Federal agencies would be required to spend at least 30 percent of their prime contracting dollars with small businesses under legislation approved by the House Small Business Committee. If enacted -- and enforced -- this could mean billions of dollars' worth of new contracts for small businesses. The current contracting goal is 23 percent.
The Small Business Administration contends agencies exceeded the contracting goal in fiscal 2005, but its calculations exclude contracts performed overseas. The legislation ends this exclusion, which the National Small Business Association says will result in a more accurate accounting of small business procurement.
The bill also includes provisions aimed at making sure that contracts awarded to large businesses aren't mistakenly counted as small business contracts. An analysis by House committee staff found that $12 billion in contracts credited to small businesses in fiscal 2005 actually went to large businesses or other entities that weren't small businesses.
The legislation also expands the definition of contract bundling, thereby making it more difficult for agencies to combine contracts into packages that are too large or complex for small businesses to handle. The bill also allows business or trade associations to appeal agency procurement decisions. The Office of Federal Procurement Policy would review disputes between the SBA and procurement agencies over contract decisions.
The text of the Small Business Fairness in Contracting Act (H.R. 1873) is available at thomas.loc.gov
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