More Bucks for Small Business

THE DAILY FED

More Bucks for Small Business

Federal officials have decided to pursue an increase in the amount of federal contract dollars directed toward small companies, The Washington Post reported Wednesday.

Steve Kelman, procurement policy chief at the Office of Management and Budget, Aida Alvarez, head of the Small Business Bureau, and other administration officials have agreed to propose that the government establish a goal of giving 23 percent of federal contract dollars to small firms by the year 2000, up from the current target of 20 percent.

Alvarez originally argued for a target of 25 percent, but Kelman resisted the idea. He sent a memo through Office of Management and Budget Director Franklin D. Raines to White House Chief of Staff Erskine Bowles stating that "there are very serious concerns about the practicality of the suggestion as well as political risks for the administration."

Alvarez told the Post that further discussions would be held with OMB before any proposal for an executive order is sent to Clinton.