washington_update

Federal Contracting Activity Congress, Administration, Media March 2010

Small Business Lost $30B in FY 2008

FY 2008 Missed the Mark We did not just lose the difference between 21.5% of government contracts and 23% ­ we lost much more.

The SBA leaves out the billions and billions we lose because Congress has taken away our rights to certain DoD contracts and overseas contracts.

The results in FY 2008 took $30B from our businesses.

WOB lost over $12 Billion FY 2008

There Are a Lot of Players Federal Agencies: Leadership, acquisition leadership, small business teams DoD: Special rules and regulations Congress: House and Senate SBA: New leadership OMB: Office of Federal Procurement Policy Dept. of Justice: Legal accountability Government Accountability Office (GAO): Agency Audits

Small Business Administration Changes to the 8(a) Program Changes to Size Standards Accommodation and Food Services Other Services Industries Retail Trade Methodology

HUBZone definition of “employee” Upcoming – Women’s Procurement Program Parity between socio­economic set­aside programs

Office of Federal Procurement Policy This office works on broad procurement strategies and issues for the federal government Current Topics: Increasing Competition and Structuring of Contracts Acquisition Workforce Development (a lot of government employees are retiring – brain drain) Government Waste and Mismanagement

Congress House and Senate Small Business Committees frequently have different views Both House and Senate small business committees are in the process of roundtables with stakeholders and we expect legislation in early 2010 Congressional committees overseeing DoD contracting are also meeting to address small business usage and policies

Current Legislative Agenda Access to Contracts Women’s Procurement Program

Access to Capital Healthcare Reform Job Creation Consumer Financial Protection Agency

Current Legislative Agenda Access to Contracts Federal spending with the top 100 contractors has increased by $132 billion over the last 6 years Four states secure nearly half of all Federal spending (VA, TX, CA, MD) Average size of the contracts have risen dramatically – average action size grew by 128% between 2003 ­ 2008

Recommendations Ensure small business goals are met Anti­bundling

Current Legislative Agenda Access to Contracts : Women’s Program Report: www.uswcc.org/reports­and­statistics.org 2000 Congress passed the Equity in Contracting for Women Act 2004 after the SBA failed to implement the law, the USWCC sued and won a claim to force implementation.

2009 Congress votes not to fund regulations that render law ineffective.

July 2009 – USWCC and SBA file a joint stay to allow new administration time to implement.

2010 Regulations dropped suspiciously similar to last ineffective regulations .

Current Legislative Agenda Access to Capital Economic Crisis: USWCC testified on the Economic Crisis and its impact on Small Businesses. http://www.house.gov/smbiz/hearings/hearing­0 1­14­09­stimulus/Dorfman.pdf Banks are not lending.

Credit lines are being cut without warning.

Interest rates are being raised.

Recommendations Ensure banks are lending, ensure transparency and accountability, reduce

Current Legislative Agenda Healthcare Reform Premiums have skyrocketed ­ Premiums for employers have grown by 120% since 1999.

Fewer and fewer small businesses are offering insurance.

Between 2000 and 2007, the percentage of small businesses offering coverage dropped from 68% to 59%. Half of workers in small firms that do not offer health benefits are uninsured.

Recommendations Tax Incentives, Pooling, no mandates, competition for large carriers

Current Legislative Agenda Job Creation The U.S. Women’s Chamber of Commerce took a survey to understand how the economy has impacted small businesses, and learn if there was an opportunity for Job Creation. The greatest opportunity for job creation was in the firms with revenues of $250­500K. Overall small businesses were challenged by the loss of sales between 2008 – 2009 and the current lack of capital.

Recommendations Ensure banks are lending, ensure transparency and accountability, reduce

Current Legislative Agenda Consumer Financial Protection Agency Predatory lending practices destroyed our economy Escalating interest rates and fees Women in particular have been hardest hit Small Business negatively impacted by unfair practices

Recommendations Create a Consumer Financial Protection Agency to ban deceptive practices, ensure the safety and fairness of new consumer financial products that come on to the market and, generally, to promote transparency, simplicity, fairness, accountability, and access.

Corporate Influence Corporate Infiltration into organizations Corporate Infiltration into agencies Supreme Court ruling to allow uncapped donations to those running for office

We Must Be Strong Now We all play a role in federal contracting Working together we are the framework of a vibrant economy Small business contractors are vitally important The White House

Congress

Small Business Administration

Small Businesses

Federal Agencies

OMB, DOJ, DoD, GAO

Your Role – Engage!

Speak to congressional leaders http://www.uswcc.org/advocacy/

Let us know of policy changes or issues that affect opportunities for small business.

Small Business Contractor’s Forum We connect through the Small Business Contractors’ Forum to keep you informed, engaged and help you have a strong voice in

www.smallbizcontractors.org

Become a Regional Leader 20 leaders from each state working together to build a strong, clear voice for small business contractors.

NASBC and USWCC members

www.smallbizcontractors.org

Ready to Lead National Association of Small Business Contractors

nasbc.org U.S. Women’s Chamber of Commerce

uswcc.org Small Business Contractors’ Forum (provided

by NASBC and USWCC

smallbizcontractors.org