Representative Albert Wynn (D-MD) has introduced three bills that are designed to help small businesses get a bigger share of federal contract dollars and improve prompt payment for subcontractors.
The first bill – H.R. 3638 – would amend the Small Business Act to increase the minimum government-wide goal for procurement contracts awarded to small businesses from 23% to 25%. The bill has been referred to the House Committee on Small Business.
The second bill – the “Prompt Payment Improvement Act” – would tighten the prompt payment rules for subcontractors. Under H.R. 3636, federal agencies would be required to provide each of its contractors with a copy of the prompt payment policy developed by the White House Office of Management and Budget (OMB). In turn, contractors would have to provide the document to all of their subcontractors. In addition, all contracts awarded by federal agencies would have to contain provisions spelling out: (1) the requirements and penalties relating to the obligations of the federal government and prime contractors in making timely progress payments; (2) contact information of a senior employee of the contractor who has the authority to discuss and resolve progress payment questions; and (3) the obligations of each agency’s Office of Small Business Utilization in assisting small business contractors in receiving prompt progress payments. H.R. 3636 has been referred to the House Committee on Government Reform.
The third bill – the “Subcontractor Protection Act” – would establish penalties for prime contractors that fail to live up to their subcontracting plans for small disadvantaged businesses. H.R. 3637 would allow federal agencies to withhold up to five percent of the contract amount if a contractor fails to achieve the percentage goal for the utilization of socially and economically disadvantaged businesses contained in a negotiated subcontracting plan. It also would require written justification when a contractor does not enter into a subcontract with a specific small business concern identified in a subcontracting plan. This bill also has been referred to the Committee on Small Business.
In a related development, Representative Tom Davis (R-VA) has scheduled a hearing to discuss legislation he is sponsoring that will help the federal government buy the best available commercial products and solutions in a timely and cost-effective manner. The House Committee on Government Reform’s Subcommittee on Technology and Procurement Policy will discuss the "Services Acquisition Reform Act" (H.R.3426) on March 7. Rep. Davis believes his bill will help the federal government, particularly the Defense Department, obtain commercial products and services key to overseas military operations without some of the red tape that currently hinders the acquisition process.
Several ILMA members have been involved in supplying lubricant products to the military. For example, the Defense Logistics Agency (DLA), in cooperation with the Environmental Protection Agency (EPA), has a detailed program for procuring re-refined motor oil for military use. Demand has increased since the beginning of the war in Afghanistan. Additional information on this program is available at http://www.dscr.dla.mil/pol/ .
For those ILMA members who seek additional information about possible opportunities in this regard, the Small Business Office of the Defense Supply Center Richmond’s (DCS-R) is the best place to start. All vendors who wish to do business with the federal government are required to obtain a Contractor and Government Entity (CAGE) Code and a Dunn and Bradstreet Number (DUNS), and complete the Central Contractor Registration (CCR). Additional information is available on the DSC-R website at http://www.dscr.dla.mil/sbo1/ .
