[Congressional Record Volume 156, Number 15 (Tuesday, February 2, 2010)]
[Senate]
[Pages S433-S434]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             SMALL BUSINESS CONTRACTING REVITALIZATION ACT

  Ms. SNOWE. Mr. President, as ranking member of the Senate Committee 
on Small Business and Entrepreneurship, I rise today to discuss the 
Small Business Contracting Revitalization Act of 2010. This critical 
piece of legislation is the direct result of consensus-building and 
compromise, and continues the bipartisan tradition of the Small 
Business Committee. I also wish to thank Chair Landrieu for her 
partnership with me in forging this truly crucial measure as we work 
toward contracting parity for small business, and for her tireless 
leadership on all concerns confronting small businesses today.
  The Small Business Revitalization Act of 2010 retains critical 
procurement provisions that originate in the comprehensive contracting 
bills I introduced or cosponsored in the 109th and 110th Congresses 
which were unanimously voted out of the Small Business Committee. This 
particular legislation

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will serve to minimize the use of contract bundling and consolidation 
of contracts by the Federal Government, and increase the ability of 
small businesses to fairly compete for such contracts through a host of 
key improvements, including allowing small businesses to join together 
in teams to bid on certain procurement opportunities. Additional 
requirements will help to ensure prompt payment from prime contractors 
to subcontractors, and make it easier for the Federal government to 
prosecute businesses who fraudulently identify themselves as small 
companies.
  Since the mid-1990s, with the enactment of acquisition streamlining 
reforms and the downsizing of the Federal procurement workforce, small 
businesses have faced a litany of hurdles that have deprived them of 
Federal contracting dollars. One such impediment is contract bundling 
which takes contracting opportunities out of the hands of deserving 
small businesses by grouping numerous small contracts and bundling them 
into one large award. Ill-equipped to manage the demands of these 
consolidated awards due to a lack of resources, small business owners 
again find themselves crowded out of the Federal contracting process. 
Consequently, the bipartisan measure we are introducing reflects the 
recommendations made by the Government Accountability Office, GAO, to 
impose stricter reviews and more comprehensive reporting of bundled 
contracts, encourages small business teaming to bid on larger 
contracts, and promotes Federal agency publishing and use of best 
practices. Additional obstacles to successful small business 
contracting include ``bait and switch'' tactics used by prime 
contractors who use small firms in developing bids but do not 
subcontract with them once a contract has been awarded. Our bill will 
address this concern as well as other ongoing problems such as large 
businesses posing as small businesses, flawed reporting data, and 
agencies who fail to meet their small business contracting goals.
  As ranking member of the Senate Committee on Small Business and 
Entrepreneurship, I am further dismayed by the myriad ways that 
government agencies have time and again egregiously failed to meet the 
vast majority of their small business statutory ``goaling'' 
requirements. It is unconscionable that the statutory goal for only one 
category of small business--small disadvantaged businesses--has been 
met, and that goals for the three other programs HUBZones, women-owned 
small businesses, and service-disabled veterans-owned businesses--have 
never been achieved.
  Consider that, in 2007, small businesses were eligible for $378 
billion in Federal contracting awards, yet received only $83 billion. 
This blatant failure to utilize small businesses, thus preventing them 
to secure their fair share of Federal contracting dollars, has resulted 
in firms losing billions of dollars in contracting opportunities. But 
23 percent is only a base goal. We must strive to exceed it, not just 
meet it.
  In the last 2 years alone, the Small Business Committee has held 
numerous hearings and roundtables to identify and explain small 
business' contracting concerns. In addition, the GAO and the Small 
Business Administration's, SBA, inspector general have issued multiple 
reports addressing small business Federal contracting deficiencies. Our 
legislation builds on the contracting provisions of previous Small 
Business Committee contracting bills by endowing the SBA with 
additional tools to meet the demands of an ever-changing 21st century 
contracting environment.
  That said, I am greatly encouraged by the latest statistics relating 
to Federal contracting dollars awarded to small businesses from the 
funds appropriated under the American Recovery and Reinvestment Act, 
ARRA. Preliminary reports show that as of February 1, 2010, small 
businesses have received over 29 percent of the ARRA Federal 
contracting dollars, well exceeding the imposed 23 percent statutory 
goal. This begs the question, if the Federal Government can not only 
meet but exceed these requirements for the Recovery Act, why can't 
these goals be met year in and year out? The simple answer is they can. 
I am hopeful this administration will make a conscious effort to 
reverse the government-wide failure to meet small business goals on a 
consistent basis.
  I am confident that this legislation will result in the changes 
necessary to reduce fraud and waste while paving the way for the 
Federal Government to maximize the use of America's innovative small 
businesses in the contracting arena. Again, I want to recognize Senator 
Landrieu for her leadership in this matter and for her continuing 
commitment to the small business community.

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