Senate Committee Backs Service-Disabled Veterans The Senate Small Business Committee has approved legislation that would give new priority to service-disabled veteran-owned companies and overhaul other SBA contracting programs. The Small Business Contracting Revitalization Act, S. 2300, 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. With just a few weeks remaining in this year’s congressional session, Small Business Committee spokeswoman Kathryn Seck said Kerry is working with other members on their concerns and is “hopeful” of getting a vote before adjournment. Kerry’s legislation would allow SDV companies to receive sole-source awards without regard to the “rule of two,” putting those firms on equal footing with 8(a) contractors. If a single SDV firm is available and capable of fulfilling a contract, the agency must award it as a sole source. On Oct. 30 the House adopted a similar provision in the Small Business Contracting Program Improvements Act, H.R. 3867. Here is a comparison of the pending Senate bill and two bills passed by the House: Women’s Set-Aside Senate: Directs SBA to implement the set-aside program within 90 days. House: H.R. 3867 directs implementation within 90 days, but also allows agencies to begin setting aside contracts immediately for woman-owned businesses in selected industries. The Bush administration said that provision is “constitutionally suspect.” 8(a) Program Senate: Orders SBA to adjust net-worth limits for inflation, but does not specify a dollar figure. House: H.R. 3867 raises the net-worth limit for new 8(a) business owners to $550,000, from the current $250,000. Abolishes the current $750,000 net-worth limit for business owners to remain in the 8(a) program. Extends the time for participation in the 8(a) program to 10 years, from the current nine. Small Disadvantaged Businesses Senate: 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. House: No similar provision. New Set-Asides Senate: Authorizes set-asides on GSA schedules and other multiple award, multi-agency contract vehicles. House: A non-binding provision of H.R. 3867 expresses “the sense of the House of Representatives” that GSA schedule orders between $3,000 and $100,000 should be set aside for small businesses. Currently all other contracts in that range are mandatory set-asides, but GSA contends that its schedules are exempt from the requirement. Sole Source Contracts House: H.R. 3867 increases the limits on sole source awards to $5.1 million, up from $3 million, and $5.5 million for manufacturing, up from $5 million. The new limits would apply to 8(a), HUBZone and service-disabled veteran-owned businesses. Senate: No similar provision. Size and Status Integrity Senate: Requires annual recertification of small business status. SBA to conduct a detailed review of the size standards within one year. Establishes procedures for protests of small business set-aside awards made to large businesses. House: H.R. 1873 requires annual recertification. Current SBA rules require recertification after five years on long-term contracts such as GSA schedules. Bundling and Consolidation Senate: 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. House: H.R. 1873 broadens the definition of bundling to cover new work. The current definition applies only when two or more existing contracts that are combined. Goals Senate: No change in small business procurement goals. House: H.R. 1873, passed by the House in May, increases the small business goal to 30%, from 23%. The current 5% goals for small disadvantaged and woman-owned businesses would be increased to 8%. HUBZone Program Senate: Creates a 3% subcontracting goal for HUBZone companies. House: Under H.R. 3867, HUBZone set-asides would be discretionary rather than mandatory, as under current law, making those companies last in line for set-asides. Requires SBA to conduct a site visit to a HUBZone firm before it receives its second set-aside contract. Tribally Owned Businesses Senate:No change. House: H.R. 1873 directs SBA to establish limits on the size of 8(a) sole-source awards to Alaska Native Corporations and other tribally owned businesses. They are now entitled to unlimited awards.