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 Women’s Federal Procurement Program
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Read the SBA Response to
One of Our Initiative Supporters
(go back to Town Hall)
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SBA Response (see email text below)
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Our Comments
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From: Swain, Donald [mailto:Donald.Swain@sba.gov]
Sent: Tuesday, June 15, 2004 9:12 AM
To: 'removed for privacy'
Cc: Swed, Sheryl
Subject: Implement PI 106-554 Women Federal Procurement Program
Thank you for your email message to the Administrator of the Small Business Administration, regarding implementation of the Women-owned Small Business Set-aside Program set forth in Public Law 106-554. The statute requires the U.S. Small Business Administration (SBA) to conduct a study to identify industries in which women-owned small businesses (WOSBs) are under represented and substantially underrepresented with respect to Federal contracting for the purpose of making awards under the Act.
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The SBA refers to a requirement for a study to identify industries where women-owned small businesses (WOSBs) are under represented and substantially underrepresented with respect to Federal contracting.
First - let’s do the very simple math. Women-owned businesses represent about 30% of the whole market and cannot even reach the very low artificial ceiling of “5%” in government contracting.
A “study” to figure out the obvious is inserted in the legislation - so that it will standup under legal scrutiny.
This legislation was signed into law 3 1/2 years ago. What possible excuse can there really be for not fulfilling the “study” requirement?
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Earlier, SBA completed a draft of the study and the regulations. However, after further evaluation of the study and regulations, SBA determined that the methodology used for the study raised significant legal concerns, in light of a number of recent court decisions. Therefore, SBA did not formally issue the study or regulations. Subsequently, SBA contracted with the National Academy of Sciences (NAS) to recommend a sound methodology for doing such a study that would withstand legal scrutiny. The results of the review are expected in the fall. Originally, SBA expected to have the results by this spring, but NAS requested a no-cost extension of the period of performance.
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You will notice the wording. The SBA determined there were problems with their study.
Congress (or the legislation itself) did not cause this delay. The delay has completely and 100% due to the SBA. Congress did not change the legislation. The SBA (which does studies all the time) says it “contracted with the National Academy of Sciences” to recommend a sound methodology for the study.
Again --- it has been 3 1/2 years - and we are without a simple study. These types of studies have been done across the U.S. for a large number of local government entities. People know how to do these studies.
And - VERY IMPORTANT. The SBA has been asked repeatedly about the Women’s Federal Procurement Program and has not proactively sought to implement the program. As recently as 60 days ago, when asked directly about this issue, they responded that - ‘they were not focused on this right now.’ They indicated they were focused on the disabled veterans set-aside program.
Additionally, at a recent hearing of the House of Representatives Small Business Committee focused at women entrepreneurs, the SBA did not even mention the Women’s Federal Procurement Program.
We support disabled veterans. However, the Women’s Federal Procurement Program has been sitting on the shelf for 3 1/2 years with NO action. And, admittedly by the SBA - not a priority. Meanwhile the very recent legislation to support disabled veterans was signed into law and implemented with great speed.
The priorities are clear - the Women’s Federal Procurement Program is not a priority. If it was a priority - given that it is 3 1/2 years after the legislation was signed into law - the SBA would have implemented this program.
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SBA's Office of Federal Contract Assistance for Women Business Owners (CAWBO) is working closely with the Women Advocates in each agency and the Directors, Office of Small and Disadvantaged Business Utilization to promote opportunities for women-owned small businesses. We are also working diligently to enhance the efforts of Federal agencies to reach the 5 percent goal of prime contract dollars going to WOSBs. Please note that disadvantaged WOSBs that meet the program requirements are currently eligible for SBA's 8(a) Business Development and Small Disadvantaged Business (SDB) programs. Some WOSBs that can meet the criteria are also eligible for the Service Disabled Veteran Owned Small Business Program. WOSBs may also be eligible for the HUBZone program. All provide support to participants with regard to Federal procurement.
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If the SBA was really “working diligently to enhance the efforts of Federal agencies to reach the 5 percent goal” - they would implement the Women’s Federal Procurement Program. This valuable tool is much needed. Small business procurement representatives and buyers have told us they welcome this tool.
The SBA has had 3 1/2 years to implement this important legislation. Pushing us to seek 8(a) certification, service disabled veteran opportunities and HUBZone opportunities are not the equivalent of the a program for women. This listing of targeted programs actually shows us where women are in the preference programs - after 8(a), after service disabled veterans, after HUBZone - with NO preference program.
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In addition, CAWBO collaborated with SBA's National Women's Business Council to develop a website for women business owners www.womenbiz.gov, which contains in-depth information for women business owners that are interested in doing business with the government. It contains over 100 links to current procurement information. Another powerful portal is www.women-21.gov, which is a one-stop shop for women's entrepreneurship in the 21st century.
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Web sites and links to government procurement sources are nice. But the federal government has still not even reached the low 5% goal for women-owned businesses.
And, these sites have nothing to do with legislation passed and signed into law on your behalf - but not implemented by the SBA.
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Small businesses are the engines that drive this economy. It is women-owned businesses that are growing the fastest. WOSB have received increased federal contract dollars each year from 1997 to 2003. The government-wide achievement for WOSB in FY 2003 was $8.2 billion dollars up from $6.8 billion dollars in FY 2002. The SBA is committed to ensuring that all small businesses, including those owned by women, have a fair opportunity to compete for federal prime and subcontracting opportunities.
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The SBA says, “it is women-owned businesses that are growing the fastest.” Reality is - percentage growth on a horribly low market share represents next to nothing for hungry women-owned small businesses.
The reality is - that the number of businesses has grown tremendously. But, women-owned businesses still remain (as a whole) at about 1/3 the size of the whole market.
If the SBA wants to show their commitment to women - they will implement the legislation that was passed 3 1/2 years ago.
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Should you have additional questions, please have your staff contact Sheryl J. Swed, Assistant Administrator, Office of Federal Contract Assistance for Women Business Owners, on 202-205-6413.
Sincerely,
//s//
Bridget E. Bean
Associate Administrator
Procurement Policy & Liaison
Donald R. Swain
Director, Executive Secretariat
Small Business Administration
202-205-2410
"Take initiative. Don't wait for instructions!"
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We strongly suggest you take this information and call the SBA - let them know of your views.
Director Swain’s tag line says, “Take initiative. Don’t wait for instructions.”
We hope you will - take initiative!
Call Donald Swain at 202-205-2410 and call Bridget Bean at 202-205-6413.
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