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Obama: Small Business Contracting “High Priority”

President Obama is moving to increase contract opportunities for small businesses, with a special emphasis on veteran-owned firms.

The president created two interagency task forces to develop new strategies, but many of the solutions he touted are old ones.

In an April 27 memorandum, Obama established an Interagency Task Force on Federal Contracting Opportunities for Small Businesses. The group is to present recommendations within 120 days in these specific areas:

•Expanding teaming and mentor-protégé arrangements;

•Unbundling contracts and utilizing new technologies to improve the effectiveness of agencies’ small business offices; and

•Expanding outreach efforts to match small firms with contracting and subcontracting opportunities.

“I am committed to ensuring that small businesses, including firms owned by women, minorities, socially and economically disadvantaged individuals, and service-disabled veterans, have fair access to Federal Government contracting,” the president wrote. “Indeed, where small businesses have the capacity to do more, we should strive to exceed the statutory goals. While Chief Acquisition Officers and Senior Procurement Executives have many priorities, small business contracting should always be a high priority in the procurement process.”

Co-chairs of the task force are Commerce Secretary Gary Locke, Office of Management and Budget Director Peter Orszag and SBA Administrator Karen Mills. Other members are the heads of 11 large departments and agencies and four White House officials.

Also on April 27 the president issued an executive order creating an Interagency Task Force on Veterans Small Business Development.

In addition to promoting contract opportunities for veteran-owned companies, the task force will develop proposals to improve access to capital, training and counseling for veteran entrepreneurs. Its report is due in one year.

The SBA administrator heads the task force, with participation by six other agencies and four representatives of veterans’ service organizations or military associations.

The president said the task force will “coordinate the efforts of Federal agencies to improve capital, business development opportunities, and pre-established Federal contracting goals for small business concerns owned and controlled by veterans.”

His order directs the group to develop measures for “increasing the integrity” of certifications by veteran-owned and SDV companies. The Government Accountability Office has found evidence of fraud in service-disabled veteran-owned contracting, where companies are permitted to self-certify their eligibility.

While Congress has set a 3% goal for contracting with SDV firms, the government has never come close to that.

The president directed the small business task force to improve the accuracy of procurement data, a persistent sticking point. Many critics say official procurement figures significantly overstate the amount of money that goes to small firms.

“Obtaining tangible results will require an honest and accurate accounting of our progress so that we can have transparency and accountability through Federal small business procurement data,” the president wrote.


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