Bill Overview
Title: Small Business Scorecard Enhancements Act of 2022
Description: This bill revises the Small Business Administration annual scorecard assessment, which is used to evaluate whether each federal agency is meeting its goals for the award of prime contracts and subcontracts to small business concerns. Specifically, the bill requires the scorecard for each federal agency to include the number and total dollar amount of awards made to (1) small businesses owned by women, (2) qualified HUBZone small businesses, (3) small businesses owned by service-disabled veterans, and (4) socially and economically disadvantaged small businesses.
Sponsors: Rep. Peters, Scott H. [D-CA-52]
Target Audience
Population: Small business owners affected by contracting changes
Estimated Size: 32500000
- Small businesses owned by women are a target because the bill specifically mentions refining metrics for contracts involving them.
- Qualified HUBZone small businesses are included because the bill aims to track awards to these entities more accurately.
- Small businesses owned by service-disabled veterans receive a focus as the bill mandates better scorecard data for their contracts.
- Socially and economically disadvantaged small businesses are highlighted since the bill refines measurement of federal awards to them.
Reasoning
- The policy is targeted at improving the distribution of federal contracts to small businesses owned by women, service-disabled veterans, HUBZone businesses, and socially disadvantaged small businesses.
- Given the budget constraints, the impact of the policy would primarily be felt by businesses actively involved in federal contracting processes.
- This policy would not directly infuse cash into small businesses but rather would ensure a more equitable distribution of existing contracting opportunities.
- We should include some individuals who are small business owners in these categories and some who are not directly affected, to show the range of impact.
- Due to the vast number of small businesses, the prevalence of those directly seeing benefits from these scorecard enhancements may be low but significant within those specific categories.
Simulated Interviews
Owner of a Women-Owned IT services company (Austin, TX)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I appreciate the efforts to improve accountability in contract awards. It means more chances for transparency when competing for government projects.
- Tracking is crucial to ensure that small businesses like mine are not overshadowed by larger, more established firms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 7 |
| Year 20 | 10 | 7 |
Owner of a HUBZone construction company (Detroit, MI)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- Enhancements to the scorecard mean more opportunities for businesses like ours in underserved regions.
- This could significantly boost our chances in landing federal contracts not only now but in the future as well.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Owner of a Service-Disabled Veteran-Owned graphic design business (San Diego, CA)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- While most of our clients are local, improved transparency in government awards could open doors for expansion into federal projects.
- I appreciate the focus on service-disabled veteran-owned businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Owner of a start-up marketing firm (Chicago, IL)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- Since we're not currently in the federal space, this policy might not impact us directly right away.
- However, knowing that there are more opportunities for women-owned businesses could be beneficial when we decide to diversify our market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Owner of a socially disadvantaged neighborhood grocery store (Atlanta, GA)
Age: 41 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- This policy doesn't really affect my business as we do not engage with federal contracts.
- However, it is good to see focus on socially disadvantaged groups for those who are in the right sectors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Owner of a minority-owned logistics small business (Phoenix, AZ)
Age: 36 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Any policy improvement that increases transparency and fairness in contract awards is great.
- I’m optimistic that when we're ready to bid on government contracts, the process will be fairer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Owner of a high-tech manufacturing firm (Seattle, WA)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I don't see any immediate impacts to my business from this policy.
- Our focus remains in the private tech sector, where competition is already aggressive enough.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Co-owner of a veteran-owned fitness business (Raleigh, NC)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- While we appreciate any focus on veteran-owned businesses, this policy won't change much for us.
- It might become a consideration in future expansion plans, but right now federal contracts are not our market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Owner of a small business consultancy (Miami, FL)
Age: 54 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is great news for my clients who fall under the targeted categories.
- Better scorecards will likely increase interest in federal contracts among diverse small businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 9 | 7 |
Entrepreneur with multiple small ventures (Boston, MA)
Age: 47 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I see this as potential for future growth opportunities especially for my HUBZone business.
- The improved scorecard will guide how I plan business development for federal opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $8000000 (Low: $7000000, High: $9000000)
Year 2: $5000000 (Low: $4500000, High: $5500000)
Year 3: $5000000 (Low: $4500000, High: $5500000)
Year 5: $5500000 (Low: $5000000, High: $6000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Ensuring inclusivity and broad representation among different types of small businesses is critical for meeting the bill's intentions.
- Updating and maintaining the integrity of the SBA database is crucial to deriving the expected benefits from the scorecard enhancements.
- Close collaboration with federal agencies and continual feedback mechanisms are necessary to optimize the scorecard's implementation.