The Small Business Administration Continues Delay Tactics to Avoid Implementing the Women's Federal Procurement Program Fifteen Hundred and Forty-Six Days Have Passed Since the Women's Federal Procurement Program Was Signed Into Law The SBA's efforts on behalf of women business owners accessing government contracts has been shoddy, slow and halfhearted Late last week, the U.S. Small Business Administration announced that the National Academy of Sciences (NAS) had finally completed its study of the SBA's original study to implement the women's federal procurement program. The NAS report details the SBA's clear lack of quality effort and commitment to timely implementation of a law that is now 1546 days old. [Read background here.] Here are some of the findings and facts from the study: Delay: Even though this important legislation in support of women business owners was signed into law in 2000, the SBA didn't even complete their initial study until late 2002.   Delay and spend money to delay: After taking nearly two years to complete their sloppily done study – the SBA decided to seek outside assistance from the NAS (paying them $180,000 to do a study of the study).  However, they waited a year and a half AFTER their first study to ask the NAS to do a study of the study. Then, it took the NAS nearly one full year to complete the study of the study.   Delay and Obfuscate: The NAS began with a "workshop" on the study which was a full day discussion of the SBA study and other issues with a number of national participants. However, the NAS was not even given a copy of the SBA study at the time of the very workshop session that was held to discuss the SBA study.  The NAS says in the report, "Later on in the project, the committee members were able to receive a copy and examine it."    Behind the scenes influencers: The NAS did not include any women business owners in the workshop, but did invite the Department of Defense to take part.  Why?  The NAS says because the Department of Defense was the biggest stake holder.  Aren't women business owners actually the biggest stake holder? Delay and Obfuscate: The NAS says SBA's original study was very poorly documented. The NAS reporting on the SBA study indicates, "incomplete and unclear documentation," and "tables and graphs are not clearly labeled, and the steps followed to evaluate and select data sources and construct estimates are not clearly described."  And, "although the document mentions many studies that were consulted, it provides only two references." Knowing this, why didn't the SBA simply provided the documentation the NAS needed?  If a table isn't labeled, why not go back and label it? If a document is referenced, why not provide the detail?   Delay: The NAS also says that the SBA data used is now outdated.  This should not be a surprise since it is now 1546 days after the legislation was passed into law and several years after the SBA should have completed their study with good documentation, written the regulations and implemented the program. Here are some direct quotes from the SBA in their "Motion to Dismiss" (the USWCC claim seeking the courts to compel the SBA to act) with regard to the urgency they see with implementing this now 1546 day old law: No deadline: "Although defendants have been under a duty to implement the WOSB contracting program since the Act was enacted on December 21, 2000, the enabling legislation does not specify a deadline for completion of the industry study and promulgation of the program eligibility requirements."   No haste required - its only been four years: "An overly hasty timetable for implementation of the federal women-owned small business contracting program, as plaintiff requests, would be contrary to the interests of all parties who will be affected by that program and contrary to the public interest." No harm in waiting: "The consequences of the delay and the interests at stake do not implicate any health or safety concerns. Instead, those interests pertain exclusively to "the sphere of economic regulation" in which delay is "more tolerable" than in matters affecting "human health and welfare." Furthermore, any adverse consequences of the delay are mitigated by the availability of other programs and resources that benefit women-owned small businesses, as described on SBA's internet site, www.sba.gov. In addition, because the WOSB contracting program will inevitably disadvantage businesses that are not eligible to participate in the program by reducing the number of contracting opportunities that would otherwise be available to those businesses, it is particularly important to insure that the program is soundly-based so as to avoid unnecessary harm to innocent third-parties."   The SBA is concerned about injury to small businesses: "Plaintiff fails to appreciate that government contracting is a "zero sum game." There is not an unlimited well of contracts waiting for bids. Instead, the number of contracting opportunities at any one time is finite.  Accordingly, if a contract were set aside for women-owned small business because a defective industry study showed underrepresentation where it does not in fact exist, there will be one less contract available for other small business contracting programs."   SBA not responsible for contracts anyhow: "The pertinent statutory provision specifies only that "a contracting officer may restrict competition for any contract for the procurement of goods or services by the Federal Government to small business concerns owned and controlled by women" if certain conditions are met, including "a reasonable expectation" by the contracting officer that "two or more" women-owned small businesses will submit offers for the contract, and "in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price."  Thus, use of the women-owned small business contracting program is permissive, not mandatory, and depends heavily on the discretion of contracting officers, not on decisions by SBA. Background The U.S. Women's Chamber of Commerce™ filed a complaint in October 2004 against the U.S. Small Business Administration (SBA) and SBA Administrator Hector Barreto in U.S. District Court for the District of Columbia, under the Administrative Procedure Act to compel the SBA to implement the Women's Procurement Program, Public Law 106-554, codified at 15 U.S.C. § 637(m). As part of the SBA reauthorization in 2000, Congress passed what was originally titled the "Equity in Contracting for Women of 2000" Act. The purpose of this Act was to "allow contracts, in industries historically underrepresented by women-owned small businesses, to be reserved for competition by women-owned small businesses." Congress issued this mandate in December 2000. The USWCC, the pre-eminent national women's chamber of commerce network representing more than 150,000 members and nearly 10 million women business owners across the U.S., has watched and waited for the SBA to act on this legislation. According to the USWCC, thousands of its members believe their ability to gain access to government contracts has been harmed by the ongoing delay in implementing this congressional mandate. "We've let the SBA leaders know our members are tired of waiting, and are losing business opportunities every day because this law has not been enacted," said Dorfman. The SBA filed a motion with the U.S. District Court asking that the suit be dropped. The USWCC, in turn, has asked the court to hear oral arguments. "We're pressing forward with a number of initiatives aimed at helping women business owners gain procurement opportunities and easier access to capital," said Dorfman. "We remain very optimistic the Court will recognize the disparity gap for women business owners is growing wider by the day without enactment of this law." For more information on the U.S. Women's Chamber of Commerce™, including additional information about the USWCC's suit and the Women's Procurement Program, please see the organization's full-feature Web site: www.uswomenschamber.com. The U.S. Women's Chamber of CommerceTM is the leading advocate for women on economic and leadership issues, the USWCC is creating economic and leadership opportunities for women by building a strong community voice, lobbying for you, and providing programs and benefits to support the growth of our women across America. If you are not a member, we hope you will consider joining to support our efforts to support you. U.S. Women's Chamber of Commerce - http://www.uswomenschamber.com 1201 Pennsylvania Ave NW, Suite 300 Washington, DC 20004 888-41-USWCC You may also contact us here. Copyright © 2005 U.S. Women's Chamber of Commerce