Parity Among Small Businesses?
By Robert Brodsky
It looks like Congress is ready to settle a growing dispute between the Obama administration and the Government Accountability Office.
On Friday, the Senate approved an amendment to the fiscal 2010 National Defense Authorization Act which would place three small business programs -- HUBZone, 8(a) and service-disabled veterans - on an equal footing when competing for contracts. The amendments were sponsored by Sens. Mary Landrieu, D-La and Olympia Snowe, R-Maine, the chairwoman and ranking member, respectively, of the Senate Committee on Small Business and Entrepreneurship.
"With the passage of this amendment small businesses will be given a more equal chance to compete," Landrieu said. "This is a victory for small firms competing for a government contract because it levels the playing field within these important programs."
In a July 10 memorandum to agency heads, Office of Management and Budget Director Peter R. Orszag called into question recent GAO protest decisions and accompanying recommendations, which stated that the Federal Acquisition Regulation require agencies to award contracts to a historically underutilized business zone company if the contracting officer has a reasonable expectation that two qualified HUBZone businesses will submit offers at a fair market price.
The GAO decisions -- issued in favor of two HUBZone companies, Mission Critical Solutions and International Program Group Inc. -- cite the FAR in stating that agencies must contract with HUBZone companies when certain criteria are met, essentially creating a preference for contracting with HUBZone companies rather than other groups, such as firms owned by socially or economically disadvantaged individuals, or service-disabled veterans.
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Government Executive Staff Correspondent Alyssa Rosenberg takes a look at news affecting the management and operations of the massive federal bureaucracy.
Hi Brenda,
A victory for small buisinesses. Please forward this to Veneece and Linda.
Thanks!
MC
Brenda Graban Posted Monday, July 27, 2009 2:05 PMwhat a slap in the face to disabled vets
dan m ketter Posted Monday, July 27, 2009 11:54 PMAhh! Again the Small Business issue and how to equalize consideration by federal departments and agencies. The rise of special treatment for small business, however defined, starts from WWI when the Wilson Administration tried to ensure that small business was not cut out of the huge profits being made by large business as the first time around for the "arsenal of democracy" or "merchants of death" however you percieve it. The tension over small business contracting is one that will never end. The problem I have is not definitional but whether the right of the government to contract "with responsible parties" and act as a "reasonably prudent businessman/woman" is fullfilled under current criteria. We know large business most often under the shield of audit by the almost totally incompetent DCAA gets away with murder of service personnel under the FRERES doctrin and other immunity including contracted for indemnity. I guess small business should do the same but I would fell better if there was truly the audit and procurement funding and staffing available to see that the federal government does in fact get the products and services that it needs and contracts for. Part of the problem is that almost no human being could keep track of various definitions of "small business" floating through the CFR and again and again I hear allegations of a minority or female or disabled front that does not have a clue what his/her backers are really up to as far as delivering goods and services to the federal government. The set aside rules are seldom understood and enforced. Well Congress, GAO and OIGs where are you guys and how much audit and oversight of small business is there in fact? Not to pick on an agency but given how much is done by contractors how much effort is made to encourage small business by the STATE Dept and its units administering the foreign assistance aid (meagre as it is except for "gunrunning") each year by the US? Why is following the money held in such contempt by those who govern? Probably corruption? See no evil then there is no evil.
William R. Cumming Posted Tuesday, July 28, 2009 6:35 AMIt's time that all these special interest group programs die. Let's get back to the original purpose of the SBA (to help individuals start new businesses). In today's world, what is a socially disadvantaved person and what is an economically disadvantaged person? Thirty years ago, it meant ethnic people. In today's world, who knows? In my mind, the only SBA program worth anything that really helps disadvantaged individuals is the HUBzone program since it targets areas that are high unemployment areas. The other programs are simply the result of old antiquated legislation that rewards people for fitting into a special interest group. Let's stop the insanity with all the special interest group legislation. We live in America where all people have the right and opportunity to make something of themselves. Legislators: Your job right now is to address our deficit and our national debt. That means you need to make some hard choices, eliminate wasteful (special interest group) spending and work on important issues such as fixing social security, medicare, and balancing the budget. Our national annual deficit and long-term debt ($10 trillion plus and growing) is the result of idiots in charge of our country taking care of special interest groups and giving away money that we don't even have.
DOD Employee - Navy Posted Tuesday, July 28, 2009 8:42 AMTo DOD employee - sorry to inform you that the definition of a socially disadvantage person is still largely based on ethnicity as well as economy. That much has not changed in 30 years no matter how much we would love it to be true. But this is not the place for that discussion.
Good to see this happen. Unfortunately, it is the major corporation that have been able to take advantage of HUBZones and not small businesses. These large entities come in with their dollars, provide subpar employment for people in the community and run off with millions of dollars on the backs of poor people. I want to see some assurance that these same major corporations who are complaining now, won't then set up pass through Veteran organizations and take money away from Veteran small businesses owners the way they took them from people in HUBZone areas.
Veteran Small Business Owner Posted Tuesday, July 28, 2009 10:49 AMI agree that HUBZone is more relevant than SDB. Service Disabled Veterans deserve first consideration for obvious reasons. Now... they need to make SOLE SOURCE set-asides for these 3 groups equal. 8(a) Directed (Sole Source) Set-Asides require no Justification & Authority (J&A) for Sole Source and can't be challenged and HUBZone and SDVOSB Sole Source Set-Asides do. Everyone knows that it is easier to go Sole Source 8(a) and that is why there are many Sole Source 8(a) contracts and few Sole Source HUBZone and SDVOSB Sole Source Set-Asides. They need to level the playing field.
Pete Posted Tuesday, July 28, 2009 2:39 PMIt's crazy when you see people or orginazations write about not being in favor of service disbled veterans. People, think for a while and im sure you will come up with this thought: If Veterans were not fighting for the countries rights to be free than you would not even be reading this Blob (perhaps) or just maybe if veterans were not fighting for freedom and our way of life than just maybe there would not be any small business to speak of (no matter the group) so why not let vet have some priority. Hell there fighting for your freedom, what have you done for them (us)
Fred Posted Sunday, September 20, 2009 12:07 PM