[Congressional Record Volume 154, Number 20 (Thursday, February 7, 2008)]
[Senate]
[Pages S790-S791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mrs. Dole):
  S. 2608. A bill to make improvements to the Small Business Act; to 
the Committee on Small Business and Entrepreneurship.
  Ms. SNOWE. Mr. President, I rise today, along with Senator Dole, to 
introduce the Small Business Women's Procurement Improvement Act, a 
measure that would enhance the Small Business Administration's women's 
procurement program, which was created back in 2000, to provide 
contracting opportunities to women-owned small businesses in Maine and 
across the Nation. As Ranking Member of the Senate Committee on Small 
Business and Entrepreneurship, one of my top priorities is to champion 
our nation's women-owned small businesses and to promote their 
interests. In these uncertain economic times it is our financial 
strengths that we must rely upon most. Women-owned small businesses are 
one such strength. In recent years, the percent growth in the number of 
women-owned firms was nearly twice that of all U.S. firms. Thus, we 
need to create programs that will continue to grow this vital and 
crucial resource.
  Regrettably, the Small Business Administration, SBA, has failed to 
implement the women's procurement program that was enacted into law 
back in 2000. In December, the SBA finally proposed a rule to implement 
the program. The SBA had the opportunity to hit a home run, but instead 
published a rule that is highly deficient and unlikely to have any 
practical effect in helping the Federal Government satisfy its 5 
percent women's contracting goal. So far, there has been one law--
enacted back in December 2000--three reports, numerous hearings, and 
two proposed rules, and, tragically, it appears that we are no closer 
today then we were 7 years ago to helping our nation's small women-
owned businesses stimulate our economy. What an inconceivable missed 
opportunity for the SBA to help boost our economy by promoting women-
owned businesses.
  The SBA's proposed rule has two fundamental flaws which hinder it 
from functioning as Congress originally intended. First, the proposed 
rule identifies just four industries, out of more than one hundred, in 
which women-owned small businesses are under-represented and eligible 
for set-asides. According to the Central Contractor Registration, this 
gross disparity means a mere 1,238 businesses across the entire 
Nation--or 2 percent of all women-owned small business contractors--
would be subject to the proposed rule. Regrettably, only two of these 
contractors are located in my home State of Maine.
  Second, for SBA's proposed rule to go into effect, individual Federal 
agencies must first publicly admit to a history of gender 
discrimination. I find it difficult, if not impossible, to envision a 
scenario where a Federal agency would make such an admission. 
Furthermore, such an unworkable admission isn't required anywhere in 
the Small Business Act.
  To help remedy this appalling circumstance, today we introduce 
legislation to amend the Small Business Act so that the women-owned 
small businesses can finally have a procurement program that makes a 
real difference, not a 2 percent difference. For example, our bill 
would substantially broaden the range of applicable business industries 
for women across this Nation and take down the unnecessary barriers it 
has recently proposed. Women-owned small businesses deserve more than 2 
percent of available business industries. These four industries will do 
little to nothing to help Federal agencies reach its statutory 
government-wide goal. Sadly enough, one of the industries the SBA has 
selected does not

[[Page S791]]

allow for any private business participation, let alone women business 
participation.
  Our bill also would preclude the SBA from promulgating a final rule 
that requires individual agencies to admit to past discrimination as a 
prerequisite for participation in the set-aside program. We find it 
difficult to envision a circumstance in which any agency would make 
such an admission. Furthermore, this requirement is not mandated 
anywhere in the Small Business Act.
  Our bill has gained the support of women-owned small businesses 
across the Nation including major women's organizations like the U.S. 
Women's Chamber of Commerce, Women Impacting Public Policy, the 
National Women Business Owners Corporation, the Women Presidents' 
Organization, the Women Presidents' Educational Organization, and the 
Women's Business Development Center.
  It has been nearly 14 years since the women's 5 percent government-
wide contracting goal was established in 1994, but since its enactment, 
the women's contracting goal has never been met. Shockingly, at the 
historical percentage rate of increase, it would take until 2019 for 
this goal to be met--25 years after enactment of the original statutory 
requirement.
  According to recent figures, women-owned firms in the U.S. generate 
$1.1 trillion in annual sales and employ 7.2 million people nationwide. 
I take great pride that my own state of Maine is a forerunner for 
women-owned businesses with more than 63,000 women-owned firms, 
creating 75,000 jobs, and spurring more than $9 billion in sales.
  The SBA must develop a functioning procurement program that will 
cultivate women business so that they in turn can help grow our 
Nation's economy. This is why women businesses need a workable 
procurement program that does not create impenetrable barriers and 
provide so few business opportunities. Our bill eliminates these 
barriers and gives women-owned small business a tool they can use that 
will help them continue to grow our suffering economy. If ever there 
were a time to secure new avenues to generate revenue and spur the 
economy, wouldn't that time be now?
  I urge my colleagues in Congress to support this vital legislation, 
so that we in Congress can make sure that the SBA publishes a 
meaningful final rule that will assist the Federal Government to 
satisfy--if not exceed--its government-wide contracting goal, and to 
help women-owned small businesses to stimulate our Nation's economy.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2608

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Women's 
     Procurement Program Improvement Act''.

     SEC. 2. FINDINGS.

       Congress finds--
       (1) based on evidence presented by Congressional witnesses, 
     testimony before Congress, and studies and reports, that 
     women-owned small business concerns are under represented in 
     certain identified industries with respect to Federal 
     procurement contracting; and
       (2) the women's small business government-wide statutory 
     goal has never been achieved since the time of its enactment.

     SEC. 3. SMALL BUSINESS ACT PROGRAM IMPROVEMENTS.

       Section 8(m) of the Small Business Act (15 U.S.C. 637(m)) 
     is amended--
       (1) in paragraph (2)(C), by striking ``(3)'' and inserting 
     ``(4)'';
       (2) in paragraph (2), by striking subparagraph (D) and 
     inserting the following:
       ``(D) the contract is consistent with the requirements set 
     forth in subsection (a)(1)(D)(i);'';
       (3) by striking paragraph (4) and inserting the following:
       ``(4) Identification of industries.--
       ``(A) Study required.--The Administrator shall conduct a 
     study 5 years after the date on which the program under this 
     section is implemented, to identify industries in which small 
     business concerns owned and controlled by women are 
     underrepresented with respect to Federal procurement 
     contracting.
       ``(B) Presumption relating to underrepresentation.--For 
     purposes of this subsection, the industries identified by the 
     2007 North American Industry Classification System Code as 
     industry codes 11 through 81 (as published by the Bureau of 
     the Census) shall be presumed to be industries in which small 
     business concerns owned and controlled by women are 
     underrepresented with respect to Federal procurement 
     contracting.''; and
       (4) by adding at the end the following:
       ``(7) No past finding of discrimination required.--
     Notwithstanding any other provision of law, a contracting 
     officer need not make a finding of past gender discrimination 
     by a contracting agency in order to comply with or otherwise 
     be subject to the requirements of this subsection.''.
                                 ______