September 26 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

Features:
Defense Contract Awards
Procurement Watch
Links to Prior Issues
Teaming Opportunities
Recently Certified 8(a)s
Recent 8(a) Contract Awards
Washington Insider
Calendar of Events
Return to Front Page

Women Senators: Expand Set-Asides For Women

All sixteen women senators are urging the Bush administration not to adopt a limited set-aside program for woman-owned businesses.

For the first time, the eleven Democrats and five Republicans unanimously expressed opposition to the rule proposed by SBA in December. It would allow set-asides for woman-owned firms in just four industries.

Sen. Olympia Snowe, R-ME, ranking Republican on the Small Business Committee denounced the rule as “a sham proposal that would provide virtually no benefit.”

Congressional efforts to block the rule have failed so far, as Congress struggles to deal with a radical overhaul of the nation’s financial markets and pushes for an early adjournment.

The Senate Appropriations Committee inserted a provision blocking the rule in its funding bill for SBA, but that bill appears unlikely to pass this year.

Senate Democratic leaders agreed to a similar amendment to the 2009 Defense Authorization bill, but that bill became entangled in a dispute over earmarks. The Senate passed it Sept. 17 without considering any amendments.

In a letter to Acting SBA Administrator Sandy Baruah, the women senators urged him to withdraw the proposed rule. “Given the numerous problems and concerns with the published rule, a delay would allow the next Administration, regardless of political affiliation, to have the opportunity to review and evaluate the rule before it becomes final,” they wrote. “This would ensure that a meaningful and effective procurement program is implemented – one which follows Congressional intent and satisfies our obligation to assist women-owned small businesses.”

SBA said it found woman-owned firms were underrepresented in only four categories of federal contracting, when measured by the dollar value of contracts: coating, engraving, heat treating and allied activities; furniture and kitchen cabinet manufacturing; “other motor vehicle dealers,” such as recreational vehicle dealers; and national security and international affairs.

The Bush administration argued that permitting set-asides in any other categories would violate Supreme Court decisions limiting affirmative action.

The rule drew near-unanimous opposition from women’s business groups and from many members of Congress. Opponents disagreed with the administration’s legal interpretation, and said the restricted set-aside violated the intent of Congress to provide additional opportunities for woman-owned contractors.

The set-aside program was approved by Congress and signed by President Clinton in December 2000. SBA’s proposed rule implementing the program was published seven years later.

The Sept. 22 letter to Baruah was signed by Democratic senators Mary Landrieu, LA; Barbara Boxer and Dianne Feinstein, CA; Maria Cantwell and Patty Murray, WA; Barbara Mikulski, MD; Hillary Rodham Clinton, NY; Debbie Stabenow, MI; Amy Klobuchar, MN; Blanche Lincoln, AR; and Claire McCaskill, MO; and Republicans Olympia Snowe and Susan Collins, ME; Elizabeth Dole, NC; Kay Bailey Hutchison, TX; and Lisa Murkowski, AK.


*For more information about Set-Aside Alert, the leading newsletter
about Federal contracting for small, minority and woman-owned businesses,
contact the publisher Business Research Services in Washington DC at 800-845-8420