Unlocking opportunities for small and disadvantaged businesses
Commissioned by Amazon
In 2018, the US introduced the Commercial Platforms Program (CPP), reforming federal agencies procurement of ‘routine commercial products’. The program enables e-commerce websites and third-party suppliers to sell directly to federal buyers, helping enhance competition and minimize administrative costs for businesses and federal agencies.
Federal agencies also purchase from various businesses through other online marketplaces besides the CPP, but currently the SBA does not allow agencies to earn credit for these purchases. Expanding the scope of the statute to allow agencies to earn credit towards their SBA targets for purchases through online marketplaces beyond just the CPP would help agencies to reach their annual SBA goals.
On behalf of Amazon, Oxford Economics has assessed the impact of a scenario in which federal agencies can claim credit for purchases made with small and disadvantaged businesses across all online marketplaces.
Policy reforms that allow federal agencies to claim credit for purchases from small and disadvantaged businesses across all online marketplaces, not just the CPP, are expected to produce a significant boost to these firms. Our modelling suggests that these reforms could increase federal awards with small and disadvantaged businesses by $100 million in FY2024. This implies that the total value of federal spending with these businesses in FY2024 is projected to range between $315 million to $415 million.
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Luke Miller
Lead Econometrician
Henry Worthington
Director, Economic Consulting
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