Addressing Equity in Federal Advertising Contracts: GAO Findings

GAO recently released a report entitled "Federal Advertising: Fourteen Percent of Contract Obligations in the Past Decade Went to Small Disadvantaged Businesses and Those Owned by Women and Minorities". The report looks into and provides a detailed analysis of federal advertising spending from FY 2014 to 2023.

The report highlights that out of $14.9 billion in total advertising contract obligations, only 14% went to small disadvantaged businesses, including those owned by women and minorities. While this figure might initially seem modest, it aligns relatively closely with federal contracting goals for SDBs, particularly as these goals have increased over time. It’s important to note that this analysis spans nine years, including periods when SDB contracting goals were lower than they are today.

Notably, the DOD, HHS, and DHS accounted for more than half of these obligations. However, a significant portion of federal advertising spending is tied to large national campaigns, such as military recruitment, tobacco cessation efforts, and Census 2020. These major campaigns alone account for over half of the reported total obligations and are each handled by large businesses, heavily influencing the percentages reported in the GAO findings.

While the specific percentage has some variance, the GAO's findings that only 14% of advertising obligations went to SDB + WOSB highlight a potential area for policy review and adjustment nonetheless. This could lead to increased efforts by the government to ensure a more equitable distribution of contracts in the future and further transparency and reporting from federal agencies. 

I encourage you to review the full GAO report and consider how these findings might influence your business strategies and relationships within the federal market.