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Legislation News & Report (TM) TheWeekInCongress.com (TM) Managing America: Authorizations |
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TheWeekInCongress.com (TM) Week Ending May 11, 2006
H.R.1873 To reauthorize the programs and activities of the Small Business Administration relating to procurement, and for other purposes.
The bill report states that the purpose is to amend key sections of the Small Business Act to assist small business participation in federal procurement. Under the bill small businesses would receive a `fair proportion of the total purchases and contracts for the Government in each industry category . . . .'. The bill rectifies contract bundling problems, the establishment of contracting goals for small businesses and inaccuracies of government databases listing small businesses.
The opportunity for contract bundling is modified and the definition of bundling is clarified. Smaller contracts that might be met by small businesses are often swept into larger contracts that small businesses don’t qualify to participate in, yet the federal databases consider the smaller contracts as small business procured even though they were granted to large businesses. This bill would attempt to end that process and open the smaller contracts to smaller firms.
In the context of the federal government procuring $417 billion in goods and services through 8.3 million contracts, small business won about $80 billion or 21.5% of the contracts. Parsing of data, however, resulted in a report that they received 25.6%. Part of the problem is increased regulation in some areas that have had the effect of providing advantages to large business bidders and the other problem is large businesses registering as small businesses. Now, when a small business registers the SBA must contact it within 30 days with procurement opportunities.
An exemption on overseas contracts would be lifted for small businesses.
Procurement levels for small businesses are raised to $400,000 contract thresholds and the percentage of prime contracts available to small businesses is raised from 23% to 25%. The percentage was set at 30% but was reduced in committee before being sent to the floor.
Recent concerns about the accuracy of federal databases misreporting a firm’s size would be corrected. Databases and registries would be audited yearly for inaccurate submission on the size of businesses participating.
Reports are due Congress from all agencies on their small business contracts and if the 25% goal is not met and explanation is due.
Sponsor: Rep. Bruce L. Bradley (D-IA-1st) Vote: Passed House 409 to 13 May 10, 2007 (RC 323) A motion to recommit the bill failed 209 to 216 May 10, 2007 (RC 322)
Cost to the taxpayers: “The Committee estimates that, should H.R. 1873 be enacted, it would be a cost of $2.5 million in fiscal year 2008 and $2 million each year thereafter. Most of the costs fall within budget function 370 (commerce and housing credit).” Earmark Certification: “Pursuant to clause 9 of rule XXI, H.R. 1873 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.”
## All Rights Reserved. © 2007 TheWeekInCongress.com(TM) No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)
MORE INFORMATION
AMENDMENTS
Amendment offered by Mr. Sestak. An amendment numbered 4 printed in House Report 110-137 to close a loophole in the current bill that allows agencies to avoid doing small business impact studies by designating contracts as "transformed". It also lowers the new dollar threshold to ensure a greater portion of contracts are reviewed for their impact on small business as well as taxpayer savings. May 10, 2007 423 to 0 (RC 219)
Amendment offered by Mr. Reyes. An amendment numbered 1 printed in House Report 110-137 to aid small businesses that have been included in the Small Business Subcontracting Plans of prime contractors that obtain federal contracts. Agreed to by voice vote May 9, 2007 Amendment offered by Mr. Shuler. An amendment numbered 2 printed in House Report 110-137 to extend small business contracting goals to overseas contracts. May 10, 2007 398 to 29 (RC 320)) Amendment offered by Ms. Bean. An amendment numbered 3 printed in House Report 110-137 to raise the government-wide small business procurement goal from 25 percent to 30 percent. May 10, 2007 371 to 55 (RC 321) ) Amendment offered by Mr. Welch (VT). An amendment numbered 5 printed in House Report 110-137 to set a 5 percent procurement goal for the Federal government to contract with "green" small businesses. Agreed to by voice vote May 9, 2007 Amendment offered by Mr. Wynn. An amendment numbered 6 printed in House Report 110-137 to commission the SBA to complete a study on the feasibility and desirability of providing financial incentives to federal prime contractors who meet the goals set forth in their subcontracting plan of utilizing small business concerns owned by economically or socially disadvantaged individuals. Agreed to by voice vote May 9, 2007 Amendment offered by Ms. Jackson-Lee (TX). An amendment numbered 7 printed in House Report 110-137 to provide that, whenever the SBA and the contracting procurement agency fail to agree and the Administrator decides to take action to further the interests of a small business concern, the SBA is required to make available on their website any action taken and result achieved by the Administrator. Agreed to by voice vote May 9, 2007 Amendment offered by Ms. Jackson-Lee (TX). An amendment numbered 8 printed in House Report 110-137 to require that, when the SBA and the contracting procurement agency fail to agree and the Administrator submits the matter to the head of the agency for a determination, a copy of the written response to the Administrator be sent to the Committee of the House and Senate that has jurisdiction over the agency concerned, in addition to the Committees on Small Business and Oversight & Government Reform. Agreed to by voice vote May 9, 2007
## All Rights Reserved. © 2007 TheWeekInCongress.com.(TM) No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)
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