House lawmakers push for additional small business contracting reforms

One week after proposing legislation to raise small firms’ allotment of federal spending, House lawmakers on Wednesday introduced a trio of bipartisan bills intended to further reform small business contracting.


Rep. Judy Chu and Rep. Gerry Connolley were among a half dozen lawmakers who introduced small business contracting bills on Wednesday. (Associated Press)

The Small Business Protection Act, introduced by Rep. Joe Walsh (R-Ill.) and Rep. Gerry Connolly (D-Va.), also aims to deliver more federal dollars to small companies but does so by reworking the various definitions of “small” used by the federal government for various industries. Recent proposals by the Small Business Administration to lump industries together into fewer, larger classifications would lift the size standards for, say, small architecture firms to $19 million in revenue (as a result of architecture firms being lumped in with engineering firms). However, those parameters would include nearly all architecture companies, allowing some of the biggest players in the industry to compete for contracts meant for small businesses.

The legislation introduced on Wednesday would instead require that the size standard assigned to each new cluster of industries be appropriate for each individual industry in the group.

“Washington must not unfairly force small businesses to compete against much larger businesses with more resources and capital,” Walsh said in a statement. “Small businesses are the backbone of this country, a hallmark of the American dream.”

Rounding out the trio of legislation, Rep. Bobby Schilling (R-Ill.) and Rep. Judy Chu (D-Calif.) proposed the Building Better Business Partnerships Act to streamline the process of connecting small businesses with mentors to help them win and execute government contracts and subcontracts. Under the proposal, the SBA would oversee federal mentor-protégé programs and eliminate some of the duplicative paperwork currently required of small companies seeking a contracting mentor.

The bills are the latest step in the House Small Business Committee’s efforts to empower small business advocates and combat contracting fraud by large companies, ensuring that the nation’s smallest employers get their intended share of the government spending. Last week, Rep. Sam Graves, who chairs the committee, introduced legislation that would increase the small business contracting goals for federal agencies from 23 percent to 25 percent for primary contracts and from 35.9 percent to 40 percent for subcontracts.

The GET (Government Efficiency Through) Small Business Contracting Act would also penalize government officials whose agencies fall short of those contracting goals by withholding their annual bonuses. Rep. Bill Owens (D-N.Y.), who later co-sponsored Graves’ bill, two weeks earlier introduced similar legislation that would penalize those agencies by cutting their budgets 10 percent the following year, further demonstrating the rising level of bipartisan support for small business contracting reform.

Follow On Small Business and J.D. Harrison .

J.D. Harrison covers startups, small business and entrepreneurship, with a focus on public policy, and he runs the On Small Business blog.

business

on-small-business

Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Comments
Show Comments
Most Read

business

on-small-business

Success! Check your inbox for details.

See all newsletters