15% Goal for Small Disadvantaged Businesses

When it comes to Diversity, Equity, and Inclusion (DE&I) the Biden administration is making good on its promises. The administration issued an executive order rescinding the Trump administration policies that weakened the diversity, equity, and inclusion training programs at agencies and federal contractors. In addition, the Office of Management and Budget issued a request for information (RFI) searching for DE&I solutions to enhance a number of government activities. (Government Executive May 19, 2021)

This particular RFI appears to be a crowd-sourcing application for policy solutions. It shows that the current administration is very serious about DE&I and their willingness to accept changes and an openness to new and different ways of viewing the inner workings of the government. (ibid)

It appears the administration is looking for better ways to leverage the government’s spending capability. To make sure all receive their fair share and to help close the income, wage, and opportunity gaps. The administration has initiated a 15% goal for federal contract dollars to go to small disadvantaged businesses. Although this looks like a great opportunity it is actually quite hard to measure how many dollars actually funnel through prime contractors to their subs. Figuring out how to measure the dollar flow would be a good start, then putting the 15% goal into effect. Progress is measurable at that point. (ibid)

So where are we today? Can the administration succeed with its DE&I goals? The question becomes, “how do we know?” Steps are clearly headed in the right direction, however, a commitment and a baseline are needed to end up where we want to be.

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