Senators Introduce Bipartisan Legislation to Fight Fraud in Government Contracting Programs

Senators Olympia J. Snowe [R-Maine, pictured], Mary Landrieu [D- La.], Scott P. Brown [R-Mass.], Jeff Merkley [D-Ore.], and Mike Enzi [R-Wyo.], have introduced bipartisan legislation to combat contracting fraud at the U.S. Small Business Administration [SBA]. Their initiative comes on the heels of several vulnerabilities and abuses in nearly all of SBA’s contracting programs, as identified in multiple reports by the nonpartisan Government Accountability Office [GAO].

"Exercising thorough oversight to ensure SBA’s contracting programs are efficient, effective, and accountable is a top priority," said Sen. Snowe, ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship. "This legislation is a critical step towards ensuring all of our nation’s small businesses compete fairly in the federal marketplace."

Citing a March 12 Washington Post report that "Government officials were not monitoring contracts for compliance with rules," Sen. Snowe called SBA’s current oversight efforts deficient. "As I told the deputy administrator of the SBA at a recent Small Business Committee hearing," she noted, "the ultimate authority for monitoring fraud lies with the SBA when it comes to government management of hard-earned taxpayer dollars."

"When ineligible firms are awarded federal government contracts through fraudulent means," declared Senate Small Business Committee Chair Sen. Landrieu, "this reduces the number of opportunities available to honest, qualified small businesses.

"Government contracts are perhaps one of the easiest and most inexpensive ways the federal government can help immediately increase sales for America’s entrepreneurs, giving them the tools they need to keep our economy strong and create jobs. This legislation gives the SBA and the inspector general the tools necessary to combat fraud. We intend for the SBA to hold firms accountable."

"With our nation facing record debt and deficits, it is absolutely critical that taxpayer dollars are used judiciously to ensure that small-business contracting programs benefit the rightful recipients," said Sen. Brown, a member of the Senate Small Business Committee. "This bipartisan legislation is a strong step toward ensuring that our contracting programs are operating effectively and efficiently."

"Small businesses are the backbone of our community and the drivers of economic growth," said Sen. Merkley. "The programs that support and assist them should not be diverted or diluted because of waste, fraud of abuse. This bill will help refocus SBA programs like a laser on the needs of our small-business owners."

"We have a situation now where bad actors are snapping up opportunities that would greatly benefit legitimate small businesses," added Sen. Enzi. "This bill would help ensure that those who provide real jobs and quality goods and services are the ones getting the contracts."

Specifically, the Small Business Contracting Fraud Prevention Act of 2011 [S. 633] would provide a comprehensive oversight framework within SBA to execute effective certification, surveillance and monitoring, as well as robust enforcement of its entire contracting portfolio. The bill would also increase criminal penalties for businesses awarded contracts through fraudulent means.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business and Entrepreneurship
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Sens. Landrieu, Snowe Call for GAO Investigation Into Small-Business Hurricane Recovery Efforts

U.S. Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu [D-La.] and Ranking Member Olympia J. Snowe [R-Maine] today wrote to Gene L. Dodaro [pictured], acting comptroller general of the U.S. Government Accountability Office, requesting a progress report on Gulf Coast small-business recovery efforts. The senators expect that the investigation will be completed ahead of the fifth anniversaries of hurricanes Katrina, Rita and Wilma in August 2010.

After the 2005 storms, "The region’s small businesses experienced massive losses that caused great harm to those businesses’ owners, employees and customers," Sens. Landrieu and Snowe wrote. "Federal assistance to small businesses has been, and continues to be, imperative for the region’s economic recovery."

The investigation is meant to focus on the Small Business Administration’s disaster loan program and state-administered business assistance programs funded by Department of Housing and Urban Development’s community development block grants. The senators also requested details on federal recovery contracts received by small businesses in the Gulf Coast region.

"We would also like you to provide information on the current state, and improvements in, the region’s small-business economy," the senators wrote.

For further details of the request, please view the letter here: http://bit.ly/7DeAT.

SOURCES: U.S. Government Accountability Office [photo], U.S. Senate Committee on Small Business and Entrepreneurship, Wikipedia
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Kerry Honors Women Entrepreneurs on Anniversary of Women's Business Ownership Act

Twenty years after important women’s business legislation was signed into law, Sen. John Kerry [D-Mass.], chairman of the U.S. Senate Committee on Small Business and Entrepreneurship, recognized the progress women entrepreneurs have made in developing innovative and prosperous small businesses. The Women’s Business Ownership Act [H.R. 5050] -- the first comprehensive small-business legislation aimed to help women entrepreneurs succeed -- marked its official anniversary on Saturday.

“As the fastest-growing segment of the nation’s business community, employing more than 7 million workers and pumping over $1 trillion into the economy, women entrepreneurs are vital to the growth of this nation,” said Kerry. “Despite the immense progress made in the last 20 years, women still face hurdles.”

One of the biggest challenges still facing women business owners is gaining equal access to government contracts. While women-owned firms account for 30 percent of all small businesses, they receive less than 3.5 percent of federal contracts -- far short of the five percent goal.

To help women compete for federal contracts, Congress passed the Equity Contracting for Women Act of 2000 [H.R. 4897], a set-aside program to provide federal contracting assistance to small-business concerns owned and controlled by women. In September, the Small Business Administration [SBA] finalized a rule for the program that seriously undermines women’s ability to compete for contracts, because of the narrow definition they applied to the program -- labeling just 31 of 140 industries studied as underrepresented.

Women entrepreneurs have lost more than $6 billion in potential revenue over the last eight years because of a lack of access to contracts. Kerry continues to push for a wider, more inclusive, definition for the program.

“Eight years ago, when Congress passed this law, our intent was to level the playing field for women entrepreneurs,” Kerry noted. “This ruling does the opposite, creating more roadblocks for women. Any meaningful change that we could have enacted through this program has now been vastly constrained.”

Kerry has also worked in a bipartisan manner to strengthen the more than 100 Women's Business Centers across the country. Last year, Kerry led passage of an amendment providing permanent funding for established centers, and successfully urged the Administration to implement the new program immediately.

In addition, Kerry pushed SBA to correct management practices, after Inspector General and U.S. Government Accountability Office reports found massive management failures of the Women’s Business Center program. Since the September hearing, management has significantly improved.

“We must do everything in our power to help encourage entrepreneurship in these difficult economic times,” said Kerry. “When run properly, these business centers are valuable resources that help to stimulate innovation, create jobs and boost our economy.”

GoodBiz113's take: Sen. John Kerry, a longtime champion of small businesses, is to be lauded for his diligent efforts -- especially on behalf of women-owned enterprises seeking those elusive federal contracting dollars. Thank you, Sen. Kerry!

SOURCES: GovTrack.us, Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Snowe and Kerry Introduce SBA Lender Oversight Legislation

U.S. Senate Small Business and Entrepreneurship Committee Ranking Member Olympia J. Snowe [R-Maine, right] and Chairman John F. Kerry [D-Mass.] today introduced the Small Business Lending Oversight and Program Performance Improvements Act of 2007 to measure the economic outcomes and improve oversight of the Small Business Administration’s signature 7[a] and 504 lending programs. The legislation will ensure that the SBA will assess the quality and performance of these loan programs, so that they benefit small businesses to the maximum degree possible.

“The 7[a] and 504 lending programs will not survive if we cannot prove to taxpayers that the money spent to guarantee small-business loans actually produces economic vitality, opportunity, and new jobs for our nation,” Sen. Snowe declared. “The only way to protect these vital programs and prove their effectiveness is through oversight and concrete measurements. The legislation we are introducing today is necessary for the SBA’s lending programs to expand and reach all of the small businesses that need access to capital.”

“Access to capital remains one of the top concerns for America’s entrepreneurs, so I am pleased to work with Sen. Snowe to ensure the government’s vital small-business lending programs remain strong,” said Sen. Kerry. “This bill will protect the integrity of the programs by establishing tangible performance measures, provide oversight transparency, and mitigate fraudulent lending. Ultimately, these improvements will get loans to the businesses that need them and provide us with details about the return on investment in these small firms.”

Based, in part, on recommendations made by the U.S. Government Accountability Office in a July 2007 report, Small Business Administration: Additional Measures Needed to Assess 7[a] Loan Program’s Performance, the bill would:

* Require a report on borrowers’ economic performance. Currently, the SBA estimates job creation, but the GAO recommends further measurements to demonstrate the economic growth that companies create after securing 7[a] and 504 loans. This will help the SBA and Congress measure the return on investment;

* Increase the transparency of lenders’ portfolio quality. The SBA’s lender monitoring system does not explain how some measurements determine a lender’s risk rating or where there are problems, so that lenders can act proactively to mitigate defaults or losses. Codifying portfolio quality principals will enable all lenders to understand the standards to which they are held. This will help to protect the programs’ performance;

* Create a 7[a] and 504 portfolio default rate that can be compared directly to commercial lenders’ default rates. At this time, the SBA does not calculate a portfolio default rate that is directly comparable to commercial lenders’ default rates, which makes it hard for Congress and the public to accurately track the programs’ performance; and

* Require the SBA to follow cost containment and cost control practices to hold down lender oversight fees and enable banks to use their capital for lending.

In May, Kerry and Snowe passed their bipartisan legislation to expand the 7[a] and 504 loan programs out of committee. The Small Business Lending Reauthorization and Improvements Act [S. 1256] now awaits consideration by the full Senate.

Sources: GovTrack.us, U.S. Government Accountability Office, U.S. Senate Committee on Small Business and Entrepreneurship
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Sens. Kerry and Snowe to Press Administration on Women’s Business Center Funding, Contracting Program

Today, Senators John Kerry [D-Mass., pictured] and Olympia J. Snowe [R-Maine], chairman and ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship, outlined specific questions about Women’s Business Center funding they expect the Bush administration to answer at a hearing on Thursday.

Kerry and Snowe have called on the administration to comply with the law, and to fund established and successful Women’s Business Centers as soon as possible. The committee is holding a hearing on women’s business issues on Thursday, Sept. 20, 2007, featuring testimony from female entrepreneurs, the Small Business Administration [SBA], the agency’s inspector general, and the Government Accountability Office [GAO].

“The law was meant to help these successful centers train and assist women entrepreneurs, not starve them of the resources they need to complete their mission,” said Kerry. “I’m disappointed that the SBA is stalling to implement this important program, and at Thursday’s hearing we will demand answers and accountability. I strongly urge Administrator Preston and the rest of the agency to do what’s in the best interest of Women’s Business Centers and their clients, and make these grants available as soon as possible.”

In addition to Women’s Business Center funding, Thursday’s hearing will also focus on the Women’s Procurement Program which was signed into law in 2000. Despite repeated, bipartisan calls, the Bush administration has failed to implement this program over the last seven years.

“We hope it’s the intention of the SBA to come to this hearing prepared to provide detailed answers on how they plan to implement this crucial new grant program,” Sen. Snowe said. “It’s imperative that these centers who are aiding dedicated and successful women entrepreneurs get the funding necessary to their cause.”

Sens. Kerry and Snowe sent a letter to the SBA in August to encourage the agency to temporarily tailor its grant-making process so that Women’s Business Centers could receive renewal grants by Jan. 1, 2008. Instead of taking the advice of Congress, the SBA contends that they are not able to do so under present law. In May, Kerry also asked the Inspector General to investigate funding delays to some Women’s Business Centers.

The Women’s Business Center Renewal Grants program was passed as part of the emergency appropriations bill signed by President Bush in May, and builds on the Women's Business Center Sustainability Pilot Program introduced by Sen. Kerry in 1999. Since then, Congress has worked in a bipartisan way to ensure that centers with a proven track record of success continue to receive matching funding from the SBA.

* * *

Following, is the text of the letter that Kerry and Snowe sent to SBA Administrator Steven C. Preston:

Dear Administrator Preston:

Thank you for replying to our letter regarding Women’s Business Centers and implementation of the Renewal Grants program. We are concerned with your response to specific issues, and would like your agency to come prepared to fully answer questions outlined below at the hearing, “Expanding Opportunities for Women Entrepreneurs: The Future of Women’s Small Business Programs,” on Sept. 20, 2007.

The hearing will partly focus on the management and benefits of the Women’s Business Center program, including renewal grants for graduated and graduating centers. Please be prepared to address the following issues and further explain some of the statements in your letter:

* Implementation and authority. On May 25, 2007, the President signed into law a bill that created the Renewal Grants program. The program became effective immediately and, therefore, the SBA had the authority to provide grants under sub-section [m]. Nevertheless, the reply says, “The SBA cannot operate under the newly legislated guidelines until the date to repeal the old guidelines [October 1, 2007] has passed.” What is preventing the SBA from using this authority?

* Funding and the Grant Process. The SBA contends that it cannot implement the program because, “Until the agency is funded for FY2008, grant disbursement is not possible.” We understand that the SBA cannot obligate or disburse funds until it has appropriations. However, it is our understanding that the request for proposals could be published and responses accepted, with the caveat of being subject to funding, before this time. This would give the SBA additional time and allow for the funds to be awarded immediately after the appropriations bill is enacted, thus helping established centers receive their funding more quickly. Is there anything precluding the agency from requesting proposals before the FY2008 appropriations bill is signed into law?

* Selection criteria. The reply correctly notes that the new law gives graduated centers “funding priority,” but then incorrectly contends that “The graduated center priority implies that all graduated centers would qualify based on years in the program, and not on performance.” This amendment requires grant approval to be based upon criteria developed by the SBA. These criteria are required to be based on the same conditions that are currently being used in awarding grants under the Sustainability Pilot program. Centers must meet those criteria in order to receive a grant. Please explain where the legislation states that centers should receive funding based on years in the program, “regardless of their performance.”

* Funding of New Centers. The SBA contends that the priority funding for graduated centers will preclude the funding of new centers. This is not the case. The amendment states that if funding is limited, established centers should be funded before new centers. We want to see access to counseling for women business owners expanded through new centers. At the same time, it is fiscally responsible for the government to continue building on its investment instead of losing those investments and starting new funding commitments that it might need to abandon later. Women’s Business Centers would receive a significant increase in the Senate appropriations for FY2008 -- $16.88 million, or $4 million more than last year. That should be sufficient to fund existing, graduated, and new centers. Please tell us how much the SBA requested for FY2007 and FY2008 for Women’s Business Centers, and on what appropriation the SBA based its conclusion that it could not fund new centers.

* Implementation. Please describe, in detail, the plan the SBA expects to follow in implementing the new renewal grant program. Please be prepared to tell us when [with specific dates] the SBA expects to publish the announcement, how soon the awards would be made after enactment of SBA’s appropriations for FY2008, and when the actual funds will be disbursed.

It is the intent of this legislation that successful, established centers begin receiving grants as soon as possible. We recognize for this to occur, that it will require everyone to work together, and we assure you that we are fully committed to working with you. Women business owners are an integral and vital part of our economy, and Women’s Business Centers play an important role in supporting them.

We look forward to your response at the hearing this week.

Sincerely,

John Kerry
Olympia Snowe

Sources: Peace Corps Online [photo], U.S. Senate Committee on Small Business and Entrepreneurship
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Democrats Call on Government to Increase Minority Advertising Contracts

Today, leading Senate and House Democrats urged federal agencies to take an active role in increasing the amount of federal advertising contracts awarded to disadvantaged and minority-owned businesses. Their action comes in response to a report by the Government Accountability Office [GAO], to be released today, concluding that federal agencies are falling short of the standards set by an executive order [E.O. 13170], issued in 2000, calling on the government to “aggressively” reach out to minority and underserved firms.

Senate Majority Leader Harry Reid [D-Nev.], Small Business and Entrepreneurship Committee Chairman John Kerry [D-Mass.], senior Senate Judiciary Committee member Chuck Schumer [D-N.Y.], and Congressional Black Caucus Chair, Rep. Carolyn Kilpatrick [D-Mich., pictured] today sent letters to the Departments of Defense and the Treasury expressing concern for their poor record of awarding contracts to minority and disadvantaged businesses. They also asked the agencies to outline specific steps they are taking to increase contracts with minority advertising firms.

The Defense Department awarded minority advertising firms only 1.8 percent of contract dollars and paid them, on average, nearly 84 percent less per contract than majority firms. The Treasury Department awarded minority advertising firms only 1.9 percent of contract dollars and paid them, on average, nearly 47 percent less per contract than majority firms.

The GAO also reviewed the records of three other agencies, which all spent more advertising dollars with minority firms: Health and Human Services Department [24.6 percent], Interior Department [6.4 percent], and NASA [88.9 percent].

“I am deeply concerned that the Departments of Defense and Treasury are denying minority advertising firms the opportunity to work with the federal government,” said Sen. Reid. “That they may even be discouraging hiring minority firms and paying them nearly 84 percent less than majority firms is even more disturbing. We will continue to aggressively monitor these and other federal agencies to make sure that our government meets our own standards of contracting with minority firms.”

“This report shines a spotlight on the federal government’s failure to make equal opportunity a reality, not just rhetoric,” Sen. Kerry noted. “The Defense and Treasury Departments are woefully behind the curve. Awarding less than two percent of advertising contract dollars to minority-owned and disadvantaged firms is unacceptable, and this report must be a wake-up call. My committee will keep up the pressure and stay on top of this until these agencies drastically improve their contracting practices.”

“The federal government is supposed to be doing everything it can to help minority businesses, yet the Departments of Defense and the Treasury are penny-pinching and falling far short of federal goals,” said Sen. Schumer. “These standards were established to foster minority business growth and to make sure that federal advertising is crafted by a diverse community of talented entrepreneurs. These departments need to do an about-face and take whatever steps are necessary to ensure that minority-owned advertising businesses are getting the fair shake that they need and deserve.”

“Despite an executive order, federal agencies are not providing minority business owners -- who pay taxes, provide jobs, and help strengthen our economy -- with equal opportunities in the federal contracting process,” declared Congresswoman Kirkpatrick. “Failure to promote inclusion and fairness in contracting is not only an egregious disservice to America’s families, but it is also a mockery of the promise upon which our country was founded.

“We must continue to advocate for the underserved and underrepresented, and encourage our government to lead by example. Diversity is America’s strength. By expanding access, we improve our ability to compete in the global marketplace, ensure that all people have the chance to achieve their potential, and enhance efforts to build a united America.”

The report, which was requested by Sens. Reid, Kerry and Schumer, will be released by GAO sometime today.

Sources: Federal Register, U.S. Senate Committee on Small Business and Entrepreneurship
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Kerry to GSA: Don’t Eliminate Small Business Office Supply Contracts

Today, Sen. John Kerry [D-Mass.], chairman of the Committee on Small Business and Entrepreneurship, urged the General Services Administration [GSA] to postpone implementing a policy that could have a detrimental impact on many small businesses, and called for a Government Accountability Office [GAO] study evaluating the proposal. The GSA is preparing to drop office supplies from its Global Supply Stock Program. Currently, nearly 80 percent of government purchases of office supplies through this program are directed to small businesses.

“It’s unacceptable for the Administration to abandon innovative and effective small businesses in favor of a handful of big businesses," Kerry declared. "Before GSA eliminates these contracts, we need to know exactly what it means, economically and operationally, for the small firms that have been doing business with the federal government."

Kerry sent a letter to GSA Administrator Lurita Doan [pictured above] -- along with Ranking Member Olympia Snowe [R-Maine], Sen. Johnny Isakson [R-Ga.], and the chair and ranking member of the House Small Business Committee, Nydia Velázquez [D-N.Y.] and Steve Chabot [R-Ohio] -- asking the agency to halt the new policy.

The bipartisan group also announced that they will ask GAO to review the consequences of this policy change, given that the continued presence of the stock program’s office products also creates a vital and readily accessible resource to all government agencies for their various supply needs in times of emergency.

Following, is the text of their letter:

July 9, 2007

Ms. Lurita Doan
GSA Administrator
U.S. General Services Administration
1800 F Street, N.W.
Washington, DC 20405-0002

Dear Administrator Doan:

It has been brought to our attention that the General Services Administration [GSA] is planning to eliminate office supplies from its Global Supply Stock Program. The continued presence of the Stock Program’s office products creates a vital and readily accessible resource to all government agencies for their various supply needs. The Stock Program currently has multiple small businesses that provide office products to depots across the nation for stockpiling in the event of an emergency.

Under your proposal, office supplies would be eliminated from the Stock Program and we are concerned that these services will be allocated to a handful of larger business supply companies. At present, approximately 80 percent of the office supply procurements for the Stock Program are directed to small businesses. Therefore, any change to this program that does not fully and properly take into account the detrimental impact on small business greatly concerns us.

Before GSA moves forward, we request that you refrain from terminating the office supplies from the Stock Program until Congress has had a chance to review this matter in greater detail and consider potential detrimental economic impacts to small businesses. We are also concerned about the impact this will have on our Nation’s emergency readiness capabilities and our Country’s ability to react quickly to major disasters. Therefore, before GSA eliminates any items from the depot, we would like to fully understand the impacts of such a move.

In light of our concerns, we will soon request that the Government Accountability Office [GAO] study what impact removing office products from the Stock Program will have on the many small business suppliers that currently participate in the Stock Program and our Country’s emergency preparedness. We appreciate your confirming for us, within 30 days of receipt of this letter, that you will suspend any efforts to change the Stock Program with respect to office supplies until the matter has been independently evaluated by the nonpartisan GAO.

Thank you and we look forward to your prompt reply on this matter.

Sincerely,

John F. Kerry
Chairman
Senate Small Business Committee

Olympia J. Snowe
Ranking Member
Senate Small Business Committee

Nydia Velázquez
House Small Business Committee

Steve Chabot
House Small Business Committee

Johnny Jackson
U.S. Senate
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Kerry: Gulf Coast Needs More than Empty Promises; Calls for Reviews of Disaster-Recovery Contracting Practices

Last Thursday, after President Bush's Gulf Coast visit, Sen. John Kerry [D-Mass.] had some harsh words. Kerry, chair of the U.S. Senate Committee on Small Business and Entrepreneurship, is the lead sponsor of bipartisan legislation to overhaul the government's disaster loan program, which the Bush Administration has been blocking since September 2005.

"Long-term recovery for the Gulf Coast requires a whole lot more than 18 months of empty promises," said Kerry. "Businesses that were once the heart of the Gulf Coast economy are now hanging on by a thread. Yet the bipartisan proposals in Congress to get these businesses back up and running have been blocked by the Bush Administration at every turn.

"On his last visit to the Gulf Coast, the President predicted a bright future for the region's entrepreneurs. Yet, in the six months since that visit, nothing's changed. While the Go Zone legislation represented a good first step, we still need fundamental reform of the government's disaster loan program to permanentlyremove delays and red tape that have prevented businesses from getting timely financial assistance."

The Small Business Disaster Response and Loan Improvements Act of 2007 [S.163], sponsored by Kerry and cosponsored by Sen. Mary Landrieu [D-La.], Sen. Olympia Snowe [R-Maine] and Sen. David Vitter [D-La.], would:
* Establish a Private Disaster Loan [PDL] program that allows banks to make loans directly to victims after meeting Small Business Administration [SBA] criteria. The SBA will provide an 85 percent guarantee for these loans;

* Require the SBA to draft rules within one year that would create a new "expedited disaster assistance business loan program." These short-term loans would have low interest rates similar to regular disaster loans. This would provide businesses with short-term assistance while they await other forms of federal assistance or insurance payouts following future disasters. It specifically addresses one of the major issues following Hurricanes Katrina and Rita -- a lack of access to immediate capital to keep businesses afloat;

* Create a new presidential declaration of "Catastrophic National Disaster," which will allow the SBA to issue nationwide economic-injury disaster loans to small businesses affected by a large-scale disaster;

* Allow the SBA to provide relief to fuel-dependent small businesses when energy prices increase at extraordinarily high rates.

* Provide key tools for processing disaster loan applications more quickly by authorizing the SBA to enter into agreements with qualified private contractors to process disaster loans, and requiring the SBA to analyze and report to Congress on how the disaster loan application process can be improved; and

* Increase the maximum size of an SBA disaster loan from $1.5 million to $5 million, and allow non-profit groups to be eligible for disaster loans.

Sen. Kerry also called on major federal agencies awarding contracts after disasters to issue and enforce contracting plans, to ensure small firms and disadvantaged businesses receive their fair share of contracts.

A Government Accountability Report released today found that there needs to be better transparency and enforcement at agencies responsible for 94 percent of federal disaster recovery contracts after Hurricane Katrina. Those agencies are the Departments of Homeland Security [DHS] and Defense [DOD], the General Services Administration [GSA], and the Army Corps of Engineers [Corps].

"All the presidential photo opportunities in the world haven't resulted in more small and local business participation in rebuilding communities devastated by Hurricane Katrina," said Kerry. "This GAO report reveals a severe gap in the information we need to ensure small businesses are afforded every opportunity to win contracts and help recover after a disaster. We need more information and better oversight to ensure the government is following the law."

Kerry sent a letter to the heads of DHS, DOD, GSA and the Corps, calling on the agencies to implement the GAO's recommendations to: 1] issue guidance to key personnel reinforcing the importance of subcontracting plan requirements; and 2] consider requesting that the agencies' Inspectors General review compliance with this guidance.

To read the GAO report, visit: http://www.gao.gov/new.items/d07205.pdf.

To read the text of the letter, click here.

Sources: Library of Congress [via THOMAS], U.S. Senate Committee on Small Business and Entrepreneurship
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