BGOV OnPoint: Spending With Small Vendors Dropped, Missed Goals

Small federal contractors won less work in fiscal 2025 during a year packed with uncertainty following Trump administration procurement overhaul initiatives.

Agencies across the government spent $171.5 billion with small vendors, down 3% from the previous year, as procurement levels in leading markets such as professional services and IT obligations fell.

The Small Business Administration has directed federal agencies to review their set-aside policies and opened audits into small, disadvantaged program awards. The Trump administration also more broadly reshaped federal contracting by consolidating procurement under the General Services Administration and overhauling the Federal Acquisition Regulations.

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