October 10 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.
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President Bush signed a continuing resolution to fund government operations through March 6, 2009. Congress passed new appropriations for the Defense, Homeland Security and Veterans Affairs departments. Most other agencies will be funded at 2008 levels, putting any new projects on hold until the next Congress acts.
Federal agencies spent about 22% of their prime contract dollars with small businesses in fiscal 2007, falling short of the 23% goal, according to SBA. SBA still has not released full data for ’07, nor published its scorecard measuring agencies’ performance. Regulatory changes made it more difficult for agencies to reach their goals last year, Calvin Jenkins, SBA acting associate administrator for government contracting and business development, wrote in an article for the newspaper Federal Times. He cited the new rule requiring companies to recertify their small business status after they are acquired or merged, and efforts to double-check the accuracy of procurement data. Jenkins said small firms received about $83 billion in prime contracts last year, an increase of $6 billion from the previous year.
The Architect of the Capitol is considering creation of a small business set-aside program. The Architect’s office handles construction, maintenance and housekeeping in the Capitol and other congressional buildings. As a legislative agency, it is not subject to the Federal Acquisition Regulation, which covers most executive branch purchases. According to a notice in the Oct. 6 Federal Register, the Architect is considering setting aside procurements worth between $5,000 and $100,000. It plans to adopt the “rule of two” when deciding whether to set aside work. Procurement opportunities in Architect’s office include construction projects, architect-engineer services, telecommunications, IT development, Capitol Grounds and the United States Botanic Garden. The draft policies are available for comment at www.aoc.gov/osdbu.cfm.
GSA is creating a program office to oversee contracts on the schedules. The agency said the Multiple Awards Schedules Program Office will work to create consistent policies on all three business units: General Supplies and Services, Integrated Technology Services, and Travel, Motor Vehicle and Cards Services. The new office is part of a reorganization of the Federal Acquisition Service, which operates the schedules.
SBA is expanding disaster loans for small businesses that suffer economic losses when key personnel are called into military service. Effective Oct. 28, the maximum size of Military Reservist Economic Injury Disaster Loans will rise to $2 million, from the current $1.5 million. Borrowers will not have to pledge collateral on loans of $50,000 or less. Under the new regulations, which were mandated by Congress, a small firm may apply for a loan as soon as the owner or essential employee is notified of a call-up to active duty, rather than waiting until the employee leaves for military service. In addition, a company may apply for a loan up for to one year after the employee returns from active duty. The current time limit is 90 days. The SBA loans are available to small firms that suffer “substantial economic injury,” such as being unable to meet loan payments or ordinary business expenses. They are not permitted to cover lost sales or profits. |