Small disadvantaged business goal reduced when the President canceled the executive order 14091

On January 20, 2025, the President raised the Executive Order 14091 to secure a guideline that had set a goal for small disadvantaged companies (SDBS) by 15% of the federal main contract funds by 2025. The cancellation marks a significant shift in the federal government’s procurement in the BUND directive, which the SDB goal returns to its legal baseline of 5%, as described in 15 USC 644.

Executive Order 14091, gave a plan to increase SDB Prime contract expenditure in several years in the context of the previous administration and started with 11% in the 2022, 12% business year 2023 etc.. resigns from the Federal Government’s commitment to the statutory minimum minimum defined by the Congress.

The change does not eliminate the support for SDBs nor does it reduce the target under the statutory soil of 5%. The federal authorities are still obliged to achieve or exceed the 5% packaging destination, but the elimination of the higher goal could reduce the dynamics for initiatives that aim to expand the opportunities for disadvantaged companies.

The cancellation is part of a more comprehensive review of the executive regulations and actions implemented by previous administrations.

Click here to read the full list of revoked management orders and actions.