As founder of the Fairness in Procurement Alliance, I
welcome President Obama’s commitment to encouraging small businesses to
contract with the government.
Small and disadvantaged business face real problems in
accessing government contracts, though this is not due to not knowing about contracting
opportunities. Awareness of opportunities exists, but frankly, most small
businesses have given up because of a ‘dysfunctional culture’ that has allowed
fraud and abuse in contracting to proliferate. It’s no wonder that the
statutory reservation of 23% for small businesses has yet to be met since
Congress established it.
Small Business Administrator Karen Gordon Mills and Commerce
Secretary Gary Locke, who have been tasked by the president with leveling the
playing field in contracting, must consider doing far more than holding 200
matchmaking events in 90 days to encourage small businesses to contract with
Uncle Sam.
Here are 12 major entrepreneurial recommendations that could
immediately make a huge difference:
1. Bring clarity through legislation to the statutory
small businesses priority over ALL federal programs. Congress intended for all contracts to be subject to the
statutory set-aside provisions of the Small Business Act. There were no
statutory exemptions written into the legislation.
2. Remove the ‘illegal exemptions’ (i.e., GSA and Foreign) from
the Federal Acquisition Regulations. These exemptions have been responsible for excluding $640B
in contracts over the last decade away from the statutory rights of small and
disadvantaged businesses.
3. Revamp and Strengthen the Size Protest System to make sure it can offer justice
and compensation for the abuses of a broken and unfair procurement system. I have just won two size protests
against the same large business, and I have nothing to show for my victories.
Equally as important, the violator has not been punished.
4. Eradicate the abusive procurement practice referred to as
‘unfair end-user justifications.’ Agency heads can end the practice by holding those
who request the purchases or ‘end-users’ accountable for disciplinary action
when caught limiting competition or offering preferential treatment to their
preferred brands or suppliers.
5. Enforce the existing penalties for ‘size
misrepresentation,’ which is fraud. The penalties include jail terms, a minimum of $500,000 in
fines and debarment, but they are seldom enforced.
6. Focus on using the large fines to fund a ‘legal
center’ in
the private sector to protect and defend the statutory rights of small
businesses.
Attorneys could rely on the False Claims Act to protect our own territory!
7. Prevent Agencies from taking credit for restricted
contracts awarded to LARGE businesses to appear as if they were meeting their
goals. In this
current fiscal year alone, the Fairness in Procurement Alliance uncovered
$4.01B in contracts awarded to 48 multi-billion dollar businesses.
8. Investigate and eradicate the fraud and abuse affecting
the 23% statutory small business reservation. Our alliance has turned over to the SBA Office of
Inspector General over a dozen cases, which, although small in dollar size,
demonstrate the ‘dysfunctional culture’ that we’ve identified as the main
culprit of unfair contracting.
9. Isolate and protect all solicitations reserved for small
businesses as The Umbrella Initiative has cleverly conceived. The FPA Think Tank at the University
of North Florida has conceived a plan, but bureaucrats have been unwilling to
listen.
10. Fund disparity studies and research at the state and
local level to confirm how minorities and women are accessing local and state
contracts. FPA has
a pilot project in place to track local and state contracts in Florida which
could be replicated in other states.
11. Rely on existing outreach networks such as the Small
Business Development Centers (SDBC) and the Women Business Centers (WBC) to implement many
of the entrepreneurial solutions that have been proposed. FPA is pursuing, for example, a
partnership with the Florida SBDC network to help roll out some of the projects
The Umbrella Initiative has proposed.
12. Encourage the Commerce Department and SBA to fund
efforts which focus on eliminating barriers and opening-up state and local
contracting opportunities (besides Federal) to help disadvantaged businesses
contract with the government.
President Obama is reviving the
principles of P.L. 95-507 that have been ignored by bureaucrats for years. This public law was
the catalyst for my own passion in fighting injustices in the procurement
arena. "It is essential that we provide our
Nation's small businesses with maximum practicable opportunity to participate
in Federal Government contracting,” Obama said.
Senator Mary Landrieu (D-La.) echoed this effort, saying,
“As Chair of the Small Business Committee, I intend to move forward from this
announcement with vigorous oversight to demand that all small businesses —
including minority, women and veteran-owned firms — are on equal footing to receive
their fair share of these contracts.”
You, too, can contribute to the President’s commitment to ‘level
the playing field in government contracting.’ Simply go to the Google
Moderator website
listed below, and post your recommendation or simply vote for your favorite
ones. It can make a difference: http://moderator.appspot.com/#e=a9ccb
This article is part of OhMyGov's regular series of guest contributions on hot topics in government and contracting. To submit your idea, contact editors@ohmygov.com