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New rule on women-owned small business contracting draws fire
Advocates of women's business are vehemently criticizing a proposed Small Business Administration rule that would limit set-asides for women-owned small businesses to four industries.
SBA was charged in 2000 with developing a women's procurement program to help agencies reach a goal of giving 5 percent of contracting dollars to women-owned small businesses. Since then, members of Congress and numerous advocacy groups have blasted the agency for delays in implementing the program, but SBA insists that the lengthy and ongoing regulatory process is necessary.
The proposed rule would allow contracting officers to award sole-source contracts of $3 million or less ($5 million in the manufacturing sector) to women-owned small businesses in underrepresented industries. SBA cited a RAND Corp. study in declaring that women are underrepresented in only four areas of government contracting: national security and international affairs; coating, engraving, heat treating and allied activities; household and institutional furniture and kitchen cabinet manufacturing; and other motor vehicle dealers.
Women Impacting Public Policy, an advocacy group in Washington, noted that there are more than 2,300 categories listed by the North American Industry Classification System, and WIPP President Barbara Kasoff called the proposed rule "a drastic step backwards in chipping away at the little progress that women made over the past seven years to gain a mere 5 percent of federal contracts."
"The Bush administration's proposed rule is a slap in the face to women business owners," said Sen. John Kerry, D-Mass., chairman of the Senate Small Business and Entrepreneurship Committee. "We've been trying for seven years to get the administration to end unfair contracting practices. By cherry-picking data, they've not only done nothing to level the playing field, they've actually shut women out of the process for thousands of different types of contracts."
Kerry said he will call on SBA to throw the proposed rule out at a hearing this month.
Defending the proposed rule, SBA spokesman Dennis Byrne said: "This set-aside is one tool to help achieve a goal and was never intended to be the end-all means to achieve the 5 percent mark. Understanding that, the set-aside can help an agency move closer to the goal."
But Margot Dorfman, chief executive officer of the U.S. Women's Chamber of Commerce in Washington, came out against the proposed rule. USWCC has long pushed for implementation of the women's procurement program, including filing suit with the U.S. District Court for the District of Columbia.
In November 2005, the court found that SBA had "sabotaged, whether intentional[ly] or not, the implementation of a procurement program which would have, and will, likely benefit the businesses they represent." The court ordered SBA to develop a plan for implementing the program, but status hearings have showed little progress.
USWCC "believes the recent filing of proposed rules by the SBA, which strips out the bulk of the findings and recommendations from the required national studies, is a continuation of the SBA's active sabotage of the women's contracting program," Dorfman said. "By dragging their feet for seven years and inappropriately narrowing the categories for underrepresentation, the SBA has become part of the problem -- instead of the designated national champion small business."
COMMENTS
- I don't understand why SBA is involved in trying to help Small Disadvantaged/Women Owned businesses. Because you just go in another circle with no help at all. A lot of things can be told over the telephone or written. Today, no one wants to be contacted and has a voice or knows absolutely nothing about programs and the resources or even the money. The money part, if you don't have the money, then don't say you can help some else that don't have money. These programs should be better able to help those that don't have money or the good credit standings as others that do have money. If I/we had the money, then why would we need SBA for anything. You can really help yourself and SBA is just a standing agency or doing absolutely nothing. This is sad for someone to have to go through all that they impose to be and to have for you. I consider SBA as a bogas Agency. We plainly don't need to be paying for this agency, for what are they really doing. Thank you! Karen Posted June 23, 2009 4:25 PM
- We are all fortunate to live in a great nation - rich in diversity. Despite our track-recofd, there really is no single group--whether by race & national origin or by gender--that is the optimal source for any product or service to our great nation. To set a goal of 5% inclusion of women, minority business owners, etc., sounds like quotas. Our nation has grown over time, but inclusion is slow. Persons who live by biases and predjudices must be tired and stressed these days because "diversity" is the 800 pound gorilla in the room. It's time to focus on our nation's needs and pay less attention to the providers; if they're competent and have a good track record, what exactly is the problem? If the SBA is having a hard time working with the Federal agencies who are allocated Federal tax dollars to meet SBA's 5% goals, change it to 15% and see what happens. I believe that we, as a country, can do better, and we shall - even if we have to rely on the younger generations to finally put these biased oppressors behind them so our country can make progress in a united way. Daleagain Posted January 8, 2008 2:51 PM
- Public indignation, Congressional ire and Women Business Groups anger are the terms, which have been used to describe the bureaucrats handling of a Congressional directive involving 'women set-asides.' The actual handling of the case has taken more than seven years to reach this point and the outcome provides a clear indication as to why bureaucrats would be much better off by allowing the involvement of entrepreneurs - in the fashion proposed by the Fairness in Procurement Alliance (FPA) 'umbrella initiative.' The innovative approach used by entrepreneurs will help the Federal government effectively and timely meet the Congressional mandate involving all 'procurement set-asides.' The FPA 'umbrella initiative' would create a 'Small Business Set-Aside Center' to allow entrepreneurs to work side-by-side with bureaucrats - with oversight and transparency - in the handling of programs that affect their livelihood. The time-frame and methods bureaucrats appear to have chosen to deal with the 'women-set aside directive' next to the delay they allowed (over 10 years) before addressing the legality of the 'FAR exemptions' - which diverted $640 Billion in government contracts, during that time, away from small businesses - are indications that a more efficient and innovative system is in high demand. When it comes to business issues, bureaucrats' are not as well suited as entrepreneurs to handle solutions that affect the livelihood of a business. There is no urgency; no profit-motive; tons of red tape and a lot of political pressure. Entrepreneurs, on the other hand, would have a) addressed the issue; b) come up with options; c) tested them; d) secured the go ahead; e) implemented a solution; and e) have it working well within a year or two. FPA intends to formally unveil its 'umbrella initiative' soon after the Office of Federal Procurement Policy (OFPP) eliminates - as it is expected - the influence of the FAR Exemptions on the Federal procurement community. Stay tuned for the fireworks! Raul Espinosa Posted January 4, 2008 5:13 PM
