Crisis -- Small Business & Government Contracting

This just came in. It is VERY IMPORTANT that every small business (under 500 employees and/or under $23 million revenues) involved in government contracting be aware that federal contracts for small businesses may be drastically cut:

"...A letter from the Senate Small Business Committee alerted us to a provision in the House-passed version of the Iraq Supplemental Appropriations bill, H.R. 1591, that threatens all federal contracting set-aside programs and preferences for small businesses. Katie Kilby in our DC office has put together an overview of the provisions and we wanted to pass on this information to you.

Specifically, Title V, Sections 5001 and 5002 attempt to minimize sole-source contracts and cost-reimbursement type contracts at the expense of small businesses.

Section 5001 directs the head of each agency to develop and implement a plan to minimize the use of contracts entered into using procedures other than competitive procedures by the agency concerned. The plan shall contain measurable goals and shall be submitted to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate, the Committees on Appropriations of the House of Representatives and the Senate. This section would apply to all Federal agencies with over $1 billion in total contracts. Small businesses would have to bid directly against large corporations.

Section 5002 requires agencies to minimize the use of cost-reimbursement type contracts in favor of fixed price contracts. This section applies to agencies with contracts totaling $1 billion in the previous fiscal year.

Section 5001 especially threatens the programs that the small business community has worked so hard to get and would even invalidate the woman-owned goals that the Federal agencies currently have.

H.R. 1591 is set to go to conference between the House and the Senate. Senate conferees have been named and the House is expected to name conferees soon.

Click here for the letter from both Olympis Snowe (R) and John Kerry (D)

Click here for H.R. 1591 Sections 5001 and 5002

These are the letters I faxed to Chair Byrd and Ranking Member Cochran. I left them in a Word doc so you can copy the body. Please personalize the attached letters to reflect your own message. Be sure to put your personal information at the bottom including name, business, city and state and how they can contact you. We suggest you put this letter on your company letterhead.

Fax both letters to the Senate Appropriations Committee Office at the following numbers:
Chairman Byrd (202) 224-2100 or 202-228-0002
Ranking Member Cochran (202) 228-0904

ACT NOW! For more information, please contact:

Andrea C. Cianfrani
Director, Advocacy
Women Impacting Public Policy (WIPP)
888.488.WIPP phone
acianfrani@wipp.org
www.wipp.org