[Congressional Record Volume 148, Number 132 (Wednesday, October 9, 2002)]
[Extensions of Remarks]
[Pages E1804-E1805]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     SERVICE-DISABLED VETERANS' SMALL BUSINESS FEDERAL PROCUREMENT 
                         PREFERENCE ACT OF 2002

                                 ______
                                 

                            HON. LANE EVANS

                              of illinois

                    in the house of representatives

                       Wednesday, October 9, 2002

  Mr. EVANS. Mr. Speaker, today I am introducing H.R. 5583, ``Service-
Disabled Veterans' Small Business Federal Procurement Preference Act of 
2002.'' This bill would provide service-disabled veterans and ``other 
handicapped'' individuals who own small business firms a time-delimited 
preference in the award of Federal contracts.
  This legislation is clearly needed. While the Veterans 
Entrepreneurship and Small Business Development Act of 1999 established 
a 3 percent goal for the award of Federal contracts to servcie-disabled 
veteran-owned small business firms under the Small Business Act, no 
practical means exists for Federal agencies to achieve this goal under 
existing statutory authorities. Not surprisingly, Federal agencies have 
failed to achieve the 3 percent goal.
  Compared to their non-veteran peers, veterans have postponed the 
opportunity to begin a small business while serving the nation in 
uniform. During their military service veterans have forgone 
establishing essential business credit and contacts which are pivotal 
to successfully starting a business. Due to their military service, our 
veterans are technically, an economically disadvantaged group compared 
to their non-veteran peers. Veterans have willingly sacrificed their 
lifetime earning potential to serve our nation in uniform. This is 
particularly so for service-disabled veterans who have sacrificed their 
mobility, health and well-being serving this country.
  Service-disabled veterans are additionally economically disadvantaged 
given the reluctance of many lenders to extend lines of business credit 
to handicapped individuals. Regardless of their abilities, when 
financial institutions perceive a service-disabled veteran to be a 
greater risk, service-disabled veterans are further disadvantaged. 
Service-disabled veterans and handicapped individuals, in general, are 
often perceived by society to be less capable. Like others, service-
disabled veterans and handicapped individuals simply need the 
opportunity to demonstrate their skills and abilities. This legislation 
provides that opportunity which for many is not otherwise available.
  Service-disabled veterans and other handicapped individuals are 
discriminated against both in financial markets, relative to their 
access to capital, and in the marketplace, relative to opportunities to 
equally compete. It is therefore in this sense, and in no other, that 
service-disabled veterans and other handicapped individuals are 
economically and socially disadvantaged.
  To provide service-disabled veterans real opportunity, this 
legislation provides a time-delimited preference in the award of 
Federal contracts. The existing statutory vehicle which provides a 
time-delimited preference is the 8(a) program under the Small Business 
Act. 8(a) was specifically established to assist economically and 
socially disadvantaged small business firms compete in the Federal 
marketplace. This bill adds both service-disabled veterans and other 
handicapped individuals to the list of identified individuals presumed 
to be socially and economically disadvantaged under the Small Business 
Act 8(a) Program.
  In order to not lessen the opportunities for individuals already 
presumed to be socially and economically disadvantaged under the Small 
Business Act 8(a) Program, this legislation retains the existing 5 
percent goal for these groups. It also provides a separate 3 percent 
goal for service-disabled veteran owned small business firms and a 
separate 2 percent goal for other handicapped individuals. These 
changes increase the aggregate goal for the award of Federal contracts 
to socially and economically disadvantaged small business firms to 10 
percent.
  Paralleling the newly specified goals for small business concerns 
owned and controlled by both veterans and other handicapped 
individuals, the Government-wide goal for participation by small 
business concerns is increased. The total value of all prime contracts 
and subcontracts awarded to small business concerns each fiscal year is 
increased from 23 percent to 28 percent.

[[Page E1805]]

  Last and not least, the Service-Disabled Veterans' Small Business 
Federal Procurement Preference Act of 2002, requires all Federal 
agencies to establish agency-specific procurement goals for small 
businesses, and each category of small businesses, that are at least 
equal to legislatively specified government-wide goals. Currently, all 
goals specified for the award of Federal contracts under the Small 
Business Program are to be achieved collectively by all Federal 
agencies on a government-wide basis. Each Federal agency, on the other 
hand, is only required to establish goals which reflect the maximum 
practicable opportunity for small business concerns to participate in 
the contracts that it awards. It is therefore of little surprise that 
the achievement of SBA procurement goals, both across government and by 
individual Federal agencies, are significantly less than those 
specified in existing statute.
  Again, this legislation will benefit service-disabled veterans and 
other handicapped individuals without adversely impacting any other 
preference group. This legislation can help open the door to 
opportunity for service-disabled veterans which has been closed too 
long. I urge my colleagues to support and cosponsor this important 
legislation.
  Mr. Speaker, I also gratefully acknowledge the assistance Pam Corsini 
has provided with the development of this legislation. A Brookings 
Institution LEGIS Fellow, Pam has been working with the Democratic 
Staff of the House Committee on Veterans Affairs and has made many 
invaluable contributions to the work of the Committee and Congress. We 
are fortunate to have received her contributions and assistance. Thank 
you, Pam, for a job well done.

                          ____________________