November 18 2011 Copyright 2011 Business Research Services Inc. 301-229-5561 All rights reserved.
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He Said It: A Ground-Level View of Set-Aside Programs Editor’s note: This is excerpted from testimony by Scott Bellows, program manager of the South Carolina Procurement Technical Assistance Center, prepared for the House Small Business Committee’s Subcommittee on Contracting and Workforce. He testified at a hearing in Sumter, SC, on Nov. 8. [O]ur well-intentioned small business programs have evolved in a way that skews their original intent. First, the plethora of small business programs—8(a), Hubzone, SDVOSB, WOSB—has disenfranchised many of those who are not eligible to the extent that they no longer back the very programs they once were glad to support. Even those set-aside programs don’t really achieve what most think that they do. It’s not that the percentages are wrong, it’s just that many of the same contractors tend to get the work time and time again and those who want to break into government contracting soon realize that it’s a long, uphill battle. Instead of asking how many dollars went to small business contractors, if one asks how many “unique” vendor contracts were awarded during a certain period of time, you might just come away with a different impression of how these programs are promoting small business development and helping to revitalize our economy. Many of these small business contracts are actually quite large, awarded for long periods of time and all but eliminate new opportunities for aspiring government vendors…. In all fairness to the contracting officers, these individuals tend to be understaffed, have to consider the risk to taxpayer money and are cognizant of the need to meet small business target numbers. Technically speaking, they’re just playing by the rules set before them. The prime contractors, likewise, are helping to meet the small business targets while simultaneously minimizing their risks by using subcontractors that they know and trust. I would probably do the same, were I in their position.
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