DHS Spending Bill Threatens All Set-Asides The Homeland Security Department appealed to Congress to drop a provision that would prohibit the department from awarding set-aside contracts. Section 537 of the House-passed fiscal 2008 homeland security appropriations bill, H.R. 2638, states requires DHS to award all contracts through full and open competition, except in cases of national emergency. Paul Schneider, DHS undersecretary for management, said, “This will dramatically impact our ability to put more dollars in the small business community.” He testified before the House Small Business Committee Aug. 2. The provision was apparently adopted as a result of criticism of large sole-source contracts issued by the Federal Emergency Management Agency, a part of DHS. The Senate has passed a different version of the appropriations bill. Final language will be written in a House-Senate conference committee.