The Small Business Administration 50th Anniversary Reauthorization Act of 2003 (S. 1375) increases opportunities for small businesses to participate as prime and subcontractors in the federal marketplace, according to Nancyellen Gentile, professional staff member, Senate Committee on Small Business. Speaking to the AFCEA International Small Business Committee in October, Gentile discussed the procurement provisions of S. 1357 under Title IV. The bill changes the current definition of contract consolidation and limits its use in both defense and civilian agencies, strengthens the enforcement and oversight of subcontracting plans, and improves the HUBZone program.
Specifically, the bill revises the definition of contract bundling to include multiple award contracts and requires agencies to take specific steps before executing a contract strategy above certain thresholds that involve the consolidation of contracts. “The Congress has already mandated that 23 percent of federal procurement go to small business, but we really need to help small businesses tap into that 77 percent,” Gentile emphasized.
The success of the subcontracting program, however, depends on the voluntary good faith effort of federal prime contractors. Although the Senate Committee finds that many large companies take existing subcontracting policies seriously, they have received numerous reports from small businesses that some prime contractors continue to treat them unfairly. Additionally, they note that prime contractors have little incentive to award subcontracts to small business.
As a result, the bill includes language to hold prime contractors responsible for the validity of subcontracting data and requires contracting officers to consider proposed small business participation as part of the selection process among competing offers for a contract award. In addition, the bill calls for contracting officers to recognize a prime contractor’s past performance in supporting small business subcontractor participation.
Additional actions aim to improve the HUBZone program by designating military bases that close after the date of enactment as HUBZones for five years. Others aim to implement the procurement program for women-owned small businesses.
Marc Freedman, regulatory counsel, Senate Committee on Small Business and Entrepreneurship, spoke briefly on the Small Business Health Fairness Act, which would create nationally structured health plans for small businesses through their bona fide associations. These Association Health Plans (AHPs) would be similar to those currently used by large companies and unions. AHPs would not be subject to state benefit mandates, leaving associations to design plans tailored to their members' needs. Small business health insurance rates have been increasing by more than 12 percent for the past three years, according to Freedman. He says this legislation would bring more choices and lower costs for small businesses seeking to provide health insurance for their employees. The bill, introduced in the Senate by Olympia Snowe (R-ME), chair of the Committee on Small Business and Entrepreneurship, is supported by the president and more than 140 small business associations, which represents approximately 12 million employers and more than 80 million employees.
The AFCEA Small Business Committee meets monthly at AFCEA International Headquarters in Fairfax, Virginia. For more information about the committee’s activities, e-mail
Diane Dellen or call her at (703) 631-6119.
