Preferential contracting was first authorized by the Small Business Act of 1953, which set up the Small Business Administration (SBA) to aid and counsel small businesses and to ensure that small firms receive a fair share of Government contracts. Various amendments have significantly expanded and strengthened Federal Government contract and subcontract opportunities for small, minority, women-owned, service disabled veteran owned, veteran owned, and small businesses located in HUBZones.
Small business firms, especially newly formed organizations, are encouraged to contact their nearest Small Business Administration (SBA) office for assistance and to learn of the many programs and opportunities that are available to them. These include contracting and technical assistance as well as financial and management assistance. The various procurement programs provided under the Small Business Act, as amended, are reflected in the following policy statement:
In accordance with the Small Business Act and implemented in regulation at FAR 19.201(a), it is the policy of the Treasury Department to provide maximum practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance.