Small Businesses Gain More Access to Federal Contracting Opportunities Under Kerry, Snowe Legislation

Today, by a vote of 19-0, the Senate Committee on Small Business and Entrepreneurship passed bipartisan legislation which will make it easier for small businesses to obtain federal contracts.

The Small Business Contracting Revitalization Act [S. 2300] improves the oversight of unbundling contracts for small firms, increases enforcement of protections for subcontractors, and expands opportunities for minority, women and service-disabled entrepreneurs.

“Passing this legislation out of committee is just the first step towards making sure that small businesses -- especially those owned by minorities, women, and veterans -- are treated fairly in the contracting process,” declared Sen. John Kerry [D-Mass.], chairman of the Committee on Small Business and Entrepreneurship.

“This legislation will help ensure that the Bush administration identifies opportunities for small businesses to compete for contracts, and gives small businesses that subcontract with a large firm more recourse if they are mistreated,” Kerry noted. "Small businesses are the lifeblood of America, and we need to eliminate all barriers that stand in the way of their success in order to keep the American economy healthy.”

“The Federal government is not aggressive enough in fulfilling its statutory small-business contracting goaling requirements and in assisting small businesses to access federal contracting dollars,” said Sen. Olympia Snowe, [R-Maine], ranking member of the Committee on Small Business and Entrepreneurship.

“Currently, small businesses are eligible for $340 billion in federal contracting dollars, yet they receive only $77 billion,” Snowe explained. “The legislation the committee approved today will help ensure that small businesses no longer miss out on billions of dollars in contracting opportunities by taking steps to provide the federal government with additional tools it needs to consistently meet, and exceed, its small-business contracting goals. I look forward to the enactment of this bipartisan, small-business contracting legislation.”

The bill was drafted by Sens. Kerry and Snowe, and cosponsored by Sen. Benjamin L. Cardin [D-Md.]. Specifically, the bill addresses challenges faced by small businesses by:

* Reducing contract bundling by improving oversight of bundling regulation compliance by the Small Business Administration [SBA];

* Preventing misrepresentations in subcontracting by prime contractors by increasing oversight and establishing enforcement mechanisms;

* Helping service-disabled, veteran-owned small businesses gain government contract and subcontract opportunities by expanding the authority for sole-source awards;

* Directing the SBA to implement the women-owned small business program – enacted into law in 2000, but which the Bush administration has failed to implement – within 90 days;

* Strengthening the government’s ability to enforce the size and status standards for small business certification.

* Extending the 8[a] contracting program through 2012, and improving it, by:
1] Allowing the Small Disadvantaged Business [SDB] certifications issued by other agencies to be accepted by the SBA;
2] Adjusting for inflation the personal income and net worth requirements for 8[a] program participants; and
3] Prohibiting qualified retirement plans from being used by the SBA to determine an individual’s net worth.

GoodBiz113's take: This bipartisan legislation is most impressive and far-reaching across diverse demographics. S. 2300 deserves to be passed by the full U.S. Senate and Congress ASAP -- to benefit all small businesses and our stakeholders. Once again: Hats off to the do-something 110th Congress!

Sources: Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Cardin Chairs Small-Business Field Hearing on Improving Government Contracting

On Monday, Sen. Benjamin L. Cardin [D-Md.] chaired a field hearing of the U.S. Senate Committee on Small Business and Entrepreneurship to investigate federal government contracting problems and legislative remedies that will help small and minority-owned businesses compete for federal contracts.

“Small business is the engine that drives our economy and sustains our technological lead in the global marketplace,” said Cardin, a member of the committee. “The federal government has a responsibility and interest in fostering and promoting a business climate that supports small-business growth.”

For the past six years, the federal government has consistently failed to meet its small-business contracting goals. According to the Small Business Administration [SBA], in 2006, the federal government failed to meet any of its small-business contracting goals. The SBA report also showed that its goals for women and minorities fell below the 5% objective.

Another recurring theme of those testifying at the hearing was that many of the contracts that were intended for small businesses end up going to large corporations. In 2005, at least six of the top 30 small-business vendors doing business with the federal government were actually large corporations.

Representatives from the SBA, U.S. Department of Defense, General Services Administration, plus several small and minority business leaders in Maryland testified at the hearing. Sen. Cardin announced that he is working with members of the committee on legislation that will deal with barriers that make it difficult for small businesses competing for federal contracts.

“Small business plays a vital role in the federal contracting system,” Cardin noted. “It ensures competition and supplies the federal government with a constant supply of new entrants who bring new ideas and novel approaches for doing the job at hand and supplying services at a competitive rate.”

Source: U.S. Senate Committee for Small Business and Entrepreneurship

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Kerry Focuses on Expanding Minority Entrepreneurship Opportunities

Today, Sen. John Kerry [D-Mass.] urged the Bush Administration to take steps to expand access to capital and federal contracts for minority entrepreneurs.

Kerry, chairman of the Committee on Small Business and Entrepreneurship, chaired a hearing to highlight the barriers many minorities face as they seek to start or expand a business, and to discuss policy solutions to address these challenges. “One of our nation’s greatest assets is our diversity," he said. "Investing in minority businesses only helps to increase the value of that asset.

“For example, in Massachusetts, minorities make up about 15 percent of our population, but they own only about five percent of the businesses and account for just 1.4 percent of sales. We must do more to create opportunities for successful business growth, and remove the barriers for minority entrepreneurs.”

Over the last 10 years, minority business enterprises accounted for over 50 percent of the two million new businesses started in the United States, crossing every industrial sector -- from financial services and health care, to construction and transportation. Today, there are more than four million minority-owned companies in the country, with annual sales totaling $694 billion. There are nearly 50,000 minority-owned firms in Massachusetts.

According to the 2002 U.S. Census data, minorities make up 32 percent of our population, yet minority business ownership is only at 18 percent. In addition, these firms make significantly less than their non-minority counterparts. The average gross receipts of minority firms was $162,000 -- considerably lower than the $448,000 average gross receipts of non-minority firms.

This disparity demonstrates the need for targeted programs at the federal level for minority entrepreneurs. Kerry is working on several pieces of legislation to help close the gap for minority firms. At today’s hearing, he promised to introduce bipartisan legislation this summer to improve the federal contracting process for small firms and increase oversight of federal agencies.

The Minority Entrepreneurship Development Act of 2007, which Kerry introduced in January and is cosponsored by Sens. Mary Landrieu [D-La.], Hillary Clinton [D-N.Y.], and Ben Cardin [D-Md.], would give grants to historically Black colleges and universities, Hispanic-serving institutions, and tribal colleges to help train the entrepreneurs of the future. This legislation passed the Committee with bipartisan support last year.

Kerry’s access to capital bill, S. 1256, the Small Business Lending Reauthorization and Improvements Act of 2007, would improve all of the Small Business Administration’s loan programs -- including strengthening the microloan program, which, proportionally, serves more minorities than other programs. The bill would also create an Office of Minority Small Business Development within the agency -- a provision the Committee unanimously passed last year. This bill passed the Committee on May 16, 2007.

GoodBiz113's take: As our nation's cultural melting pot grows, it simply makes sense to have programs in place to help share the wealth. Thanks to Sen. Kerry's ongoing collaborative efforts, that'll happen for win-win-win good.

Sources: Library of Congress, U.S. Census Bureau, U.S. Senate Committee on Small Business and Entrepreneurship
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