Federal Contracting ActivityCongress, Administration, MediaMarch 2010

SmallBusinessLost$30B inFY 2008

FY 2008 Missed the MarkWe 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 PlayersFederal Agencies: Leadership, acquisition leadership, small business teamsDoD: Special rules and regulationsCongress: House and SenateSBA: New leadershipOMB: Office of Federal Procurement PolicyDept. of Justice: Legal accountabilityGovernment Accountability Office (GAO): Agency Audits

Small Business AdministrationChanges to the 8(a) ProgramChanges to Size Standards

Accommodation and Food ServicesOther Services IndustriesRetail TradeMethodology

HUBZone definition of “employee”Upcoming – Women’s Procurement ProgramParity between socio-economic set-aside programs

Office of Federal Procurement PolicyThis office works on broad procurement strategies and issues for the federal government

Current Topics:Increasing Competition and Structuring of ContractsAcquisition Workforce Development (a lot of government employees are retiring – brain drain)Government Waste and Mismanagement

CongressHouse and Senate Small Business Committees frequently have different viewsBoth House and Senate small business committees are in the process of roundtables with stakeholders and we expect legislation in early 2010Congressional 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 ContractsFederal spending with the top 100 contractors has increased by $132 billion over the last 6 yearsFour 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

RecommendationsEnsure small business goals are metAnti-bundlingAccountability and Transparency

Current Legislative Agenda

Access to Contracts : Women’s ProgramReport: www.uswcc.org/reports-and-statistics.org 2000 Congress passed the Equity in Contracting for Women Act2004 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 CapitalEconomic Crisis: USWCC testified on the Economic Crisis and its impact on Small Businesses. http://www.house.gov/smbiz/hearings/hearing-01-14-09-stimulus/Dorfman.pdfBanks are not lending.Credit lines are being cut without warning.Interest rates are being raised.

RecommendationsEnsure banks are lending, ensure transparency and accountability, reduce interest rates and fees

Current Legislative Agenda

Healthcare ReformPremiums 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.

RecommendationsTax 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 $250-500K. Overall small businesses were challenged by the loss of sales between 2008 – 2009 and the current lack of capital.

RecommendationsEnsure banks are lending, ensure transparency and accountability, reduce interest rates and fees, incentivize job creation

Current Legislative Agenda

Consumer Financial Protection AgencyPredatory lending practices destroyed our economyEscalating interest rates and feesWomen in particular have been hardest hitSmall 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 NowWe all play a role in federal contractingWorking together we are the framework of a vibrant economySmall business contractors are vitally important

Small Business Small Business AdministrationAdministrationCongressCongress

TheWhite House

OMB, DOJ, OMB, DOJ, DoD, GAODoD, GAO

Federal Federal AgenciesAgencies

Small Small BusinessesBusinesses

Your Role – Engage!

Speak to congressional leadershttp://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 Washington

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 membersHelp us end the $30B loss

www.smallbizcontractors.org

Ready to LeadNational Association of Small Business Contractors

nasbc.org

U.S. Women’s Chamber of Commerceuswcc.org

Small Business Contractors’ Forum (provided by NASBC and USWCC

smallbizcontractors.org