 — — 0.0

Corporation for National Service 6,034.3 254.9 4.2 — — 0.0

Equal Employment Opportunity

Commission — — 0.0 57.6 3.0 5.2

Executive Office of the President 957.0 38.3 4.0 233.0 31.3 13.4

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission — — 0.0 — — 0.0

Federal Emergency Management

Agency 9,000.0 4,000.0 44.4 59,711.4 6,172.4 10.3

Federal Energy Regulatory 

Commission 13,364.9 1,536.9 11.5 681.9 — 0.0

Federal Maritime Commission — — 0.0 — — 0.0

Federal Mediation and Conciliation

Service — — 0.0 — — 0.0

Federal Mine Safety and Health Review

Commission — — 0.0 — — 0.0

Federal Trade Commission — — 0.0 — — 0.0

International Trade Commission — — 0.0 — — 0.0

Merit Systems Protection Board — — 0.0 — — 0.0

National Archives and Records 

Administration 4,000.0 200.0 5.0 — — 0.0

National Capital Planning Commission — — 0.0 — — 0.0

National Endowment for the Arts — — 0.0 — — 0.0

National Endowment for the

Humanities — — 0.0 — — 0.0

National Labor Relations Board — — 0.0 — — 0.0

National Science Foundation 115,405.2 5,077.8 4.4 93,486.5 3,141.3 3.4

National Transportation Safety Board — — 0.0 — — 0.0

Nuclear Regulatory Commission 8,000.0 1,293.9 16.2 14,660.2 2,834.0 19.3

Occupational Safety and Health

Review Commission — — 0.0 — — 0.0

Office of Personnel Management 9,094.0 579.0 6.4 9,348.5 534.7 5.7

Securities and Exchange Commission 2,336.1 — 0.0 6,623.3 — 0.0

Selective Service System — — 0.0 — — 0.0

Small Business Administration — — 0.0 — — 0.0

Smithsonian Institution 1,500.0 75.0 5.0 — — 0.0

U.S. Arms Control and Disarmament

Agency — — 0.0 — — 0.0

United States Information Agency 7,100.0 — 0.0 37.6 2.9 7.7

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1998 191

Agriculture 2,237.3 111.90 5.0 2,958.4 91.4 3.1

Commerce 785.5 62.8 8.0 1,182.0 59.5 5.0

Defense 112,600.0 5,630.0 5.0 115,656.8 2,087.3 1.8

Education 645.0 26.0 4.0 964.9 11.8 1.2

Energy 15,000.0 450.0 3.0 15,142.9 440.1 2.9

Health and Human Services 2,851.3 152.0 5.3 4,244.7 145.9 3.4

Housing and Urban Development 391.0 19.5 5.0 228.2 5.6 2.5

Interior 784.1 40.0 5.1 1,478.9 60.3 4.1

Justice 2,483.8 74.5 3.0 3,309.9 95.6 2.9

Labor 887.4 49.3 5.6 1,120.1 15.3 1.4

State 630.0 31.5 5.0 565.7 33.7 6.0

Transportation 1,557.0 77.9 5.0 1,897.2 69.7 3.7

Treasury 1,120.3 56.0 5.0 1,784.2 66.3 3.7

Veterans Affairs 2,500.0 100.0 4.0 4,250.0 231.4 5.4

Environmental Protection Agency 1,200.0 42.0 3.5 1,109.8 29.4 2.6

General Services Administration (NFSS) 7,575.0 378.8 5.0 8,039.6 268.7 3.3

National Aeronautics and Space 

Administration 9,600.0 125.0 1.3 10,972.3 151.6 1.4

Social Security Administration 666.2 33.3 5.0 517.7 23.0 4.4

Tennessee Valley Authority 2,228.2 42.1 1.9 5,013.2 52.4 1.0

U.S. Agency for International 

Development 480.0 24.0 5.0 342.2 15.4 4.5

All Other Agencies—Total 1,012.1 34.0 3.4 936.2 58.4 6.2

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
192 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments 

Commission — — 0.0 247.0 — 0.0

Commission on Civil Rights — — 0.0 285.0 27.0 9.5

Commodity Futures Trading 

Commission 10,000.0 — 0.0 10,886.0 285.0 2.6

Consumer Product Safety Commission 3,291.4 493.7 15.0 5,585.0 796.0 14.3

Corporation for National Service 26,850.0 1,500.0 5.6 11,684.0 29.0 0.2

Equal Employment Opportunity 

Commission 11,450.0 801.5 7.0 38,792.0 422.0 1.1

Executive Office of the President 30,000.0 1,500.0 5.0 35,888.0 6,066.0 16.9

Federal Communications Commission 39,819.3 287.0 0.7 7,677.0 — 0.0

Federal Election Commission — — 0.0 3,004.0 97.0 3.2

Federal Emergency Management 

Agency 200,000.0 4,500.0 2.3 225,413.0 11,805.0 5.2

Federal Energy Regulatory Commission 17,922.5 769.6 4.3 25,536.0 901.0 3.5

Federal Maritime Commission 259.0 — 0.0 336.0 3.0 0.9

Federal Mediation and Conciliation 

Service — — 0.0 3,047.0 — 0.0

Federal Mine Safety and Health 

Review Commission 175.0 20.0 11.4 401.0 — 0.0

Federal Trade Commission 8,000.0 400.0 5.0 7,716.0 681.0 8.8

International Trade Commission 3,426.0 171.3 5.0 4,076.0 163.0 4.0

Merit Systems Protection Board — — 0.0 1,358.0 79.0 5.8

National Archives and Records 

Administration 46,800.0 1,750.0 3.7 26,394.0 737.0 2.8

National Capital Planning Commission — — 0.0 771.0 15.0 1.9

National Endowment for the Arts — — 0.0 1,213.0 89.0 7.3

National Endowment for the 

Humanities 1,100.0 242.0 22.0 1,330.0 355.0 26.7

National Labor Relations Board 3,999.0 563.0 14.1 11,849.0 6,392.0 53.9

National Science Foundation 192,285.5 2,538.2 1.3 49,975.0 5,972.0 11.9

National Transportation Safety Board 4,000.0 280.0 7.0 — — 0.0

Nuclear Regulatory Commission 65,000.0 6,800.0 10.5 56,461.0 3,542.0 6.3

Occupational Safety and Health 

Review Commission — — 0.0 627.0 66.0 10.5

Office of Personnel Management 115,130.0 2,654.0 2.3 165,486.0 1,211.0 0.7

Securities and Exchange Commission 33,057.0 — 0.0 41,924.0 — 0.0

Selective Service System 1,449.0 97.5 6.7 2,238.0 29.0 1.3

Small Business Administration 30,000.0 2,400.0 8.0 32,474.0 4,422.0 13.6

Smithsonian Institution 120,000.0 4,800.0 4.0 86,769.0 10,074.0 11.6

U.S. Arms Control and Disarmament

Agency 4,270.0 234.9 5.5 5,560.0 184.0 3.3

United States Information Agency 43,800.0 1,200.0 2.7 71,168.0 3,996.0 5.6

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1998 193

Agriculture 678.6 33.90 5.0 862.8 24.9 2.9

Commerce 156.4 12.5 8.0 181.8 8.4 4.6

Defense 43,400.0 2,170.0 5.0 53,119.0 2,391.0 4.5

Education 160.0 6.3 3.9 128.2 6.0 4.7

Energy 700.0 28.0 4.0 761.7 28.0 3.7

Health and Human Services 361.0 9.0 2.5 450.2 14.7 3.3

Housing and Urban Development 95.5 4.8 5.0 211.3 29.7 14.1

Interior 40.0 0.8 2.0 91.3 6.5 7.1

Justice 850.0 59.5 7.0 560.6 28.2 5.0

Labor 171.8 9.1 5.3 254.2 14.0 5.5

State 60.0 3.0 5.0 122.7 10.5 8.6

Transportation 303.0 15.1 5.0 496.7 18.8 3.8

Treasury 303.3 15.2 5.0 437.8 28.2 6.4

Veterans Affairs 400.0 4.0 1.0 3,335.3 69.8 2.1

Environmental Protection Agency 180.0 6.3 3.5 227.9 15.9 7.0

General Services Administration (NFSS) 3,500.0 175.0 5.0 1,540.6 64.3 4.2

National Aeronautics and Space 

Administration 4,187.0 268.2 6.4 4,469.4 302.6 6.8

Social Security Administration 3.8 0.2 5.0 2.7 0.4 16.3

Tennessee Valley Authority 350.0 14.0 4.0 117.4 10.9 9.3

U.S. Agency for International 

Development 8.6 0.4 5.0 202.5 11.6 5.7

All Other Agencies—Total 176.8 10.8 6.1 184.8 10.0 5.4

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
194 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments Commission — — 0.0 — — 0.0

Commission on Civil Rights — — 0.0 — — 0.0

Commodity Futures Trading Commission — — 0.0 — — 0.0

Consumer Product Safety Commission — — 0.0 — — 0.0

Corporation for National Service 6,034.3 49.8 0.8 — — 0.0

Equal Employment Opportunity

Commission — — 0.0 57.6 21.3 37.0

Executive Office of the President 957.0 38.3 4.0 233.0 15.8 6.8

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission — — 0.0 — — 0.0

Federal Emergency Management

Agency 9,000.0 3,500.0 38.9 59,711.4 3,168.9 5.3

Federal Energy Regulatory Commission 13,364.9 473.0 3.5 681.9 17.9 2.6

Federal Maritime Commission — — 0.0 — — 0.0

Federal Mediation and Conciliation

Service — — 0.0 — — 0.0

Federal Mine Safety and Health Review

Commission — — 0.0 — — 0.0

Federal Trade Commission — — 0.0 — — 0.0

International Trade Commission — — 0.0 — — 0.0

Merit Systems Protection Board — — 0.0 — — 0.0

National Archives and Records

Administration 4,000.0 200.0 5.0 — — 0.0

National Capital Planning Commission — — 0.0 — — 0.0

National Endowment for the Arts — — 0.0 — — 0.0

National Endowment for the Humanities — — 0.0 — — 0.0

National Labor Relations Board — — 0.0 — — 0.0

National Science Foundation 115,405.2 4,027.6 3.5 93,486.5 2,943.9 3.1

National Transportation Safety Board — — 0.0 — — 0.0

Nuclear Regulatory Commission 8,000.0 1,396.5 17.5 14,660.2 1,735.0 11.8

Occupational Safety and Health Review

Commission — — 0.0 — — 0.0

Office of Personnel Management 9,094.0 1,064.0 11.7 9,348.5 1,952.2 20.9

Securities and Exchange Commission 2,336.1 6.1 0.3 6,623.3 95.7 1.4

Selective Service System — — 0.0 — — 0.0

Small Business Administration — — 0.0 — — 0.0

Smithsonian Institution 1,500.0 75.0 5.0 — — 0.0

U.S. Arms Control and Disarmament

Agency — — 0.0 — — 0.0

United States Information Agency 7,100.0 — 0.0 37.6 — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
I

n fiscal year 1999, the Executive Branch of the United States Government met

or exceeded the three government-wide statutory contract goaling categories

(Table A).

SBA negotiates seven individual goal categories with each federal department and agency. The following chart shows the agency projections or goals

established, and the actual achievements in each category for both prime and

subcontracts.

In this report, the U.S. Small Business Administration (SBA) summarizes

federal agency performance in meeting their goals and provides comments

from the 20 federal agencies with the largest contracting budgets, which

represent nearly 99.5 percent of the total dollars awarded. In the goal-setting process, agencies are encouraged to set aggressive goals and make

determined efforts to meet them. Most agencies were able to do that in

many of the categories. In addition, many agencies have developed innovative small business programs, and information on these has been included

to recognize the special efforts made by individual agencies to meet their

small business goals. 

Small Business Prime Contract Awards

I

n FY 1999, the federal government awarded 23.1 percent, or $42.9 billion

of a total $185.7 billion in prime contract dollars to small businesses (Tables

1 and 2). Both the total dollar amount and the percentage awarded to small

businesses exceeded the projected goals: small firms received over $4.8 billion more than had been estimated. For this report, the General Services

Administration’s Federal Supply Service (FSS) projections and achievements

will be evaluated as part of each agency’s expenditures and are not included

as part of GSA projections and achievements, as appropriate. 

The Departments of Commerce, Defense, Housing and Urban

Development, State, Transportation, and Treasury, and the Environmental

Protection Agency, the General Services Administration, the National

Aeronautics and Space Administration, and the Social Security Administration

all either met or exceeded their percentage goals for prime contracting to

small business in FY 1999. Thirteen agencies exceeded their dollar goals,

including the Departments of Agriculture, Interior, Justice, Treasury, and

Veterans Affairs, which all missed their percentage goals. Conversely, the

Social Security Administration missed its FY 1999 dollar goal despite achieving its percentage goals. 
196 The Annual Report on Federal Procurement Preference Goals

Table C. Subcontracts, FY 1999

Small Disadvantaged Women-owned 

Small Business Business Small Business

Goal Actual Goal Actual Goal Actual

Millions of 

Dollars 23,704.7 27,864.5 3,569.8 4,504.2 3,027.3 2,991.7

Percent 41.2 40.4 6.2 6.5 5.3 4.3

Notes: Goals are based on $57,485.7 projected subcontracting values. Actuals are based on $69,042.1

reported subcontractin.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development.

Table B. Prime Contracts, FY 1999

Small Disadvantaged Women-owned 

Small Business Business 8(a) Small Business

Goal Actual Goal Actual Goal Actual Goal Actual

Millions of 

Dollars 38,101.6 42,933.2 7,659.2 6,149.0 2,828.1 6,284.3 7,725.3 4,585.0

Percent 22.2 23.1 4.5 3.3 1.6 3.4 4.5 2.5

Notes: Goals are based on projected procurement obligations of $171,412.2 (100 percent). Actuals are

based on reported procurement obligations of $185,654.7 (100 percent).

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development.

Small Disadvantaged Business 5 13.2 

(Includes prime and subcontract data, 

8(a) program prime and subcontract data)

Women-Owned Small Business 5 6.8

(Includes prime and subcontract data)

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development.
which awarded 49.1 percent to small businesses in FY 199914.1 percent

age points more than projected.

The largest dollar increase over the projected totals in FY 1999 came from

the Department of Defense, which also exceeded its projected percentage

goal by 0.6 percentage point. It increased its dollar total for prime contracting

with small business by $2.2 billion more than its FY 1999 goal, to $25.3 billion. The second largest dollar share gain was from the Department of

Transportation. It awarded prime contracts valued at nearly $1.1 billion to

small businesses in FY 1999—$596.6 million more than projected. The

General Services Administration was a close third in dollar share, awarding

$582.8 million more in FY 1999 than projected, for total prime contract

awards of nearly $3.1 billion to small business.

Agency Shortfalls

The Small Business Administration is charged in Public Law 95–507, as

amended, with the responsibility of analyzing and commenting on shortfalls

by major reporting agencies. The Departments of Agriculture, Education,

Energy, Health and Human Services, Interior, Justice, Labor, and Veterans

Affairs, the Tennessee Valley Authority, and the U.S. Agency for International

Development missed their percentage goals for prime contract awards to

small business concerns in FY 1999.

Department of Agriculture

The U.S. Department of Agriculture (USDA) failed to reach its small business

prime contract percentage goal of 45.1 percent by 7.1 percentage points in FY

1999, finishing at 38.0 percent. However, USDA exceeded its small business

prime contract dollar projection of $1.1 billion significantly, by $318.4 million. Actual small business prime contract dollars awarded by USDA to small

businesses in FY 1999 totaled more than $1.3 billion. 

USDA indicates that awards to small businesses have declined as a result

of procurement reform, contract bundling, government-wide acquisition contracts (GWACs) with large businesses, and the rapid expansion of the use of

credit cards for micro-purchases. USDA initiatives under way to correct these

shortfalls include: an MOU between USDA and SBA to promote womenowned small business activity, establishing a mentor-protégé program, entering

into partnerships with professional associations representing women-owned

small businesses and small disadvantaged businesses, increased outreach for

each USDA organization, and incorporation of small business procurement

achievements in each senior management official’s performance appraisal.

Fiscal Year 1999 197
Actual prime contract dollars awarded to small businesses by Education in FY

1999 totaled $96.2 million. Education reported that the failure to reach the FY

1999 goals was due to the lack of new contract dollars in one of its largest program, the Office of Student Financial Assistance (SFA). In FY 1999, SFA awarded dollars accounting for over 40 percent of Education’s total obligations,

where most of these dollars were awarded under its legacy contracts (which

are primarily large businesses) coupled with an exponential growth in its student loan volume. Education stressed its commitment to meets its responsibilities to maximize opportunities for the small and small disadvantaged business

community to support the agency’s mission. Education has made new awards

to small and disadvantaged businesses, which they expect to contribute to

growth in future years.

Department of Energy

The Department of Energy (DOE) missed its small business prime contract projection of 18.0 percent by 1.3 percentage points in FY 1999, finishing at 16.7

percent. DOE also missed its FY 1999 small business prime contract dollar

goal of $2.6 billion by $1.3 million, with total actual prime contract dollars

awarded to small businesses amounting to $2.6 billion. 

Energy reported that efforts to achieve its goals were diverted to resolving

a dispute over the methodology used to report its small business prime contracting goal. DOE’s small business prime contracting goals proposed to the

Small Business Administration (SBA) were not approved until the Office of

Federal Procurement Policy issued its ruling on the baseline for calculating the

prime contract small business goal, which DOE stated caused them a delay in

assigning departmental goals. DOE said other circumstances, which contributed collectively to the shortfall, included budget cuts, procurement reform,

and credit card purchases. DOE continuously seeks new ways to ensure strong

small business participation in its prime contracts. 

Department of Health and Human Services

The Department of Health and Human Services (HHS) awarded 27.4 percent

of its FY 1999 prime contracts to small businesses, failing to reach its percentage goal of 32.3 percent by 4.9 percentage points. HHS also finished FY

1999 well short, by nearly $120 million, of its small business prime contract

dollar goal of $1.5 billion. Actual small business prime contract dollars awarded by HHS in FY 1999 totaled $1.4 billion.

HHS reported that its failure to achieve its goals is entirely a function of procurement reforms, specifically contract bundling, government-wide acquisition

198 The Annual Report on Federal Procurement Preference Goals
pg pp, p

mentor-protégé program, and the development of a “best practices” guide for

improving the small business share of HHS acquisitions.

Department of the Interior

The Department of the Interior (Interior) missed its FY 1999 small business

prime contract percentage target by 4.8 percentage points. Interior’s goal was

59.0 percent, and it awarded 54.2 percent of its prime contracts to small business concerns. However, Interior exceeded its small business prime contract

dollar projection of $506.3 million by $170.8 million in FY 1999. Actual

prime contract dollars awarded by Interior to small businesses in FY 1999

totaled $677.1 million.

Interior stated that to increase small business prime contracting goals they

will continue to orient vendors to the neighbors they have in their communities that are part of the Interior Department. Another area the agency is monitoring is the growing use of “smart” cards for credit card purchases locally.

General figures reported for credit card use in Interior for FY 2000 were at the

$540 million level. Interior believes that the MOU with GSA allowing 8(a)

purchases to be counted for their accomplishments is another positive step.

Department of Justice

The Department of Justice (DOJ) missed its FY 1999 small business prime contract goal of 31.5 percent by 2.0 percentage points, awarding 29.5 percent of

its prime contracts to small business concerns. DOJ exceeded its small business prime contract dollar projection of $936.2 million in FY 1999 by $138.1

million, awarding nearly $1.1 billion in prime contracts to small businesses in

FY 1999.

DOJ attributed the failure to reach their FY 1999 goals to excessive utilization of Federal Supply Service (FSS) purchases from other than small businesses. The agency properly notes that its stellar achievement in the dollar

value of contracts to small businesses, more than $100 million over its goal,

obviates its percentage shortfall. DOJ is also increasing its subcontracting

goals in large contracts and improving its monitoring of contractors’ subcontracting, concentrating on buying from small businesses off the Federal Supply

Schedule, and expanding its outreach to small businesses.

Department of Labor

The Department of Labor (DOL) finished FY 1999 at 19.4 percent, short by 6.3

percentage points of the 25.7 percent goal for small business prime contracting.

Fiscal Year 1999 199
pppg

ing with SBA to identify small businesses capable of performing on the department’s requirements for potential future awards, including several significant

awards in FY 2000.

Department of Veterans Affairs

The Department of Veterans Affairs (VA) missed its small business prime

contract percentage goal of 35.0 percent by just 0.1 percentage point, at

34.9 percent. However, VA substantially exceeded its small business prime

contract dollar target of $1.05 billion by $292.1 million in FY 1999. Actual

small business prime contract dollars awarded by VA in FY 1999 totaled

more than $1.3 billion.

The department reasoned that the slippage on small business goals in FY

1999 was attributable to contract bundling, competitiveness in the market for

the unique products and services that it provides, the geographic considerations

inherent in the delivery of its products and services, the growing use of the

Federal Supply Service, and a “precipitous” decline in VA’s construction budget. VA indicates that it has an active outreach and training program designed to

improve opportunities for small businesses and that it is working to improve its

reporting systems to capture small business activities with the agency.

Tennessee Valley Authority

The Tennessee Valley Authority (TVA) failed to reach its small business

prime contract goal of 21.3 percent by 5.3 percentage points in FY 1999,

achieving 16.0 percent. TVA also was short by nearly $46.1 million of its

small business prime contract dollar projection for FY 1999 of $475.0 million. Actual small business prime contract dollars awarded by TVA in FY

1999 totaled $428.9 million.

TVA reported that the failure to achieve goals is a result of a 30 percent

per year reduction in its procurement budget for the last four years, despite

significant efforts to assure small business participation through mandatory

small business programs training for TVA contracting personnel and including

achievement of small business goals as an element in TVA’s managerial performance appraisals.

U.S. Agency for International Development

The U.S. Agency for International Development (AID) accomplished 19.4 percent on its FY 1999 small business prime contract goal of 28.0 percent, missing the target by 8.6 percentage points. AID failed by $56.2 million to reach

200 The Annual Report on Federal Procurement Preference Goals
gy g gp p gy 

increase small business participation in their procurements.

Small Business Subcontract Awards 

Federal prime contractors awarded more than $69 billion in federal funds to

subcontractors in FY 1999 (Tables 3 and 4), an increase of more than $1

billion from the previous fiscal year. Of this total, more than $27.8 billion—

40.4 percent—was issued to small firms. This share was 0.9 percentage point

lower than projected. Despite slightly missing the small business subcontracting percentage, total subcontract dollars awarded by federal prime contractors

exceeded the projected amount by more than $11.5 billion, and accordingly,

the dollar share of subcontracts awarded to small businesses approached

$27.9 billion, nearly $4.2 billion more than the $23.7 billion projected.

Prime contractors to the 20 agencies with the largest contracting budgets

awarded almost 99.8 percent of total small business subcontract dollars. In FY

1999, the following agencies either met or exceeded their percentage goals for

subcontracting to small business: the Departments of Agriculture, Education,

Energy, Housing and Urban Development, State, Transportation, and Treasury,

and the Environmental Protection Agency, the Social Security Administration,

and the U.S. Agency for International Development. All of these agencies,

except the Departments of Education and Energy, also exceeded the dollar

goal for subcontract awards to small business concerns in FY 1999. The

Department of Education missed its dollar goal by $21.9 million, and the

Department of Energy missed its dollar goal by 96.3 million.

The largest single agency percentage increase over the projected amount

in FY 1999 was posted by the Social Security Administration, which awarded

43.8 percentage points more than the 24.2 percent it projected—achieving

68.1 percent of subcontract awards to small business. The next largest percentage gain in FY 1999 was achieved by the Department of Transportation,

which subcontracted 50.0 percent of its total subcontracts to small business—

15.0 percentage points higher than its projection of 35.0 percent.

The largest dollar increase over the projected total for small business subcontracting in FY 1999 was established by the Department of Defense. The

DOD’s prime contractors exceeded the department’s projected dollar total for

subcontract awards to small business by more than over $3.25 billion, from

its target of $18.3 billion to $21.5 billion actually awarded. The Department

of Veterans Affairs realized the second largest dollar share gain: its prime contractors awarded more than $1.0 billion in subcontracts to small business in

FY 1999—$870.5 million more than its $136 million projection.

Fiscal Year 1999 201
ppp

Agency Shortfalls

The following agencies failed to meet their percentage goals for subcontract

dollars to small businesses in FY 1999: the Departments of Commerce,

Defense, Health and Human Services, Interior, Justice, Labor, and Veterans

Affairs, and the General Services Administration, the National Aeronautics

and Space Administration, and the Tennessee Valley Authority. Despite missing their FY 1999 percentage goals for subcontract awards to small businesses, the Departments of Defense, Interior, Labor, and Veterans Affairs,

and the National Aeronautics and Space Administration exceeded their projected dollar goals. Only the Departments of Commerce, Health and Human

Services, and Justice, the General Services Administration, and the

Tennessee Valley Authority missed both their percentage and dollar goals for

subcontract awards to small business. The Departments of Education and

Energy exceeded their percentage goals but missed their dollar goals for subcontract awards.

Department of Commerce

The Department of Commerce missed its 44.0 percent goal for subcontract

awards to small business concerns by a nominal 0.2 percentage points, but

also missed its dollar goal of $132.0 million by $47.5 million. Commerce’s

prime contractors awarded $193.1 million in subcontracts in FY 1999, with

43.8 percent—amounting to $84.5 million—credited to small business.

Department of Defense

The Department of Defense (DOD) failed to reach its FY 1999 small business

subcontracting goal of 41.6 percent by 0.5 percentage point, to finish the fiscal year at 41.1 percent. However, DOD substantially exceeded, by more

than $3.25 billion, its small business subcontract dollar goal of $18.3 billion:

the actual dollar amount subcontracted by DOD prime contractors to small

businesses in FY 1999 was $21.5 billion. 

Department of Health and Human Services

The Department of Health and Human Services (HHS) failed to reach its FY

1999 small business subcontract percentage goal of 57.1 percent by 27.5 percentage points, with its prime contractors awarding 29.6 percent of total subcontracts to small business. In addition, HHS missed its small business subcontract dollar goal of $226.0 million by $21.0 million. The actual dollar

202 The Annual Report on Federal Procurement Preference Goals
Department of the Interior

The Department of the Interior missed its FY 1999 percentage goal for small

business subcontract awards of 39.0 percent by 9.5 percentage points,

awarding 29.5 percent. However, Interior exceeded its dollar goal by $18.9

million: its prime contractors reported small business subcontract awards

totaling $34.5 million in FY 1999.

Interior stated that to increase the goals for small business prime contracting they will continue to orient vendors to the neighbors in their communities that are part of the Interior Department. Another area they are monitoring is the growing use of “smart” cards for credit card purchases at the local

purchasing level. General figures reported for credit card use in Interior for FY

2000 were at the $540 million level. Interior believes that the MOU with GSA

allowing 8(a) purchases to be counted toward their accomplishments is another positive step.

Department of Justice

The Department of Justice (DOJ) missed its 52.9 percent goal for small business subcontract awards in FY 1999 by 11.8 percentage points—awarding

41.1 percent. DOJ also failed to reach its $450 million dollar goal, falling

short by $87 million. Its prime contractors reported small business subcontract

awards totaling $363 million in FY 1999.

DOJ is engaged in an extensive outreach program to attract small business subcontractors, and conducts monthly briefings to expose prime contractors to potential small business subcontractors. Further, the department is

increasing its subcontracting goals in prime contracts and improving both

reporting systems and monitoring of prime contractors’ accomplishments in

achieving these goals.

Department of Labor

The Department of Labor (DOL) fell short of its percentage goal of 58.8 percent for small business subcontract awards in FY 1999 by 5.0 percentage

points, awarding 53.8 percent, but met its dollar goal exactly, at $103.5 million awarded to small business subcontractors in FY 1999.

Department of Veterans Affairs

The Department of Veterans Affairs (VA) missed its percentage goal for small

business subcontract awards of 34.0 percent by 2.4 percentag points, awarding 31.6 percent of all FY 1999 subcontracts to small businesses. However, VA

Fiscal Year 1999 203
fact that the vast majority of VAs subcontracting opportunities are in the health

care industry, which is dominated by other than small businesses. VA also

reports that it has experienced a “precipitous” decline in its construction budget, normally an industry in which small business subcontracting is substantial.

VA is working diligently to improve reporting by prime contractors, and

is expanding an already active program of outreach to small businesses.

General Services Administration

The General Services Administration’s (GSA) Non-Federal Supply Service

(NFSS) failed to reach both its small business subcontracting percentage and

dollar goals in FY 1999. GSA missed its 43.2 percent goal for small business

subcontract awards by 5.4 percentage points, awarding 37.8 percent, and

missed its FY 1999 dollar goal of $1.6 billion by $782.2 million. Its prime contractors reported small business subcontract awards totaling $837.8 million in

FY 1999. However, this value represents an increase of more than $200 million from the previous fiscal year.

In its report, GSA offered the following reasons for not achieving its goals:

some prime contractors reduced their discretionary spending in order to economize; GSA’s prime contractors also produced more in-house rather than subcontracted out; and public utility contracts have historically been problematic to the small, small disadvantaged, and women-owned business programs.

GSA asserts that because of the nature of the products and services required,

the agency possesses very little leverage for negotiating higher subcontracting

goals in the small and disadvantaged business categories.

However, GSA does continue to conduct major outreach and education

activities to assist small businesses in contracting and subcontracting with

GSA and its prime contractors.

National Aeronautics and Space Administration

The National Aeronautics and Space Administration (NASA) fell slightly short,

by 0.2 percentage points of its percentage goal of 36.3 percent for small business subcontract awards, but exceeded its dollar goal by $249.6 million. The

total value of subcontracts awarded to small businesses by NASA’s prime contractors in FY 1999 was more than $1.8 billion.

NASA reported that for the seventh year in a row, the agency exceeded

its congressionally mandated small disadvantaged business goal of 8 percent,

which also includes historically black colleges and universities, other minority educational institutions and small women-owned businesses. NASA states

204 The Annual Report on Federal Procurement Preference Goals
small business subcontract awards by 2.3 percentage points in FY 1999,

awarding 32.7 percent of its goal of 35.0 percent. TVA also had a shortfall of

$66.8 million on its dollar goal of $122.5 million. Its prime contractors reported small business subcontract awards totaling $55.7 million in FY 1999.

TVA attributed its lack of achievement to significant reductions in its procurement budget, but reports that initiatives are being instituted to improve its

small business performance, including aggressive goals incorporated in managerial performance appraisals, facilitating alliances between prime contractors

and small businesses, mandatory training on small business programs for

contracting staff, and strengthening second-tier requirements.

Minority Small Business Awards: The 8(a) Program 

The 8(a) Business Development (BD) program assists eligible small disadvantaged business concerns to compete in the American economy through

business development assistance, including contract support. The 8(a) BD

program awards both negotiated and competitive federal contracts to small

companies owned and controlled by socially and economically disadvantaged individuals certified by the U.S. Small Business Administration (SBA).

Under the program, SBA, which acts as the prime contractor in the process,

works with other Federal agencies to identify requirements suitable for the 8(a)

BD program. Federal agencies, with SBA assistance, then negotiate subcontracts with certified 8(a) BD program participants. 

The federal government awarded $6.3 billion—3.4 percent—of the total

amount awarded in prime contracts through the SBA to firms participating in

the 8(a) BD program in FY 1999 (Tables 5 and 6). All federal agencies combined exceeded the 1.6 percent goal established for awards to 8(a) firms by

more than double, and exceeded the FY 1999 dollar goal of $2.8 billion established for awards to these firms by nearly $3.5 billion. The total dollar value

of awards to 8(a) firms in FY 1999 was $6.3 billion. 

The 20 agencies with the largest contracting budgets awarded 98.8 percent of total 8(a) contract dollars awarded in FY 1999. Nine of the 20 agencies—the Departments of Defense, Interior, Labor, State, Transportation,

Treasury, and Veterans Affairs, the General Services Administration, and the

National Aeronautics and Space Administration—exceeded their percentage

goals for 8(a) contracting. All of these agencies also exceeded their dollar

goals for contract awards to 8(a) small businesses, as did the Department of

Agriculture, despite falling short of its percentage goal.

The Department of Defense (DOD) has, by specific legislation, a goal of

5.0 percent for participation of small disadvantaged businesses; therefore, it

Fiscal Year 1999 205
FY 1999 was achieved by the Department of State, which awarded 12.8 percentage points more than the 8.8 percent projected—or 21.6 percent of its

total contract dollars to 8(a) firms. The next largest gain over the projected

amount was posted by the Department of Treasury, at 2.9 percentage points

higher than its 5.0 percent projection, for a total of 7.9 percent of total contract dollars awarded to 8(a) program participants in FY 1999.

The largest dollar increase over the projected FY 1999 total came from

the Department of Veterans Affairs. It increased its dollar total for 8(a) contracts by $114.9 million over its $90.0 million goal, to $204.9 million. The

second largest dollar share gain was accomplished by the Department of

State. It awarded $194.9 million to 8(a) firms in FY 1999—$106.9 million

more than its $88.0 million projection. 

Agency Shortfalls

The following agencies failed to achieve their percentage goals for 8(a) contracts: the Departments of Agriculture, Commerce, Education, Energy, Health

and Human Services, Housing and Urban Development, and Justice, and the

Environmental Protection Agency, the Social Security Administration, the

Tennessee Valley Authority, and the U.S. Agency for International

Development. All of these agencies, except the Department of Agriculture,

also missed their dollar goals for 8(a) contract awards.

Department of Agriculture

The Department of Agriculture (USDA) missed its 8(a) contract percentage

goal of 5.0 percent by 1.0 percentage points, awarding only 4.0 percent of its

contract dollars to 8(a) firms in FY 1999. However, USDA awarded $26.8 million more to 8(a) firms in FY 1999 than its goal of $113.4 million, for total 8(a)

award dollars of $140.2 million.

USDA indicated that there are few 8(a) food processing companies, an

industry that accounts for more than half of the department’s procurement

budget. It also attributes its shortfall to the expanding use of government-wide

acquisition contracts (GWACs), contract bundling, and micro-purchases with

credit cards.

The department’s initiatives to improve its performance include the

development of a mentor-protégé program, partnerships with appropriate professional associations, increased outreach activities, and making small business procurement achievements a factor in USDA performance appraisals.

206 The Annual Report on Federal Procurement Preference Goals
million. Actual 8(a) contract awards in FY 1999 amounted to $83.8 million.

Commerce’s reasons for its failure to meet its 8(a) goals are: a lack of incentives for utilizing the 8(a) contracting process; limitations in the competitive 8(a)

contracting process; award time considerations due to the barrier to informal

competition; the comparative ease of utilizing GWAC vehicles; requirements for

documentation and justification of 8(a) awards; increased use of GSA’s Federal

Supply Schedule; increased use of government credit cards; and procurement

reforms providing many different opportunities for activities to bypass the procurement office entirely in the contracting process.

Examples of Commerce’s initiatives for improvements in its 8(a) production include: internal cross-activity negotiation of 8(a) goals, combined with

the inclusion of those goals in performance evaluations; the award of Census

technology contracts to 8(a) firms; using GWACs to make awards to 8(a) firms;

and the implementation of a Quick Response program with 8(a) companies

under GSA’s MOBIS program. The department has requested that SBA reengineer and streamline the 8(a) contracting process, including incentives and

standardization, so that the 8(a) process can compete with other existing tools

in ease of use and timeliness. Commerce reports that it has awarded 16

GWACs to 8(a) firms.

Department of Education

The Department of Education (Education) failed to reach its 8(a) contract goal

of 4.0 percent by 1.8 percentage point, reaching 2.2 percent in FY 1999.

Education also missed its 8(a) contract dollar goal of $32.0 million by $17.2

million. The actual dollar amount of 8(a) contracts awarded by Education in

FY 1999 was $14.8 million.

Education reported that the reason for the agency’s failure to reach the FY

1999 goals was a lack of new contract dollars in one of its largest programs,

the Office of Student Financial Assistance (SFA). In FY 1999, a year which saw

exponential growth in its student loan volume, SFA awarded dollars accounting for more than 40 percent of Education’s total obligations; most of these

dollars were awarded under its legacy contracts (to primarily large businesses). Education stressed its commitment to meeting its responsibilities to maximize opportunities for the small and small disadvantaged business community in support of the agency’s mission. Education has made new awards to

small and disadvantaged businesses, which they expect to contribute to

growth in future years.

Fiscal Year 1999 207
Energy reported that its failure to achieve its goals was diverted to resolving a dispute over the methodology used to report its small business prime

contracting goal. DOE’s small business prime contracting goals proposed to

the Small Business Administration (SBA) were not approved until the Office of

Federal Procurement Policy issued its ruling on the baseline for calculating the

prime contract small business goal, which DOE said caused them a delay in

assigning departmental goals. DOE stated that other circumstances, which

contributed collectively to the shortfall, include budget cuts, procurement

reform, and credit card purchases. DOE continuously seeks new ways to

ensure strong small business participation in its prime contracts. 

Department of Health and Human Services

The Department of Health and Human Services (HHS) failed to meet both its

percentage and dollar goals for awards to 8(a) firms in FY 1999. HHS projected 4.8 percent of its prime contract awards would be made to 8(a) firms,

but fell short by 0.4 percentage point, at 4.4 percent. HHS projected $223.0

million for 8(a) awards in FY 1999, and awarded $221.1 million—$1.9 million less than anticipated.

HHS reported that its failure to achieve its goals is due to procurement

reform, specifically contract bundling, government-wide acquisition contracts

(GWACs), GSA multiple awards contracts and Federal Supply Schedule contracts, and micro-purchases with government credit cards.

Corrective action under way at HHS includes: issuance of agency-wide

policy guidelines to assure that bundling is necessary, increasing evaluation criteria points for small business participation in major acquisitions, formation of

focus groups with the express intent of increasing small business participation,

implementation of a mentor-protégé program, and the development of a “best

practices” guide for improving the small business share of HHS acquisitions.

Department of Housing and Urban Development

The Department of Housing and Urban Development (HUD) failed to meet the

FY 1999 percentage goal for awards to 8(a) program participants by 7.7 percentage points, achieving only 2.3 percent on a goal of 10.0 percent. HUD also

missed its dollar goal of $106.8 million for awards to 8(a) firms by $88.3 million. HUD awarded $18.5 million in prime contracts through the 8(a) program

in FY 1999.

HUD reported that 8(a) contractors have been displaced in the department’s building operations and management, property management and

marketing, and computer supplies and services areas as a result of contract

208 The Annual Report on Federal Procurement Preference Goals
, yg pg

innovative contracting methods and vehicles designed to be attractive to small

businesses. Of particular note is the department’s utilization of “cascade” or

“reserve” contracting alternatives, wherein first consideration for award is

afforded to 8(a) bidders, then small disadvantaged businesses, then small businesses generally, and so on.

Department of Justice

The Department of Justice (DOJ) achieved only 3.8 percent of total contracts

in 8(a) awards in FY 1999, 4.4 percentage points less than its goal of 8.2 percent. DOJ also finished FY 1999 well short, by $104.8 million, of its $243.7

million dollar goal for 8(a) contracts. The actual dollar amount of 8(a) contracts awarded by the department was $138.9 million. 

DOJ attributed the failure to reach the FY 1999 goal to excessive utilization of GSA’s Federal Supply Service purchases from other than small businesses. DOJ is establishing a priority on buying from 8(a) firms found on the

GSA Federal Supply Schedule, and expanding its outreach to small disadvantaged businesses generally.

Environmental Protection Agency

The Environmental Protection Agency (EPA) failed to reach its 8(a) contract

goal of 6.0 percent by 3.7 percent in FY 1999, accomplishing a level of 2.3

percent. EPA also missed its 8(a) contract dollar goal of $72.0 million by $43.0

million. The actual dollar amount of 8(a) contracts awarded in FY 1999 by

EPA was $29.0 million.

EPA indicates that it will break larger contracts into smaller pieces and

offer incentives for contracting and subcontracting to 8(a) and other small disadvantaged businesses. The agency is also supporting “teaming” arrangements, expanding and increasing its outreach efforts, modernizing its reporting systems, more closely monitoring achievements versus shortfalls,

prioritizing compliance with socioeconomic goals, recognizing successes,

and making clear to program offices its commitment to realizing those goals.

Social Security Administration

The Social Security Administration (SSA) missed both its percentage and dollar goals for awards to 8(a) program participants in FY 1999. SSA failed to

reach the 13.0 percentage goal by 3.4 percentage points, and its $83.7 million dollar goal by $36.2 million. In FY 1999, SSA awarded 9.6 percent of its

total contract dollars to 8(a) firms, amounting to $47.5 million.

Fiscal Year 1999 209
In FY 1999, the Tennessee Valley Authority (TVA) was 3.0 percent short of its

3.0 percentage goal for 8(a) contract awards, actually awarding only $0.8 million of its goal of $67.0 million, a shortfall of $66.2 million.

TVA reported that its poor achievement in 8(a) contracting was a function

of significant reductions in its procurement budget, but that initiatives are being

pursued to improve its performance, including aggressive goals incorporated in

managerial performance appraisals, facilitating alliances, mandatory training

on small business programs for contracting staff, and effectively communicating its firm commitment to minority business development.

U.S. Agency for International Development

The U.S. Agency for International Development (AID) failed to reach its 8(a)

contract goal of 7.0 percent by 4.2 percentage points in FY 1999. AID also

experienced a shortfall of $22.8 million on its 8(a) contract dollar goal of

$35.0 million. The actual dollar amount of 8(a) contracts awarded in FY 1999

by AID was $12.2 million, 2.8 percent of total contract dollars.

Small Disadvantaged Business Prime Contracts

I

n FY 1999, the federal government awarded more than $6.1 billion, or 3.3

percent of the total of $185.7 billion in prime contract dollars, to small disadvantaged businesses (SDBs). However, these achievements fell 1.2 percentage points short of the goal of 4.5 percent for prime contract awards to SDBs.

This also resulted in missing the government-wide dollar goal of $7.7 billion

by more than $1.5 billion in FY 1999 (Tables 7 and 8). The 20 agencies with

the largest contracting budgets awarded more than 99.4 percent of total SDB

prime contract dollars.

SDB prime contract values do not include contracts awarded through

the 8(a) program. Subcontract awards to 8(a) firms are categorized as SDB

subcontracts.

In FY 1999, 13 of the 20 major agencies—the Departments of

Commerce, Education, Energy, Housing and Urban Development, Interior,

Justice, Transportation, Treasury, and Veterans Affairs, and the

Environmental Protection Agency, the General Services Administration (both

Federal Supply Service and Non-Federal Supply Service), the National

Aeronautics and Space Administration, and the U.S. Agency for

International Development met or exceeded their percentage goals for SDB

prime contracting. All of those 13 agencies also exceeded their dollar goals

210 The Annual Report on Federal Procurement Preference Goals
pp

largest gain was from the Department of the Treasury, which awarded 7.8 percent—5.5 percentage points higher than its 2.3 percent projection.

The largest dollar increase in FY 1999 over the projected total came

from the General Services Administration’s Federal Supply Schedule (FSS)

and Non-Federal Supply Schedule (NFSS). GSA exceeded its goal of $248.9

million for prime contract awards to SDB firms by $232.2 million, awarding

$481.1 million to SDBs in FY 1999. The second largest dollar increase was

posted by the Department of the Treasury. Treasury increased the dollar total

actually awarded to SDB prime contractors in FY 1999 by $129.3 million

over its goal of $40.7 million, for a total of $170.0 million in contracts

awarded to SDBs. 

Agency Shortfalls

Seven of the 20 major federal agencies failed to meet their SDB prime contract percentage goals in FY 1999: the Departments of Agriculture, Defense,

Health and Human Services, Labor, and State, the Social Security

Administration, and the Tennessee Valley Authority. Additionally, of these

seven agencies, only the Department of Agriculture exceeded its dollar goal

for prime contract awards to SDBs.

Department of Agriculture

The Department of Agriculture (USDA) failed to reach its SDB prime contract

goal of 5.0 percent by 1.7 percentage points, finishing FY 1999 at 3.3 percent.

USDA, however, exceeded its SDB prime contract dollar goal of $113.4 million by $4.6 million. The actual SDB prime contract dollar total awarded by

USDA in FY 1999 was $118.0 million.

Department of Defense

In FY 1999, the Department of Defense (DOD) failed to meet both its percentage goal and its dollar goal for prime contracting with SDBs. DOD fell 1.9

percentage points short of its 5.0 percent goal in the SDB prime contracts category, awarding 3.1 percent of its prime contracts to SDBs. DOD awarded

$3.8 billion in prime contracts to SDBs in FY 1999, $1.8 billion less than its

goal of $5.6 billion, a substantial margin.

Department of Health and Human Services

The Department of Health and Human Services (HHS) failed to reach its FY

1999 SDB prime contract goal of 10.4 percent by 7.4 percentage points, makFiscal Year 1999 211
, py g, gq

tracts (GWACs), GSA multiple awards and Federal Supply Schedule contracts, and micro-purchases with government credit cards. Corrective action

under way at HHS includes: issuance of agency-wide policy guidelines to

assure that bundling is necessary, increasing requirements and evaluation criteria for small business participation in acquisitions, formation of focus

groups intended to increase small business participation, implementation of

a mentor-protégé program, and the development of a “best practices” guide

for improving small business’ share of HHS acquisitions.

Department of Labor

The Department of Labor (DOL) finished FY 1999 short by 2.5 percentage

points, half of its SDB prime contracting goal of 5.0 percent. DOL also missed

its SDB prime contract dollar goal of $45.2 million by $16.5 million. Actual

contract dollars awarded by DOL to SDB prime contractors in FY 1999 totaled

$28.7 million.

DOL reported that the failure to reach their FY 1999 goal was attributable to unanticipated unrestricted procurements by a DOL agency that

accounts for 81 percent of the department’s total procurement budget. DOL is

working with SBA to identify small disadvantaged businesses capable of performing the department’s requirements for potential future awards, including

several significant awards in FY 2000.

Department of State

The Department of State failed to reach its SDB prime contract goal of 5.0 percent by 2.9 percentage points, awarding 2.1 percent of its total contract dollars to SDBs in FY 1999. State also missed its SDB prime contract dollar goal

of $50.0 million by $31.1 million. Actual prime contract dollars awarded in

FY 1999 by State totaled $18.9 million.

The department reported that the shortfall in its SDB prime contracting

goals in FY 1999 was a result of misunderstanding what should be reported for

achievements in this category, and that the combination of 8(a) and SDB awards

would have equaled 23 percent. State reports that its efforts focus on assuring

that qualified SDBs are aware of the department’s contracting opportunities.

Social Security Administration

The Social Security Administration (SSA) fell slightly short of its 5.4 percent

goal for prime contract awards to SDB firms in FY 1999, reaching 5.0 percent—a difference of 0.4 percentage point. SSA also failed to reach its dollar

212 The Annual Report on Federal Procurement Preference Goals
Tennessee Valley Authority

The Tennessee Valley Authority (TVA) did not meet either its percentage or

its dollar goal for prime contract awards to SDB firms in FY 1999. TVA’s

awards to SDBs amounted to 1.5 percent of total procurement, 0.8 percentage points less than its 2.2 percent goal. The dollar amount of TVA’s prime

contracts with SDBs in FY 1999 was $39.1 million, short $10.9 million of its

$50.0 million goal.

TVA reported that its substandard achievement in SDB prime contracting

for FY 1999 was a function of significant reductions in its procurement budget. They also report that initiatives are being pursued to improve its performance, including aggressive goals incorporated in managerial performance

appraisals, facilitating alliances, mandatory training on small business programs for contracting staff, and effectively communicating its firm commitment to small disadvantaged businesses.

Small Disadvantaged Business Subcontracts

Federal prime contractors awarded more than $69 billion in subcontracts in

FY 1999. Of this total, more than $4.5 billion—6.5 percent—accrued to

small disadvantaged business (SDB) subcontractors (Tables 9 and 10). This share

was 0.3 percentage point higher than the combined federal agencies’ projection

of 6.2 percent. Subcontract awards to SDBs in FY 1999 also totaled $934.4 million more than the $3.6 billion projected for SDB subcontract values.

Prime contractors to the 20 agencies with the largest contracting budgets

awarded more than 99.7 percent of the total government-wide dollar value of

these awards.

Ten of these 20 major agencies—the Departments of Commerce,

Defense, Housing and Urban Development, Interior, Justice, State, Treasury,

and Veterans Affairs, the Social Security Administration, and the Tennessee

Valley Authority—exceeded their percentage goals for SDB subcontracting in

FY 1999. Fourteen agencies exceeded their dollar goals. Achieving their percentage goals, but failing to accomplish their dollar goals for SDB subcontracting in FY 1999 were the Department of Commerce and the Tennessee

Valley Authority; and conversely, failing to accomplish their percentage goals,

but exceeding their dollar goals were the Departments of Health and Human

Services, Labor, and Transportation, the Environmental Protection Agency, the

National Aeronautics and Space Administration, and the U.S. Agency for

International Development.

Fiscal Year 1999 213
percent of its subcontract awards to SDBs in FY 1999, 3.9 percentage points

more than the agency’s 5.0 percent projection.

The best performance of FY 1999 by an agency exceeding the dollar

goals projected for SDB subcontracting was turned in by the Department of

Defense, which exceeded its $2.2 billion projection by $744.2 million. The

total value of subcontracts issued to SDBs by the Department of Defense’s

prime contractors in FY 1999 was more than $2.9 billion. The Department of

Transportation was next, with its prime contractors awarding a total of $90.8

million to SDB subcontractors in FY 1999, or $59.3 million more than the

agency’s projection of $31.5 million. The National Aeronautics and Space

Administration, exceeded its $620.7 million goal by $58.4 million, with total

SDB subcontracts amounting to $679.1 million in FY 1999. 

Agency Shortfalls

Ten of the top 20 agencies did not achieve their percentage goals for subcontract dollars to SDBs: the Departments of Agriculture, Education, Energy,

Health and Human Services, Labor, and Transportation, the Environmental

Protection Agency, the General Services Administration’s Non-Federal Supply

Service, the National Aeronautics and Space Administration, and the U.S.

Agency for International Development. In addition, while reaching their percentage goals for SDB subcontracting in FY 1999, the Department of

Commerce and the Tennessee Valley Authority failed to reach their dollar

goals, by $18.5 million and $3.4 million, respectively.

Department of Agriculture

The Department of Agriculture (USDA) experienced a shortfall in subcontracts

awarded to SDBs, in both percentage and actual dollar measurements compared with its goals for FY 1999. The department was short of its percentage

projection of 5.0 percent by 0.8 percentage point, with 4.2 percent of its total

subcontract awards received by SDB firms; and short of its dollar goal of $44.2

million by $12.2 million. USDA’s prime contractors issued $32.0 million to

SDB subcontractors in FY 1999.

USDA reasoned that there are few SDB food processing companies, an

industry that accounts for more than half of the department’s procurement

budget. The department’s initiatives to improve its performance include the

development of a mentor-protégé program, partnerships with appropriate professional associations, increased outreach activities, and making small business procurement achievements a factor in USDA performance appraisals.

214 The Annual Report on Federal Procurement Preference Goals
Education projected a total of $160.0 million for total subcontracts in FY

1999, the department reported only $64.2 million in total subcontract awards.

Education reported that the failure to reach the FY 1999 goals was because

of the lack of new contract dollars in one of its largest program, the Office of

Student Financial Assistance (SFA). In FY 1999, SFA awards accounted for more

than 40 percent of Education’s total obligations. Most of these dollars were

awarded under its legacy contracts, primarily to large businesses. The SFA

awards also reflected exponential growth in student loan volume. Education

stressed its commitment to meeting its responsibilities to maximize opportunities for the small and small disadvantaged business community in support of the

agency’s mission. Education has made new awards to small and disadvantaged

businesses, which are expected to contribute to growth in future years.

Department of Energy

The Department of Energy (Energy) failed to meet both its percentage and dollar projections for subcontract awards to SDBs in FY 1999. Energy both missed

its percentage goal of 10.0 percent by 2.9 percentage points, and its dollar

goal of $60.0 million by $35.3 million. The agency’s prime contractors awarded $24.7 million, or 7.1 percent, of total subcontract opportunities to SDB

companies in FY 1999.

Energy reported that its failure to achieve its goals was diverted to resolving a dispute over the methodology used to report its small business prime

contracting goal. DOE’s small business prime contracting goals proposed to

the Small Business Administration (SBA) were not approved until the Office of

Federal Procurement Policy issued its ruling on the baseline for calculating the

prime contract small business goal, which DOE stated caused a delay in

assigning departmental goals. Other circumstances that contributed collectively to the shortfall included budget cuts, procurement reform, and credit

card purchases. DOE continuously seeks new ways to ensure strong small

business participation in its prime contracts. 

Department of Health and Human Services

The Department of Health and Human Services (HHS) did not meet its percentage projection for subcontract awards to SDB firms in FY 1999, but

exceeded its dollar goal for SDB subcontracting. HHS fell short of its percentage goal of 11.4 percent for subcontract awards to SDBs by 3.0 percentage

points, achieving 8.4 percent. However, HHS prime contractors awarded

$58.0 million to SDB subcontractors in FY 1999, $13.0 million more than its

goal of $45.0 million.

Fiscal Year 1999 215
of SDB participation, is developing a best practices guide to improve small

business participation in agency acquisitions, and will be implementing a

mentor-protégé program.

Department of Labor

The Department of Labor (DOL) slightly missed its percentage goal for SDB

subcontracting in FY 1999, at the same time slightly exceeding its dollar projection for subcontract awards to SDB firms. DOL established an 11.7 percent

goal for SDB subcontracts in FY 1999, finishing the year at 11.2 percent, a

shortfall of 0.5 percentage point. The department passed its $20.6 million dollar projection for SDB subcontract awards by $0.9 million. DOL’s prime contractors awarded $21.5 million in subcontracts to SDB firms in FY 1999.

Department of Transportation

The Department of Transportation (DOT) fell just short of its FY 1999 percentage projection of 10.0 percent for subcontract awards to SDBs, by 0.5 percentage point, finishing the fiscal year at 9.5 percent. However, DOT substantially exceeded its SDB subcontract dollar goal of $31.5 million by $59.3

million. The actual dollar amount subcontracted to SDBs in FY 1999 by DOT

prime contractors was $90.8 million. 

Environmental Protection Agency

The Environmental Protection Agency (EPA) did not meet its SDB subcontracting percentage goal in FY 1999, but by a wide margin exceeded its dollar projection. EPA expected its prime contractors to subcontract 20.0 percent

of their FY 1999 contracts to SDBs, but these awards amounted to 6.5 percentage points less, or 13.5 percent. While EPA projected $48.0 million in

SDB subcontract awards in FY 1999, actual dollars awarded totaled $71.3

million, a gain of $23.3 million for small disadvantaged businesses.

General Services Administration

The General Services Administration (GSA) failed to achieve either its percentage or dollar goals for SDB subcontracting in FY 1999. While falling only

0.4 percentage point shy of its 8.0 percent projection for subcontracts to be

issued to SDBs in FY 1999, GSA prime contractors were $131.1 million short

of the agency’s $300.0 million projection for the dollar value of those SDB

subcontract awards. Actual SDB subcontract awards amounted to $168.9 million, or 7.6 percent of total GSA subcontract dollars in FY 1999.

216 The Annual Report on Federal Procurement Preference Goals
p

The National Aeronautics and Space Administration (NASA) missed its projection of 14.2 percent for subcontract awards to SDBs in FY 1999 by 0.8 percentage points, finishing the fiscal year at 13.4 percent. However, NASA’s SDB

subcontractors did receive awards valued at $58.4 million more than the

agency’s $620.7 million goal. The actual dollar amount of subcontracts that

NASA’s prime contractors issued to SDBs in FY 1999 was $679.1 million. 

For the seventh year in a row, NASA was able to exceed its congressionally mandated small disadvantaged business goal of 8 percent, which also

includes historically black colleges and universities, other minority educational institutions and small women-owned businesses. NASA will continue to

give high priority to fully integrating small businesses into its competitive base.

U.S. Agency for International Development

The U.S. Agency for International Development (USAID) prime contractors

awarded $23.4 million more than expected to SDB subcontractors in FY 1999,

yet failed to meet the percentage goal by 5.4 percentage points. USAID’s percentage goal for SDB subcontracting was 16.7 percent, but its percentage

achievement was 11.3 percent. The agency’s FY 1999 dollar goal was $5.0

million, and actual SDB subcontract awards amounted to $28.4 million.

The agency is improving its system for reporting procurement information, including subcontracting information, and has formed a working group

to increase subcontracting opportunities.

Women-Owned Small Business Prime Contracts

I

n FY 1999, the federal government awarded 2.5 percent, or $3.6 billion of

the total of $185.7 billion, in prime contracts to women-owned small businesses (Tables 11 and 12). Both the dollar amount and the percentage awarded to women-owned small businesses (WOSB) in FY 1999 fell below the projected goals established by the agencies. Small businesses owned by women

received $3.1 billion less than projected, and 2.0 percentage points less than

the goal of 4.5 percent projected by the agencies.

The 20 agencies with the largest contracting budgets awarded 98.6 percent of total WOSB prime contract dollars in FY 1999. Seven of these 20 agencies—the Departments of Commerce, Energy, Housing and Urban

Development, Justice, State, and Veterans Affairs, and the National

Aeronautics and Space Administration, either met or exceeded both their percentage and dollar goals for prime contracting to WOSBs. Of the 13 major

Fiscal Year 1999 217
py pg p,

which awarded 9.9 percentage points more than its 5.0 percent projection, for

a total of 14.9 percent. The Department of State realized the second largest

percentage gain, awarding 8.3 percent of its total prime contracts to WOSBs

in FY 1999, 3.3 percentage points more than its 5.0 percent projection.

VA accomplished the largest dollar increase over FY 1999’s projected

totals. The department increased its dollar total for prime contracts awarded

to WOSBs by $65.2 million more than its goal of $150.0 million, to end the

fiscal year at $215.2 million. The Department of Housing and Urban

Development awarded $118.4 million in prime contracts to WOSBs, $64.7

million more than the department’s $53.7 million projection.

Agency Shortfalls

Thirteen of the 20 major agencies missed their percentage goals for prime contract awards to WOSB in FY 1999: the Departments of Agriculture, Defense,

Education, Health and Human Services, Interior, Labor, Transportation, and

Treasury, the Environmental Protection Agency, the General Services

Administration, the Social Security Administration, the Tennessee Valley

Authority, and the U.S. Agency for International Development.

Department of Agriculture

The Department of Agriculture (USDA) finished FY 1999 short of its percentage goal for WOSB prime contracts by 1.2 percentage points, at 3.8 percent

on its projection of 5.0 percent. However, USDA exceeded its WOSB prime

contracting dollar goal of $113.4 million by $21.0 million. Actual prime contract dollars awarded by USDA to WOSBs in FY 1999 totaled $134.4 million. 

Department of Defense

The Department of Defense (DOD) failed to meet both its percentage and dollar goals for prime contract awards to WOSBs in FY 1999. DOD awarded 1.9

percent—3.1 percentage points less than the 5.0 percent projected—in FY

1999 prime contracts to WOSBs. DOD also ended FY 1999 substantially short

of its dollar goal of $5.6 billion in prime contract awards to WOSBs, by $3.3

billion, awarding $2.3 billion. 

Department of Education

The Department of Education (Education) did not achieve either its percentage

or dollar goal for WOSB prime contracting in FY 1999. Education ended FY

1999 at 0.9 percent on its projection of 5.0 percent, a shortage of 4.1 percent218 The Annual Report on Federal Procurement Preference Goals
of Student Financial Assistance (SFA). In FY 1999, SFAawarded dollars account

ed for more than 40 percent of Education’s total obligations. Most of these dollars were awarded under its legacy contracts, primarily to large businesses. The

SFA also had exponential growth in its student loan volume in FY 1999.

Education stressed its commitment to meeting its responsibilities to maximize

opportunities for the small and small disadvantaged business community in support of the agency’s mission. Education has made new awards to small and disadvantaged businesses, expected to contribute to growth in future years.

Department of Health and Human Services

The Department of Health and Human Services (HHS) failed to achieve its

WOSB prime contracting goal of 4.6 percent by 1.2 percentage points in FY

1999, reaching 3.3 percent. HHS also missed its dollar goal for contract

awards to WOSB firms of $210.0 million by $44.0 million. Prime contract

dollars actually awarded to WOSBs by HHS in FY 1999 totaled $166.0 million.

HHS reported that its failure to achieve its goal is attributable to procurement reforms including contract bundling, government-wide acquisition contracts (GWACs), GSA multiple awards contracts and schedule contracts, and

micro-purchases with government credit cards. Corrective action under way

at HHS includes issuance of agency-wide policy guidelines to ensure that

bundling is necessary, increasing requirements for small business participation

in acquisitions, formation of focus groups with the expressed intent of increasing small business participation, implementation of a mentor-protégé program, and the development of a “best practices” guide for improving WOSB’s

share of HHS acquisitions.

Department of the Interior

The Department of the Interior awarded 4.5 percent of its FY 1999 prime contracts to WOSBs, less than its projection of 4.7 percent by 0.2 percentage point.

However, the department surpassed its dollar goal of $40.3 million by $15.7

million, awarding contracts totaling $56.0 million to WOSBs in FY 1999.

Interior stated that to increase its performance on small business prime

contracting the agency will continue to orient vendors to the neighbors they

have in their communities that are part of the Interior Department. Another

area Interior is monitoring is the growing use of “smart” cards for credit card

purchases at the local purchasing level. General figures reported for credit

card use in Interior for FY 2000 were at the $540 million level. Interior

Fiscal Year 1999 219
age goal and its dollar goal for prime contract awards to WOSBs. DOL missed

its FY 1999 percentage goal of 5.5 percent by 2.3 percentage points, awarding

3.1 percent of its prime contracts to WOSB firms. The department also failed

by $13.5 million in FY 1999 to meet its $49.2 million dollar goal for prime contracting with WOSBs, awarding prime contracts valued at $35.7 million.

Department of Transportation

The Department of Transportation (DOT) awarded 4.1 percent of its prime

contracts to WOSB firms in FY 1999, short of its goal of 5.0 percentage points

by 0.9 percentage point. DOT also missed its WOSB prime contract dollar

goal of $78.1 million by $2.8 million in FY 1999. Actual FY 1999 prime contract dollars awarded to WOSBs by DOT amounted to $75.3 million.

Initiatives undertaken by DOT to improve WOSB procurement results

include establishment of women’s business advocates in each of its acquisition activities; inclusion of WOSB goals in its strategic plans and the performance plans of procurement managers; expanding its outreach and marketing

programs; and promoting training, information dissemination, technical and

financial assistance, and other types of assistance to WOSBs through partnerships with both public and private sector organizations and associations.

Department of Treasury

The Department of the Treasury nearly reached its WOSB prime contracts goal

of 5.0 percent in FY 1999, falling short by only 0.3 percentage point to finish

the year at 4.7 percent. Still, the department was able in FY 1999 to accomplish its WOSB prime contracting dollar goal of $88.4 million by awarding a

total of $101.9 million to WOSB firms, an excess of $13.5 million over the

agency’s projection.

Environmental Protection Agency

The Environmental Protection Agency (EPA) failed to accomplish either its percentage goal or its dollar projection for prime contracting with WOSBs in FY

1999. EPA’s percentage WOSB prime contracting goal for FY 1999 was 5.0

percent, and its achievement of 3.0 percent fell short by 2.0 percentage points.

EPA also missed its dollar goal of $60.0 million by $20.8 million, awarding

$39.2 million in prime contracts to WOSBs in FY 1999.

EPA has executed a WOSB memorandum of understanding (MOU) with

SBA to increase participation of WOSBs in its procurements. The agency

works closely with the Business Women’s Network for the education and pro220 The Annual Report on Federal Procurement Preference Goals
pliance with socioeconomic goals, recognizing successes, and making clear

to program offices its commitment to realizing those goals.

General Services Administration (Non-Federal Supply Schedule)

The General Services Administration Non-Federal Supply Schedule (GSA

NFSS) did not quite reach its percentage goal for prime contracting with

WOSBs in FY 1999, but topped its dollar projection in this category. In FY

1999, GSA NFSS missed its 5.0 percent WOSB prime contracts goal by just

0.2 percentage point, at 4.8 percent. However, GSA NFSS’s total FY 1999

prime contracting with WOSBs was $6.2 million than its dollar projection of

$345.9 million. In FY 1999, GSA NFSS awarded $352.1 million in prime contracts to WOSBs.

Social Security Administration

The Social Security Administration (SSA) failed by 1.2 percentage points to attain

its WOSB prime contract goal of 5.0 percent, finishing FY 1999 at 3.9 percent.

SSA also was deficient in its performance on its FY 1999 dollar goal of $32.2

million for prime contracting with WOSBs, short by $13.2 million. Actual prime

contract dollars awarded by SSA to WOSBs in FY 1999 totaled $19.0 million.

SSA attributed its difficulty in achieving its goal to the use of GSA’s Federal

Supply Schedules, and intends to expand its outreach efforts and to use WOSBs

when buying from the Federal Supply Schedule whenever possible.

Tennessee Valley Authority

The Tennessee Valley Authority (TVA) failed to achieve both its percentage and

its dollar goals for prime contracting with WOSBs in FY 1999. TVA issued 1.6

percent of its prime contracts to WOSB firms in FY 1999, 1.9 percentage points

short of its 3.5 percent projection. TVA was also unsuccessful in accomplishing its $77.0 million dollar goal for WOSB prime contracting, with awards

totaling $42.2 million in FY 1999, $34.8 million less than its projection.

TVA reported that its failure to achieve its goal is a result of a reduction

in its procurement budget of 30 percent per year for the last four years, despite

significant efforts to ensure WOSB participation, including mandatory small

business programs training for TVA contracting personnel, and making

achievement of small business goals an element in TVA’s managerial performance appraisals.

Fiscal Year 1999 221
lion. AID has convened a working group to develop a strategy to increase

small business participation in its procurements.

Women-Owned Small Business Subcontracts

Federal prime contractors awarded more than $69.0 billion to subcontractors in FY 1999 (Tables 13 and 14). Of this total, nearly $3.0 billion—4.3

percent—was awarded to women-owned small businesses. The WOSB share

was 0.9 percentage point less than the government-wide goal and $35.6 million less than the government-wide projection of more than $3.0 billion.

Prime contractors to the 20 major federal agencies with the largest contracting budgets awarded more than 99.7 percent of the government-wide

dollar value of these subcontracts. 

Twelve of these 20 agencies—the Departments of Energy, Housing and

Urban Development, Interior, Labor, State, Treasury, and Veterans Affairs, and

the Environmental Protection Agency, the National Aeronautics and Space

Administration, the Social Security Administration, the Tennessee Valley

Authority, and the U.S. Agency for International Development—exceeded

their percentage goals for subcontracts awarded to WOSBs in FY 1999. Of this

group, only the Department of Energy and the Tennessee Valley Authority

failed to achieve their dollar projections for subcontracting with WOSBs in FY

1999, by $13.0 million and $6.6 million, respectively. The Department of

Transportation, while missing its FY 1999 percentage goal in the WOSB subcontracting category, exceeded its dollar goal by $22.4 million.

The Social Security Administration accomplished the largest single

agency percentage increase over the FY 1999 projection for WOSB subcontracting, awarding 10.9 percent, 4.8 percentage points more than the 6.1 percent projection. The next largest percentage gains in FY 1999 were posted by

the Department of State, at 4.7 percentage points more than its 5.0 percent

projection or 9.7 percent total; and the U.S. Agency for International

Development, at 4.4 percentage points above its goal of 3.3 percent, finishing

FY 1999 with 7.8 percent of its subcontracting total awarded to WOSBs.

The Department of Veterans Affairs increased its projected dollar total for

subcontracts awarded to WOSBs by the largest amount—$161.9 million over

its goal of 20.0 million, to $181.9 million. The National Aeronautics and

Space Administration achieved the next largest dollar share gain, at $59.7 million more than its goal of $288.0 million, with total WOSB subcontracting

amounting to $347.7 million. 

222 The Annual Report on Federal Procurement Preference Goals
Department of Agriculture

The Department of Agriculture (USDA) did not achieve its FY 1999 percentage goal of 5.0 percent for subcontract awards to WOSBs. USDA’s prime contractors awarded 3.3 percent of their subcontracts to WOSB concerns, 1.7 percentage points less than projected. USDA also missed its dollar goal of $44.2

million by $24.9 million: its prime contractors awarded $24.9 million in subcontracts to WOSBs.

USDA initiatives under way to correct this shortfall include: an MOU

between USDA and SBA to promote women-owned small business activity,

establishing a mentor-protégé program, entering into partnerships with professional associations representing women-owned small businesses and small

disadvantaged businesses, increased outreach for each USDA organization,

and incorporation of small business procurement achievements in each senior management official’s performance appraisal.

Department of Commerce

The Department of Commerce failed to accomplish its WOSB subcontracting

goal for FY 1999 by 2.5 percentage points, reaching 5.5 percent of its projection of 8.0 percent. Commerce’s subcontract awards to WOSBs amounted to

$10.7 million in FY 1999, short of its $24.0 million goal by $13.3 million.

Commerce attributes its shortfalls to the increased utilization of vehicles

and tools available as a result of procurement reform, including governmentwide acquisition contracts (GWACs), GSA’s Federal Supply Schedule, and

micro-purchases utilizing government credit cards. The department is working

closely with GSA to ensure that socioeconomic designations for firms on the

Federal Supply Schedule are available to prospective buyers. Further,

Commerce has incorporated small business goals in its performance plans and

has awarded GWACs to WOSBs.

Department of Defense

The Department of Defense (DOD) finished FY 1999 under its WOSB subcontracting goal of 5.0 percent by 1.1 percentage points, at 3.9 percent total.

DOD’s prime contractors also failed by $172.8 million to reach their FY 1999

dollar goal of $2.2 billion for subcontract awards, awarding slightly more than

$2.0 billion.

Fiscal Year 1999 223
contract dollars issued to WOSBs was also significant: the agency projected

its prime contractors would subcontract with WOSBs at a level of $8.0 million in FY 1999, but actual subcontracting amounted to $1.9 million, a shortfall of $6.1 million. 

Among the reasons for the shortfall, Education pointed to the lack of new

contract dollars in one of its largest programs, the Office of Student Financial

Assistance (SFA). In FY 1999, SFA dollars accounted for more than 40 percent

of Education’s total obligations; most of these dollars are awarded under legacy contracts, primarily with large businesses. Student loan volume also grew

exponentially in FY 1999. Education stressed its commitment to meeting its

responsibilities to maximize opportunities for the small and small disadvantaged business community to support the agency’s mission. Education has

made new awards to small and disadvantaged businesses, which they expect

to contribute to growth in future years.

Department of Health and Human Services 

Department of Health and Human Services (HHS) prime contractors failed to

achieve the department’s percentage and dollar projections for FY 1999 subcontracting with WOSBs. HHS missed the FY 1999 percentage goal of 17.7

percent for WOSB subcontracting by 13.6 percentage points, with actual HHS

accomplishment at 4.1 percent. HHS prime contractors also fell substantially

short of the agency’s WOSB subcontracting dollar goal for FY 1999 by $41.9

million on the goal of $70.0 million. Actual awards to WOSB subcontractors

by HHS in FY 1999 totaled $28.1 million.

HHS has restructured its evaluation criteria to improve SDB subcontracting participation in major acquisitions by increasing points assigned for

WOSB subcontracting plans and history. The department has also formed a

working group of acquisition experts to focus on improving WOSB procurement program delivery and to ensure consistency, has received a class waiver inclusive of WOSB participation, is developing a “best practices” guide to

improve small business participation in agency acquisitions, and will be

implementing a mentor-protégé program.

Department of Justice

The Department of Justice (DOJ) was unable to reach either percentage or dollar goals for WOSB subcontracting in FY 1999. DOJ achieved a level of 5.5

percent in subcontract awards to WOSBs in FY 1999, short by 1.5 percentage

points of its 7.0 percent projection. DOJ prime contractors also did not meet

224 The Annual Report on Federal Procurement Preference Goals
g g gp, y g p

tractors on topics intended to improve subcontracting achievements.

Department of Transportation

The Department of Transportation (DOT), while missing its percentage WOSB

subcontracting target in FY 1999, exceeded its dollar projection in this category. DOT completed FY 1999 by awarding 4.0 percent of its subcontracts to

WOSBs, a shortfall of 1.0 percentage points of its goal of 5.0 percent.

However, DOT exceeded its $15.8 million dollar projection for subcontracts

issued to WOSBs by $22.4 million. Actual subcontracts awarded to WOSBs

by DOT’s prime contractors in FY 1999 totaled $38.2 million.

Initiatives undertaken by DOT to improve WOSB procurement performance include establishment of women’s business advocates in each of its

acquisition activities, inclusion of WOSB goals in strategic plans and the performance plans of procurement managers, expansion of its outreach and marketing programs, and promoting training, information dissemination, technical and financial assistance, and other types of assistance to WOSBs through

partnerships with both public and private sector organizations and associations.

General Services Administration (Non-Federal Supply Service)

The General Services Administration’s Non-Federal Supply Service (GSA

NFSS) failed to reach both its percentage and dollar goals for WOSB subcontracts in FY 1999. GSA NFSS projected 5.0 percent for WOSB subcontracting

in FY 1999, missing this level by 0.5 percentage point, at 4.5 percent. GSA

NFSS also fell short of its WOSB subcontracting dollar goal of $187.6 million

by $88.2 million. Actual subcontract awards to WOSBs by GSA NFSS prime

contractors amounted to $99.4 million.

GSA continues to operate an active and growing outreach program to

improve WOSB participation as subcontractors, offering subcontracting-specific workshops for prime contractors; and requiring prime contractors to

establish aggressive subcontracting plans.

Fiscal Year 1999 225

FY 1999

Guidance on Goal Setting 

under Procurement Preference Programs

Background

Section 221 of Public Law 95–507 and Public Law 100–656, Sections 502

and 503, require the head of each Federal agency, after consultation with

the Small Business Administration, to establish realistic goals for the award of

contracts to small business concerns and to small business concerns owned

and controlled by socially and economically disadvantaged individuals. 

A government-wide goal of 20 percent of all prime contract awards for

small business concerns was established, in addition to a government-wide

goal of 5 percent of the total value of all prime contract and subcontract

awards for each fiscal year for small business concerns owned and controlled

by socially and economically disadvantaged individuals.

Public Law 103–355, dated October 13, 1994, established a governmentwide goal of 5 percent of the total value of all prime contract and subcontract

awards for small business concerns owned and controlled by women.

The SBA will not accept individual agency goals until the mandatory government-wide goals stated above are established.

Specific Guidance on Goal Setting Under

Procurement Preference Programs

The head of each federal agency having procurement powers shall submit

to the Administrator of the Small Business Administration not later than

December 20, 1996, the following information for fiscal year 1999:

(1) an estimate of the total dollar amount of all prime contracts regardless

of dollar value to be awarded during the fiscal year, including awards to nonprofit organizations, educational institutions, all transportation services, and real

property leases, but excluding foreign military sales, nonappropriated funds

contracts, contracts to be awarded and performed entirely outside the United

States and, except for the General Services Administration (see Special

Instruction (2) on page 3), all Federal Supply Service Schedule Orders.

Purchases made with credit cards are exempt (see Special Instruction (6) on

page 3);

Fiscal Year 1999 227
, p, , pg() 

(see Special Instruction (4) on page 3);

(4) a goal for prime contract awards to be made to small business concerns owned and controlled by socially and economically disadvantaged individuals, other than 8(a), expressed in numbers, dollars, and as a percentage of

(1) above (see Special Instruction (9) on page 3;

(5) a goal for prime contract awards to be made to small business concerns owned and controlled by women, expressed in numbers, dollars, and as

a percentage of (1) above;

(6) an estimate of the total dollar amount of subcontracts to be awarded

by all of an agency’s “reporting prime contractors” (as identified in Standard

Form 295) during the fiscal year;

(7) a goal for subcontracts to be awarded by prime contractors to small

business concerns, expressed in numbers, dollars, and as a percentage of (6)

above; (NOTE: This dollar amount includes dollar goals in (8) and (9) below.);

(8) a goal for subcontracts to be awarded by prime contractors to small

business concerns owned and controlled by socially and economically disadvantaged individuals, expressed in numbers, dollars, and as a percentage

of (6) above;

(9) a goal for subcontracts to be awarded by prime contractors to small

business concerns owned and controlled by women, expressed in numbers,

dollars, and as a percentage of (6) above;

(10) a detailed written presentation of the method used to establish the

estimates and goals submitted pursuant to paragraphs (1) through (9), along

with copies of the historical data upon which the estimates and goals are

based. Information about the numbers of contracts involved in the estimates

submitted pursuant to paragraphs (2) through (9) is required. This information

is needed to evaluate the estimates and the goals related thereto. In establishing contracting goals, identification and justification should be provided for

each class of contracts and the projected total value thereof determined by an

agency to have little or no subcontract possibilities.

Special Instructions

(1) Fiscal year 1999 goals are expected to reflect measurable improvement.

(2) Do not include Federal Supply Service (FSS) Schedule contracting dollars in proposed goals. In line with the policy established in FY 1981, GSA will

submit separate, consolidated proposed figures and goals, i.e., for items (1)

through (5) above, for all FSS contracts, which will include all order requirements of all federal agencies.

228 The Annual Report on Federal Procurement Preference Goals
p, g

ed to express the numbers of 8(a) contracts as well as the dollars and percentages.

(5) In the event of extraordinary circumstances such as unexpected budget changes, requests for revised goals will be considered by SBA if received by

December 31, 1996.

(6) Purchases paid with credit cards do not require the reporting of socioeconomic status of the supplier or vendor. Establishing a system to track these

transactions for procurement preference goal setting and reporting may not be

cost effective and could create an unreasonable administrative paperwork

burden. Credit card purchases are therefore exempt; however, if agencies do

have a system for tracking these transactions they may be included.

(7) The close of fiscal year 1996 marks the first year that a governmentwide goal for business concerns owned by women has been in place. With

the extraordinary growth in women-owned firms in the last few years, we

believe that this goal has become even more important and achievable and

we ask that you double your commitment to achieving this goal in fiscal year

1999.

(8) Reporting agencies are encouraged to coordinate goals required by

Section 221(g) with the Minority Business Development Plans mandated by

Executive Order 12432 dated July 14, 1983.

(9) Consistent with the Department of Justice affirmative action proposal

published in the Federal Register last May, small disadvantaged business

(SDB) (prime and subcontracting) goals may be adjusted in the latter part of

this fiscal year, if appropriate, to reflect estimated industry benchmarks.

Referrals to OFPP

The Administrator of the Small Business Administration shall, within 30 days

of receipt of the agency goals, respond to each agency expressing agreement

or indicating reasons for disagreement. If interagency consultation fails to

resolve differences, such cases of disagreement shall be submitted by the

Administrator of the Small Business Administration to the Administrator of the

Office of Federal Procurement Policy for final determination.

Reports on Agency Achievements Against Established Goals

1. The head of each Federal agency having procurement powers shall

report to the Administrator of the Small Business Administration on the extent of

achievements against the goals established in paragraphs (2) through (9). With

the exception of subcontract goals, agency reports of goal achievements shall be

based upon official SF–279/SF–281 data as recorded at the Federal Procurement

Fiscal Year 1999 229
qp

President noted in paragraph 2 below include the number and dollar value of

contracts awarded to small business concerns and small business concerns

owned and controlled by socially and economically disadvantaged individuals through noncompetitive negotiation, competition restricted to small business concerns owned and controlled by socially and economically disadvantaged individuals, competition restricted to small business concerns, and

unrestricted competition. The numbers for each of these categories should be

shown as follows: the number and dollar value of contracts awarded over

$25,000, and the number and dollar value of contracts awarded under

$25,000. Please be prepared to provide this information at the end of FY

1999. Include this information in two separate tables—one for small business

concerns, and one for small disadvantaged business concerns. Each table

must include information in all four categories listed above.

2. The Administrator of the SBA will analyze the reports submitted by the

individual agencies and submit a consolidated report to the President, as

required by Section 503 of Public Law 100–656.

230 The Annual Report on Federal Procurement Preference Goals
Table 3 Small Business Share of Federal Subcontracts:

Performance by Prime Contractors to Major Federal

Agencies, FY 1999 235

Table 4 Small Business Share of Federal Subcontracts:

Performance by Prime Contractors to Other Federal

Agencies, FY 1999 236

Table 5 8(a) Program Share of Federal Prime Contracts:

Performance by Major Federal Agencies, FY 1999 237

Table 6 8(a) Program Share of Federal Prime Contracts:

Performance by Other Federal Agencies, FY 1999 238

Table 7 Small and Disadvantaged Business Share of Federal

Prime Contracts: Performance by Major Federal 

Agencies, FY 1999 239

Table 8 Small and Disadvantaged Business Share of Federal

Prime Contracts: Performance by Other Federal 

Agencies, FY 1999 240

Table 9 Small and Disadvantaged Business Share of Federal

Subcontracts: Performance by Prime Contractors 

to Major Federal Agencies, FY 1999 241

Table 10 Small and Disadvantaged Business Share of Federal

Subcontracts: Performance by Prime Contractors 

to Other Federal Agencies, FY 1999 242

Table 11 Women-Owned Small Business Share of Federal 

Prime Contracts: Performance by Major Federal 

Agencies, FY 1999 243

Table 12 Women-Owned Small Business Share of Federal 

Prime Contracts: Performance by Other Federal 

Agencies, FY 1999 244

Table 13 Women-Owned Small Business Share of Federal

Subcontracts: Performance by Prime Contractors 

to Major Federal Agencies, FY 1999 245
232 The Annual Report on Federal Procurement Preference Goals
g,,,,

Commerce 1,000.0 350.0 35.0 1,203.9 491.6 40.8

Defense 112,114.0 23,095.5 20.6 119,732.7 25,330.7 21.2

Education 800.0 184.0 23.0 680.8 96.2 14.1

Energy 14,500.0 2,610.0 18.0 15,650.3 2,608.7 16.7

Health and Human Services 4,600.0 1,484.8 32.3 4,984.3 1,365.0 27.4

Housing and Urban Development 1,068.4 245.7 23.0 792.2 266.0 33.6

Interior 858.1 506.3 59.0 1,248.4 677.1 54.2

Justice 2,972.1 936.2 31.5 3,641.2 1,074.3 29.5

Labor 901.7 231.9 25.7 1,136.5 221.0 19.4

State 1,000.0 350.0 35.0 902.9 443.7 49.1

Transportation 1,562.0 476.4 30.5 1,847.4 1,073.0 58.1

Treasury 1,768.4 406.7 23.0 2,168.6 773.6 35.7

Veterans Affairs 3,000.0 1,050.0 35.0 3,846.1 1,342.1 34.9

Environmental Protection Agency 1,200.0 276.0 23.0 1,288.6 347.5 27.0

General Services Administration (NFSS) 6,924.6 2,492.6 36.0 7,405.4 3,075.4 41.5

National Aeronautics and

Space Administration 10,474.0 1,194.0 11.4 11,003.3 1,312.7 11.9

Social Security Administration 643.5 225.2 35.0 493.5 175.6 35.6

Tennessee Valley Authority 2,230.0 475.0 21.3 2,679.7 428.9 16.0

U.S. Agency for International 

Development 500.0 140.0 28.0 431.5 83.8 19.4

All Other Agencies—Total 1,027.3 349.0 34.0 985.2 405.6 41.2

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.

Fiscal Year 1999 233
234 The Annual Report on Federal Procurement Preference Goals

Commission on Civil Rights 9,000.0 100.0 1.1 404.0 149.0 36.9

Commodity Futures Trading Commission 11,610.0 950.0 8.2 — — 0.0

Consumer Product Safety Commission 4,791.0 1,437.3 30.0 6,196.0 3,411.0 55.1

Corporation for National Service 27,080.4 5,420.0 20.0 18,359.0 4,793.0 26.1

Equal Employment Opportunity 

Commission 25,850.0 10,340.0 40.0 54,158.0 9,438.0 17.4

Executive Office of the President 50,000.0 30,000.0 60.0 39,573.0 20,951.0 52.9

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission 4,036.0 1,212.0 30.0 2,904.0 1,596.0 55.0

Federal Emergency Management 

Agency 232,000.0 53,000.0 22.8 292,171.0 62,836.0 21.5

Federal Energy Regulatory Commission 21,362.8 1,500.0 7.0 9,201.0 2,779.0 30.2

Federal Maritime Commission 300.0 150.0 50.0 271.0 236.0 87.1

Federal Mediation and Conciliation 

Service — — 0.0 2,112.0 835.0 39.5

Federal Mine Safety and Health Review

Commission — — 0.0 321.0 107.0 33.3

Federal Trade Commission 11,600.0 6,600.0 56.9 16,831.0 9,002.0 53.5

International Trade Commission 4,162.0 957.3 23.0 4,349.0 2,413.0 55.5

Merit Systems Protection Board 1,000.0 600.0 60.0 2,622.0 658.0 25.1

National Archives and Records 

Administration 29,590.0 15,628.0 52.8 22,965.0 11,858.0 51.6

National Capital Planning Commission — — 0.0 688.0 200.0 29.1

National Endowment for the Arts 1,200.0 900.0 75.0 1,412.0 1,055.0 74.7

National Endowment for the Humanities 1,300.0 975.0 75.0 2,365.0 1,691.0 71.5

National Labor Relations Board — — 0.0 9,671.0 5,084.0 52.6

National Science Foundation 202,262.1 12,837.1 6.3 57,512.0 22,801.0 39.6

National Transportation Safety Board 4,280.0 342.4 8.0 5,191.0 3,398.0 65.5

Nuclear Regulatory Commission 58,000.0 15,000.0 25.9 72,056.0 31,567.0 43.8

Occupational Safety and Health 

Review Commission 326.4 114.0 34.9 359.0 123.0 34.3

Office of Personnel Management 163,656.0 113,584.0 69.4 171,271.0 112,223.0 65.5

Securities and Exchange Commission 33,131.3 15,969.1 48.2 37,567.0 14,586.0 38.8

Selective Service System — — 0.0 2,573.0 1,131.0 44.0

Small Business Administration 30,000.0 16,500.0 55.0 44,328.0 25,548.0 57.6

Smithsonian Institution 95,000.0 42,750.0 45.0 105,061.0 52,909.0 50.4

U.S. Arms Control and Disarmament 

Agency 5,590.0 2,091.4 37.4 2,461.0 2,192.0 89.1

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Commerce 300.0 132.0 44.0 193.1 84.5 43.8

Defense 43,888.0 18,257.4 41.6 52,376.1 21,509.6 41.1

Education 160.0 36.8 23.0 64.2 14.9 23.2

Energy 600.0 240.0 40.0 349.5 143.7 41.1

Health and Human Services 396.0 226.0 57.1 691.4 205.0 29.6

Housing and Urban Development 161.5 75.9 47.0 219.4 125.5 57.2

Interior 40.0 15.6 39.0 117.1 34.5 29.5

Justice 850.0 450.0 52.9 883.0 363.0 41.1

Labor 176.1 103.5 58.8 192.3 103.5 53.8

State 90.0 36.0 40.0 178.1 94.6 53.1

Transportation 315.3 110.4 35.0 955.3 478.0 50.0

Treasury 311.7 106.0 34.0 470.6 192.2 40.8

Veterans Affairs 400.0 136.0 34.0 3,184.4 1,006.5 31.6

Environmental Protection Agency 240.0 120.0 50.0 527.5 304.0 57.6

General Services Administration (NFSS) 3,750.0 1,620.0 43.2 2,215.3 837.8 37.8

National Aeronautics and 

Space Administration 4,369.7 1,586.0 36.3 5,084.0 1,835.6 36.1

Social Security Administration 3.3 0.8 24.2 4.7 3.2 68.1

Tennessee Valley Authority 350.0 122.5 35.0 170.5 55.7 32.7

U.S. Agency for International 

Development 30.0 12.5 41.7 251.9 107.0 42.5

All Other Agencies—Total 170.9 65.5 38.3 152.3 66.9 43.9

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.

Fiscal Year 1999 235
236 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments Commission — — 0.0 — — 0.0

Commission on Civil Rights — — 0.0 — — 0.0

Commodity Futures Trading Commission — — 0.0 — — 0.0

Consumer Product Safety Commission — — 0.0 — — 0.0

Corporation for National Service 1,782.0 351.1 19.7 — — 0.0

Equal Employment Opportunity 

Commission — — 0.0 46.2 23.9 51.7

Executive Office of the President 2,000.0 800.0 40.0 1,231.6 794.1 64.5

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission — — 0.0 — — 0.0

Federal Emergency Management Agency 10,000.0 7,000.0 70.0 26,107.5 16,983.9 65.1

Federal Energy Regulatory Commission 1,740.3 382.3 22.0 — — 0.0

Federal Maritime Commission — — 0.0 — — 0.0

Federal Mediation and Conciliation 

Service — — 0.0 — — 0.0

Federal Mine Safety and Health Review

Commission — — 0.0 — — 0.0

Federal Trade Commission — — 0.0 — — 0.0

International Trade Commission — — 0.0 — — 0.0

Merit Systems Protection Board — — 0.0 — — 0.0

National Archives and Records 

Administration 1,000.0 800.0 80.0 — — 0.0

National Capital Planning Commission — — 0.0 — — 0.0

National Endowment for the Arts — — 0.0 — — 0.0

National Endowment for the 

Humanities — — 0.0 — — 0.0

National Labor Relations Board — — 0.0 — — 0.0

National Science Foundation 125,875.2 43,458.1 34.5 104,221.0 38,545.8 37.0

National Transportation Safety Board — — 0.0 — — 0.0

Nuclear Regulatory Commission 6,500.0 2,081.0 32.0 8,561.3 3,791.0 44.3

Occupational Safety and Health 

Review Commission — — 0.0 — — 0.0

Office of Personnel Management 9,384.0 6,054.0 64.5 8,513.3 5,509.9 64.7

Securities and Exchange Commission 6,668.3 1,584.8 23.8 3,660.7 1,250.3 34.2

Selective Service System — — 0.0 — — 0.0

Small Business Administration — — 0.0 — — 0.0

Smithsonian Institution 6,000.0 3,000.0 50.0 — — 0.0

U.S. Arms Control and Disarmament 

Agency — — 0.0 — — 0.0

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1999 237

g

Commerce 1,000.0 100.0 10.0 1,203.9 83.8 7.0

Defense 112,114.0 — — 119,732.7 3,330.7 2.8

Education 800.0 32.0 4.0 680.8 14.8 2.2

Energy 14,500.0 319.0 2.2 15,650.3 292.9 1.9

Health and Human Services 4,600.0 223.0 4.8 4,984.3 221.1 4.4

Housing and Urban Development 1,068.4 106.8 10.0 792.2 18.5 2.3

Interior 858.1 81.5 9.5 1,248.4 138.2 11.1

Justice 2,972.1 243.7 8.2 3,641.2 138.9 3.8

Labor 901.7 34.5 3.8 1,136.5 53.4 4.7

State 1,000.0 88.0 8.8 902.9 194.9 21.6

Transportation 1,562.0 179.6 11.5 1,847.4 229.8 12.4

Treasury 1,768.4 88.4 5.0 2,168.6 171.7 7.9

Veterans Affairs 3,000.0 90.0 3.0 3,846.1 204.9 5.3

Environmental Protection Agency 1,200.0 72.0 6.0 1,288.6 29.0 2.3

General Services Administration (NFSS) 6,924.6 478.1 6.9 7,405.4 536.1 7.2

National Aeronautics and Space 

Administration 10,474.0 304.0 2.9 11,003.3 351.0 3.2

Social Security Administration 643.5 83.7 13.0 493.5 47.5 9.6

Tennessee Valley Authority 2,230.0 67.0 3.0 2,679.7 0.8 0.0

U.S. Agency for International 

Development 500.0 35.0 7.0 431.5 12.2 2.8

All Other Agencies—Total 1,027.3 88.4 8.6 945.6 73.9 7.8

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
238 The Annual Report on Federal Procurement Preference Goals

Commission on Civil Rights 9,000.0 — 0.0 404.0 — 0.0

Commodity Futures Trading Commission 11,610.0 — 0.0 — — 0.0

Consumer Product Safety Commission 4,791.0 335.4 7.0 6,196.0 1,170.0 18.9

Corporation for National Service 27,080.4 4,613.9 17.0 18,359.0 715.0 3.9

Equal Employment Opportunity 

Commission 25,850.0 1,292.5 5.0 54,158.0 286.0 0.5

Executive Office of the President 50,000.0 15,000.0 30.0 39,573.0 4,643.0 11.7

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission 4,036.0 80.0 2.0 2,904.0 — 0.0

Federal Emergency Management Agency 232,000.0 15,500.0 6.7 292,171.0 15,486.0 5.3

Federal Energy Regulatory Commission 21,362.8 1,903.2 8.9 9,201.0 26.0 0.3

Federal Maritime Commission 300.0 — 0.0 271.0 — 0.0

Federal Mediation and Conciliation Service — — 0.0 2,112.0 — 0.0

Federal Mine Safety and Health 

Review Commission — — 0.0 321.0 — 0.0

Federal Trade Commission 11,600.0 1,000.0 8.6 16,831.0 968.0 5.8

International Trade Commission 4,162.0 104.1 2.5 4,349.0 383.0 8.8

Merit Systems Protection Board 1,000.0 30.0 3.0 2,622.0 18.0 0.7

National Archives and Records 

Administration 29,590.0 901.0 3.0 22,965.0 716.0 3.1

National Capital Planning Commission — — 0.0 688.0 — 0.0

National Endowment for the Arts 1,200.0 160.0 13.3 1,412.0 198.0 14.0

National Endowment for the Humanities 1,300.0 — 0.0 2,365.0 — 0.0

National Labor Relations Board — — 0.0 9,671.0 28.0 20.1

National Science Foundation 202,262.1 5,243.1 2.6 57,512.0 7,552.0 13.1

National Transportation Safety Board 4,280.0 171.2 4.0 5,191.0 — 0.0

Nuclear Regulatory Commission 58,000.0 10,000.0 17.2 72,056.0 10,645.0 14.8

Occupational Safety and Health 

Review Commission 326.4 — 0.0 359.0 — 0.0

Office of Personnel Management 163,656.0 7,150.0 4.4 171,271.0 6,278.0 3.7

Securities and Exchange Commission 33,131.3 1,217.2 3.7 37,567.0 627.0 1.7

Selective Service System — — 0.0 2,573.0 41.0 1.6

Small Business Administration 30,000.0 12,000.0 40.0 44,328.0 13,794.0 31.1

Smithsonian Institution 95,000.0 9,975.0 10.5 105,061.0 12,142.0 11.6

U.S. Arms Control and Disarmament 

Agency 5,590.0 1,677.4 30.0 2,461.0 1,810.0 73.5

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1999 239

Agriculture 2,268.1 113.4 5.0 3,532.2 118.0 3.3

Commerce 1,000.0 50.0 5.0 1,203.9 83.0 6.9

Defense 112,114.0 5,605.7 5.0 119,732.7 3,768.4 3.1

Education 800.0 8.0 1.0 680.8 23.5 3.5

Energy 14,500.0 391.5 2.7 15,650.3 427.1 2.7

Health and Human Services 4,600.0 479.0 10.4 4,984.3 149.3 3.0

Housing and Urban Development 1,068.4 16.1 1.5 792.2 22.8 2.9

Interior 858.1 36.0 4.2 1,248.4 58.2 4.7

Justice 2,972.1 74.3 2.5 3,641.2 146.4 4.0

Labor 901.7 45.2 5.0 1,136.5 28.7 2.5

State 1,000.0 50.0 5.0 902.9 18.9 2.1

Transportation 1,562.0 46.9 3.0 1,847.4 100.4 5.4

Treasury 1,768.4 40.7 2.3 2,168.6 170.0 7.8

Veterans Affairs 3,000.0 75.0 2.5 3,846.1 117.4 3.1

Environmental Protection Agency 1,200.0 42.0 3.5 1,288.6 53.4 4.1

General Services Administration (NFSS) 6,924.6 248.9 3.6 7,405.4 481.1 6.5

National Aeronautics and Space 

Administration 10,474.0 198.7 1.9 11,003.3 239.1 2.2

Social Security Administration 643.5 34.8 5.4 493.5 24.6 5.0

Tennessee Valley Authority 2,230.0 50.0 2.2 2,679.7 39.1 1.5

U.S. Agency for International 

Development 500.0 15.0 3.0 431.5 45.6 10.6

All Other Agencies—Total 1,027.3 38.0 3.7 985.2 34.0 3.5

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
240 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments Commission 210.0 — 0.0 217.0 — 0.0

Commission on Civil Rights 9,000.0 — 0.0 404.0 — 0.0

Commodity Futures Trading 

Commission 11,610.0 10.0 0.1 — — 0.0

Consumer Product Safety Commission 4,791.0 143.7 3.0 6,196.0 695.0 11.2

Corporation for National Service 27,080.4 1,600.0 5.9 18,359.0 84.0 0.5

Equal Employment Opportunity 

Commission 25,850.0 1,551.0 6.0 54,158.0 774.0 1.4

Executive Office of the President 50,000.0 7,500.0 15.0 39,573.0 5,807.0 14.7

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission 4,036.0 25.0 0.6 2,904.0 47.0 1.6

Federal Emergency Management 

Agency 232,000.0 9,000.0 3.9 292,171.0 8,228.0 2.8

Federal Energy Regulatory Commission 21,362.8 3,200.7 15.0 9,201.0 142.0 1.5

Federal Maritime Commission 300.0 — 0.0 271.0 — 0.0

Federal Mediation and Conciliation Service — — 0.0 2,112.0 — 0.0

Federal Mine Safety and Health Review

Commission — — 0.0 321.0 — 0.0

Federal Trade Commission 11,600.0 50.0 0.4 16,831.0 302.0 1.8

International Trade Commission 4,162.0 104.1 2.5 4,349.0 391.0 9.0

Merit Systems Protection Board 1,000.0 10.0 1.0 2,622.0 (12.0) 20.5

National Archives and Records 

Administration 29,590.0 2,412.0 8.2 22,965.0 1,034.0 4.5

National Capital Planning Commission — — 0.0 688.0 — 0.0

National Endowment for the Arts 1,200.0 165.0 13.8 1,412.0 142.0 10.1

National Endowment for the Humanities 1,300.0 39.0 3.0 2,365.0 250.0 10.6

National Labor Relations Board — — 0.0 9,671.0 662.0 6.9

National Science Foundation 202,262.1 869.7 0.4 57,512.0 1,454.0 2.5

National Transportation Safety Board 4,280.0 642.0 15.0 5,191.0 — 0.0

Nuclear Regulatory Commission 58,000.0 100.0 0.2 72,056.0 1,983.0 2.8

Occupational Safety and Health 

Review Commission 326.4 — 0.0 359.0 — 0.0

Office of Personnel Management 163,656.0 1,137.0 0.7 171,271.0 1,052.0 0.6

Securities and Exchange Commission 33,131.3 1,531.4 4.6 37,567.0 1,077.0 2.9

Selective Service System — — 0.0 2,573.0 602.0 23.4

Small Business Administration 30,000.0 3,000.0 10.0 44,328.0 3,313.0 7.5

Smithsonian Institution 95,000.0 4,750. 5.0 105,061.0 5,908.0 5.6

U.S. Arms Control and Disarmament 

Agency 5,590.0 134.0 2.4 2,461.0 73.0 3.0

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1999 241

Total 57,486.4 3,569.8 6.2 69,042.2 4,504.2 6.5

Agriculture 883.9 44.2 5.0 761.5 32.0 4.2

Commerce 300.0 54.0 18.0 193.1 35.5 18.4

Defense 43,888.0 2,194.4 5.0 52,376.1 2,938.6 5.6

Education 160.0 9.6 6.0 64.2 3.5 5.5

Energy 600.0 60.0 10.0 49.5 24.7 7.1

Health and Human Services 396.0 45.0 11.4 691.4 58.0 8.4

Housing and Urban Development 161.5 24.2 15.0 219.4 39.4 18.0

Interior 40.0 1.6 4.0 117.1 7.1 6.1

Justice 850.0 51.0 6.0 883.0 55.7 6.3

Labor 176.1 20.6 11.7 192.3 21.5 11.2

State 90.0 4.5 5.0 178.1 24.5 13.8

Transportation 315.3 31.5 10.0 955.3 90.8 9.5

Treasury 311.7 15.6 5.0 470.6 41.9 8.9

Veterans Affairs 400.0 20.0 5.0 3,184.4 165.4 5.2

Environmental Protection Agency 240.0 48.0 20.0 527.5 71.3 13.5

General Services Administration (NFSS) 3,750.0 300.0 8.0 2,215.3 168.9 7.6

National Aeronautics and Space 

Administration 4,369.7 620.7 14.2 5,084.0 679.1 13.4

Social Security Administration 3.3 0.2 6.1 4.7 0.3 6.4

Tennessee Valley Authority 350.0 8.8 2.5 170.5 5.4 3.2

U.S. Agency for International 

Development 30.0 5.0 16.7 251.9 28.4 11.3

All Other Agencies—Total 170.9 10.9 6.4 152.3 12.2 8.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
242 The Annual Report on Federal Procurement Preference Goals

Total 170,913.8 10,871.2 6.4 152,341.6 12,180.7 8.0

American Battle Monuments Commission — — 0.0 — — 0.0

Commission on Civil Rights — — 0.0 — — 0.0

Commodity Futures Trading Commission — — 0.0 — — 0.0

Consumer Product Safety Commission — — 0.0 — — 0.0

Corporation for National Service 1,782.0 217.4 12.2 — — 0.0

Equal Employment Opportunity Commission — — 0.0 46.2 20.7 44.8

Executive Office of the President 2,000.0 200.0 10.0 1,231.6 302.8 24.6

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission — — 0.0 — — 0.0

Federal Emergency Management Agency 10,000.0 4,000.0 40.0 26,107.5 5,284.5 20.2

Federal Energy Regulatory Commission 1,740.3 60.3 3.5 — — 0.0

Federal Maritime Commission — — 0.0 — — 0.0

Federal Mediation and Conciliation Service — — 0.0 — — 0.0

Federal Mine Safety and Health 

Review Commission — — 0.0 — — 0.0

Federal Trade Commission — — 0.0 — — 0.0

International Trade Commission — — 0.0 — — 0.0

Merit Systems Protection Board — — 0.0 — — 0.0

National Archives and Records 

Administration 1,000.0 100.0 10.0 — — 0.0

National Capital Planning Commission — — 0.0 — — 0.0

National Endowment for the Arts — — 0.0 — — 0.0

National Endowment for the Humanities — — 0.0 — — 0.0

National Labor Relations Board — — 0.0 — — 0.0

National Science Foundation 125,875.2 4,810.4 3.8 104,221.0 4,469.2 4.3

National Transportation Safety Board — — 0.0 — — 0.0

Nuclear Regulatory Commission 6,500.0 191.5 2.9 8,561.3 1,483.3 17.3

Occupational Safety and Health Review 

Commission — — 0.0 — — 0.0

Office of Personnel Management 9,348.0 535.0 5.7 8,513.3 578.9 6.8

Securities and Exchange Commission 6,668.3 156.6 2.3 3,660.7 41.3 1.1

Selective Service System — — 0.0 — — 0.0

Small Business Administration — — 0.0 — — 0.0

Smithsonian Institution 6,000.0 600.0 10.0 — — 0.0

U.S. Arms Control and Disarmament 

Agency — — 0.0 — — 0.0

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals were submitted by each federal department or agency.

The achievements are from the Federal Procurement Data Center.
Fiscal Year 1999 243

Agriculture 2,268.1 113.4 5.0 3,532.2 134.4 3.8

Commerce 1,000.0 50.0 5.0 1,203.9 63.4 5.3

Defense 112,114.0 5,605.7 5.0 119,732.7 2,304.3 1.9

Education 800.0 40.0 5.0 680.8 5.9 0.9

Energy 14,500.0 377.0 2.6 15,650.3 399.1 2.6

Health and Human Services 4,600.0 210.0 4.6 4,984.3 166.0 3.3

Housing and Urban Development 1,068.4 53.7 5.0 792.2 118.4 14.9

Interior 858.1 40.3 4.7 1,248.4 56.0 4.5

Justice 2,972.1 89.2 3.0 3,641.2 119.1 3.3

Labor 901.7 49.2 5.5 1,136.5 35.7 3.1

State 1,000.0 50.0 5.0 902.9 75.0 8.3

Transportation 1,562.0 78.1 5.0 1,847.4 75.3 4.1

Treasury 1,768.4 88.4 5.0 2,168.6 101.9 4.7

Veterans Affairs 3,000.0 150.0 5.0 3,846.1 215.2 5.6

Environmental Protection Agency 1,200.0 60.0 5.0 1,288.6 39.2 3.0

General Services Administration (NFSS) 6,924.6 345.9 5.0 7,405.4 352.1 4.8

National Aeronautics and Space 

Administration 10,474.0 146.5 1.4 11,003.3 180.7 1.6

Social Security Administration 643.5 32.2 5.0 493.5 19.0 3.9

Tennessee Valley Authority 2,230.0 77.0 3.5 2,679.7 42.2 1.6

U.S. Agency for International 

Development 500.0 25.0 5.0 431.5 19.1 4.4

All Other Agencies—Total 1,027.3 43.7 4.3 985.2 63.0 6.4

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
244 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments Commission 210.0 — 0.0 217.0 — 0.0

Commission on Civil Rights 9,000.0 50.0 0.0 404.0 26.0 6.4

Commodity Futures Trading Commission 11,610.0 150.0 1.3 — — 0.0

Consumer Product Safety Commission 4,791.0 479.1 10.0 6,196.0 933.0 15.1

Corporation for National Service 27,080.4 1,360.0 5.0 18,359.0 193.0 1.1

Equal Employment Opportunity 

Commission 25,850.0 1,292.5 5.0 54,158.0 1,296.0 2.4

Executive Office of the President 50,000.0 7,500.0 15.0 39,573.0 2,557.0 6.5

Federal Communications 

Commission — — 0.0 — — 0.0

Federal Election Commission 4,036.0 200.0 5.0 2,904.0 255.0 8.8

Federal Emergency Management 

Agency 232,000.0 7,000.0 3.0 292,171.0 12,904.0 4.4

Federal Energy Regulatory Commission 21,362.8 1,200.1 5.6 9,201.0 905.0 9.8

Federal Maritime Commission 300.0 — 0.0 271.0 — 0.0

Federal Mediation and Conciliation 

Service — — 0.0 2,112.0 — 0.0

Federal Mine Safety and Health Review

Commission — — 0.0 321.0 60.0 18.7

Federal Trade Commission 11,600.0 600.0 5.2 16,831.0 1,517.0 9.0

International Trade Commission 4,162.0 208.1 5.0 4,349.0 298.0 6.9

Merit Systems Protection Board 1,000.0 250.0 25.0 2,622.0 97.0 3.7

National Archives and Records 

Administration 29,590.0 1,106.0 3.7 22,965.0 407.0 1.8

National Capital Planning Commission — — 0.0 688.0 — 0.0

National Endowment for the Arts 1,200.0 60.0 5.0 1,412.0 82.0 5.8

National Endowment for the 

Humanities 1,300.0 325.0 25.0 2,365.0 224.0 9.5

National Labor Relations Board — — 0.0 9,671.0 970.0 10.0

National Science Foundation 202,262.1 1,071.0 0.5 57,512.0 6,827.0 11.9

National Transportation Safety Board 4,280.0 299.6 7.0 5,191.0 — 0.0

Nuclear Regulatory Commission 58,000.0 8,000.0 13.8 72,056.0 11,289.0 15.7

Occupational Safety and Health 

Review Commission 326.4 66.0 20.2 359.0 19.0 5.3

Office of Personnel Management 163,656.0 4,059.0 2.5 171,271.0 5,063.0 3.0

Securities and Exchange Commission 33,131.3 20.0 0.1 37,567.0 1,525.0 4.1

Selective Service System — — 0.0 2,573.0 100.0 3.9

Small Business Administration 30,000.0 2,400.0 8.0 44,328.0 6,778.0 15.3

Smithsonian Institution 95,000.0 5,700.0 6.0 105,061.0 8,663.0 8.2

U.S. Arms Control and Disarmament 

Agency 5,590.0 280.0 5.0 2,461.0 48.0 2.0

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
Fiscal Year 1999 245

Agriculture 883.9 44.2 5.0 761.5 24.9 3.3

Commerce 300.0 24.0 8.0 193.1 10.7 5.5

Defense 43,888.0 2,194.4 5.0 52,376.1 2,021.6 3.9

Education 160.0 8.0 5.0 64.2 1.9 3.0

Energy 600.0 36.0 6.0 349.5 23.0 6.6

Health and Human Services 396.0 70.0 17.7 691.4 28.1 4.1

Housing and Urban Development 161.5 8.1 5.0 219.4 18.3 8.3

Interior 40.0 0.9 2.2 117.1 5.2 4.4

Justice 850.0 59.5 7.0 883.0 48.7 5.5

Labor 176.1 9.5 5.4 192.3 12.1 6.3

State 90.0 4.5 5.0 178.1 17.2 9.7

Transportation 315.3 15.8 5.0 955.3 38.2 4.0

Treasury 311.7 15.6 5.0 470.6 33.8 7.2

Veterans Affairs 400.0 20.0 5.0 3,184.4 181.9 5.7

Environmental Protection Agency 240.0 14.4 6.0 527.5 42.8 8.1

General Services Administration (NFSS) 3,750.0 187.6 5.0 2,215.3 99.4 4.5

National Aeronautics and Space 

Administration 4,369.0 288.0 6.6 5,084.0 347.7 6.8

Social Security Administration 3.3 0.2 6.1 4.6 0.5 10.9

Tennessee Valley Authority 350.0 14.0 4.0 170.5 7.4 4.3

U.S. Agency for International 

Development 30.0 1.0 3.3 251.9 19.6 7.8

All Other Agencies—Total 170.9 11.6 6.8 152.3 8.7 5.7

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
246 The Annual Report on Federal Procurement Preference Goals

American Battle Monuments Commission — — 0.0 — — 0.0

Commission on Civil Rights — — 0.0 — — 0.0

Commodity Futures Trading Commission — — 0.0 — — 0.0

Consumer Product Safety Commission — — 0.0 — — 0.0

Corporation for National Service 1,782.0 90.0 5.1 — — 0.0

Equal Employment Opportunity 

Commission — — 0.0 46.1 — 0.0

Executive Office of the President 2,000.0 200.0 10.0 1,231.6 281.9 22.9

Federal Communications Commission — — 0.0 — — 0.0

Federal Election Commission — — 0.0 — — 0.0

Federal Emergency Management 

Agency 10,000.0 3,000.0 30.0 26,107.5 4,332.2 16.6

Federal Energy Regulatory Commission 1,740.3 82.1 4.7 — — 0.0

Federal Maritime Commission — — 0.0 — — 0.0

Federal Mediation and Conciliation 

Service — — 0.0 — — 0.0

Federal Mine Safety and Health 

Review Commission — — 0.0 — — 0.0

Federal Trade Commission — — 0.0 — — 0.0

International Trade Commission — — 0.0 — — 0.0

Merit Systems Protection Board — — 0.0 — — 0.0

National Archives and Records 

Administration 1,000.0 100.0 10.0 — — 0.0

National Capital Planning Commission — — 0.0 — — 0.0

National Endowment for the Arts — — 0.0 — — 0.0

National Endowment for the Humanities — — 0.0 — — 0.0

National Labor Relations Board — — 0.0 — — 0.0

National Science Foundation 125,875.2 5,688.3 4.5 104,221.0 1,996.1 1.9

National Transportation Safety Board — — 0.0 — — 0.0

Nuclear Regulatory Commission 6,500.0 116.3 1.8 8,561.3 674.7 7.9

Occupational Safety and Health 

Review Commission — — 0.0 — — 0.0

Office of Personnel Management 9,348.0 1,951.0 20.9 8,513.3 1,308.8 15.4

Securities and Exchange Commission 6,668.3 95.7 1.4 3,660.7 104.5 2.9

Selective Service System — — 0.0 — — 0.0

Small Business Administration — — 0.0 — — 0.0

Smithsonian Institution 6,000.0 300.0 5.0 — — 0.0

U.S. Arms Control and Disarmament 

Agency — — 0.0 — — 0.0

United States Information Agency — — 0.0 — — 0.0

Notes: Dollar or percentage figures may vary slightly because of rounding or necessary corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category, or there were no

reportable data in FPDS, or both.

Source: Compiled by the U.S. Small Business Administration, Office of Government Contracting and

Minority Enterprise Development, from proposed goals submitted by each federal department or agency. The

achievements are from the Federal Procurement Data Center.
the Federal Procurement Data Center each quarter.

Actions, reported individually: federal procurement contract actions over

$25,000. Federal agencies are required to file a detailed report, Standard

Form 2790, for each of these contract actions with the Federal Procurement

Data Center. Prior to FY 1983 for the Department of Defense, and FY 1986

for civilian agencies, the dollar threshold for reporting detailed information

on procurement contracts was $10,000.

Bankruptcy: condition in which a business cannot meet its debt obligations

and petitions a federal district court for either reorganization of its debts

or liquidation of its assets.

Business birth (entry): formation of a new establishment or enterprise.

Business dissolution: for enumeration purposes, the absence from any current

record of a business that was present in the prior time period.

Business failure: the closure of a business causing a loss to at least one creditor.

Capital expenditures: business spending on additional plant, equipment, and

inventory.

Code of Federal Regulations: codification of the general and permanent rules

of the federal government published in the Federal Register.

Corporation: firm granted a state charter to incorporate, thereby limiting the

liability of its owner(s).

Cost-type contract: a contract that provides for payment to the contractor of

allowable and reasonable costs plus a profit. Under such an arrangement,

there is less financial risk to the contractor.

Current Population Survey (CPS): monthly survey conducted by the Bureau

of the Census that provides estimates of the number of persons working,

the number unemployed, and related employment data.

Debt capital: business financing that normally requires periodic interest payments and repayment of the principal within a specified time.

8(a) program: program, authorized under the Small Business Act, that directs

federal contracts to small businesses owned and operated by socially and

economically disadvantaged individuals.

Enterprise: aggregation of all establishments owned by a parent company. An

enterprise may consist of a single, independent establishment, or it can

include subsidiaries or other branch establishments under the same ownership and control.

Equity capital: an investment in exchange for partial business ownership. The

investor’s financial return comes from dividend payments and from

growth in the net worth of a business.

Establishment: a single-location business unit, which may be independent—

called a single-establishment enterprise—or owned by a parent enterprise.
cases, an adjustable price) for the supplies or services being procured,

usually within a stipulated contract period. Under this type or agreement,

maximum risk and responsibility are placed upon the contractor.

Full-time workers: generally, workers who work a regular schedule or more

than 35 hours per week.

Gross domestic product (GDP): the most comprehensive single measure of

aggregate economic output. Represents the market value of the total output of goods and services produced by a nation’s economy.

Incorporation: filing of a certificate of incorporation with a state’s secretary of

state, thereby limiting the business owner’s liability.

Informal capital: financing from an informal, unorganized source; includes

informal debt capital such as trade credit or loans from friends and relatives and informal equity capital from informal investors.

Initial public offering (IPO): a public offering of securities by a first-time issuer.

Innovation: introduction of a new idea into the marketplace in the form of a

new product or service or an improvement in organization or process.

Metropolitan Statistical Area (MSA): a geographic area defined by the Office

of Management and Budget as a large population nucleus with at least

50,000 persons, together with adjacent communities that have a high

degree of economic and social integration with that nucleus.

Minority-owned businesses: for the purposes of the Bureau of the Census’

Characteristics of Business Owners (CBO) survey, businesses owned by

members of the following minority groups: black, Hispanic, and other

minority (primarily Asian, American Indian, and Alaska native).

North American Industrial Classification System (NAICS): The system used

for classifying businesses by industry that replaced the Standard Industrial

Classification (SIC) system. Economic Census is based on NAICS, rather

than SIC, classifications.

Partnership: two or more parties who enter into a legal relationship to conduct business for profit. Defined by the Internal Revenue Code as joint

ventures, syndicates, groups, pools, and other associations of two or more

persons organized for profit that are not specifically classified in the IRS

code as corporations or proprietorships. 

Part-time workers: employees working fewer than 35 hours per week. 

Prime contract: contract awarded directly by the federal government.

Proprietorship: the most common legal form of business ownership; about 85

percent of all small businesses are proprietorships. The liability of the

owner is unlimited in this form of ownership.

248 Glossary
public offerings.

Short-term interest rates: interest rates for short-term borrowing, usually for a

term of one year or less.

Size standard: standard based on the amount of a business’ annual gross

receipts used to determine eligibility for small business set-aside programs in government procurement.

Small business: a business smaller than a given size as measured by its employment, business receipts, or business assets. The SBA’s Office of Advocacy

generally uses employment data as a basis for size comparisons, with firms

having fewer than 100 or fewer than 500 employees defined as small.

Small Business Innovation Development Act of 1982: federal statute requiring federal agencies with large extramural R&D budgets to allocate a certain percentage of these funds to small R&D firms. The program is

designed to stimulate technological innovation and make greater use of

small businesses in meeting national innovation needs.

Small Business Innovation Research (SBIR) program: program mandated by

the Small Business Innovation Development Act of 1982, requiring federal agencies with $100 million or more of extramural R&D obligations

to set aside 1.25 percent of these funds for small business.

Small business investment company (SBIC): privately owned company

licensed and funded through the U.S. Small Business Administration and

private sector sources to provide equity or debt capital to small business.

Socially and economically disadvantaged: individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member or a group, without regard to their qualities as individuals, and whose ability to compete is impaired because of diminished

opportunities to obtain capital and credit.

Sole proprietorship: unincorporated, one-owner business, farm, or professional practice. See also proprietorship.

Standard Industrial Classification (SIC) codes: a classification system established by the federal government, used to categorize businesses by type

of economic activity. The SIC system was replaced by the North

American Industrial Classification System.

Subcontract: contract between a prime contractor and a subcontractor or

between subcontractors to furnish supplies or services for performance of

a prime contract or a subcontract.

Survey of Income and Program Participation (SIPP): a longitudinal survey

conducted by the Bureau of the Census, designed to collect information

about cash and noncash income, assets and liabilities, and taxes paid,

and a variety of labor market data.

Glossary 249

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 23

Chapter 2 New Data for Analysis of Small Business Job Creation 47

Chapter 3 The New American Evolution: The Role and Impact 

of Small Firms 75

Chapter 4 Characteristics of Small Business Owners 

and Employees 95

Chapter 5 Financing Small Business 143

Appendix A Supplementary Tables 181

Appendix B Procurement 235

THE ANNUAL REPORT ON FEDERAL PROCUREMENT 

PREFERENCE GOALS 254

1997 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 21

Chapter 2 Financing Small Business 41

Appendix A Supplementary Tables 69

Appendix B Procurement 175

1996 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 23

Chapter 2 The White House Conference on Small Business:

Implementing the Recommendations 43

Chapter 3 Changes in Self-Employment as Small Business 85

Chapter 4 Regulatory Relief for Small Business 131

Chapter 5 Innovation and Small Business 139

Appendix A Supplementary Tables 169

Appendix B Financing Small Business 271

Appendix C Procurement 305

THE ANNUAL REPORT ON FEDERAL PROCUREMENT 

PREFERENCE GOALS 327
p

Chapter 3 The Changing Work Force 89

Chapter 4 New Research on Small Business 117

Appendix A Supplementary Tables 133

Appendix B Financing Small Business 275

Appendix C Procurement 317

THE ANNUAL REPORT ON FEDERAL PROCUREMENT 

PREFERENCE GOALS 339

1994 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 27

Chapter 2 Health Insurance Coverage: A Profile of the 

Uninsured by Firm Size and Employment Status 65

Chapter 3 Innovation by Small Firms 109

Chapter 4 Defense Diversification and Small Business 133

Appendix A Supplementary Tables 157

Appendix B Small Business Financing 311

Appendix C Procurement 351

THE ANNUAL REPORT ON FEDERAL PROCUREMENT 

PREFERENCE GOALS 381

1993 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 21

Chapter 2 Pension Coverage and Costs in Small and Large Business 67

Chapter 3 Franchising: An Alternative for Small Business 109

Appendix A Supplementary Tables 133

Appendix B Small Business Financing 267

Appendix C Procurement 293

Appendix D Characteristics of Business Owners 329

THE ANNUAL REPORT ON FEDERAL PROCUREMENT 

PREFERENCE GOALS 353

252 The Annual Report on Small Business and Competition
pgg

Appendix A Supplementary Tables 141

Appendix B Small Business Financing 251

Appendix C Procurement 303

Appendix D Minority-Owned Businesses 331

THE ANNUAL REPORT ON FEDERAL PROCUREMENT 

PREFERENCE GOALS 383

1991 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

The State of Small Business 1

Appendix A Supplementary Tables 71

Appendix B Small Business Financing 181

Appendix C Procurement 220

Appendix D Women-Owned Businesses 250

Appendix E Black-Owned Businesses 276

1990 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

The State of Small Business 1

Appendix A Supplementary Tables 68

Appendix B Small Business Financing 159

Appendix C Procurement 187

Appendix D Women in Business and the Labor Force 228

1989 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

The State of Small Business 1

Appendix A Supplementary Tables 42

Appendix B Small Business Financing 119

Appendix C Procurement 143

Contents of Previous Editions 253
ppg 

Appendix C Procurement 173

1987 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 1

Chapter 2 Financing Patterns of Small Firms 65

Chapter 3 The Role of Small Business in Efficient 

Resource Allocation 105

Chapter 4 Health Care Coverage and Costs in Small and 

Large Business 133

Chapter 5 Effects of Industry Deregulation on the Small 

Business Sector 185

Chapter 6 Minority-Owned Business 223

Appendix A The Small Business Contribution to the Service Sector 271

Appendix B Procurement 303

1986 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 1

Chapter 2 Small Business Financing 43

Chapter 3 Veterans in Business 77

Chapter 4 Self-Employment as Small Business 105

Appendix A Women-Owned Businesses 151

Appendix B Minority-Owned Businesses 191

Appendix C Changing Characteristics of Workers and 

Size of Business 225

Appendix D Procurement 257

Appendix E Dimensions of Small Business 289

1985 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 1

Chapter 2 Industrial Strategies and Small Firms 99

254 The Annual Report on Small Business and Competition
pp

Appendix C The Small Business Data Base: An Update 415

1984 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 The State of Small Business 1

Chapter 2 The Changing Industrial and Size Composition of 

U.S. Business 115

Chapter 3 Historical Patterns of Small Business Financing 181

Chapter 4 Worker Characteristics and Size of Business 233

Chapter 5 Export Trade and Small Business 291

Chapter 6 Small Business and Procurement 315

Appendix A Women-Owned Business 347

Appendix B Minority-Owned Business 371

Appendix C The Development of the Small Business Data 

Base: A Progress Report 405

Appendix D Export Programs of the Federal Government 443

Appendix E Federal Procurement from Small Business 453

1983 THE STATE OF SMALL BUSINESS: A REPORT OF THE PRESIDENT

THE ANNUAL REPORT ON SMALL BUSINESS AND COMPETITION

Chapter 1 Small Business in 1982 1

Chapter 2 Small Business in the U.S. Economy 27

Chapter 3 Small Business Dynamics and Methods for 

Measuring J Job Generation 61

Chapter 4 Small Business Financing 89

Chapter 5 The Small Business Role in Innovation 121

Chapter 6 Business Formation and Dissolution 135

Chapter 7 Small Business and Regulation 165

Appendix A Tables 183

Appendix B The Development of a Small Business Data Base: A

Progress Report 271

Appendix C Minority-Owned and Women-Owned Business 301

Appendix D Federal Procurement from Small, Minority-Owned, and 

Women-Owned Business 323

Appendix E Tax Developments 339

Contents of Previous Editions 255
pp

Chapter 4 Effect of Federal Policy on Small Business 133

Appendix A Tables and Charts 183

Appendix B The Small Business Data Base and Other Sources 

of Business Information: Recent Progress 247

Appendix C Minority-Owned and Women-Owned Businesses 281

Appendix D Small Business Provisions of the Securities Laws 299

Appendix E Analysis of the Economic Recovery Tax Act of 1981 305

Appendix F Federal Procurement from Small, Minority-Owned and 

Women-Owned Businesses 329

Appendix G Federal Agency Small Business Offices 345

256 The Annual Report on Small Business and Competition
as small business employees, 104 (table),

105 (table)

African-American-owned businesses, 31,

34 (table), 102 (table), 103 (table)

by state, 90 (table)

Age

of the self-employed, 103 (table)

of small business employees, 104 (table),

105 (table)

Agricultural Marketing Service

and Regulatory Flexibility Act, 45

Agriculture, U.S. Department of

and Regulatory Flexibility Act, 45

Alaska natives

businesses owned by, 33, 34 (table)

American Indians 

businesses owned by, 33, 34 (table)

see also Asian Americans

Americans with Disabilities Act

and Regulatory Flexibility Act, 45

Asian-American-owned businesses, 

102 (table), 103 (table)

Asian Americans

businesses owned by, 33, 34 (table)

as small business employees, 104 (table),

105 (table)

Bankruptcies, 30, 31 (table), 106 (table) 

see also Business closings

Banks

lending in 1998, 20, 22, 23 (table),

24 (table), 25 (table), 26 (table)

see also Borrowing, Credit cards, 

Financing

Births, see Business formation 

Blacks, see African Americans

Borrowing

by the business sector, 20

by the federal government, 21 (table)

by nonfarm, noncorporate businesses, 

20, 21 (table)

by nonfinancial businesses, 21 (table)

by state and local governments, 21 (table)

see also Banks, Financing

Business closings, 30, 31 (table), 58 (table), 

84 (table), 86 (table), 106 (table)

see also Survival rates 

by major industry, 78 (table)

number of 28, 29 (table), 58 (table), 

59 (table)

by state, 61 (table), 86 (table)

survival rates of, 106 (table)

see also Minority-owned businesses, 

Women-owned businesses

Commercial banks, see Banks

Consumer confidence index, 20

Contracting, see Procurement

Corporations

financing used by, 20 

number of, 83 (table)

Credit, see Banks, Borrowing, Financing

Credit cards, 22

Defense, U.S. Department of

contracting by, 119

Deficit, federal, 19 (table), 20, 39

Dissolution rates, see Business closings

District of Columbia

and Regulatory Flexibility Act, 52

Eating and drinking places

employment growth in, 35, 36 (table)

Educational level

of self-employed, 103 (table)

of small business employees, 104 (table), 

105 (table)

Effluent limitations guidelines 

and Regulatory Flexibility Act, 48

8(a) program, see Procurement

Employee characteristics, 104 (table), 

105 (table)

Employer firms

births of, 84 (table)

deaths of, 84 (table)

by metropolitan area and firm size, 

61 (table)

see also Businesses

Employment, 19 (table), 35, 36 (table), 

57 (table), 58 (table), 59 (table)

by industry, 78 (table)

by state, 61 (table)

see also Employment change
and the Regulatory Flexibility Act, 43, 

46, 47

Equity capital, 23, 27, 28 (table)

Establishments, see Businesses

Failure rates, see Survival rates

Failures, see Business closings

Federal Acquisition Reform Act of 1995, 122

Federal Acquisition Streamlining Act of 1994 

(FASA), 119, 122

Federal budget, 57 (table)

Federal deficit, 19 (table), 20

Federal procurement, see Procurement

Federal surplus, 19 (table), 20

Finance companies

lending by, 23, 27 (table)

Financing, 20–28

of small businesses, 22, 23 (table)

see also Banks, Borrowing, Credit cards

Firms, see Businesses, Employer firms

General Services Administration 

contracting by, 119

Government contracting, see Procurement

Gross domestic product (GDP), 18, 

19 (table), 57 (table)

Health and Human Services, 

U.S. Department of

and Regulatory Flexibility Act, 45

Hispanic Americans

as small business employees, 104 (table), 

105 (table)

Hispanic-American-owned businesses, 33, 

34 (table), 102 (table), 103 (table)

by state, 90 (table)

Housing and Urban Development, 

U.S. Department of

and the Regulatory Flexibility Act, 43

HUBZone legislation, 122

Income, 19 (table), 20, 57 (table), 58 (table)

Income tax returns, 28, 83 (table), 106 (table)

Incorporations, see Business formation

Industry data

employment, 107 (table)

Initial public offerings, 20, 23, 27 (table)

Interest rates, 20, 57 (table)

of federal regulatory proposals, 43, 51

Loans, see Banks, Borrowing, Credit cards, 

Financing

Management and Budget, Office of

and the Regulatory Flexibility Act, 46

Men

as sole proprietors, 30, 32 (table), 

33 (table)

Mergers and acquisitions

and increase in borrowing, 20

Metropolitan areas

firms and employment in, 61 (table)

Minority-owned businesses, 31, 34 (table), 

102 (table), 103 (table)

federal government procurement from, 

121, 132 (table), 133 (table)

by state, 90 (table)

see also Procurement

National Marine Fisheries Service

and the Regulatory Flexibility Act, 51

New businesses, see Business formation

Nondepository institutions

employment growth in, 35, 36 (table)

Nonminority-owned businesses

by state, 90 (table)

Northwest Mining v. Babbitt, 52

Nuclear Regulatory Commission

procurement from small firms, 120

Occupational Safety and Health 

Administration

and the Regulatory Flexibility Act, 43, 

46, 49

Output, 19 (table), 57 (table)

Pacific Islander-owned businesses

by state, 90 (table)

see also Asian American-owned businesses

Partnerships, 83 (table)

see also Income tax returns

Payroll, 59 (table)

by major industry, 78 (table)

by state, 61 (table)

Personnel Management, Office of, 120

258 The Annual Report on Small Business and Competition
145–149, 181 (table), 182 (table)

195–201, 233 (table), 234 (table); 

subcontracts, 149–153, 183 (table), 

184 (table), 201–205, 235 (table), 

236 (table)

from small disadvantaged businesses: 8(a) 

program, 153–158, 185 (table), 

186 (table), 205–210, 237 (table), 

238 (table); prime contracts, 158–162, 

187 (table), 188 (table), 210–213, 

239 (table), 240 (table); subcontracts, 

162–166, 189 (table), 190 (table), 

213–217, 241 (table), 242 (table)

from women-owned businesses: prime 

contracts, 166–172, 191 (table),

192 (table), 217–222, 243 (table), 

244 (table); subcontracts, 172–174, 

193 (table), 194 (table), 222–225, 

245 (table), 246 (table)

Procurement Marketing and Access Network 

(PRO–Net), 122

Producer price index, 57 (table)

Productivity, 19 (table), 57 (table)

Profits, 20

Proprietorships, 29, 30, 32 (table), 83 (table)

women’s ownership of, 30, 32 (table),

33 (table)

see also Income tax returns

Public assistance

small business employees on, 104 (table), 

105 (table)

Regulations

small business effects of, 39–53

Regulatory Flexibility Act (RFA), 39–53

Sales, 57 (table)

SBIR program, 120, 130 (table)

by state, 131 (table)

Self-employment, 106 (table)

Services

employment change in, 35, 36 (table)

Small Business Administration, U.S.

loan programs of, 22

see also Advocacy, Office of

Small business advocacy review panel 

process, 42, 46

Small businesses, see Businesses, Business 

closings, Business formation, Employer 

businesses

Social services

employment growth in, 35, 36 (table)

Sole proprietorships, see Proprietorships

Startups, see Business formation

Subcontracting, see Procurement

Survival rates of businesses, 106 (table)

Tax returns, see Income tax returns

Terminations, see Business closings

Transportation, U.S. Department of

contracting by, 119, 120

and the Regulatory Flexibility Act, 45

Truck emissions standards

and the Regulatory Flexibility Act, 49

Unemployment rate, 18

Venture capital, 26, 28 (table)

Veterans 

self-employed, 103 (table)

Welfare, see Public assistance

White-owned businesses

by state, 90 (table)

see also Minority-owned businesses, 

Nonminority-owned businesses

White House Conference on Small Business, 

39, 42

Women-owned businesses, 30, 34 (table), 

102 (table), 103 (table)

federal government procurement from, 

121, 132 (table), 133 (table)

sole proprietorships, 30, 32 (table), 

33 (table)

by state, 89 (table)

see also Procurement

Workers

characteristics of, 104 (table), 105 (table)

Index 259