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Congress Set to Screw Small Contractors

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With help from lots of folks to include SAIC CEO Tony Moraco who complained to Congress about his company losing ground in government contracting and decided it would be best to legally steal from America’s small businesses, their families and employees by getting Congress to change the rules.

SEC. 838. Counting of major defense acquisition program subcontracts toward small business goals.

(a) In general.—Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section:

Ҥ 2338. Counting of major defense acquisition program subcontracts toward small business goals

“(a) Annual procurement goals.—First tier and second tier subcontracts awarded by the Department of Defense under major defense acquisition programs to small business concerns, small businesses concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women shall be considered toward annual Department of Defense management goals for procurement contracts awarded to those concerns.

The impact of this being implemented with the 2017 NDAA will kill small business participation in federal contracting. Why? For the simple reason that validating total obligations to small business concerns is a sketchy affair to begin with because it counts dollars awarded to small business where no assistance was rendered and includes many dollars to ‘other than small businesses’ due to unintentional errors and outright malice. Tracking subcontract dollars actually awarded to small business concerns at the first tier is nothing short of a joke and there is no enforcement. Allowing first and second tier subcontract obligations to count towards the goal that represents contract (versus subcontract) dollars from agencies to small business concerns is a slap in the face to the very fabric of what sustains this country in a number of ways and will result in dollars currently going to small business to vaporize.

I wonder how many in Congress are personally benefiting from this? Every member of Congress that helps this go through that has ever had a platform based on words that sound like “I support small business.” is a LIAR. But then, why am I surprised given the lack of maturity that’s existed in Congress for years and the lack of actual concern for our country and its people, beyond themselves and the Tony Moraco’s that is.


Guy Timberlake, The Chief Visionary (bio)
http://www.theasbc.org | @theasbcguy | @govconguy

“The person who says it cannot be done should not interrupt the person doing it.”

About Editor-in-Chief Visionary

Go-To-Guy Timberlake is the Editor-in-Chief Visionary of GovConChannel and oversees the creation and curation of relevant and timely 'News And Information That Matters To Small Government Contractors.'


6 thoughts on “Congress Set to Screw Small Contractors

  1. NACA agrees Guy that this is bad news for small businesses.

    Equally onerous is the present form of Section 884 in the NDAA which
    a) discourages and
    b) provides no funding to FAR Part 19 awards to small businesses (WOSB, SDVOSB, HUBZone, and 8a) for overseas DOD contracts.

    Further, Section 884 says no sole source to these same companies. Not only is this a slap in the face to qualified and capable WOSB, SDVOSB, HUBZone, and 8a companies who can and do meet DOD urgent and compelling needs everyday for our warfighters, but it also removes this from the agency contracting officers’ tool kit just when our National Security Strategy will require more and more agility and flexibility to respond.

    Seems like the big companies will have another leg up over small businesses — those same small businesses who our National policy makers continue to call “the economic engine of our nation.”

    NACA continues to engage the Hill on this on behalf of ALL small business concerns – our contacts at the SBA find this provision to be incredulous and ill timed particularly as they are trying to encourage overseas opportunities for small businesses. NACA is working with the MBDA as well to fight this provision; however, I am really surprised how woman owned, service disabled veteran owned, HUB Zone, and more 8a firms have not written their Members of Congress with an outcry against this poorly written provision.

    With the pool of contracting dollars available to small businesses decreasing, taking away the overseas opportunities from small business consideration, the rule of two mandate, or the goaling requirements in 15 USC 644 seems to be a natural for all of us to link arms and say “NO!”

    Mike Anderson
    Executive Director
    Native American Contractors Assn

    Liked by 1 person

    Posted by keawemike | September 26, 2016, 11:48


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