Small Businesses Win a Record $97.95 Billion in Federal Prime Contracts

After reviewing the Small Business Administration’s fifth annual Small Business Procurement Scorecard, United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu [D-La., pictured] and Ranking Member Olympia J. Snowe [R-Maine] today commented on the federal government’s effort to increase federal contracting opportunities among small businesses.

According to the most recent scorecard, in fiscal year 2010, small businesses won nearly $100 billion in federal prime contracts -- an increase of more than $1 billion from 2009. Small businesses were awarded 22.66 percent of all federal spending in FY2010 -- less than half a percentage point shy of the statutory 23 percent goal.

"Over the course of one year, we saw nearly $100 billion go into the hands of America’s small businesses, and I am pleased to see the ever-increasing role of small businesses in the federal government contracting process," said Sen. Landrieu. "With the passage of the Small Business Jobs Act of 2010 last fall, we put in place ways to significantly improve these numbers, and I hope this report will be the last steppingstone to reaching our small-business contracting goals.

"The report confirmed an overall increase in small-business contracting for the second consecutive year, but the federal government still fell short of meeting their goal in many categories -- including prime contracting awards for women-owned small businesses, service-disabled veteran-owned small business, and Historically Underutilized Business Zones [HUBZones]. We continue to see room for improvement, and I am confident they are on the right track to reaching and surpassing these goals."

"Small businesses are the primary job creators in this country, responsible for more than two-thirds of all new jobs created," noted Sen. Snowe. "At a time when a staggering and seemingly intractable unemployment rate of over nine percent has become the norm -- with 22 million Americans unemployed or underemployed, and when we are experiencing the longest period of long-term unemployment in American history since data collection started in 1948 -- I remain dismayed that, yet again, the federal government has failed to meet its statutory government-wide goal -- not just for small business, but for women, HUBZones, and service-disabled veteran-owned small businesses.

"Reports show that small businesses lost an estimated $2 trillion in profits and asset valuation since the recession started in December 2007, while larger companies have been less affected and are recovering more quickly. Given these statistics, it is all the more paramount that small businesses have the opportunity to contract with federal agencies, and anything other than meeting these goals is simply unacceptable.

"For small firms that are struggling to stay afloat and maintain their workforce, federal contracting can be an instrumental part of a larger strategy for broadening their customer base and creating jobs and, although the numbers have improved, this Administration can, and must, do better."

About SBA's Small Business Procurement Scorecard

The FY2010 Scorecard calculated the amount of federal spending for prime contracting and subcontracting to small businesses for fiscal year 2010 [Oct. 1, 2009-Sept. 30, 2010], and evaluated agencies to ensure these firms remain an integral part of the federal contracting process.

SBA graded 24 agencies on each of the individual prime contracting goals established by Congress, and used an "A+" through "F" letter-grade system.

The federal government scored an overall average of 99.2 percent -- with 99.73 percent prime contracting achievement, and 94.50 percent subcontracting achievement.

Ten agencies’ grades increased from FY 2009, 10 agencies’ grades stayed the same, and four agencies’ grades decreased. The agency breakdown is as follows:
* 13 agencies received an "A"
* Five agencies received a "B"
* Four agencies received a "C"
* Two agencies received a "D"

Overall, SBA Administrator Karen Mills was optimistic about the Scorecard results. "When the federal government gets contracts into the hands of small businesses, it is a 'win-win' situation," she noted. "Small businesses have the opportunity to grow and create jobs, and the federal government gets access to some of the most innovative and nimble entrepreneurs.

"We are proud of the achievement the government has made [in small-business procurement], but are determined that the government will meet and exceed the goal. SBA is focused on a number of key initiatives to help increase small-business contracting opportunities, as well as combat fraud, waste or abuse. These efforts will ensure the benefits of our programs continue to go to the intended recipients."

The SBA's full Small Business Procurement Scorecard can be viewed here: http://1.usa.gov/ScorecardsSBA.

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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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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Sen. Reid Announces Small Business Committee Assignments for 112th Congress

Today, U.S. Senate Majority Leader Harry Reid [D-Nev., pictured] released Small Business Committee assignments for the 112th Congress.

"I am looking forward to continuing to work with the members of this committee in the new Congress," said Sen. Mary L. Landrieu [D-La.], selected to continue in her role as committee chair.

"We have taken some extraordinary steps over the last two years to improve access to capital for small businesses," Landrieu noted, "to promote trade and exporting opportunities, and to ensure that small businesses receive their fair share of federal contracts.

"But our work is not finished. We have built the foundation for small businesses to lead our economic recovery and to create jobs. Now, it is time for us to strengthen those initiatives, so that our nation’s job creators can truly succeed in today’s competitive global marketplace."

Members of the Small Business Committee for the 112th Congress include Carl Levin [D-Mich.], Tom Harkin [D-Iowa], John Kerry [D-Mass.], Joseph Lieberman [ID-Conn.], Maria Cantwell [D-Wash.], Mark Pryor [D-Ark.], Benjamin Cardin [D-Md.], Jeanne Shaheen [D-N.H.], Kay Hagan [D-N.C.], Olympia Snowe [R-Maine], David Vitter [R-La.], Jim Risch [R-Idaho], Marco Rubio [R-Fla.], Rand Paul [R-Ky.], Kelly Ayotte [R-N.H.], Mike Enzi [R-Wyo.], Scott Brown [R-Mass.] and Jerry Moran [R-Kan].

SOURCES: Harry Reid: United State Senator for Nevada [photo], U.S. Senate Committee on Small Business and Entrepreneurship
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Landrieu Urges Participation in New SBA Teaming Pilot Program to Help Stimulate Economic Development

Today, U.S. Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu [D-La., pictured] urged organizations to participate in the Small Business Teaming Pilot Program, established with the enactment of the Small Business Jobs Act of 2010.

"Too often, small businesses are shut out of the federal contracting process," said Sen. Landrieu. "The Teaming Pilot Program will create another lifeline for small-business owners by giving them an avenue to seek guidance and receive answers to business development questions. Through these efforts, we hope to spark a cooperative effort among small businesses to compete for bundled contracts.

"We are reaffirming our commitment to the entrepreneurs of America. Programs, like the Teaming Pilot Program, will help stimulate economic growth and help Main Street businesses expand."

This week, the Small Business Administration [SBA] announced that it is accepting grant applications from eligible and well-established organizations interested in providing technical assistance and resources for small businesses.

According to the SBA, eligible applicants must:

* Be a private, non-profit or for-profit entity
* Have been in existence continually for the past three years
* Have experience dealing with issues relating to small business on a national level
* Demonstrate that it has the capacity to provide assistance to small businesses

With the implementation of this new program, the SBA anticipates awarding 10 to 20 grants in the range of $250,000-$500,000 -- totaling up to $5 million for fiscal year 2011. All applications must be submitted electronically via the government-wide Grants.gov financial assistance portal, http://www.grants.gov/, no later than Feb. 25, 2011.

SOURCE: U.S. Senate Committee on Small Business and Entrepreneurship
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Registration Opens for 2011 DOE Small-Business Conference

This just in from the U.S. Department of Energy...

The time has come to register for the the 12th Annual U.S. Department of Energy Small Business Conference & Expo, taking place at the Kansas City Convention Center in Kansas City, Mo., from May 10-12, 2011.

Register as an Attendee
Register as an attendee for DOE's 12th Annual Small Business Conference & Expo, where you will build connections with like-minded business professionals; acquire invaluable information from general sessions and educational workshops; and solidify contract opportunities with prime contractors, government agencies, and large companies during the expo and matchmaking sessions.

DOE's last event brought in record attendance, and they want you to get in on the action. Register NOW and take advantage of early-bird registration before the discounts expire.

Attend as an Exhibitor
Attend as an exhibitor to showcase your products or services. Increase your visibility by sponsoring the event.

As an exhibitor or sponsor, your company will appear on the 2011 DOE Small Business Conference website, where more than 30,000 potential clients, customers and business partners will recognize you before, during, and after the event! Additionally, your business’ identity will be present throughout the venue and in the conference guide -- further establishing your place in the minds of folks representing those potential networks.

For more information, and to stay up-to-date on the conference and related news, visit the 2011 DOE Small Business Conference website, and be sure to follow the annual event on Facebook.

SOURCE: U.S. Department of Energy's Office of Economic Impact and Diversity
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May 10-12: U.S. Department of Energy to Host 12th Annual Small-Business Conference

This just in: The U.S. Department of Energy's Office of Small and Disadvantaged Business Utilization will present its 12th Annual DOE Small Business Conference & Expo at the Kansas City Convention Center, in Kansas City, Mo., on May 10-12, 2011.

The event will feature plenaries, educational workshops, an exhibit hall with 200-plus exhibitors and sponsors, as well as matchmaking sessions. Over 1,600 attendees will represent all levels of federal, state and local government agencies, large/prime contractors, small businesses and more.

The largest civilian contracting agency within the federal government, DOE spent over $25 billion in contracts in FY 2010. The 12th Annual DOE Small Business Conference & Expo is a great opportunity for small-business owners and large companies alike to network and partner. Registration for the event will open later this month.

For more information, check the event website http://smallbusinessconference.energy.gov/, or e-mail DOE at: InfoDOE@aetherquest.com.

SOURCE: U.S. Department of Energy's Office of Small and Disadvantaged Business Utililization
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SBA Offers Free Online Course on Winning Federal Contracts

The U.S. Small Business Administration [SBA] just launched a new online training course to help strengthen access to contracting opportunities for small businesses -- including those owned by women, minorities, disadvantaged individuals and veterans.

The free training program, "Recovery Act Opportunities: How to Win Federal Contracts," is part of a federal government-wide initiative announced last month by President Obama, and being led by SBA and the U.S. Department of Commerce.

"Government contracts can play a key role in helping small businesses turn the corner, in terms of expansion and job creation," said SBA Administrator Karen G. Mills [pictured]. "But make no mistake, the benefits the government receives are equally as impressive. Working with small businesses allows the federal government to work with some of the most innovative companies in America -- often with direct contact to the CEO.

"The SBA online training course can help businesses access the federal purchasing system, and position themselves to compete for the commercial opportunities offered by government contracting."

In announcing the government-wide initiative, President Obama reiterated his Administration’s commitment to providing "our Nation’s small businesses with maximum practicable opportunity to participate in federal government contracting."

As part of the initiative, federal agency procurement officers are participating in more than 200 events over the next several weeks to help connect small businesses with contracting opportunities. Additionally, SBA and Commerce are expanding their outreach to contracting officials across the federal government, to ensure they have the tools to meet their annual contracting goals and increase opportunities to small businesses -- including those owned by veterans, women and minorities, as well as those enterprises located in designated HUBZones.

As part of the outreach to small businesses, the comprehensive online course uses both audio and script to provide information about the federal marketplace, contract rules and, most importantly, how to sell to the government and where to find contract and Recovery Act-related opportunities.

The new training portal is a free online training course designed to assist entrepreneurs during this period of economic recovery. This self-paced instructional guide provides an overview of the federal procurement process.

The "Recovery Act Opportunities" course is available on SBA’s website: http://www.sba.gov/fedcontractingtraining. It's indexed by subject matter to allow ease of use, and includes multiple direct links that highlight the best contracting resources.

The course also includes practical and fundamental steps to engage small-business owners in the federal contracting process. It is one of more than 24 online tutorials offered by the SBA, and is available 24/7.

For more information, please visit SBA's website: http://www.sba.gov/.

SOURCES: U.S. Small Business Administration, The White House
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In FY 2008, Small Businesses Won Record $93.3 Billion in Federal Contracts

Small businesses won a record $93.3 billion in federal prime contracts in Fiscal Year 2008 [Oct. 1, 2007 - Sept. 30, 2008] -- an increase of almost $10 billion from 2007, according to the U.S. Small Business Administration [SBA]’s third annual Small Business Procurement Scorecard, released today. In addition, small disadvantaged businesses, women-owned businesses and service-disabled veteran-owned businesses increased their share of federal contracting dollars by at least $1 billion to $3 billion.

"This record $93.3 billion in contracts to small businesses is significant," SBA Administrator Karen Mills said. "However, across the federal government, we are committed to ensuring that the 23 percent goal is met, and even exceeded, going forward.

"Especially during these tough economic times, federal contracts for small businesses can be just the opportunity they need to continue to grow and create jobs. At the same time, the federal government gets access to some of the most innovative, and best, products and services."

Earlier this week, the Obama Administration reaffirmed its commitment to ensuring that minority-owned businesses and small businesses -- including women and veteran-owned businesses -- have greater access to federal government contracting opportunities. Commerce Secretary Gary Locke and SBA Administrator Karen Mills also announced a government-wide plan that includes federal agency procurement officials holding or participating in more than 200 events over the next 90 days to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.

"President Obama [pictured] has made a commitment to ensuring that small businesses have greater access to federal contracting opportunities, and it is a commitment shared across this Administration," noted Mills. "We have already begun taking aggressive steps to connect small businesses with contracting opportunities, as well as increase our outreach to federal agency procurement officers to make sure they get the information and tools they need to help them connect with these good, innovative small companies."

Small Business Procurement Scorecards provide an assessment of federal achievement in prime contracting to small businesses by the 24 Chief Financial Officers Act agencies. It also measures progress that departments are making to ensure that small business opportunities remain an integral part of their acquisition of goods and services to meet mission objectives.

The Scorecard was designed as an internal control and monitoring device to ensure that:

1] Federal agencies reach their small-business and socio-economic goals;

2] Accurate and transparent contracting data is used; and

3] Agency-specific progress is maintained.

SBA is issuing the Small Business Procurement Scorecards for the third time.

The annual Scorecard rates federal agency performance in meeting the overall small-business goal and the component contracting goals for small disadvantaged businesses, small businesses in HUBZones, and small businesses owned by women and service-disabled veterans. Procurement goals for federal procuring agencies may vary, because the SBA negotiates individual goals with each federal procuring agency.

The following 13 agencies met small-business contracting goals: the departments of Agriculture [USDA], Education, Energy [DOE], the Environmental Protection Agency [EPA], General Services Administration [GSA], Health and Human Services [HHS], Homeland Security [DHS], Interior [DOI], National Aeronautics and Space Administration [NASA], the Nuclear Regulatory Commission [NRC], Transportation [DOT], SBA and Veterans Affairs [VA].

The following 22 agencies met goals for contracts to small disadvantaged businesses: the departments of Agriculture, Commerce [DOC], Defense [DOD], Education, Energy, the Environmental Protection Agency, General Services Administration, Health and Human Services, Homeland Security, Housing and Urban Development [HUD], Interior, Justice [DOJ], Labor [DOL], National Aeronautics and Space Administration, National Science Foundation [NSF], the Nuclear Regulatory Commission, SBA, Social Security Administration [SSA], State, Transportation, Treasury and Veterans Affairs.

The following 14 agencies met goals for women-owned small businesses: the departments of Agriculture, Commerce, Education, Energy, General Services Administration, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, the Nuclear Regulatory Commission, Transportation, Treasury, and SBA.

The following nine agencies met HUBZone contracting goals: the departments of Agriculture, Energy, General Services Administration, Homeland Security, Interior, Labor, the Nuclear Regulatory Commission, Transportation and SBA.

The following four agencies met goals for small businesses owned by service-disabled veterans: the departments of the Environmental Protection Agency, General Services Administration, Labor and Veterans Affairs.

According to the Scorecard ratings of performance on all five goals:

* One agency -- GSA -- met or surpassed its goals in all areas.

* Eight agencies -- DHS, DOE, DOI, DOL, DOT, NRC, SBA, USDA -- met or surpassed four of the five goals.

* Four agencies -- Education, EPA, HHS, VA -- met or surpassed three of the five goals.

* Four agencies -- DOC, HUD, NASA and Treasury -- met or surpassed two of the five goals.

* Five agencies -- DOD, DOJ, NSF, SSA and State -- met or surpassed one of the five goals.

* Two agencies -- Office of Personnel Management [OPM] and the U.S. Agency for International Development [USAID] -- met none of the five goals.

About the Scorecard
SBA rates 24 agencies green, yellow or red on each of the individual goals established by Congress, and gave a numerical score to each agency based on how many of the five goals were met or surpassed.

Each federal agency has a different small-business contracting goal, determined annually in consultation with SBA. SBA ensures that the sum total of all of the goals meets the 23 percent target established by law.

As part of its ongoing efforts to increase access to contracting opportunities for small businesses, the SBA is continuing to work with federal agency procurement staff to strengthen the integrity of contracting data -- including providing tools to facilitate public review of data and training to improve accuracy.

The goaling reports released today by SBA are available at http://www.sba.gov/aboutsba/sbaprograms/goals/index.html.

SOURCES: General Accounting Office, U.S. Department of Commerce, U.S. Small Business Administration
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Verbatim: It's the Economy [and Green Energy, Infrastructure Needs and Can-Do Spirit], Stupid

Every week, GoodBiz113 features comments made by politicos and other influencers who are propelling the interests of small-business owners, entrepreneurs, consultants, self-employed folks, artists, etc.

* "Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn. That's why we need an American Recovery and Reinvestment Plan that not only creates jobs in the short term, but spurs economic growth and competitiveness in the long term... I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time, just as previous generations have met the challenges of theirs." -- President-elect Barack Obama, launching his campaign for a massive economic-stimulus package -- including roughly $300 billion in tax cuts for individuals and businesses, small-business write-offs, plus a new credit for businesses that either create jobs in the United States or avoid layoffs -- aimed at reviving an economy mired in recession [CNNMoney.com, Jan. 5, 2009]

* "...President-elect Obama has already nominated his administrator for SBA: Karen Mills, a venture capitalist from Maine with an impressive resume. That is a big improvement from President George W. Bush, who took over six months to fill the position... Big business is not going to be the salvation for the economic development of our communities. It is going to be the growth of small business, and we need an SBA that can do the job it once did – provide capital access, technical assistance and procurement opportunities for ready and willing small businesses throughout the land. May President Obama lead us on to better days." -- Harry C. Alford [pictured above], National Black Chamber of Commerce [NBCC] president, CEO and co-founder [Toledo Journal, Jan. 6, 2009]

* “Their presence in Washington, D.C., may provide some comfort to small-business owners who, according to a recent poll by the National Association for the Self-Employed [NASE], overwhelmingly believe their needs are not being represented in Congress." -- SBA's Office of Advocacy, reporting that a whopping 24 incoming members of the new111th Congress [out of a total of 61] bring small-business expertise to Capitol Hill [The Wall Street Journal, Jan. 6, 2009]

" "I don't like spending taxpayers' dollars, but I do like it if we're going to do something to create jobs for people and resulting in...new highways and bridges and schools... I think the average citizen out there would really love to pay less taxes." -- Freshman U.S. House Rep. Bobby Bright [D-Ala.], regarding the economic stimulus package expected to include money for road and bridge projects, tax breaks for individuals and businesses, and aid to drooping state budgets [Montgomery Adviser, Jan. 7, 2009]

* "To finally spark the creation of a clean-energy economy, we will double the production of alternative energy in the next three years. We will modernize more than 75% of federal buildings and improve the energy efficiency of two million American homes, saving consumers and taxpayers billions on our energy bills. In the process, we will put Americans to work in new jobs that pay well and can’t be outsourced – jobs building solar panels and wind turbines; constructing fuel-efficient cars and buildings; and developing the new energy technologies that will lead to even more jobs, more savings, and a cleaner, safer planet in the bargain... To build an economy that can lead this future, we will begin to rebuild America. Yes, we’ll put people to work repairing crumbling roads, bridges, and schools by eliminating the backlog of well-planned, worthy and needed infrastructure projects. But we’ll also do more to retrofit America for a global economy. That means updating the way we get our electricity by starting to build a new smart grid that will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation. It means expanding broadband lines across America, so that a small business in a rural town can connect and compete with their counterparts anywhere in the world. And, it means investing in the science, research, and technology that will lead to new medical breakthroughs, new discoveries, and entire new industries." -- President-elect Barack Obama, articulating his intent to "spark a green-energy economy" [Boston Globe, Jan. 8, 2009]

* "It [2009] will be a pretty tough year. I think you will see a return to the old-school methodology where things that have value will do well, and people will be selling things that are genuine necessities. It will be difficult to scramble out of the situation we’re in now, and people will be looking to the federal government and new administration to provide economic stimulus. In the mortgage industry, we’re on the cusp of rates being lowered. So, a refinance boom could occur, but that’s not necessarily a good indicator for the overall economy. Businesses in Palo Alto, the region and the nation will need to work very hard together to get out of the economic downturn by 2010." -- Tommy Fehrenbach, a loan officer at Palo Alto's Stern Mortgage Company, and chairman of the board of the 650-member Palo Alto Chamber of Commerce [Silicon Valley/San Jose Business Journal, Jan. 8, 2009]

* "I see a bumpy ride ahead next year [2009]. I’m hopeful the federal government infrastructure economic stimulus package that President-elect Barack Obama is supposed to introduce will provide an infusion of capital into local communities that will help reverse the economic slide we’re in. We’re seeing a softening of the retail market, which affects our city’s sales tax revenue that, in turn, reduces the amount of money available for city services and programs. I hope the infrastructure package can help reverse the softening of the employment market and, perhaps, restore consumer confidence." -- Daren Fields, economic development director, City of Fremont, Cal. [Silicon Valley/San Jose Business Journal, Jan. 8, 2009]

* “Our country is in the midst of one of the worse economic downturns of our time, and the year ahead will be difficult... Although we have a lot of work ahead of us, my colleagues and I are already working to find the best policy solutions to get our country back on track. I plan to implement an agenda for the 111th Congress that will tackle the housing crisis, help to create jobs, aid our schools and bolster our struggling small businesses.” -- Rep. Yvette D. Clarke [D-N.Y.] said in a published statement, just one day after being sworn into the 111th Congress. Clarke, the youngest African-American woman serving in Congress, was re-elected in November with 94 percent of the vote, and was also sworn in as whip of the Congressional Black Caucus on Tuesday. As a member of the Small Business Committee, she plans to advocate and lead efforts on improving the U.S. Small Business Administration’s [SBA] special contracting programs, to allow small businesses owned by disadvantaged individuals or located in impoverished areas to compete for government contracts -- including those identified as minority- and women-owned businesses. She also said she will seek to reintroduce H.R. 7087, which amends the Small Business Act to direct the SBA administrator to establish a grant program with funds available to state and local governments. Such funds would be used to assist eligible small businesses in building their capacity and access to contracting opportunities -- in particular, women and socially and economically disadvantaged enterprises. [Brooklyn Daily Eagle, Jan. 9, 2009]

* "The report confirms that our plan will likely save or create three to four million jobs... Ninety percent of these jobs will be created in the private sector. The remaining 10 percent are mainly public-sector jobs we save, like the teachers, police officers, firefighters and others who provide vital services in our communities... These made-in-America jobs building solar panels and wind turbines, developing fuel-efficient cars and new energy technologies pay well, and they can't be outsourced... Recovery won't happen overnight, and it's likely that things will get worse before they get better... We have come through moments like this before ... And I am confident that if we come together and summon that great American spirit once again, we will meet the challenges of our time and write the next great chapter in our American story." -- President-elect Barack Obama, during Saturday's weekly radio address, in which he discussed a 14-page analysis of his proposed $775 billion economic stimulus plan, designed to revive the ailing U.S. economy [AFP, Jan. 11, 2009]

GoodBiz113's take: The either/or days of yore -- i.e., that we have to choose between creating a sustainably healthy economy or a clean environment -- are long gone. President-elect Barack Obama and Vice President-elect Joe Biden have proposed an ambitious plan that effectively serves the interests of all Americans and the global environment. Now, regardless of our political stripes, we need to muster up an optimistic spirit and collaborate for the greater long-term good. To quote a win-win-winning campaign slogan: "Yes, We Can."

SOURCES: AFP, Boston Globe, Brooklyn Daily Eagle, CNNMoney.com, Library of Congress, Montgomery Adviser, Silicon Valley/San Jose Business Journal, Toledo Journal, U.S. Small Business Administration, Wall Street Journal
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Kerry Responds to Bush Administration's Failure to Meet Its Small-Business Contracting Goals

Sen. John Kerry [D-Mass.], chairman of the U.S. Senate Committee on Small Business and Entrepreneurship, released the following statement regarding the Bush Administration’s failure to meet its small-business contracting goal. This comes after yesterday's release of the Small Business Administration’s [SBA] annual contracting Scorecard, which shows that just 17 of 24 federal agencies met their 2007 small-business contracting goal:

"For the second year in a row, the Bush Administration has short-changed America's small businesses. But the fact that the government missed its contracting goal isn't even the worst of it. Like the administration itself, the numbers just can't be trusted. They don't count the millions of small-business contracts that have slipped through the cracks and gone to corporate giants.

"Eight years of budget cuts and lax oversight show that the Bush Administration thinks small equals less important. Given the impact entrepreneurs have on our economy, we need leadership that is more aggressive in giving small businesses the chance to succeed in the federal contracting arena."

SBA’s Scorecard builds on a series of significant initiatives the agency began two years ago to improve small-business access to federal contracts. SBA, along with the Office of Federal Procurement Policy, ordered the federal contracting database to be scrubbed, removing many cases of non-profits, state or local governments, and large companies that were recorded erroneously as small businesses.

The annual Scorecard rated federal agency performance in meeting the overall small-business goal and the component contracting goals for small disadvantaged businesses, small businesses in HUBZones, and small businesses owned by women, and service-disabled veterans.

The following 17 agencies met their small-business contracting goals: the departments of Veterans Affairs, Agriculture, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, State, Transportation, Treasury, and the Environmental Protection Agency, General Services Administration, National Aeronautics and Space Administration, Nuclear Regulatory Commission, Office of Personnel Management, and SBA.

GoodBiz113's take: America's small-business owners, entrepreneurs and self-employed folks are fortunate to have Sen. Kerry advocating on our behalf, to see that we're awarded the contracts that have been set aside for us -- at least 23 percent of all federal contracts, according to Federal Acquisition Regulation [FAR] -- Part 19 standards. Hopefully, the next Administration will be much fairer in spreading the wealth of federal contracting dollars, and all 24 agencies will meet their small-business contracting goals across all components.

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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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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House Approves Bill to Improve Contracting Opportunities for Small Firms

Today, the House of Representatives passed the Small Business Contracting Program Improvements Act [H.R. 3867] by a margin of 334 to 80. Small Business Committee Chairwoman Nydia M. Velázquez [D-N.Y.] gave the following opening statement:

"In recent years, the federal marketplace has seen phenomenal growth. However, while procurement opportunities are increasing, agencies are failing to meet their small-business-, women-, service-disabled veterans-, minority- and low-income contracting goals. This has not only cost small businesses billions in lost opportunities, but deprives the government of a valuable supplier.

"Our nation’s entrepreneurs play an important role in the procurement system, providing diversity, competition, and ensuring we get the best value for the taxpayer dollar. To help them get a start, there is an array of contracting programs offering technical assistance, purchasing flexibility, and targeted benefits.

"Unfortunately, due to legislative neglect, underfunding and mismanagement by several administrations, the programs have fallen far short of their full potential, leaving many small businesses outside of the federal marketplace. The Small Business Contracting Program Improvements Act, introduced by myself and Rep. Mary Fallin [R-Okla.], will change that by making important improvements to women, minority, HUBZone, and service-disabled veteran contracting programs.

"H.R. 3867 will immediately implement the Women’s Procurement Program that has languished in the current administration’s endless delays. It also updates the economic criteria for the 8[a] program, reflecting current fiscal realities. The last time Congress addressed the 8[a] program was almost 20 years ago, when a gallon of gas was 90 cents and the average cost of a home was less than $90,000. For too long, we have forced minority businesses to operate under antiquated financial standards that, in many cases, were simply setting them up to fail.

"Most importantly, this legislation will give our service-disabled veterans top priority when it comes to contracting opportunities. For those men and women returning from Iraq and Afghanistan -- many with life-altering injuries -- this bill will provide the tools to start a new endeavor and begin a new life. These changes will go a long way to addressing many of the program shortcomings that have frustrated our nation’s small-business owners.

"H.R. 3867 also fights fraud in the federal marketplace. Contracting opportunities are a privilege, not a right; the Small Business Contracting Improvements Act makes that clear. For the first time, we are imposing a business code of conduct on all participants, requiring the federal government to verify that individuals are who they claim, and empower small firms to police their own programs. This will restore integrity to these critical programs.

"Through modernizing programs and increasing accountability, H.R. 3867 brings SBA’s contracting programs into the 21st century. It is for this reason that this legislation has attracted remarkably broad support -- including the National Federation of Independent Business, Associated General Contractors, American Legion, Veterans of Foreign Wars, United States Hispanic Chamber of Commerce, National Black Chamber of Commerce, U.S. Women's Chamber of Commerce, International Franchise Association, as well as the National Defense Industrial Association and the Aerospace Industries Association.

"This is a measured approach that balances the need to give program flexibility within the realities of current agency buying strategies. It is good for small business, good for the agencies and, most importantly, good for the taxpayers."

GoodBiz113's take: Thank you, Reps. Velázquez and Fallin, for leading House efforts to level the playing field for all small businesses and holding agencies accountable for how, exactly, federal procurement dollars are spent. This bipartisan legislation offers great promise to any of our nation's small businesses -- 26.8 million and counting -- that choose to play the government contracting game and spread the win-win-win wealth.

Source: GovTrack.us, PBS [file photo], U.S. House Small Business Committee
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Sens. Kerry, Snowe Demand Timeline for Implementation of Women’s Contracting Program

Yesterday, Sens. John Kerry [D-Mass.] and Olympia J. Snowe [R-Maine, pictured], chairman and ranking member of the Committee on Small Business and Entrepreneurship, demanded that the Bush administration provide a timeline for implementing a 2000 law which requires that women-owned small businesses receive 5% of federal government contracts. For seven years, the Bush administration has failed to create the Women’s Procurement Program, which mandates that women have equal access to federal contracts. In 2006, only 3.4% of federal contracts were awarded to female-owned businesses -- far short of the federal requirement, costing women-owned businesses an estimated $6 billion in potential revenue.

“When it comes to leveling the contracting playing field for women entrepreneurs, Congress threw the first pitch in 2000, but the Bush administration still refuses to step up to the plate,” Sen. Kerry declared. “After seven years of delays, I am tired of listening to excuses. Sen. Snowe and I want to see a timeline for implementing this program now, so that women small business owners aren’t denied another $6 billion in contracts.”

“The end of Fiscal Year 2007 has come and gone, and the Women’s Contracting Set-Aside Program has not been implemented as promised,” said Sen. Snowe. “Our nation’s women-owned small businesses have waited long enough, and I call on the SBA to set this program in motion as expeditiously as possible.”

The Bush administration testified at a July 2007 hearing that the Women’s Procurement Program would be implemented by Sept. 30, 2007. When it became apparent that the deadline would not be met, Sens. Kerry and Snowe pressed the administration in a hearing in September to provide a time frame for implementation. After seven years of delays, the administration again refused to commit to implementing the program within a certain period of time.

***

Following, is the full text of the letter sent to Small Business Administration [SBA] chief Steven C. Preston:

October 17, 2007

The Honorable Steven C. Preston
Administrator
U.S. Small Business Administration
409 Third Street, S.W.
Washington, DC 20416

Dear Administrator Preston:

As chairman and ranking member of the Senate Committee on Small Business and Entrepreneurship, we would like to express our deep concerns about the long-delayed implementation of the Women’s Contracting Set-Aside Program. The Small Business Administration [SBA] recently released Fiscal Year 2006 small-business “goaling” results that continue to illustrate just how far the government is from reaching its women-owned and agencywide small-business goals. Women-owned small businesses only achieved 3.4% of the 5% statutory goal.

The women’s set-aside program enacted in December 2000 authorized, on a discretionary basis, contracting officers to “set aside” competition for federal contracts to women-owned small businesses. The program required SBA to conduct a study determining which industries would be characterized as underrepresented. The study was finally completed and made available to the public in April of this year. Regrettably, nearly seven years after enactment, women-owned small businesses are still waiting for the program to be implemented.

During a committee hearing on July 18th, the SBA pledged to implement the women set-aside program by the “end of this fiscal year.” Also, in a September 20th hearing on expanding federal contracting opportunities for women business owners, we strongly urged you to follow through on your earlier commitment to implement the program by the end of the fiscal year. The end of Fiscal Year 2007 has come and gone, and the program has not been implemented, as promised. We hope that you would agree that women-owned small businesses have waited long enough.

We cannot emphasize enough the importance of your immediate attention to this vital issue. Please provide a response with a specific timeline for implementation of the women’s contracting set-aside program within 10 working days of receipt of this letter.

Sincerely,

John F. Kerry
Olympia J. Snowe

Source: 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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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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Committee Examines Workforce Issues for Small Businesses in Renewable Energy

Instability in oil-producing regions and rising energy prices have made it clear that America needs to move towards energy independence. To meet this demand, the renewable-energy sector is increasing rapidly, with small businesses at the forefront of this expansion. Just last year, biodiesel production reached 225 million gallons. Today, with 148 biodiesel plants in operation, and close to 100 factories under construction, this industry is expected only to grow.

During yesterday's hearing, the House Committee on Small Business reviewed the state of the renewable-energy industry, and potential barriers that could limit its expansion -- including access to a well-trained, skilled workforce, and possible solutions to these obstacles. A bill introduced by committee member Bruce Braley [D-Iowa, pictured] provides funding for bioenergy workforce education.

"This field is still in its infancy -- but it is having significant economic impact," said Rep. Braley, chairman of the Subcommittee on Contracting and Technology. "The potential for new business and job creation is huge.

"Without a qualified workforce, the renewable energy industry will have difficulty filling open positions and will run the risk of falling short of its full potential. That's why new training programs are crucial."

Many small producers don't have the capacity to conduct adequate onsite training, yet a skilled workforce is essential for their survival. To surmount this obstacle and encourage continued growth in renewable energy, Braley has introduced the National Endowment for Workforce Education in Renewables and Agriculture [NEW ERA] Act of 2007, which will provide funding and programs to expand the renewable-energy workforce.

Under the bill, grants would be awarded to community colleges to create renewable-energy workforce education and training programs, allowing for increased investment in human capital. These initiatives will provide a new set of bioenergy workers, ensuring that the expansion of the renewable-fuel industry will have adequate support from skilled professionals equipped with the tools to stay competitive in the field.

"In order for this growing industry to truly flourish, our workforce must have the skills and knowledge necessary to stay on the cutting edge of new technologies," Braley noted. "Proper training will ensure that the renewable-energy sector will continue to develop in a sustainable way."

The renewable-energy industry not only serves as a strong alternative source of energy, but it also creates thousands of jobs nationwide. In 2006 alone, the ethanol industry created over 160,000 new, good-paying jobs -- many of which included retirement and healthcare benefits. The industry's growth also helps to replace some of the 3.1 million manufacturing jobs that have been lost in the U.S. since 2000.

During the hearing, committee members examined ways to ensure that there is "smart growth" within the industry -- including implementation of the NEW ERA Act. Members also heard expert testimony on the importance of ensuring the availability of a strong workforce, and viable ways to go about doing so.

"With the vast potential for renewable-energy production right here in the heart of our own country, we have the critical opportunity to reduce our dependence on foreign oil while creating jobs; it's a win-win situation," Braley said. "For the security and prosperity of our nation, it's time to shift our energy dependence from the Middle East to the Midwest."

You can view parts of yesterday's hearing by visiting YouTube: http://www.youtube.com/view_play_list?p=B90F9338F9143970.

Sources: Congress Merge, GovTrack.us, U.S. House Committee on Small Business

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Sen. Kerry Expresses Posthumous Praise for Former Congressman Parren James Mitchell, Champion of Civil Rights and Minority Entrepreneurship

Yesterday, Sen. John Kerry [D-Mass.], chairman of the Committee on Small Business and Entrepreneurship, issued the following statement on the passing of former Congressman Parren James Mitchell [April 29, 1922-May 28, 2007], who died last week of complications from pneumonia:

“With the passing of Congressman Parren Mitchell, our country has lost one of its legendary advocates for minority business owners, a giant who knew that the struggle for civil rights and equal opportunity would be decided in America’s board rooms as well as its voting booths and lunch counters.

“Congressman Mitchell fought with heart, grit, integrity, and determination to level the playing field so more minority firms could do business with the federal government. He didn’t just serve as chairman of the House Small Business Committee, he served as Congress’s conscience.

"His life was an incredible story. From breaking racial barriers at the University of Maryland, to serving as chairman of Minority Business Enterprise Legal Defense and Education Fund, Parren Mitchell was a pioneer in the fight to ensure equal rights for minorities.

“In the Senate Committee on Small Business and Entrepreneurship, we will honor his work and preserve his ideals by passing laws that continue to expand opportunity for all Americans who have been shut out or left behind.”

Sources: U.S. Senate Committee on Small Business and Entrepreneurship, Washington Post, Wikipedia [photo]
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House Opens Federal Marketplace to More Small Business Participation, Helps Fight Fraud in Contracting System

As small businesses continue to struggle to access the $340 billion federal marketplace, the House last Wednesday [May 9] passed the most comprehensive reform of the contracting system for entrepreneurs in over a decade. H.R. 1873, the Small Business Fairness in Contracting Act, which increases small business access to federal contracts, offers protections against contract bundling, and prevents large businesses from receiving small-business contracts, passed by a wide margin of 409 to 13.

"For many entrepreneurs, access to federal contracts provides an important step in developing and expanding a business," said Rep. Nydia M. Velázquez [D-N.Y.], chairwoman of the U.S. House Committee on Small Business. "Today, the House passed legislation that ensures small business owners are competing on a level playing field. This is a major, and long overdue, step forward for entrepreneurs."

Over the past several years, small businesses' federal contracting opportunities have not kept pace with the expanding federal marketplace or small firms' growing share of the economy. Small companies confront numerous obstacles when attempting to access federal contracts, as the government continues to combine work into contracts too large for entrepreneurs to bid on, making the projects less accessible to small businesses.

In the past few years, small businesses have also lost out on opportunities, as contracts intended for small businesses were awarded to large corporations. There are currently few penalties for agencies and companies that misrepresent larges businesses as small.

The combination of barriers such as these has resulted in billions of dollars in lost contracting opportunity each year for this nation's small businesses.

"Awarding federal contracts to small businesses creates jobs, develops companies, promotes competition and yields the best value for the taxpayer dollar," said Chairwoman Velázquez. "Congress acted today to guarantee that our entrepreneurs get the opportunities they deserve and to hold the federal government more accountable for how taxpayer money is spent."

H.R. 1873, introduced by freshman Rep. Bruce Braley [D-Iowa], chairman of the Subcommittee on Contracting and Technology, makes more contracts available to small firms. During consideration of the bill, several measures also passed that raise the level of federal commitment to contracting with small businesses, ensure small firms can compete for overseas contracts, strengthen requirements for agencies to review the economic impacts of large contracts, and provide greater protections for small business subcontractors. These additions enhance improvements for small firms in H.R. 1873 that will allow for greater small business participation in the federal marketplace.

"I am proud that my first bill to pass the House is one that will help small businesses compete," Congressman Braley said. "The Small Business Fairness in Contracting Act ensures that small businesses have the same opportunities as large corporations to earn government business.

"When government contracts are awarded through huge super-contracts, small businesses just can't compete on a level playing field. By forcing government agencies to be held accountable for awarding these so-called 'bundled contracts,' more small businesses will have the opportunity to benefit from earning government business. Furthermore, by providing for the enforcement of these new provisions, this bill will have the teeth to make sure government agencies are following the law. At the end of the day, this means expanded opportunities for small business."

This legislation is part of the committee's ongoing work to restructure how small businesses interact with the federal procurement system. The Small Business Fairness in Contracting Act is the first piece of legislation to address problems outlined in the committee's annual scorecard on federal contracting.

GoodBiz113's take: Little by little, it seems, our rants/wish-list items [e.g., "Welcome to GoodBiz113!" "GoodBiz113 Drafts Small-Biz Wish List for 110th Congress," "GoodBiz113 Issues Open Memo to Leaders of Congressional Small Business Committees"] are helping to attract productive results for small businesses and entrepreneurs. Hats off to U.S. House members for forcing federal agencies to do the right thing for all concerned.
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