Small Business Association for Technology Urges Congress to Reform Government Contracting Regulations for Small Disadvantaged Businesses
Washington, D.C. (PRWEB) May 31, 2007 -- Fernando V. Galaviz, chairman of the Small Business Association for Technology (SBAT, www.sbat.org), testified before the U.S. Senate Committee on Small Business and Entrepreneurship where he outlined the crucial need of creating new subcontracting regulations to ensure competitive and fair government contracting opportunities for small disadvantaged businesses (SDBs). At the Senate hearing held on May 22 entitled, Minority Entrepreneurship: Assessing the Effectiveness of the Small Business Administration's (SBA) Programs for the Minority Business Community, Mr. Galaviz stated "Contract bundling is inevitable in the government marketplace and therefore policymakers should focus on changing regulations to reflect this reality and set-aside 20 percent of all identified bundled contracts for small business competition."
Mr. Galaviz proposed to Congress that all major federal procurement agencies and contracting officers should consider implementing a procurement strategy developed and utilized by the U.S. Air Force (USAF) to mitigate contract bundling and resolve unfairness in subcontracting. The SBAT chairman stated, "Minority-owned small businesses should be permitted to organize into government approved joint ventures that team together to meet the 50 percent work share requirements for the majority of bundled contracts hence permitting small businesses to demonstrate capabilities, establish a record of past performance, and cost savings for the federal government and taxpayers."
According to data captured in the Federal Procurement Data System - Next Generation (FPDS-NG), the federal government spent over $417 billion in Fiscal Year (FY) 2006, but only 43 contracts over $5 million were reported as bundled and accounted for $5.7 billion.
Over the past five years, total government contracting has increased by 60 percent, while the number of small business contracts has decreased by 55 percent. Specifically, of the total prime contract obligations solicited by the federal government in FY 06 only 4 percent were obtained by SDBs and 7 percent by minority-owned businesses in contrast to 88 percent obtained by large businesses.
In fact, a smaller number of government contracts being awarded to small businesses combined with increased government spending is clear evidence of contract bundling. Moreover, consolidating multiple government contracts into single contracts limits the participation of small businesses as prime contractors and it is more difficult for small businesses to compete for multiple service contracts due to the high cost of preparing proposals and the low probability of winning against large businesses.
Presently, large companies improperly receive small business contracts due to errors by contracting personnel and failures to enforce small business contracting procedures. SBA responded by saying it would implement a new recertification rule next month to ensure that small businesses receiving government contracts meet the requirement.
Concerning other failings in the federal procurement process, SBAT recommended that the committee take steps to provide reasonable assurance that the General Services Administration (GSA) comply with SBA regulations which require that a contractor meet the size standard for each product or service for which it submits an offer. These actions will ensure that only small firms obtain small business awards and agencies only receive small business credit for awards to small firms.
Mr. Galaviz said that contracting personnel should be held accountable to report uniform and reliable contract bundling data to ensure compliance with federal contracting regulations and to increase transparency so subcontracting opportunities are available to small businesses. Additionally, all federal agency head administrators should issue guidance to the appropriate procurement officers and contracting personnel reinforcing the necessity for documenting in publicly available sources the federal agencies' decisions regarding subcontracting plan requirements.
Chairman Kerry and Ranking Minority Member Snowe promised to introduce legislation this summer to improve federal contracting procedures for small businesses and increase oversight of federal agencies. Senator Snowe said the bill would propose ways to promote SBAs entrepreneurship programs, including the 8 (a) program.
Mr. Galaviz informed the committee that SBAT is committed to working with Congress to ensure that new legislation is formed to improve SBA programs for members of the minority-owned small business community in order to benefit from increased government contracting awards, achieve economic self-sufficiency and reach their full potential in the federal procurement field.
The complete text of the testimony submitted to the Congressional Record is available in the attached PDF document, and also in the Advocacy Actions section at www.sbat.org.
The Small Business Association for Technology (SBAT) was formed in 2003 to advocate for public policies that provide the greatest opportunity in the government contracting marketplace for small disadvantaged businesses. SBAT monitors existing federal regulations and proposed legislation that impacts its national members organizing strategic efforts to safeguard the interests of American small businesses.
Contact information:
David E. Cintron, Executive Director, SBAT
1940 Duke Street, Alexandria, VA 22314
Telephone (703) 946-8099
Fax (703) 525-2349
www.sbat.org
# # #
Loan Tips:
Lowisz Named SBA's Michigan Small Business Person of the Year
Stephen A. Lowisz, President & CEO of Qualigence, Inc. in Livonia, has been named the 2008 Michigan Small Business Person of the Year by the U.S. Small Business Administration. Qualigence is a recruitment research and professional search company dedicated to helping its clients hire the most qualified candidates for their organizations.
Million Dollar Entrepreneurs Spends One Day Teaching Small Business Owners How To Capitalize On Declining Economy & Make Millions During Recession
Success, Wealth & Income Acceleration guru David Neagle reveals how he personally mentors and inspires the Nation's top income earners well beyond the 7-figure income goal, especially during economic downturns, at this 1 day free event for coaches, therapists, practitioners, brokers, agents, marketers, virtual assistants and speakers.
Home & Small Business Computer Repairs - 8 Tips for Emergencies
In the ideal situation, you buy a computer, install it and use it smoothly. Unfortunately, this is often not the case. Everybody will receive some error messages sometimes or some unexplained failures. Should you call in a computer technician immediately or are there a few things that you should try by yourself to solve the problem? It depends on the case. When you see a message saying that you have a motherboard failure, it is definitely time to call in the IT and not try to solve it on your own. A few smaller issues, though, could probably be easily solved by you.
Operating Your Small Business – Everything Really Is a Project
Do you operate your business as a series of projects, using project management tools and skills to advance your projects from conception to completion? Or perhaps you're new to project management tools and skills and haven't considered applying them to your own business? Most of us fall somewhere in between.Running a productive and efficient business, whether for one person or for 500, is a series of projects of various sizes and complexity.
Enjoy Your Holiday Shopping -- Shop Small Business
Local small businesses offer convenience, expertise and one-of-a-kind gifts.
Top 10 Rules for Small Business Success
1. TargetYou are not all things to all people.
CAS Enterprises, Inc. and TheAwristocrat.com Named Small Business of the Year
CAS Enterprises, Inc. was recently recognized by its local community in Columbus, NE, as the Columbus Telegram's 2007 Power and Progress Small Business of the Year. Clark Swihart, CEO, and Melodee Brunken, Vice President, were present at the Second Annual Columbus Area Business Hall of Fame Banquet to accept the award. Presenting the award was Mike Johanns, former Governor of Nebraska and U.S. Secretary of Agriculture.
Setting Up A Small Business
Many individuals and groups in Britain set up their own businesses every day. According to Companies House, almost 25,000 new businesses are set up throughout the country every month.
Sutus Helps Small Business Unify Their Communications Technology, Introduces Flexible Leasing Options
Sutus Inc., the company behind the Business Central, a unique all-in-one device that combines all IT data communications and Telephony features required to run a modern-day office, today announced it has extended its pricing strategy and partnered with HLC Capital to provide flexible financing options, making it even easier for small businesses to unify their communications technology with the award winning Business Central.
How to Start Your Own Small Business
Opening your own business can be a real big gamble. If you do not do your research well, you will wind up like most small businesses, and that is out of business in less then 6 months.
Feol?-Hinricher Selects Vocus' Small Business Edition for Public Relations and Online Marketing
Vocus' on-demand solution enables company to realize online marketing and public relations goals of generating publicity, increasing website traffic and driving sales leads.
The Single Biggest Entrepreneurial and Small Business Failures are Not Asking the Right Questions
Lack of profits in an entrepreneurial venture, often caused by the failure of entrepreneurs and small business owners to ask the right questions. Coinciding with EntrepreneurshipWeekUSA an honest and straight forward e-Seminar for entrepreneurs and small business teaches a 'how to start a business' and 'how to structure a business' so that anyone can work from home and/or make money online. The Ultimate Business ToolBox™ is delivered by David Bullock & Bill Samson and hosted by Jim Peake and published by My Success Gateway, LLC.
Remote Data Storage for Small Business
Big business has been using remote data storage since they began using computers. However, until recently the remote data storage companies have been priced out of the range of small business. New technology has changed that. As small businesses have changed from paper files to digital files, the costs for backing them up in another location have come down dramatically. The need for data backup is evident, since crashes of hard drives and servers can destroy vitally important records. Natural disasters like hurricanes, tornadoes and floods can bring a business down. The ability to recreate its records and information can be the difference between recovering the business and losing it.
Small Business Health Insurance To Cover Your Employees
Health insurance is a grave concern in America. With the cost of healthcare on the rise, being without health insurance is worrisome, especially when it comes to children. To combat the high price of healthcare, employers offer health insurance to their employees as a benefit of working for a particular business.
Consumer Association's Web Site Serves Needs of the Self-Employed and Small Business Owners for Health Insurance and Other Benefits
The Federation of American Consumers and Travelers (FACT), a not-for-profit consumer organization, has introduced a special series of small-business benefits on its Web site (www.usafact.org).