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SMALL BUSINESS NEWS

White House Wants Smaller Contracts

By Renae Merle, Washington Post Staff Writer, Thursday, October 31, 2002; Page E06

The White House announced a plan yesterday to give small businesses a better chance at winning government contracts by breaking down some of the large deals that now are out of their reach.

That would reverse a decade-long trend by federal agencies to bundle Small contracts into a single contract, which is easier to manage. That stifles innovation and prevents small businesses from competing successfully, The administration said. The new plan is an attempt to counter the "anti-small-business culture that has grown within the government" in the past few years, said Angela B. Styles, administrator for federal procurement policy in the Office of Management and Budget.

The number of small businesses winning federal contracts fell to 11,651 in fiscal 2001 from 26,506 in 1992, the OMB said. Under the White House proposal, federal regulations would be changed to consider how often prime contractors use small businesses when the government is deciding whether to award the prime contractor more contracts. The proposal also says federal agencies should help small businesses develop teams to bid for large contracts when bundling is required. If a bundled contract reaches several million dollars, the agency should consider alternatives, the OMB proposed.

"Our federal procurement system has run roughshod over small business, cutting new contract opportunities by more than half over the last decade, "Sen. Christopher S. Bond (R-Mo.), ranking minority member of the Senate Committee on Small Business and Entrepreneurship, said in a prepared statement. "This may be our chance to put a stop to it."

Federal agencies bundle contracts to compensate for the shrinking number of procurement officials. "Fifty-five percent of the acquisition workforce was eliminated during the 1990s by congressional mandate," said Steven L. Schooner, a George Washington University law professor who specializes in government contracting.

There have been several unsuccessful attempts to tackle the issue in previous administrations, Schooner said. "There is nothing new about this except that they're trying it again," he said. "Exactly who is going to go out and assemble these small business teams to compete against the incumbent?"

Small businesses have complained for years that they don't have a fair chance at the billions of dollars worth of contracts awarded every year by federal agencies. They point to Small Business Administration data that show that the government has fallen short of awarding 23 percent of federal contracts to small businesses for the past two years.

Announcements

The Civilian Agency Acquisition Council is reviewing a proposed rule that changes the way contractors will submit information to the federal government and how that information will be used by the Government to pay its contractors via Electronic Fund Transfer. The rule will have the largest impact on civilian agencies, which do not yet require use of the DOD's Central Contractor Registration System.

Overview of the Rule

The rule proposes to amend the Federal Acquisition Regulation (FAR) to require contractor registration in a Central Contractor Registration (CCR) database prior to the award of a contract, basic agreement, basic ordering agreement, or blanket purchase agreement and the modification of all existing contracts, basic agreements, basic ordering agreements, and blanket purchase agreements by September 30, 2003. Subsequent to the initial registration, this rule will require contractors to confirm on an annual basis that their CCR registration is accurate and complete. The objectives of this rule are (1) to more efficiently comply with the Debt Collection Improvement Act of 1996 (Pub. L. 104-134) by using a central repository to collect statutorily required contractors' taxpayer identification numbers (TINs) and electronic funds transfer (EFT) information; (2) to simplify and streamline the procurement process by presenting "one Governmentwide face to industry,'' and, thereby, eliminating redundant requirements and processes; and (3) to increase visibility of vendor sources for specific supplies and services.

Currently, contractors must submit certain business information, including their TIN and DUNS numbers, in response to solicitations. In addition, current regulations require contractors to provide EFT information in compliance with, basic agreements, basic ordering agreements, and blanket purchase agreements terms and conditions. Under current regulations, contractors are required to submit duplicate information to various contracting and payment offices. Under the proposed rule, contractors are required to provide certain business information, including their TINs and EFT information, only once into a common Governmentwide data source. The Government will use this common CCR data source to more efficiently meet the requirements of the Debt Collection Improvement Act of 1996 (Section 31001 of Public Law104-134).

The proposed rule applies to large and small businesses that are awarded Government contracts, basic agreements, basic ordering agreements, or blanket purchase agreements and the modification of all existing contracts, basic agreements, basic ordering agreements, and blanket purchase agreements by September 30, 2003.

This policy applies to all types of awards with the following exceptions:

(a) Purchases made with a Governmentwide commercial purchase card;

(b) Classified contracts or purchases (see FAR 4.401) when registration in the CCR database, or use of CCR data, could compromise the safeguarding of classified information or national security;

(c) Contracts awarded by?(1) deployed contracting officers in the course of military operations, including, but not limited to, contingency operations as defined in 10 U.S.C. 101(a)(13) or humanitarian or peacekeeping operations as defined in 10 U.S.C. 2302(7), or (2) contracting officers in the conduct of emergency operations, such as responses to natural or environmental disasters or national or civil emergencies e.g., Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121); and

(d) Contracts to support unusual or compelling needs. (See 6.302-2.)

Small Business Size Standards Increase

The SBA's Size Standards are used to establish eligibility for SBA programs and to determine the eligibility of firms for “small business” set asides or for being considered a small business for unrestricted procurements. For the first time since 1994, Small Business Size Standards are being increased to take into account the impact of inflation on various industries. For your information, the revised standards will go into effect on February 22, 2002.

Under the revised standards, North American Industry Classification System (NAICS) code 541330 for Engineering Services ( Mil and Aerospace Equip & Weapons) increases from an average annual revenue (over the last three fiscal years) of $20 Million to $23 Million. Data Processing Services (NAICS 514210) increases from $18 Million to $21 Million. To determine the revised Size Standards for your product or service, click here.

FEDBIZOPPS Website To Replace Commerce Business Daily

In case you missed earlier announcements in Federal Government Procurement news, an announcement was made in May that the FEDBIZOPPS website will be designated as the the "single source for federal government procurement opportunities that exceed $25,000." For details, click here

AFCEA Dayton Wright Chapter has officially implemented its new initiative to provide "free" consulting services to AFCEA Dayton Wright small business members. The AFCEA Dayton Wright Small Business Consulting Service provides advice to its members on such general areas as "How to conduct business with the Federal Government" and "Whom to talk with to resolve contracting issues". The AFCEA POC is Dennis DeMolet, www.demolet@ix.netcom.com

The National Veterans Business Development Corporation , formed by Congress is in Business to assit Veteran and disabled veteran small business with seeking and aquiring Federal Government Contractors. Contact NVBDC, Mr. Richard Allen 703-299-4390 X:209.

If your business is 51% owned as a Service Disabled Veteran Small Business the Government wants to know about you. Register or update your registration on SBA’s PRONET www.sba.gov web site. Also make sure to list your organization on www.ccr.gov in addition for Federal Government requirements. Updates to these sites should be done every six months.

Check out the August issue of "VETGazette"
Click on the Aug Issue of the SBA VET Gazette to dowload.

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