The Small Business Fairness in Contracting Act (H.R. 1873 ) just passed by the House initially would have set a government wide goal of awarding 30 percent of contracts to small businesses. The current goal is 23 percent. In strong bipartisan support, Democrat and Republican House Small Business Committee members agreed April 24 on 30 percent. But the House Oversight and Government Reform Committee trimmed it back to 25 percent May 1.
Several members, however, intend to get that back up to 30 percent; an amendment by the Small Business Committee’s ranking member, Rep. Steve Chabot (R-Ohio), and member Rep. Melissa Bean (D-Ill.) will try to restore it. Keep in mind that President Bush has not said he would veto the bill in either the 25% or 30% form. The issues are in the Congress, where you can help.
Currently, instead of an arbitrary percentage, the administration asks each agency what it expects to spend with small businesses for the coming year. Then a goal is set. The Energy Department, for example, gets from each office a small-business forecast, and then helps the offices throughout the year reach their goals, Francis Spampinato, the department’s chief acquisition officer, said at a recent panel discussion.
While Congress and the Administration debate the size of the ceiling on the set-asides (25% or 30%), no-one seems to be paying much attention to the fact that $64 Billion in contracts ($20 Billion in ‘foreign’ procurements and $44 Billion in ‘Federal Supply Schedule’ (FSS) acquisitions) is currently been withheld from reaching small and minority businesses. Enough to make the ceiling not 30%, but 35%!!!
This withholding is currently allowed because of a ‘set-aside exemption’ clause which contracting officials must comply with to issue awards. This ‘exemption’ is part of an outdated, unfair and allegedly, illegal regulation, which the SARA Panel states, wrongly interprets the Small Business Act’s mandate. H.R. 1873 calls for ALL contracts to be subject to the set-aside provisions of the Act.
Suggested Actions for you to consider:
- If you’re a member of the Media, please write/report our concerns
- If you’re a government official, familiarize yourself with those concerns and influence your associates and your superiors into taking action with the solutions that have been offered;
- If you’re a trade or business group which represents and/or support small and minority businesses, write to your elected officials and tell them that you support H.R 1873; the proposed increase in the set-aside ceiling to 30% and the elimination of the ‘set-aside exemptions.’
- If you are a businessperson, call your Congressional delegates office and weigh in. They need your impression to guide their decisions on this important legislation
This message sponsored by: The Griffin Method
Corra, being a small business itself, loves the fact that more small businesses will be awarded government contracts. Having posted an article not long ago where the article claimed that it was small businesses that was doing the large part of keeping the job market afloat only adds to the significance of this new ruling. That is, if the new ruling actually goes through.
President Bush has threatened to veto the bill, and I will leave it to our readers to figure out why that may be the case. Now once upon a time every President in office would claim that small businesses were the backbone of our nation. Many agreed, from all sides of the aisle. Today, perhaps one could argue that the government is more responsive to corporate interests than it is to the smaller business.
In any event, small business seems to higher more people and is less inclined to wring more work out of each employee. Small businesses may not be as forthcoming with certain health benefits, etc., but quite often, unless you actually own the business, as Corra well knows, you may not find yourself working way into the night.
Whatever condition the bill does eventually go through, small businesses will higher more people. Corra cautions that each candidate should undergo a preemployment screening program. A criminal background check is a key element to that program as well as a Social Security Trace.
Corra is always happy to see more Americans working. But the wrong ones, the bad employees, can cause grievous harm to your business. So check them out before you hire.
