Key 2007 Issues:

      Subcontracting Plans must have accountability standards and an enforcement mechanism to ensure that small business participation promised by a prime contractor is met. For many years large federal contractors have been required to submit subcontracting plans demonstrating their utilization of small businesses (including businesses owned by women and minorities, HUB Zone, Disabled Veterans and other small business categories) on various federal procurement/construction projects.  However, there has been little tracking and nearly no enforcement mechanism so that prime contractors get credit for using small businesses whether they actually do so or not.  Realizing that procurement officers and contract administrators for the government do not have the resources to audit and enforce subcontracting requirements on all subcontracting plans, WCOE proposes the provisions relating to Subcontracting Plans be amended to require:

1)  Identification of the small business to be used on the project with a brief description of the work and the  approximate dollar value of the work to be performed (bid listing);

2)  Grounds for the removal or substitution of a subcontractor who is unable or unwilling to perform certain contract requirements;

3) Prime contractors to submit monthly status of the awarded subcontracts as it relates to the Subcontracting Plan with explanation of deviations;

4) The government agency to withhold payment from the prime contractor if a subcontractor who is listed, is not contracted to perform the work (and has not been properly removed or replaced);

5) Allow a private right of action by subcontractors who are listed in Subcontracting Plans but who are not used or replaced according to the removal or substitution provisions herein.

      WCOE supports legislation which allows small businesses to form a consortium to procure insurance at a lower rate through an industry group.  Currently, conflicting state laws make it cumbersome, if not virtually impossible, for small business to obtain health care coverage for a small number of employees at rates comparable to larger employer group rate health plans. The House of Representative has previously passed legislation on this issue, but the Senate has failed to pass any legislation. The 110^th Congress needs to make the issue of affordable health care insurance for small businesses a priority.

      In March 2002, President Bush directed the Office of Management and Budget to prepare a strategy for unbundling contracts. The OMB’s failure in this area now necessitates that Congress take action. All agencies must be held accountable for strict enforcement of their subcontracting plans.

      Bundling has resulted in substantially fewer small businesses receiving federal contracts and the federal government is suffering from a reduced supplier base.  American small business brings innovation, creativity, competition and lower costs to the federal table.  When small businesses are excluded from federal opportunities through contract bundling, agencies, small businesses and taxpayers lose. Large bundled projects impose excessive bonding limits and require long term cash flow commitments which small businesses cannot meet.  Bundling also creates an additional layer of management, adding cost without value to the taxpayer.

       WCOE proposes that regulations and/or legislation require that construction contracts be unbundled when they exceed $7 million (for Department of Defense), $5 million (for Department of Energy, General Services Administration and NASA) and $2 million (for all other agencies).  If an agency proposes any bundled contract in excess of these amounts, the Procurement Center Representative and OSBDU offices must give approval prior to the contract solicitation being published.

       WCOE supports the establishment of one-step certification of women-owned small business (WOSB) firms. Such certification must be recognized by all Federal, State and local agencies receiving any federal dollars.  Providing a single certification process will save the government tax dollars through the elimination of multiple certification programs in multiple agencies.  WOSB firms will save both time and money in complying with only one, as opposed to dozens of certifying agencies and departments.  WCOE supports strong certification guidelines and opposes any type of self-certification process. WCOE applauds the legislation passed in 2004 which mandated all federal and state agencies recognize one-step certification for 8(a) contractors.  We support expanding this effort for all certification processes for WOSBs.

      In 2000, Congress passed legislation establishing a WBE goals program.  After six years the SBA failed to implement any such program.  We urge Congress to demand the implementation of this program.  Additionally, the income cap of $750,000 for qualification of a SDB was established over a decade ago. This threshold needs to be reevaluated, increased and indexed to address cost of living increases.

      WCOE supports the permanent funding for the Women Business Centers (WBC) through the Small Business Administration.  The WBCs is a critical component to address the significant disparity in the lack of federal contracts awarded to WOSBs. The services provided by the WBCs have enhanced the utilization of WOSBs.   These efforts need to continue to allow WOSBs to gain the expertise necessary to be a viable competitor and receive federal contracts.

Date

State or National

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Notice Pursuant to Exec. Order 12600 of Receipt of FOIA Requests for Access to CCR Database

Department of Defense

Federal Government Efforts in Contracting with Women Owned businesses