November 9 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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Senate Committee Recommends Contracting Bill

The Senate Small Business Committee has approved contracting legislation that would give new priority to service-disabled veteran-owned companies.

But the Small Business Contracting Revitalization Act, S. 2300, does not go as far as the House bill in revamping SBA procurement programs. It is sponsored by Chairman John Kerry, D-MA, ranking Republican Olympia Snowe, ME, and Sen. Benjamin Cardin, D-MD.

The committee recommended the bill on a 19-0 vote on Nov. 7.

As the House bill does, Kerry’s legislation would allow SDV firms to receive sole-source awards without regard to the “rule of two.”

On other issues:

Women’s Set-Aside

The Senate bill directs SBA to implement the set-aside program within 90 days, but does not give other agencies authority to begin setting aside contracts immediate, as the House bill does.

8(a) Program

The bill orders SBA to adjust net-worth limits for inflation, but does not specify a dollar figure, as the House bill does.

Small Disadvantaged Businesses

In response to complaints about SBA’s certification requirements, the bill directs SBA to accept SDB certifications from other agencies, including state and local governments.

HUBZone Program

The Kerry bill contains none of the restrictions on HUBZone contractors that are in the House bill.

New Set-Asides

The bill authorizes set-asides in multiple-award, multi-agency contracting vehicles such as GSA schedules. GSA contends the schedules are exempt from the law requiring set-asides of contracts between $3,000 and $100,000. SBA has issued a legal opinion saying that such set-asides are required.

Bundling and Consolidation

The bill calls for accountability of senior agency management for all incidents of bundling; timely and accurate reporting of contract bundling information by all federal agencies; and improved oversight of bundling regulation compliance by the SBA.

Size and Status Integrity

The bill adds a new section (Sec. 38) to the Small Business Act that is designed to strengthen the government's ability to enforce the size and status standards for small business certification. The new section requires a detailed review of the size standards by the SBA within one year. It establishes procedures for protests of small business set-aside awards made to large businesses; requires the development of training programs for small business size standards; and requires a government-wide policy on prosecutions of size and status fraud.


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