|
 U.S. Small Business Administration Misses Another Deadline for Implementation of the Six Year Old Women's Federal Contracting Program
|
IMPORTANT: U.S. House of Representatives Committee on Small Business to hold subcommittee hearing on March 21, 2007 to address shortfall of contracting with women-owned firms. (learn more)
|
Dear Women Business Owners:
I am writing to you today because women business owners are losing over five billion dollars every year as the federal government fails to meet its paltry goal of five percent for contracting with women. Even so, after delaying more than six years, the U.S. Small Business Administration has missed another of its own deadlines in the process for implementation of the Women's Federal Procurement Program (PL. 106-554).
You may remember, that the U.S. Women's Chamber of Commerce won a claim against the U.S. Small Business Administration. In an important Nov. 30, 2005 ruling, U.S. District Court Judge Reggie B. Walton found the SBA and Administrator Hector Barreto's five-year delay has sabotaged the implementation of the Women's Federal Procurement Program and the delay has been "unreasonable" and "beyond the scope of the SBA and the Administrator's authority."
One reason for the delay in the implementation of the Women's Federal Procurement Program was the incredible delay in the completion of a study to show the industries in which women-owned firms are underrepresented in federal contracting. After several years passing without the successful completion of this study, the SBA finally promised the court that the new study would be complete by November 21, 2006.
But, now the new SBA Administrator Steven Preston states this study is in "peer review" and will not be complete for several more weeks. In simple terms – if the SBA meets this new timeline, the completion of the study will be six months later than promised – and the implementation of the law passed by Congress in December 2000, will be passed the six and one half year mark and counting.
Women Business Owners: Act Now
It is very important that women business owners let the congressional leaders know that you take access to federal contracts seriously. Our issue is bigger than simply the implementation of this important program. We need the engagement of the leaders from every federal government agency to open the doors for women contractors.
Why Act Now?
It has been more than a decade since Congress established a five percent goal for contracting with women. This goal was set because in 1994 Congress recognized there was a disparity between the number and capability of women-owned firms and their commensurate access to government contracts. In all this time, the federal government has NEVER met the paltry five-percent goal. This inexcusable shortfall remains in spite of the incredible surge in the number and capability of women-owned firms over the last ten years.
Even after this track record of failure to provide access to contracts, the Small Business Administration – the government agency that is supposed to help small businesses – has sought to sabotage the implementation of women's federal contracting program causing delay after delay for over six years. We cannot let this attitude continue. We must aim high – and tell Congress that we expect them to intercede on our behalf to make sure that the doors of opportunity are open to American women business owners.
HISTORY:
[1994] The Federal Acquisition Streamlining Act of 1994 (FASA) set an overall goal of 5% for women-owned businesses. The Act did not, however, establish a specific procurement mechanism for accomplishing that goal. And between 1994 and 2000, the federal government never even came close to meeting this 5% goal.
[2000] To address the ongoing shortfall of contracts with women-owned firms, Congress passed the Equity in Contracting for Women Act of 2000 on December 21, 2000. This Act was to give agencies the ability to limit certain competitions to women-owned small businesses. It required the Small Business Administration (SBA) to (1) "conduct a study to identify industries in which small business concerns owned and controlled by women are underrepresented with respect to Federal procurement contracting" and (2) establish procedures to verify eligibility to participate in the procurement program. To date, the SBA has not implemented this program.
[2004] On October 29, 2004, the U.S. Women's Chamber of Commerce, in support of its 500,000 members, brought suit against the SBA for its failure to conduct the study of underrepresented industries and publish the regulations necessary to implement the women's program.
[2005] The SBA filed a Motion to Dismiss which was denied by the court (on December 8, 2005) and who further noted that the SBA "…had sabotaged, whether intentional or not, the implementation of a procurement program…" and concluded that "a deadline is in order".
[2006] On March 6, 2006, the SBA notified the court that it would "complete the disparity study within 9 months" or by November 21, 2006. No study has been produced to date. The federal government still has not reached the paltry 5% goal for contracting with women. Instead, contracting with women-owned small businesses hovers around 3%. Each year the shortfall costs us over five billion dollars.
[2007] The USWCC petitioned the court on February 9, 2007 for a Status Report and that the SBA report on its progress every 45 days.
[2007] U.S. House of Representatives Committee on Small Business to hold subcommittee hearing on March 21, 2007 at 10:00 a.m. to address shortfall of contracting with women-owned firms. The U.S. Women's Chamber of Commerce CEO Margot Dorfman, and three USWCC members will testify at this hearing. Join us at the hearing or let us know of you interest in this important issue by completing this form. We will send you updates and details of the room for the hearing.
WHY THE PROGRAM IS NEEDED: The failure of the SBA to meet its self-imposed deadlines and regulations drafting are especially troubling given several significant facts:
- The federal government has never met its self-imposed 5% goal. Over the last six years alone, women have lost $30 billion dollars in contracting opportunities.
- Women make up nearly 52% of the population - are partial owners of 50% of businesses and outright own 30%.
- Studies have shown that 40% of women businesses offer a product or service that can be used by the federal government.
WHAT CAN BE DONE:
(1) First and foremost, the SBA must abide by the Equity in Contracting for Women Act of 2000. For six years to have passed with the SBA ignoring the Act and Court orders is unconscionable. We have no doubt that the SBA treats women-owned businesses poorly and that these businesses continue to lose billions of dollars in contracting opportunities.
(2) Stop the culture of failure at the SBA and in all federal agencies. After over ten years of failure to meet the paltry 5% goal for contracting with women-owned firms, a culture of failure has set in where every year comes and goes in failure. This is unacceptable to women business owners. This ongoing acceptance of failure is why we must step up and be heard. We represent over 50% of all small businesses in the U.S. and we fully expect the SBA to be our champions in Washington.
Tell the SBA and the federal agencies to stop the culture of failure and begin a culture of pride. Our women-owned small businesses have helped to drive our economy and the success of our country. It is time for the SBA and the other federal agencies to respect our contributions, realign their efforts, set and keep goals, and hold failing agencies accountable.
(3) Tell Congress that you expect them to intercede on our behalf. After over ten years of failure – it is time for us to tell Washington that our economic and political clout count. We will no longer sit back and watch while government contracts bypass women.
 WomenO: Women to the Ownership Power
We must use the influence of our numbers and our votes to unify our resolve to end this disparity. It is time to step up to the plate and demand results. Take action now to let your congressional leaders know that you expect strong action.
WomenO: Women to the Ownership Power is the driving force of the Women's Ownership Movement. WomenO is a belief in the power of ownership -- ownership of our lives, our communities, our businesses, and our opportunities.
Through our commitment to WomenO, we drive the Women's Ownership Movement, grow our financial strength, create powerful new economic platforms, and move beyond being just a sought-after consumer market – taking our rightful place as the most power economic force in America.
Thank you.
Nancy Lee Hurlbert, National Policy Chair
U.S. Women's Chamber of Commerce
Make History: Join the U.S. Women's Chamber of Commerce.
Questions? Contact us here.
|
