Some Procurement "Goodies" Out of Revised SBA Bill New procurement preferences for small businesses are being stripped from the SBA reauthorization bill in negotiations between the staffs of two House committees, according to industry officials and congressional staff sources. The bill, H.R. 2802, was approved by the House Small Business Committee July 23, but it has been held up because members of the House Government Reform Committee objected to the changes in procurement laws. Under House rules, Government Reform has jurisdiction over procurement issues. (SAA, 12/12/03) The sources told Set-Aside Alert that staff negotiators have agreed to scrap a provision that would make small businesses the primary source for all contracts under $1 million, up from the current $100,000. Also likely to be killed is a requirement that small businesses be given 60 days to respond to any RFP for a bundled contract, instead of the usual 30 days. Backers of that provision said it would give small firms time to form teams to bid on the larger contracts. The Government Reform Committee negotiators also want to drop a provision giving the Office of Management and Budget the authority to break up bundled contracts. Opponents of the provision argue that it would slow procurement by adding an additional level of review. Under current law, the SBA administrator may appeal a contract that he believes is improperly bundled, but the contracting agency has the final word. The Small Business Committee’s bill includes other controversial procurement changes: •giving the 8(a) program priority status in set-asides. SBA has proposed a rule giving 8(a) and HUBZone companies equal priority. •increasing the net-worth limit for owners of 8(a) and small disadvantaged businesses to $750,000, from the current $250,000. •requiring owners of HUBZone companies to meet those same net-worth qualifications, in effect turning the HUBZone program into another small disadvantaged business program. HUBZone supporters say the vast majority of certified companies would not qualify under that provision. The Small Business Committee approved the bill unanimously in a meeting that lasted only about a half-hour. Two industry officials told SAA the bill was rewritten at the last minute and some committee members were not aware of what was in it. After the two committees’ staffs finish rewriting the bill, Government Reform Chairman Tom Davis (R-VA) and Small Business Chairman Donald Manzullo (R-IL) will have to sign off on the final version before it goes to the House floor for a vote. Eventually, House passage will set up what could be a contentious conference committee with the Senate. Senators passed their version of the reauthorization bill, S. 1375, by unanimous consent on Sept. 26. It contains none of the procurement provisions that are in the House bill. Several Republican senators are strong supporters of the HUBZone program. They can be expected to fight the provisions that would restrict that program. The reauthorization bill sets the rules for all SBA programs. SBA has been operating under a temporary extension of its authority since Oct. 1.