[Congressional Record Volume 140, Number 2 (Wednesday, January 26, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: January 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     LOCAL PROCUREMENT ACT OF 1993

                                 ______


                         HON. RICHARD H. BAKER

                              of louisiana

                    in the house of representatives

                       Tuesday, January 26, 1994

  Mr. BAKER of Louisiana. Mr. Speaker, in the coming weeks I will 
introduce legislation to strengthen procurement opportunities for local 
businesses, small businesses, economically depressed communities, and 
America communities nationwide. This legislation makes sure that the 
economies near Federal contracting agencies, or communities in which a 
Federal contract is to be performed, are not adversely impacted as a 
result of Federal acquisition reform and electronic data interchange.
  In fiscal year 1992, estimates indicate that the Federal Government 
spent more than $200 billion on the purchase of goods and services. 
There are tens of million of these transactions, and they range from 
the major weapon-buying programs to paper clips. As you know, there are 
many pieces of legislation in the House and Senate which concern 
Federal procurement reform. I am concerned that much of the other 
reforms ignore small businesses. My bill seeks to add a new measure to 
the other pieces of legislation, and protect small, local businesses 
who want to do business with a Federal contracting agency or authority 
in or near their community.
  Congress and the administration are committed to Federal procurement 
reform. The Government needs this reform to guide its 142,000 employees 
dedicated to procurement. Currently, the law allows agencies to make 
purchases of less than $25,000 through simplified procedures. The 
statutory requirements provide that the Department of Defense and the 
many civilian agencies post contracting opportunities under $25,000. 
This guideline ensure that the small business and local business 
communities are afforded adequate and timely notice of Federal 
contracting opportunities. Federal acquisition regulations, however, 
encourage contracting officers to solicit oral offers below the amount 
of the small business purchase threshold. Unfortunately, many in the 
small business community believe that the Federal regulation mentioned 
above has served only to undermine the purpose of the statutory posting 
requirement.
  In the 103d Congress, bills have been introduced to raise the 
threshold for simplified purchasing procedures from $25,000 to 
$100,000. This expansion will affect over 45,000 new Federal 
contracting opportunities worth billions of dollars, and put the small 
business and local business communities at even greater risk of being 
circumvented in the Federal contracting process.
  Add to this the Federal Government's intent to expand to an 
electronic marketplace, and you have a much more serious problem for 
small businesses throughout the country. Electronic notification and 
electronic data interchange [EDI] will soon replace the Commerce 
Business Daily and the local posting requirements. The Defense 
Department and the civilian agencies will announce Federal contracts on 
a nationwide electronic computer system. Eventually, the computer will 
serve a government-wide commerce system able to notify businesses of 
contracts, to make payments, and to engage in document interchange. EDI 
is intended to provide all businesses, including small businesses, with 
improved access to information about Federal procurement. Undoubtedly, 
another result of this technological achievement is that businesses 
from all over the Nation will be competing with one another for every 
single Federal contracting opportunity.
  I am aware of the possible threat to the small business community if 
the simplified acquisition threshold was raised prior to full 
implementation of the planned electronic commerce system. In this 
regard, my bill seeks to protect small businesses and local businesses 
from some of the risks of raising the simplified acquisition threshold 
and implementing electronic commerce. My bill seeks to define local 
small business concerns, and protect them reasonably from the risks of 
being left out of the Federal contracting process in the future. This 
legislation will set an attainable goal for all Federal agencies for 
each fiscal year by awarding certain percentages of all procurement 
activities under the applicable simplified acquisition threshold to 
these local small business concerns. The definition for local small 
businesses will be based on where the business concern is located, 
where a particular contract is scheduled for performance, where the 
contracting authority who is administering the contract is located, and 
other factors.
  Mr. Speaker, I look forward to working with you and my other 
colleagues in the House in moving Federal procurement reform in 
general, and this legislation in particular, forward so that we can 
assist in making our Government more efficient while fostering an 
environment in which American small businesses can develop and continue 
to be the engine of economic improvement and job growth in our country.

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