[Congressional Record Volume 140, Number 149 (Thursday, December 1, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: December 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      BUSINESS ASSISTANCE PROGRAMS

 Mr. RIEGLE. Mr. President, I rise to bring to the attention of 
my colleagues a report from the General Accounting Office, written at 
the request of myself and the distinguished Senator from Connecticut, 
Senator Lieberman.
  For a number of years, I have been deeply concerned over the state of 
our economy and the standard of living of American working men and 
women. The last two decades have not been kind to American workers, who 
have seen their wages stagnate at the same time they have seen their 
job security disappear.
  To overcome our economic stagnation, I have long advocated a coherent 
plan of concerted action by business, labor and government, working 
together in a team America approach. I believe we have made strides in 
crafting such a partnership to address the deep root structural 
problems facing our economy. For example, the Partnership for a New 
Generation Vehicle, also know as the ``Clean Car'' initiative, holds 
great promise. This partnership between the government and the auto 
industry is dedicated to ensuring that the American industry remains a 
leader in innovation, economic growth and job creation. other 
initiatives of the Clinton administration, such as Secretary Reich's 
proposals to overhaul and strengthen our worker training and retraining 
system, are all steps in the right direction.
  Yet, the Federal Government still lacks a coherent strategy for 
assisting American business in dealing with structural change in the 
economy. As the GAO report points out, there are at least 24 Federal 
programs to provide managerial and technical assistance to business. 
However, there is no office that tracks or coordinates these programs.
  Many of these programs fulfill complimentary needs, and should not 
simply be eliminated in a mindless rush to cut programs. For example, 
The Trade Adjustment Assistance Centers provide marketing, cost 
accounting, human resources management and business strategy 
assistance. The Manufacturing Technology Centers specialize in the 
deployment of modern manufacturing technology. The Small Business 
Development Centers typically specialize in assistance to firms in the 
retail and services sector, not manufacturing firms. Likewise, the 
Minority Business Development Centers exist to serve a specialized 
need.
  All of these programs are compliments to one another, not 
replacements for each other. Eliminating any one of them would tear a 
large hole out of this business assistance network. However, they do 
need to be coordinated if they are to be as effective as they should 
be.
  A similar situation faced us a few years ago in the area of export 
promotion. Again, a GAO report identified numerous export promotion 
programs with no coordination among them. At hearing of the Banking 
Committee where we had all of the heads of these agencies appear as 
witnesses, my colleague Senator Sarbanes asked a simple question--
``have you ever met before.'' The answer was astonishing--that was 
their first meeting. Not only did they not coordinate programs, they 
didn't even know each other.
  That hearing lead us to pass legislation creating the Trade Promotion 
Coordinating Committee [TPCC]. The TPCC is made up of the head of 19 
agencies and departments involved in export promotion, including the 
President's Council of Economic Advisors [CEA] and the Office of 
Management and Budget [OMB]. Chaired by Secretary of Commerce Ron 
Brown, the TPCC has made tremendous progress in raising the level of 
effectiveness of our export promotion activities.
  The TPCC show what can be done to improve Government effectiveness in 
the delivery of importance assistance to business. It is my hope that 
the 104th Congress will build on the example of the TPCC and other 
initiative to bring coherence to all our business assistance 
programs.
 Mr. LIEBERMAN. Mr. President, I rise to echo the sentiments of 
the distinguished gentleman from Michigan. He has been a leader in the 
effort to address the structural problems facing our economy and I 
commend him for all his work. We will certainly miss him in the years 
ahead.
  It has been said that in order to manage a problem you have to be 
able to measure that problem. This study is a variation on that theme. 
In order to figure out how to coordinate among the various Federal 
programs that provide management and technical assistance, we need to 
know how many of these programs exist and where they exist. This report 
gives us that information.
  With this information in hand, I hope that we can work toward 
coordinating these programs in the next Congress as a way to raise the 
level of effectiveness of these business assistance programs.
  Mr. President, I ask that the summary and appendix of this GAO report 
which outlines the various Federal program that provide management and 
technical assistance to U.S. businesses, be printed in the Record 
following my statement.
  The material follows:

                                        General Accounting Office,


                                  General Government Division,

                                 Washington, DC, October 14, 1994.
     Hon. Joseph I. Lieberman,
     U.S. Senate.
     Hon. Donald W. Riegle,  Jr.,
     U.S. Senate,
       As you requested, this fact sheet provides information on 
     federal government programs that give management and 
     technical assistance to business. As agreed with you, we have 
     attempted to (1) identify as many federal government programs 
     that provide management and or technical assistance to 
     business as possible, within the limited time constraints of 
     this assignment; (2) provide a brief description of these 
     programs and identify the target customers that these 
     programs were designed to serve; and (3) report the current 
     funding levels for these programs.


                            Results in Brief

       We found no particular federal office that tracks or 
     coordinates all the various management and technical 
     assistance programs at the different government agencies. We 
     identified 24 federally sponsored government programs that 
     primarily provide management and technical assistance to 
     business. They are listed in the appendix. These programs 
     offer a variety of services to business, including assistance 
     in areas such as accounting; developing business plans; 
     proposal and bid preparation; marketing; worker training; and 
     assistance in implementing improved manufacturing technology.
       The Small Business Administration (SBA) and the Department 
     of Commerce (DOC) had the largest number of management and 
     technical assistance programs that we identified for fiscal 
     year 1994. Other programs were in the Departments of Defense, 
     Energy, Labor (DOL), Transportation, and the Treasury. In 
     addition, government agencies that have procurement authority 
     generally have an Office of Small and Disadvantaged Business 
     Utilization (OSDBU) that, in conjunction with SBA, is 
     designed to assist in the development of small businesses 
     owned and controlled by socially and economically 
     disadvantaged individuals. OSDBUS primarily focus on helping 
     companies procure contracts with the federal government 
     through various outreach efforts including conferences, 
     procurement fairs, and business strategy sessions.
       The majority of the programs that we identified were 
     targeted to small business.
       Proposed fiscal year 1994 funding levels for the programs 
     varied widely, ranging from a high of $71 million for SBA's 
     Small Business Development Centers to a low of $1.5 million 
     for DOL's Micro-enterprise Grant Program.


                         Scope and Methodology

       To determine which government agencies had management and 
     technical assistance programs, we interviewed officials at 
     SBA and at DOC's Economic Development Administration and its 
     Minority Business Development Agency. These particular 
     agencies were identified in the request that we conduct this 
     review. In order to identify additional programs, we also 
     searched government publications, such as the Federal 
     Register and the Catalog of Federal Domestic Assistance.
       We obtained documentation describing these programs from 
     respective program officials, notifications in the Federal 
     Register, and prior GAO studies.
       When possible, we obtained proposed fiscal year 1994 
     program funding levels from the federal budget; however, 
     because not all programs were explicitly identified in the 
     federal budget, we also consulted program officials for this 
     information.
       We did our work between July 1994 and September 1994 in 
     accordance with generally accepted government auditing 
     standards.
       We are providing copies of this fact sheet to the agencies 
     we identified in the appendix that have programs and to 
     interested congressional committees. We will also make copies 
     available to others upon request.
       Please contact me on (202) 512-4812 if you have any 
     questions concerning this fact sheet. The information of this 
     fact sheet was developed by John R. Schultz, Assistant 
     Director; Barbara Keller, Assignment Manager; Jean-Paul 
     Reveyoso, Evaluator-in-Charge; and Robert Shields, Evaluator.
           Sincerely yours,

                                         Allan I. Mendelowitz,

                           Managing Director, International Trade,
                                     Finance, and Competitiveness.

        APPENDIX I--FEDERALLY SPONSORED PROGRAMS OFFERING MANAGEMENT AND TECHNICAL ASSISTANCE TO BUSINESS       
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                     Proposed FY
     Agency and Program                 Program description                     Customer            1994 funding
----------------------------------------------------------------------------------------------------------------
U.S. Small Business                                                                                             
 Administration (SBA):                                                                                          
    8(a) Minority Small       Provides development assistance to      Socially and economically              N/A
     Business Contract Set-    small businesses that are owned by      disadvantaged individuals.               
     Aside.                    minorities and other socially and                                                
                               economically disadvantaged                                                       
                               individuals.                                                                     
    7(j) Management and       Provides management and technical       Small disadvantaged                   $7.5
     Technical Assistance.     training in accounting, marketing,      businesses (SDB) low-income              
                               proposal and bid preparation, and       individuals, firms in                    
                               industry-specified technical            either labor-surplus areas               
                               assistance.                             or areas with a high                     
                                                                       proportion of low-income                 
                                                                       individuals. Most                        
                                                                       participants in this                     
                                                                       program are 8(a) firms.                  
    Business Information      Provide technical assistance in high-   Small business entrepreneurs           N/A
     Centers.                  tech hardware, software, and                                                     
                               communications.                                                                  
    International Trade       Provides financial and business         Small businesses in                    N/A
     Assistance.               development assistance. The             developing export markets.               
                               assistance includes trade counseling,                                            
                               training, and legal aid.                                                         
    Pilot Technology Access.  Provides computerized databases         Small businesses............           N/A
                               containing technical and business                                                
                               information and experts knowledgeable                                            
                               in various technical fields.                                                     
    Service Corps of Retired  Uses a network of about 13,000          Small businesses,                      3.5
     Executives (SCORE).       volunteer retired executives to         entrepreneurs, start-ups.                
                               provide development, management, and                                             
                               technical assistance, which includes                                             
                               counseling and training.                                                         
    Small Business            Provide management and technical        Small businesses,                     71.0
     Development Centers (56   assistance, which includes              entrepreneurs, small                     
     centers, 900 service      counseling, training, and other         business start-ups.                      
     locations).               activities.                                                                      
    Small Business Institute  Provides management assistance in       Small businesses............           3.0
                               marketing, accounting, and other                                                 
                               areas.                                                                           
    Demonstration Project     Provides management and technical       Women-owned small businesses           2.0
     for Women Business        assistance, which includes long-term                                             
     Owners.                   training and counseling in all                                                   
                               aspects of ownership and operation.                                              
    Women's Network for       Provides development, management, and   Women-owned small businesses           N/A
     Entrepreneurial           technical assistance by matching                                                 
     Training.                 successful women successful women                                                
                               entrepreneurs with women seeking to                                              
                               expand their businesses.                                                         
 Department of Commerce                                                                                         
 (DOC); Economic Development                                                                                    
 Administration:                                                                                                
    Trade Adjustment          Provide technical assistance, which     Trade-injured manufacturing           10.0
     Assistance Centers (12    includes an assessment of a firm's      firms.                                   
     centers).                 strengths and weaknesses and possible                                            
                               recovery strategies, if recovery                                                 
                               appears viable.                                                                  
    University Centers (64    Provide technical assistance in         Small and medium-sized                 7.5
     centers).                 engineering, feasibility studies, and   businesses.                              
                               marketing, as well as management                                                 
                               assistance.                                                                      
DOC, Minority Business        Provide development, management, and    Minority businesses.........          38.0
 Development Agency:           technical assistance.                                                            
 Minority Business                                                                                              
 Development Centers (108                                                                                       
 centers).                                                                                                      
DOC National Institute of                                                                                       
 Standards and Technology                                                                                       
 (NIST) Manufacturing                                                                                           
 Extension Partnership:                                                                                         
    Manufacturing Extension   Provide a range of technical            Small and medium-sized                36.5
     Centers (28 centers).     assistance. The assistance includes     manufacturing firms.                     
                               the following: assessing current                                                 
                               technology needs and competitive                                                 
                               position, understanding and                                                      
                               undertaking fundamental company                                                  
                               changes, and defining and                                                        
                               implementing company-specific                                                    
                               technology projects.                                                             
    Manufacturing Technology  Provide technical assistance to         Small and medium-sized                16.8
     Centers (7 centers).      enhance the productivity and            manufacturing firms.                     
                               technological performance of U.S.                                                
                               Manufacturing.                                                                   
    State Technology          Provides grants to help states develop  Small and medium-sized                 2.3
     Extension Program.        and implement their own technology      manufacturing firms.                     
                               assistance programs.                                                             
Department of Defense,        Provides assistance to businesses       Large and small businesses..          15.8
 Defense Logistics Agency:     seeking to market their products and                                             
 Procurement Technical         services to DOD. The assistance                                                  
 Assistance.                   includes marketing, pre-award survey                                             
                               assistance, contract administration,                                             
                               and other special assistance.                                                    
DOD, Office of Small and      Provides management and technical       SDB subcontractors..........          45.0
 Disadvantaged Business        assistance in the following areas:                                               
 Utilization (OSDBU): Pilot    financial and personnel management,                                              
 Mentor-Prote.1ge.1.           marketing, proposal development,                                                 
                               loans, and capital investment.                                                   
                               Successful defense contractors are                                               
                               matched with SDB subcontractors                                                  
                               seeking to expand their contracting                                              
                               opportunities.                                                                   
Department of Energy (DOE):   Provides technical information, up to   Small manufacturing business           8.0
 Small Business Initiative.    80 hours of consultation services, or                                            
                               access to unique, specialized                                                    
                               facilities for the evaluation of new                                             
                               processes or equipment.                                                          
DOE, OSDBU: Management and    Provides advisory services and          Minority businesses seeking           0.38
 Technical Assistance for      counseling in financial proposal and    to obtain DOE contracts.                 
 Minority Business             bid preparation.                                                                 
 Enterprises.                                                                                                   
Department of Labor: Micro-   Provide funds to states, on a           Owners and potential owners            1.5
 enterprise Grants.            competitive basis, for business-        of micro-enterprises.                    
                               related training, technical                                                      
                               assistance, and support.                                                         
Department of Transportation  Provides training and other assistance  Socially and economically             0.23
 Federal Highway               to help businesses achieve              disadvantaged businesses in              
 Administration:               proficiency to compete on equal basis   the highway construction                 
 Disadvantaged Business        for contracts.                          industry and related                     
 Enterprise.                                                           industries.                              
Department of the Treasury:   Provides training, technical            Minority-owned institutions            N/A
 Section 308 FIRREA.           assistance, and educational programs    and minority investors                   
                               to preserve minority ownership of       acquiring failed financial               
                               financial institutions.                 institutions.                            
National Aeronautics and      Provides management and technical       SDB subcontractors..........           N/A
 Space Administration          assistance in the following areas:                                               
 (OSDBU): Pilot Prote.1ge.1.   financial and organizational                                                     
                               management, business development and                                             
                               planning, and engineering. Successful                                            
                               contractors are matched with SDB                                                 
                               subcontractors seeking to expand                                                 
                               their contracting opportunities.                                                 
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