Bill to aid small business government contractors

Senate close to approving bill that would aid small contractors

LOUIS LLOVIO
Daily Record Business Writer

November 8, 2007 6:54 PM

A U.S. Senate committee has approved a bill that senators say would improve the process in which small businesses in Maryland are awarded federal government contracts.

The bill, S 2300, was unanimously approved by the Committee on Small Business and Entrepreneurship Wednesday and will now go to the floor of the Senate for a vote, which is expected before Thanksgiving.

Gloria Berthold, president of TargetGov at Marketing Outsource Associates Inc., a Baltimore government procurement consultant, said that while she said she applauded the Senate’s efforts, the bill lacked teeth.

She said government agencies are too short-handed and underfunded to do the oversight required by the new law or the existing ones.

The shortage in procurement officers also makes it easier for short-handed agencies to “bundle” contracts and let the big companies handle subcontracting.

Bundling is where small contracts are included in larger ones that are picked up my prime contractors, like Northrop Grumman Co.

In theory, the smaller contracts would trickle down to small business that would do the work as subcontractors.

But that doesn’t happen, she said.

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