[Congressional Record (Bound Edition), Volume 161 (2015), Part 14]
[Extensions of Remarks]
[Page 19728]
[From the U.S. Government Publishing Office, www.gpo.gov]




     SENSE OF CONGRESS ON ENSURING PROMPT PAYMENT OF DEPARTMENT OF 
           TRANSPORTATION DISADVANTAGED BUSINESS ENTERPRISES

                                 ______
                                 

                            HON. GWEN MOORE

                              of wisconsin

                    in the house of representatives

                       Tuesday, December 8, 2015

  Ms. MOORE. Mr. Speaker, small businesses owned by disadvantaged 
minorities (DBEs) are significantly affected when they are not promptly 
paid for the work that they do. Lack of prompt payment constitutes a 
very real barrier to the ability of DBEs to compete in the marketplace. 
Non-DBE small businesses are also affected by late payment problems.
  That is the reason the Department issued its Prompt Payment 
regulation in the first place.
  Under this regulation, ``Payment is required only for satisfactory 
completion of the subcontractor's work.'' So we are not talking about 
cases where the prime and subcontractor have a disagreement about the 
work that was done.
  In a recent briefing to my office, the Department of Transportation 
Inspector General cited the case of a DBE from Florida that got 
certified as a DBE, bid and won work on an airport project, and 
satisfactorily completed the work. However, she didn't get paid in a 
timely manner and eventually was sued by her suppliers who she couldn't 
pay.
  A prompt payment requirement for all subcontractors is a race-neutral 
measure that assists all subcontractors if they are complied with. 
However, the concern is that they are not and small disadvantaged 
businesses which have small margins already, are further squeezed when 
they aren't paid in a timely manner for work already performed.
  In its recent report, the Department of Transportation's Inspector 
General reaffirmed that failure to promptly pay DBEs continues to be a 
major barrier and obstacle for these small businesses in the 
transportation arena.
  According to that report, ``for several firms we interviewed, payment 
delays caused cash flow problems, prevented them from paying 
subcontractors and suppliers, and subjected them to costly lawsuits.''
  That report further noted oversight weaknesses of prompt payment 
issues raised by DBEs to the FAA. This is not just an FAA issue. Those 
same concerns are applicable across the Department.
  Despite progress in this area, major barriers impede the success of 
new and existing disadvantaged firms. One of those is delayed payments. 
If these small businesses don't get paid on time, their likelihood of 
remaining a viable business drastically decreases.
  That is why I am grateful for the inclusion of my amendment to H.R. 
22 calling on the Department of Transportation to enforce its current 
rules better. With that bill now law, I urge the Department to make 
this a priority and to strengthen efforts to make sure that these small 
businesses get paid on time for doing the quality work they contracted 
to do.

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