Washington, D.C.— Today, the House Small Business Committee Subcommittee Contracting and Infrastructure held a hearing examining the current state of small business contracting and top issues facing small firms in the procurement space. During the hearing, Ranking Member Hillary Scholten (D-MI) discussed the importance of achieving federal government wide contracting goals and the dangers of consolidation in the sector.
“The government, as a whole, and some agencies have failed to meet all of the small business participation in several individual goals, such as the woman-owned small business goal. These failures deprive small businesses of billions in contracting dollars,” said Ranking Member Scholten.
“Additionally, the Committee has seen the average contract size is increasing. On first take, this appears to be promising as larger contracts may be more profitable for small companies. However, it might suggest that more contracts are being consolidated –resulting in fewer opportunities for small businesses.”
Small businesses play a critical role for the Federal Government fostering innovation, strengthening the industrial base, and guaranteeing better products and services at lower prices through competition. The Small Business Administration (SBA) works to ensure that small businesses are awarded a certain percentage of federal contracts across various categories.
During the hearing members policies to reverse the decline in the small business contracting base, lower barriers to entry for small contractors, and ensure the federal government meets all benchmarks for small business contracting.
“I welcome discussions like today so we can identify the many factors challenging our small contractors and develop thoughtful solutions. What is important for this Committee to keep in mind is that these developments are part of a bigger picture – which is that the federal procurement marketplace is always evolving,” said Ranking Member Scholten. “Small firms bring new ideas to the table, which in turn generate new jobs and even new industries. We must take steps to ensure that they can access the federal marketplace.”
During the hearing, small contractors also testified on the most pressing challenges facing businesses in their sector.
“As stated throughout this testimony, federal contracting programs need improvements to provide a success platform for underserved socioeconomic groups and for the industrial base,” said Jacqueline K. Lopez, President of Premier Enterprise Solutions in Upper Marlboro, MD. “I believe that this could be done by expanding the 8(a) program thresholds, stratifying category management so that it promotes awards for smaller contracts enabling participation by new entrants and smaller firms on a more level playing field.”
