The U.S. Agency for International Development (USAID) is submitting this report pursuant to Senate Report 114-290, which accompanied S. 3117, the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2017.

Not later than 90 days after enactment of the act, the USAID Administrator shall submit to the Committee a report on the implementation of the directive in Senate Report 114-79 to set regional and worldwide goals for overseas contracts and subcontracts with U.S. small businesses, and to require that small business indicators and annual targets be included in each overseas USAID mission annual plan. The USAID Administrator shall include in such report a description of the incentives provided to overseas mission employees to work with small local and U.S. businesses.

Senate Report 114-79, which accompanied S. 1725, the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2016, directed “the USAID Administrator to set regional and worldwide goals for overseas contracts and subcontracts with U.S. small businesses, and to require small business indicators and annual targets be included in each overseas USAID mission annual plan.”

In Fiscal Year (FY) 2016, USAID expanded its internal U.S. small-business goal program to its Regional Bureaus and overseas Missions. The purpose of this report is to document USAID’s progress in setting regional and worldwide goals for the award of contracts and subcontracts to U.S. small businesses at all overseas Missions. USAID agrees with Congress that the goal-setting process is instrumental for creating contract opportunities for U.S. small business.

In FY 2016, USAID’s “Small Business Goal” was to award 11 percent of worldwide prime contract obligations to U.S. small businesses. USAID exceeded that goal, by awarding 13.12 percent of prime contractor obligations to U.S. small businesses. The Agency awarded a total of $571.1 million to U.S. small businesses in FY 2016, the highest dollar obligations the Agency has awarded to U.S. small businesses within a single Fiscal Year, and an increase from the $451 million awarded worldwide in FY 2015.