House passes Small Business Fairness in Contracting Act

Sorry for the delay between posts at this important time for small business issues.

The reports are true, this bill (HR 1873) passed the House and heads for the Senate. An amendment that increased the percent of federal contracting dollars earmarked for small businesses from the current 23 percent to 30 percent was added to the final package sent forward.

The House Small Business Committee chair (Chairwoman Rep. Nydia Velazquez (D-N.Y.) believes that the government understated its compliance with this goal over the past few years.

There is little in this bill to help achieve a 30 percent higher goal.

Small Business Fairness in Contracting Act moves out of committee with changes

The House Oversight and Government Reform Committee passed a revised Small Business Fairness in Contracting Act (HR 1873) on May 1, 2007. This bill, originating in the House Small Business Committee, has the primary effect of limiting small business bundling and upping the small business participation goals. The bill as passed will up the small business goal from 23 to 28 percent, according the the GovExec article and waters down the original from virtually eliminating all bundling to those requirements that were originally satisfied by two or more small businesses.

For a discussion of the original bill, click here, here, and here. For the text of the original bill, click here. The amended bill is not yet available online and will be posted when it is available.

Will keep you up to date on the latest changes.

Strategic sourcing comes to procurement of services

This is the next step in the consolidation and bundling of services- without using the words consolidation and bundling. This is a natural progression. We do it ourselves. We figure out what we need a lot of and buy it in bulk at Costco or Sam's Club or BJ's Wholesale. We don't have a lot of personal experince at services...perhaps if neighbors shared a lawn service, they may get a cheaper rate. I may have to think a little longer on a services example.

Regardless, it may be a good thing for federal procurement, but preference programs and overseers will not let this occur easily.