Congressman Roscoe Bartlett Opposed Bill That Will Reduce Competition and Opportunities for Small Businesses to Obtain Federal Contracts
Washington, Oct 30, 2007 -
Congressman Roscoe Bartlett, a senior member of the House Small Business Committee and a co-chairman of the Congressional HUBZones Caucus, voted against a bill that would hurt small businesses abilities to obtain federal government contracts. He supported a Motion to Recommit (MTR) amendment to preserve the HUBZones program. The MTR was defeated and the bill was approved by a vote of 334 to 80. All of Garrett County, parts of Allegany and Frederick Counties and Fort Ritchie in the Sixth District are qualified HUBZones. For more information about the HUBZones Program that is administered by the Small Business Administration, contact the website at: https://eweb1.sba.gov/hubzone/internet/.
Congressman Bartlett said, “This bill will actually make it harder for small businesses to get federal government contracts – especially in the case of the HUBZones program for small businesses in economically distressed communities. HUBZones provide more benefits to residents of economically disadvantaged communities than any other federal set-side program. This bill would change current law and gut the HUBZone program.”
Congressman Bartlett noted other significant setbacks in H.R. 3867 compared to current federal government small business procurement policies.
- H.R. 3867 will reduce the value of taxpayer preferences for small businesses
- The bill allowing sole-source contracts to be awarded to firms based on racial or social classifications, rather than business cases.
- The reduction in competition will reduce the value for tax dollars spent.
- H.R. 3867 creates a superfluous review of bidding businesses
Section 201 of the bill may delay the awarding of contracts due to disputes between the Small Business Administration and the procuring agency over the integrity of the bidding business.
- By providing for an additional review of the business’ integrity and practices, H.R. 3867 opens the possibility of conflicting reviews with the Federal Acquisition Regulation’s (FAR) already established responsible bidder regulation.
- H.R. 3867 offers no recommendations on how to resolve disputing reviews.
- The danger in accepting this provision of the bill would most likely be manifested in disaster situations when disputes could delay much needed supplies and services.
- For Democrats who have complained about the slow response times of DHS, accepting this provision directly contradicts their criticism by encumbering the response abilities of federal agencies.
- H.R. 3867 Will Further Delay the Women’s Procurement Program
Recently criticized in a Committee hearing and the media for the seven years that have passed since Congress first mandated the women’s procurement program, the bill as written would further impede implementation.
- The women’s procurement program was enacted by a Republican Congress.
- Continuing delays would stem from requiring all federal agencies to establish rules for executing the program, rather than allowing one agency to direct implementation.
- H.R. 3867 could create a constitutional nightmare by possibly establishing equal protection violations.
- H.R. 3867 Will Reduce Opportunities for Small Businesses in Economically Distressed Communities (HUBZones) to obtain federal contracts
The HUBZone (historically underutilized business) program is designed to help low-income/high unemployment areas in rural and urban communities. Congressman Roscoe Bartlett has been a vigorous supporter of the HUBZone program.
- H.R. 3867 undermines the ability of HUBZones to spur economic development in two ways:
- Eliminates the mandatory competition requirement and allows contracting officers to look outside of HUBZone firms;
- Raises the monetary value of contracts that can be awarded on a restricted competition or sole-source basis, thereby making HUBZone firms ineligible.
- H.R. 3867 Will Allow wealthy entrepreneurs to benefit from contracts intended for economically disadvantaged small businesses
H.R. 3867 raises the net worth standard to $550,000, excluding equity in one’s residence or business.
- Under this standard, many members of Congress, some millionaires and conceivably the founder of Google the day before the company went public would be considered economically disadvantaged
MOTION TO RECOMMIT H.R. 3867
PREPARED REMARKS
THE HONORABLE ROSCOE G. BARTLETT
OCTOBER 30, 2007
“Madam/Mr. Speaker: HUBZones provide more benefits to residents of economically disadvantaged communities than any other federal set-side program.
“All of Garrett County and parts of Allegany and Frederick Counties in my district are HUBZones. In Maryland, four rural counties, parts of 12 other counties and employees of 300 small businesses directly benefit from HUBZones.
For a small business to qualify, its largest office must be in a HUBZone and at least 35 percent of it employees must live in a HUBZone. This ensures that people who live in HUBZones benefit the most from the HUBZone program.
“This Motion to recommit is very simple. It would strike subsection b in Section 101. This gets down to a single word, which is the entirety of this subsection.
Subsection b in Section 101 in H.R. 3867 would change current law and gut the entire HUBZone program by substituting “shall” with “may.”
“There is nothing in this Motion to Recommit that would change the veterans’ preference. In fact, veteran-owned small businesses are as likely as any other small business to be helped by this Motion to recommit. Rather, the Motion to recommit is necessary to ensure that small businesses in distressed areas will be able to compete for federal contracts.
“H.R. 3867 would turn current law on its head. In the real world, when “shall” is substituted with “may” what happens is that contracting officers just ignore Congress’ intent that small businesses and entrepreneurs should have the ability to compete for federal contracts. Instead, they take the easy way out and award more sole source contracts to familiar government contractors. Without adoption of this Motion to Recommit, H.R. 3867 would move us in the wrong direction, in three ways.
“One, H.R. 3867 would hurt small businesses in every state and nearly every Congressional District by reducing their opportunities to compete for federal contracts. This doesn’t make sense because most businesses are small businesses.
“Two, H.R.3867 would hurt the taxpayers we represent by denying them the benefits of competition and lower costs for federal contracts and a bigger value for each dollar they earn and send as taxes to Washington.
“Three, H.R. 3867 would deny the federal government access to innovations by small businesses. This doesn’t make sense because small businesses are the source of most innovations. H.R. 3867 would also make it more difficult to meet Congress’ goal for the HUBZone program to help increase the proportion of federal contracts won by small businesses.
“Again, this Motion to Recommit will strike subsection b in Section 101. Adopt this Motion to Recommit and H.R. 3867 will keep the strong “shall” in current law instead of replacing it with the toothless “may.” To each of my colleagues, I say if you want to help your constituents who live in HUBZones and if you want to support the ability of more small businesses to get a higher percentage of federal contracts, then vote Yes on this Motion to Recommit.”
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