[Congressional Record Volume 146, Number 65 (Tuesday, May 23, 2000)]
[Senate]
[Pages S4330-S4334]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      FEDERAL PROCUREMENT OPPORTUNITIES FOR WOMEN-OWNED BUSINESSES

  Mr. ALLARD. Mr. President, I ask unanimous consent that the Senate 
now proceed to the immediate consideration of S. Res. 311, submitted 
earlier by Senator Bond and Senator Kerry.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The assistant legislative clerk read as follows:

       A resolution (S. Res. 311) to express the sense of the 
     Senate regarding Federal procurement opportunities for women-
     owned small businesses.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. BOND. Mr. President, I rise in support of the Senate Resolution I 
introduce today which calls attention to the Federal Government's 
failure to meet the statutory goal to award 5 percent of Federal 
contract dollars to women-owned small businesses. I am very pleased 
that members of the Senate Committee on Small Business have cosponsored 
this Resolution, including the committee's ranking member, Senator 
Kerry, Senator Burns, Senator Snowe, Senator Landrieu, Senator 
Lieberman, Senator Edwards and Senator Abraham, who authored last 
year's initiative in the committee to help women reach the 5-percent 
goal. In addition, Senators Bingaman and Murray have joined us as 
cosponsors of the resolution.
  This is Small Business Week 2000. It is very appropriate that we 
recognize the important roles played of women-owned small businesses in 
our Nation's

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economy and communities. The number of small businesses owned and 
controlled by women is expanding at a very rapid rate, and today, they 
total 38 percent of all businesses in the United States. Importantly, 
their numbers are expanding at such a pace that it is anticipated 
women-owned small businesses will make up over 50 percent of all 
businesses by 2010. That is an astounding statistic.
  In 1994, Congress recognized the important role women-owned small 
businesses play in our economy. During the consideration of the Federal 
Acquisition Streamlining Act, FASA, the Senate approved a provision 
directing that 5 percent of all Federal procurement dollars be awarded 
each year to women-owned small businesses. The goal includes 5 percent 
of prime contract dollars and 5 percent of subcontract dollars and was 
included in the final FASA Conference Report and enacted into law.
  The Federal departments and agencies have failed to meet the 5 
percent goal since it was enacted by Congress in 1994. After Senator 
Abraham chaired a committee field hearing in Michigan on the state of 
women business owners, he offered an amendment addressing the failure 
of the Federal departments and agencies to meet the 5 percent goal 
during the Committee on Small Business markup of the ``Women's Business 
Centers Sustainability Act of 1999,'' S. 791. The amendment was adopted 
unanimously by the Committee and enacted into law, Public Law 106-165. 
It directed the General Accounting Office to undertake an audit of the 
Federal procurement system and its impact on women-owned small 
businesses, which is underway at this time.
  The statistics for Federal procurement for FY 1999 have been 
released. Again, the 5 percent goal for women-owned small businesses 
was not met--and again the Federal departments and agencies fell over 
50 percent short of the goal--reaching only 2.4 percent. The failure of 
the Administration to meet this goal, which is designed to produce 
opportunities for start-up and growing small, women-owned businesses, 
is disturbing. Over 5 years have passed since the enactment of FASA, 
and the Federal Government continues to respond by taking baby steps 
toward meeting this Congressionally-mandated goal.

  The resolution before the Senate today urges the President to adopt 
an administration policy in support of the 5-percent goal. Further, the 
resolution urges the President to go to the heart of the problem--to 
those Federal departments and agencies that are not carrying their 
share of the burden in meeting the goal. Specifically, the resolution 
asks the President to hold the head of each department and agency 
accountable for meeting the 5-percent goal.
  Is it asking too much to require cabinet secretaries and agency heads 
to work harder to comply with a statutory goal? Of course not. It's all 
a matter of priorities. And I think supporting women-owned business 
should and must be a priority for each and every cabinet secretary and 
agency head. In other words, we are demanding performance not promises.
  Were it not for the growth of the small business community over the 
past decade, our economy would not be its booming self. Women-owned 
small businesses have contributed significantly to our economic 
strength and stability. We need to help stimulate this growth to 
strengthen further the foundation of our business success. The 5 
percent Federal procurement goal is a significant component to help 
women-owned business to start-up and flourish.
  We should not lose sight of the fact that our laws are not keeping up 
with the new realities of business, particularly for women-owned 
businesses, who are heating up the economy. We need to be ever vigilant 
and remain alert to changes in the business climate so that laws and 
government policies are relevant and helpful. We in Congress should be 
prepared to jettison antiquated laws. And we need to recognize that 
occasionally the best government policy will be to step aside to avoid 
hindering progress and growth.
  Future Congresses and Administrations will have a tremendous impact 
on the success of women-owned businesses. That is why I am joining with 
Senators Kerry, Olympia Snowe, Mary Landrieu, Dianne Feinstein, and Kay 
Bailey Hutchison to convene a National Women's Business Summit on June 
4-5, 2000, in Kansas City, Missouri. The summit will give women small 
business owners the opportunity to help formulate national policies on 
women's small business issues by gathering input from women business 
leaders, elected officials and other experts. Results and 
recommendations from this summit will be communicated directly to the 
Congress. More information about the summit can be found on my Senate 
office Web site at www.senate.gov/bond.
  As we begin Small Business Week, I hope my colleagues in the Senate 
will take a moment and recognize the important role small businesses 
play in our economy. And I urge them to reinforce their support for the 
5-percent Federal procurement goal and women-owned small businesses by 
voting in favor of the Senate resolution.
  Mr. KERRY. Mr. President, women-owned businesses have scored a double 
victory today. President Clinton and a bi-partisan coalition of 
Senators have unveiled separate but complementary national policies to 
increase procurement opportunities for businesses owned by women.
  Though on its face Federal procurement may not sound like an 
important issue to the general public, or even a term that many 
recognize, it is one of the most lucrative, yet difficult, markets for 
small businesses to access, particularly those owned by women and 
under-represented minorities. For example, in 1999, women-owned 
businesses made up 38 percent of all businesses but received only 2.4 
percent of the $189 billion in Federal prime contracts. We can do 
better. And, before we enact new laws, we should promote and enforce 
the ones we have.
  First, I want to offer my strong support and sincere compliments to 
President Clinton for signing an executive order today that reaffirms 
and strengthens the executive branch's commitment to meeting the five-
percent procurement goal for women-owned businesses. His staff has 
worked for months with the Small Business Administration, SBA, the 
National Women's Business Council, the Women's Coalition for Access to 
Procurement, Women First, Women's Construction Owners and Executives, 
and the Women's Business Enterprise National Council to draft a 
feasible plan to help Federal agencies and departments increase the 
number of contracts awarded to businesses owned by women. Announcing 
that plan this afternoon is timely.
  Today I join my colleague Senator Bond to introduce a resolution that 
encourages the President to adopt a policy that reinforces and enforces 
a procurement law Congress passed in 1994. That law, the Federal 
Acquisition Streamlining Act, established a government-wide goal for 
all heads of Federal departments and agencies to award five percent of 
their prime and subcontracts to women-owned businesses. First, this 
resolution asks the President to adopt a policy that supports the law 
and encourages agencies and departments to meet the goal. Second, this 
resolution asks the President to reinforce the law by holding the heads 
of agencies and departments accountable for meeting the five-percent 
goal.
  I believe the President's executive order goes beyond the Senate's 
request and establishes a strong system within the Federal Government 
for increasing the number of contracts that go to women-owned 
businesses. I think it is very smart to hire an Assistant Administrator 
for Women's Procurement within the SBA's Office of Government 
Contracting. Increasing opportunities for women-owned businesses is a 
full-time job and devoting staff to this area is good use of resources.
  I also think it is good policy for the Assistant Administrator to 
evaluate the agencies' contracting records on a semi-annual basis. This 
has two benefits. One, it encourages the procurement offices to run 
their operations like good small businesses. If you ask, most business 
owners will tell you that a key to running a successful business is 
having a solid business plan and regularly measuring your costs against 
revenues and projecting adequate inventory or staff to meet the demands 
of your products or services. I think it is a very good idea for 
contracting officers to do the same. Two, this policy

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allows the SBA to work with an agency that is not meeting its goal 
midway through the year rather than finding out at the end of the year 
when it is too late.
  Lastly, I like the Administration's plan because it takes a holistic 
approach to procurement. Rather than just focusing on the agencies and 
departments, it requires the Assistant Administrator to organize 
training and development seminars that teach women entrepreneurs about 
the complex world of Federal procurement and the SBA's procurement 
programs. It will be much easier for women-owned businesses to compete 
for Federal contracts if they understand the process and how to find 
out about opportunities.
  I think it is important to note that while the government as a whole 
is not contracting as it should with women-owned firms, there are some 
outstanding exceptions. Some Federal agencies have taken the lead in 
working with women owned firms, and should be congratulated. According 
to the Federal Procurement Data System, the Department of Housing and 
Urban Development, the Consumer Product Safety Commission, the Federal 
Mine Safety & Health Review Commission, the Nuclear Regulatory 
Commission, and the Small Business Administration have all not only met 
the five percent goal, but have come in at around fifteen percent or 
better. That is three times the goal set by Congress.
  These Federal agencies know that working with women-owned firms is 
not simply an altruistic exercise. These firms are strong, dependable 
and do good work. These firms provide a solid service to their 
customer, and the Federal contracting officers know it. In total, 20 
Federal agencies either met or exceeded the five percent goal.
  Therefore, we know that it is indeed possible for Government agencies 
to meet the five percent goal. With this resolution, it is our hope 
that agencies will work harder, following the examples of the agencies 
I discussed earlier, to contract with women-owned firms.
  I've supported many initiatives over the years to increase resources 
and opportunities for businesses owned by women. Most recently, I 
supported Senator Landrieu's legislation to re-authorize the National 
Women's Business Council for 3 years, and to increase the annual 
appropriation from $600,000 to $1 million. Part of that increase will 
be used to assist Federal agencies meet the five-percent procurement 
goal for women-owned businesses. The Council has provided great 
leadership in this area, making increased contracting opportunities a 
priority since it was created in 1988, and earned praise from Democrats 
and Republicans for two extensive procurement studies it published in 
1998 and 1999. The first study tracked 11 years of Federal contracting 
so that we have measurable data, and the second study identified and 
analyzed public and private sector practices that have been successful 
in increasing contracting opportunities for women business owners. The 
additional resources will allow the Council to build on that study and 
put the information to good use, ultimately increasing competitive 
contracting opportunities for businesses owned by women.
  In addition to supporting reauthorization of the National Women's 
Business Council, last year I introduced the Women's Business Centers 
Sustainability Act of 1999. Now public law, that legislation is helping 
Centers address the funding constraints that have been making it 
increasingly difficult for them to sustain the level of services they 
provide after they graduate from the Women's Business Centers program 
and no longer receive federal matching funds. It is important to note 
that SBA requires Women's Business Centers to provide procurement 
training.
  As part of that bill, we passed an amendment addressing Federal 
procurement opportunities for women-owned small businesses. The 
amendment expressed the sense of the Senate that the General Accounting 
Office should conduct an audit on the federal procurement system for 
the preceding three years. Unlike the Council's previous studies and 
reports that focused on data and best practices, this report was to 
focus on why the agencies haven't met the congressionally mandated 
five-percent procurement goal for small businesses owned by women.
  Mr. President, the Federal agencies have begun to make progress since 
Congress enacted the five-percent procurement goal, but I want the 
contracting managers to remember that this goal is a minimum, not a 
maximum. Out of the more than 9 million businesses owned by women in 
this country, I believe that the Federal Government can find ones that 
are qualified and reliable, with good products and services, to fill 
their contracts if they make it a priority.
  I believe that the President's Executive Order establishes a strong 
system within the Federal Government for increasing the number of 
contracts that go to women-owned businesses, and I look forward to 
seeing the Federal departments and agencies meet the five-percent goal 
this year, as the Senate resolution emphasizes.
  I ask unanimous consent that this statement and a copy of the 
Executive Order be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                            Executive Order


       increasing opportunities for women-owned small businesses

       By the authority vested in me as President by the 
     Constitution and the laws of the United States of America, 
     including the Small Business Act, 15 U.S.C. 631, et seq., 
     section 7106 of the Federal Acquisition Streamlining Act of 
     1994 (Public Law 103-355), and the Office of Federal 
     Procurement Policy, 41 U.S.C. 403, et seq., and in order to 
     strengthen the executive branch's commitment to increased 
     opportunities for women-owned small businesses, it is hereby 
     ordered as follows:
       Section 1. Executive Branch Policy. In order to reaffirm 
     and strengthen the statutory policy contained in the Small 
     Business Act, 15 U.S.C. 644(g)(1), it shall be the policy of 
     the executive branch to take the steps necessary to meet or 
     exceed the 5 percent Government-wide goal for participation 
     in procurement by women-owned small businesses (WOSBs). 
     Further, the executive branch shall implement this policy by 
     establishing a participation goal for WOSBs of not less than 
     5 percent of the total value of all prime contract awards for 
     each fiscal year and of not less than 5 percent of the total 
     value of all subcontract awards for each fiscal year.
       Sec. 2. Responsibilities of Federal Departments and 
     Agencies. Each department and agency (hereafter referred to 
     collectively as ``agency'') that has procurement authority 
     shall develop a long-term comprehensive strategy to expand 
     opportunities for WOSBs. Where feasible and consistent with 
     the effective and efficient performance of its mission, each 
     agency shall establish a goal of achieving a participation 
     rate for WOSBs of not less than 5 percent of the total value 
     of all prime contract awards for each fiscal year and of not 
     less than 5 percent of the total value of all subcontract 
     awards for each fiscal year. The agency's plans shall 
     include, where appropriate, methods and programs as set 
     forth in section 4 of this order.
       Sec. 3. Responsibilities of the Small Business 
     Administration. The Small Business Administration (SBA) shall 
     establish an Assistant Administrator for Women's Procurement 
     within the SBA's Office of Government Contracting. This 
     officer shall be responsible for:
       (a) working with each agency to develop and implement 
     policies to achieve the participation goals for WOSBs for the 
     executive branch and individual agencies;
       (b) advising agencies on how to implement strategies that 
     will increase the participation of WOSBs in Federal 
     procurement;
       (c) evaluating, on a semiannual basis, using the Federal 
     Procurement Data System (FPDS), the achievement of prime and 
     subcontract goals and actual prime and subcontract awards to 
     WOSBs for each agency;
       (d) preparing a report, which shall be submitted by the 
     Administrator of the SBA to the President, through the 
     Interagency Committee on Women's Business Enterprise and the 
     Office of Federal Procurement Policy (OFPP), on findings 
     based on the FPDS, regarding prime contracts and subcontracts 
     awarded to WOSBs;
       (e) making recommendations and working with Federal 
     agencies to expand participation rates for WOSBs, with a 
     particular emphasis on agencies in which the participation 
     rate for these businesses in less than 5 percent;
       (f) providing a program of training and development 
     seminars and conferences to instruct women on how to 
     participate in the SBA's 8(a) program, the Small 
     Disadvantaged Business (SDB) program, the HUBZone program, 
     and other small business contracting programs for which they 
     may be eligible;
       (g) developing and implementing a single uniform Federal 
     Government-wide website, which provides links to other 
     websites within the Federal system concerning acquisition, 
     small businesses, and women-owned businesses, and which 
     provides current procurement information for WOSBs and other 
     small businesses;
       (h) developing an interactive electronic commerce database 
     that allows small businesses to register their businesses and 
     capabilities as potential contractors for Federal agencies, 
     and enables contracting officers to

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     identify and locate potential contractors; and
       (i) working with existing women-owned business 
     organizations, State and local governments, and others in 
     order to promote the sharing of information and the 
     development of more uniform State and local standards for 
     WOSBs that reduce the burden on these firms in competing for 
     procurement opportunities.
       Sec. 4. Other Responsibilities of Federal Agencies. To the 
     extent permitted by law, each Federal agency shall work with 
     the SBA to ensure maximum participation of WOSBs in the 
     procurement process by taking the following steps:
       (a) designating a senior acquisition official who will work 
     with the SBA to identify and promote contracting 
     opportunities for WOSBs;
       (b) requiring contracting officers, to the maximum extent 
     practicable, to include WOSBs in competitive acquisitions;
       (c) prescribing procedures to ensure that acquisition 
     planners, to the maximum extent practicable, structure 
     acquisitions to facilitate competition by and among small 
     businesses, HUBZone small businesses, SDBs, and WOSBs, and 
     providing guidance on structuring acquisitions, including, 
     but not limited to, those expected to result in multiple 
     award contracts, in order to facilitate competition by and 
     among these groups;
       (d) implementing mentor-protege programs, which include 
     women-owned small business firms; and
       (e) offering industry-wide as well as industry-specific 
     outreach, training, and technical assistance programs for 
     WOSBs including, where appropriate, the use of Government 
     acquisitions forecasts, in order to assist WOSBs in 
     developing their products, skills, business planning 
     practices, and marketing techniques.
       Sec. 5. Subcontracting Plans. The head of each Federal 
     agency, or designated representative, shall work closely with 
     the SBA, OFPP, and others to develop procedures to increase 
     compliance by prime contractors with subcontracting plans 
     proposed under section 8(d) of the Small Business Act (15 
     U.S.C. 637(d)) or section 834 of Public Law 101-189, as 
     amended (15 U.S.C. 637 note), including subcontracting plans 
     involving WOSBs.
       Sec. 6. Action Plans. If a Federal agency fails to meet its 
     annual goals in expanding contract opportunities for WOSBs, 
     it shall work with the SBA to develop an action plan to 
     increase the likelihood that participation goals will be met 
     or exceeded in future years.
       Sec. 7. Compliance. Independent agencies are requested to 
     comply with the provisions of this order.
       Sec. 8. Consultation and Advice. In developing the long-
     term comprehensive strategies required by section 2 of this 
     order, Federal agencies shall consult with, and seek 
     information and advice from, State and local governments, 
     WOSBs, other private-sector partners, and other experts.
       Sec. 9. Judicial Review. This order is for internal 
     management purposes for the Federal Government. It does not 
     create any right or benefit, substantive or procedural, 
     enforceable at law or equity by a party against the United 
     States, its agencies, its officers, its employees, or any 
     other person.
                                                  William J. Clinton.  
                                         The White House, May 23, 2000.

  Mr. ABRAHAM. Mr. President, today I join my colleagues from the 
Senate Small Business Committee, Chairman Kit Bond and Ranking Member 
John Kerry, in support of increased involvement of women-owned small 
businesses in the Federal procurement process.
  I have had the opportunity to speak with many women business leaders 
in Michigan on this matter, and the general opinion is that there are 
certain doors that are closed to women business owners. In a field 
hearing I held in Michigan last summer on issues to women in business, 
I found that many times women business owners face the same problems as 
men in the private sector. However, when looking at the representation 
of women in terms of federal procurement dollars, the difference is 
striking.
  Six years after posting a modest five-percent goal of Federal 
procurement dollars for women-owned small businesses, Federal 
departments and agencies have fallen far short. Last year, only 2.4 
percent of the total dollar value of all Federal prime contracts went 
to women business owners. This shortfall is staggering when taking into 
account that women-owned small businesses are the fastest growing 
segment of the business community in the United States. In fact, by the 
year 2010, women-owned small businesses are expected to make up more 
than one-half of all businesses in the United States.
  As a result of this striking information, I introduced an amendment 
to last year's Women Business Centers Sustainability Act that called 
for a GAO report studying the trends, barriers and possible solutions 
to this deficiency. I am proud to report that this report stands to be 
completed by the end of the year. However, this alone will not provide 
Federal procurement opportunities for women-owned small businesses. The 
administration must become actively involved in demanding Federal 
departments and agencies accomplish the five-percent procurement goal.
  Mr. President, I have been advocating this issues for quite some time 
now. My colleagues and I in the Senate Small Business Committee have 
consistently supported efforts empowering the spirit of 
entrepreneurship in American women. In my view, these actions must be 
adopted and enforced on all levels of government.
  I hope my colleagues in the Senate will join me in encouraging the 
President to hold the heads of the Federal departments and agencies 
accountable to ensure that the five percent goal is achieved during 
this fiscal year.
  Mr. BURNS. Mr. President, today I join Senator Bond, Senator Kerry, 
and others in support of a Senate resolution urging the President to 
adopt a policy to ensure that the 5-percent Federal procurement goal 
for women-owned small businesses is met.
  In 1994, Congress enacted the Federal Acquisition Streamlining Act, 
establishing a Government-wide goal for small businesses owned and 
controlled by women. This act allows for no less than five percent of 
the total dollar value of all prime contracts and subcontract awards 
for each year.
  Over the past few years, we have witnessed the growth of women-owned 
businesses, including federal contracts. Over the past ten we've seen 
thousands of women entrepreneurs start or expand their own businesses. 
It is important we realize that women-owned businesses are the fastest 
growing segment of the business community in the United States. In 
fact, in the next ten years, it is expected that women-owned businesses 
will make up more than one-half of all businesses in the United States.
  This week has been designated as Small Business Week, therefore it is 
only fitting that the Senate should pass this resolution to symbolize 
the Senate's concern that the Federal departments and agencies have not 
made adequate effort in meeting the five percent goal established in 
1994 as part of the Federal Acquisition Streamlining Act. I fully 
support this Senate resolution and urge Federal agencies to make a 
concerted effort to meet this 5-percent goal.
  Mr. ALLARD. Mr. President, I ask unanimous consent that the 
resolution be agreed to, the preamble be agreed to, the motion to 
reconsider be laid upon the table, and any statements relating to the 
resolution be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 311) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 311

       Whereas women-owned small businesses are the fastest 
     growing segment of the business community in the United 
     States;
       Whereas women-owned small businesses will make up more than 
     one-half of all business in the United States by the year 
     2010;
       Whereas in 1994, the Congress enacted the Federal 
     Acquisition Streamlining Act of 1994, establishing a 
     Government-wide goal for small businesses owned and 
     controlled by women of not less than 5 percent of the total 
     dollar value of all prime contracts and subcontract awards 
     for each fiscal year;
       Whereas the Congress intended that the departments and 
     agencies of the Federal Government make a concerted effort to 
     move toward that goal;
       Whereas in fiscal year 1999, the departments and agencies 
     of the Federal Government awarded prime contracts totaling 
     2.4 percent of the total dollar value of all prime contracts; 
     and
       Whereas in each fiscal year since enactment of the Federal 
     Acquisition Streamlining Act of 1994, the Federal departments 
     and agencies have failed to reach the 5 percent procurement 
     goal for women-owned small businesses: Now, therefore, be it
       Resolved, That--
       (1) the Senate strongly urges the President to adopt a 
     policy in support of the 5 percent procurement goal for 
     women-owned small businesses, and to encourage the heads of 
     the Federal departments and agencies to undertake a concerted 
     effort to meet the 5 percent goal before the end of fiscal 
     year 2000; and
       (2) the President should hold the heads of the Federal 
     departments and agencies accountable to ensure that the 5 
     percent goal is achieved during fiscal year 2000.

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