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Federal government again falls short of small business contracting goals

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The federal government made progress but again fell short of its small business contracting goals last year, according to government data released Tuesday.

Just 22.25 percent of federal contracting dollars, or $89.9 billion, went to small businesses in fiscal 2012, according to the Small Business Administration (SBA). That’s higher than last year’s 21.65 percent but still shy of the goal of 23 percent set by Congress. It is the 12th consecutive year officials have missed the target.

The government also fell short of its goal for women-owned businesses and firms in economically disadvantaged areas.

The Obama administration has made it a priority to funnel more of the billions the government spends every year on contracts to small businesses, but it has struggled to move the needle significantly. The problem has been exacerbated by federal spending cuts related to the sequester, which economists say tend to hit small firms the hardest.

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