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Senate Panel Backs Contracting Changes

The Senate Small Business Committee has voted to permit set-asides on GSA schedules and other multiple award contracts.

The Small Business Contracting Revitalization Act, S. 2989, would also require annual recertification of small business eligibility. The committee recommended passage of the bill on March 4.

It is now awaiting a Senate vote. No companion legislation has been introduced in the House.

Major provisions:

Multiple award contracts. For the first time, set-asides would be allowed on multiple award IDIQ contracts, including GSA schedules. Industry groups have generally opposed this provision because they believe it could discourage large firms from participating in these contracts, thereby reducing competition.

In addition, agencies would be permitted to set aside places on multiple award contracts for all categories of small businesses.

Recertification. By requiring annual recertification, Committee Chair Mary Landrieu, D-LA, said the bill would close loopholes that allow large businesses to receive contracts intended for small ones.

Current SBA rules require recertification when a company is acquired or merged, or every five years on long-term contracts

Contract bundling. The bill would require agencies to report bundled contracts in a timely fashion and calls on SBA to improve oversight to ensure that agencies are complying with bundling rules. An agency’s chief acquisition officer or senior procurement executive would be required to certify that each bundled contract was justified by cost savings or other benefits to the government.

Landrieu said, “Although contract bundling may have started out as a good idea, it has now become the prime example of the old saying that too much of a good thing can be very, very bad. The proliferation of bundled contracts coupled with the decimation of contracting professionals within the government threatens to kill small businesses’ ability to compete for federal contracts.”

A new teaming center would be created in SBA to promote teams and joint ventures. Agencies would be allowed to set aside large contracts for small business teams.

Subcontracting. The bill would add a new contract clause aimed at stopping bait-and-switch subcontracting. Prime contractors would have to notify contracting officers whenever they were 90 days late in paying a subcontractor. Prompt payment would be a factor in evaluating the prime’s past performance.

Accountability. Success or failure to meet small business goals would be part of the annual job evaluation of acquisition and program personnel.


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