Senate Backs Parity Rule The Senate has adopted legislation upholding SBA’s parity rule, which gives equal priority on set-asides to 8(a), HUBZone and service-disabled veteran-owned companies. The amendment was added to the 2010 Defense Authorization bill, S. 1393, passed by the Senate on July 23. The House version of the bill contains no similar provision; a joint Senate-House conference committee will write the final legislation after Congress returns from its August recess. The issue arose after the Government Accountability Office declared the parity rule contrary to law. GAO said HUBZone companies were first in line for set-asides because the HUBZone law says contracts “shall” be set aside for those firms, while the law says contracts “may” be set aside for 8(a) and service-disabled veteran-owned businesses. The Senate amendment changes the HUBZone wording to “may.” Its co-sponsor, Senate Small Business Committee Chairwoman Mary Landrieu, D-LA, said, “This is a victory for small firms competing for a government contract because it levels the playing field within these important programs.” The committee’s ranking Republican, Olympia Snowe of Maine, co-sponsored the amendment. A leading House supporter of the HUBZone program, Rep. Roscoe Bartlett, R-MD, endorsed parity. “Small-business owners from these three categories endure different types of disadvantages, but they all create invaluable opportunities and magnified benefits in our communities,” he said. “They deserve equal priority consideration for federal government small-business contracts.” Separately, the Office of Management and Budget told agencies to follow the parity rule while it reviewed the GAO decisions. That review was scheduled to be completed in July, but results have not yet been announced. SBA has warned that GAO’s rulings could make it difficult for agencies to achieve their small business procurement goals in programs other than HUBZone.