House Panel Will Consider Parity Rule The House Small Business Committee plans to take a new look at an old issue: which socio-economic group is first in line for set-asides. In its annual oversight plan, the committee said it will examine the impact of a Government Accountability Office decision that rejected SBA’s parity rule, which gives 8(a), HUBZone and service-disabled veteran-owned companies equal treatment in set-asides. In deciding a bid protest last fall, GAO said HUBZone firms are legally entitled to priority in set-asides over SDVs because of the wording of the laws establishing the two programs. (SAA, 11/7/2008) SBA warned that the decision would cause turmoil and hinder agencies’ attempts to reach their procurement goals. SBA’s general counsel said agencies “must be afforded some discretion in determining which small business program to utilize.” Congress has made halting efforts to establish priority among different socio-economic programs ever since the HUBZone set-aside was created a dozen years ago. When SDV firms were added to the list of set-asides, SBA adopted the parity rule so that agencies could balance their set-asides among competing groups. The committee said it will also examine the impact of GAO’s decision in the Delex case, which determined that small business set-asides and “the rule of two” apply to task and delivery orders under multiple award contracts. “The Committee will examine efforts taken by agencies to understand if such set-asides are being applied consistently government-wide,” the oversight plan says, The plan was filed with the House by committee Chairwoman Nydia Velazquez, D-NY. It sets out a laundry list of issues that the committee will consider over the next two years: •Women’s set-aside program. The committee will review SBA’s implementation of the program. SBA recently re-opened its proposed set-aside rule for public comment, giving the Obama administration a chance to decide whether to expand the limited set-asides proposed under President Bush. •Alaska Native Corporations. The committee will monitor SBA’s oversight of Alaska firms in the 8(a) program. SBA’s inspector general issued two reports last year citing lax oversight. •Contract bundling. The committee will explore compliance with anti-bundling rules. •Use of IDIQ solicitations, instead of sealed bids, to award construction contracts. “The Committee will use this examination to determine whether such a trend promotes competition, particularly for smaller firms in construction and related industries.” •Small Business Innovation Research Program. The committee will consider legislation to re-authorize the SBIR and Small Business Technology Transfer programs this year.