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New bill provides hope for additional small business contracts |
| Posted by Hardy (hardy) on Jul 14 2009 |
On Thursday, May 21, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009.
The bill was designed to preclude the federal government from counting publicly traded firms towards the government's 23 percent small business procurement goal. The Small Business Act requires that a small business be independently owned and operated; publicly traded firms do not qualify as independently owned.
Since 2003, more than 15 federal investigations have uncovered the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations and thousands of other clearly large firms. Estimates support that every year more than $100 billion in federal contracts intended for small businesses are awarded to companies that are clearly not small business. These companies cover a broad range of industries from aerospace to retail. While set aside procurement programs for small business are prevalent they are seldom used to fully meet the goals of each agency. This misuse of federal funds and diversion from small business is partially to blame for the goaling shortfall.
The American Small Business League is leading the charge in support of this bill. It appears the bill is gaining momentum in congress. Some opponents such as the U.S. Chamber of commerce are accused of possessing a hidden agenda designed to support the status quo leading to higher awards for big business.
Small businesses were eligible for in excess of $370 Billion in federal contracts in fiscal year 2007. Federal Government Contracting grows 12.6% on average annually. With the economy and small business under increased pressure we can expect to see similar legislation aimed at balancing the scales. While President Obama’s recovery plan is poised for increase funding and activity, a bill of this nature would provide additional hope for middle class Americans and small business. For more information check out ASBL.com.
Last changed: Jul 14 2009 at 6:41 PM
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