Mr. Chairman, I move to strike the requisite number of words. (Mr. DAVIS of Illinois asked and was given permission to revise and extend his remarks.) Mr. Chairman, not very often will Members hear me contradict the ranking member of the…
Mr. Chairman, I move to strike the requisite number of words.
(Mr. DAVIS of Illinois asked and was given permission to revise and extend his remarks.)
Mr. Chairman, not very often will Members hear me contradict the ranking member of the Committee on Small Business. But I rise in opposition to this amendment and will include my entire statement in the Record.
I rise in opposition to this amendment, even though I have the utmost respect for its author and have long appreciated her work and her leadership on so many issues which have come before this House.
But the amendment before the House today attempts to effectively repeal the Small Business Competitiveness Demonstration Program Act of 1988, better known as the ``Comp Demo'' law, by prohibiting the use of funds to carry out its implementing provisions.
Comp Demo has not been an effective tool for over 17 years in helping assure that small businesses across a wide array of industries gain Federal contracts. Equally important, Comp Demo does not affect contracts which are set-aside for minority-owned, socially disadvantaged, and service-disabled veteran-owned businesses.
From its inception, the Comp Demo law has sought to address the tendency of agencies to disproportionately rely upon a small number of NAICS codes to meet their small business set-aside goals rather than finding and developing a broad array of codes from which to meet these goals, a practice which, if unremedied, would have the practical effect of precluding small businesses outside those disproportionately used industries from assessing the benefits of the small business set-aside program.
And that is why I oppose this amendment. The Comp Demo law has proven its effectiveness during its 17-year history. It is fair to small businesses interested in Federal contracting and assures that Federal agencies meet the spirit and the letter of the law regarding small business set-asides.
I agree with those who would suggest that this program, as well as practically all, need to undergo changes and need to be shaped in a better way to help make absolutely certain that small businesses have the greatest amount of opportunity to procure business from the Federal Government.
However, I also believe that small businesses that have reached a certain level of their being also need the opportunity to continue to grow and to develop, that small businesses that might be part of franchises but are nevertheless small businesses need the opportunity to participate.
And for those reasons, I would be in disagreement with this amendment. I urge that it be not approved and would look forward to working with all of those who would want to work to try to reshape the law in such a manner that it would be more fair and more equitable to small businesses.
Mr. Chairman, I rise in opposition to the amendment by the gentlelady from New York, Ms. Velazquez, and I ask unanimous consent that my entire statement be included in the Record.
I rise in opposition to this amendment even though I have the utmost respect for its author and I have long appreciated her good work on so many other issues which have come before this House.
The amendment before the House today attempts to
effectively repeal the Small Business Competitiveness
Demonstration Program Act of 1988, better known as the ``Comp
Demo'' law, by prohibiting the use of funds to carry out its
implementing provisions.
Comp Demo has been an effective tool for over 17 years in helping assure that small businesses across a wide array of industries gain Federal contracts. Equally important, Comp Demo does not effect contracts which are set aside for minority-owned, socially disadvantaged and service disabled veteran-owned businesses.
From its inception, the Comp Demo law has sought to address the tendency of agencies to disproportionately rely upon a small number of NAICS codes to meet their small business set-aside goals rather than finding and developing a broad array of NAICS codes from which to meet those goals--a practice which, if unremedied, would have the practical effect of precluding small businesses outside those disproportionately used industries from accessing the benefits of the small business set- aside program that Congress intended.
That is why I oppose the amendment before the House today. The Comp Demo law has proven its effectiveness during its 17-year history. It is fair to small businesses interested in Federal contracting and assures that Federal agencies meet the spirit and the letter of the law regarding small business set asides.
As background, Members should be informed that the Comp Demo program was passed in 1988 to assure that small businesses in all product and service categories receive the benefits of the current Small Business Set Aside program when pursuing Federal contracts, rather than just a few, ``easy-to-do'' industries.
As such, Comp Demo has effectively worked for the past 17 years to assure that competition and diversity occurs in small business procurement (See: section 921 of P.L. 99-661) and that small businesses receive a ``fair proportion'' of government contracts in each industry, rather than just a few.
The Comp Demo program recognizes that contracts in certain NAICS codes--including construction, architectural and engineering, surveying and mapping, shipbuilding and ship repair, refuse systems, landscaping and pest control services--have had a history of being disproportionately set aside for small business, even though overall small business participation in the open marketplace in these industries was high.
And while the NAICS codes covered by the Comp Demo program had a significant amount of contracts historically set aside for small business, very talented small businesses in many other NAICS codes have seen little, if any, small business set-aside contracts come their way, despite representation of capable small firms in those other NAICS codes.
Moreover, the practice of disproportionately using a small, unrepresentative sample of NAICS codes for meeting small business set- aside goals has the practical effect of precluding small businesses outside those disproportionately used industries from realizing the benefits of the small business set-aside program as Congress intended.
This practice can also operate to relegate the small business set- aside program to lower-tech products and services while leaving higher- tech NAICS codes less open to small business penetration and success in Federal contracting--something that clearly runs contrary to Congress's desires to both strengthen the diversity of the defense industrial base and assure fairness in Federal contracting.
On the basis of its operation over 17 years, Comp Demo has shown that small businesses covered by Comp Demo can and do compete for and win the majority of the contracts, though on an unrestricted basis. Equally important, Comp Demo does not effect set asides for:
Minority-owned and socially disadvantaged businesses--that is, set asides for 8(a) and HUB Zone companies are not subject to the Comp Demo law.
Similarly, Comp Demo does not apply to set asides for service- disabled veteran owned businesses either.
In addition, very small/local businesses retain important set-aside protections under Comp Demo as well, including:
All contracts under $25,000 on the Comp Demo list must be set aside for restricted competition only among qualified emerging small businesses, i.e., small businesses that are less than 50 percent of the applicable size limit.
Moreover, Comp Demo also requires that all contracts over $25,000 in each designated NAICS category on the Comp Demo list must be set aside for restricted competition only among qualified small businesses, until the agency has met its goal of awarding 40 percent of contracts within that industry group to small businesses.
Only after an agency has met its goal of awarding 40 percent of contracts within a listed NAICS category can contracts over $25,000 in that designated NAICS category be awarded on unrestricted competition-- again, except for those contracts set aside as 8(a), HUB Zone or service-disabled veteran owned companies.
Finally, Comp Demo was begun as a demonstration project some 17 years ago. It was renewed in 1992, made permanent in 1997, and slightly expanded in 2004 to include two additional NAICS codes. In all instances, Comp Demo was part of a larger bill which passed by wide, bipartisan margins or unanimous consent.
Comp Demo was set up to expand opportunities for small businesses across a broad and diverse set of NAICS codes, rather than in a few, ``easy-to-do'' categories. The repeal of the program has no real justification, would harm overall, broad-based small business participation in Federal contracting, and harm the development of a diverse defense industrial base. As such, I urge its rejection by the House.