January 11 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

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Trans. Security Gets New Rules On Procurement

Transportation Security Administration contracting will be governed by the Federal Acquisition Regulation under legislation signed by President Bush.

TSA’s exemption from small business goals and other FAR provisions was repealed as part of the consolidated appropriations bill, which funds most agencies for fiscal 2008.

Senate Small Business Committee Chairman John Kerry, D-MA, sponsored legislation to end the TSA exemption. “By repealing these exemptions, Democrats in Congress have leveled the playing field for small businesses to compete for TSA contracts, and increased accountability to help prevent future mismanagement and waste of taxpayer dollars,” Kerry said in a statement.

The appropriations bill adds about $40 million to the budget for the Small Business Administration’s core programs. Kerry said the $569 million appropriation is the first real increase in SBA’s budget since President Bush took office.

However, the bill did not include money to reduce fees charged on SBA loans.


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