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'Iraqi first' policy hurts N.J. firm

by | Aug 11, 2007 | ASBL News

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'Iraqi first' policy hurts N.J. firm

By Justo Bautista
www.northjersey.com
August 11, 2007

'Iraqi first' policy hurts N.J. firm
Saturday, August 11, 2007

By JUSTO BAUTISTA
STAFF WRITER
www.northjersey.com

A new policy that forces the U.S. military in Iraq to support that country's economy by purchasing ceremonial gear from Iraqi companies is hurting a supplier 6,000 miles away in Bergen County, the firm's owner says.

Since before the first Iraq war, Wendy Lazar, owner of Glendale Industries in Northvale, has sold white gloves, drill rifles, chrome-plated helmets and other ceremonial gear to the military -- items often used to honor a dead soldier.

But several months ago, Lazar learned that under the Iraqi First program, she would have to go through some new "middlemen" -- Iraqi vendors -- if she wanted to continue doing business in the war-torn country.

"This is a whole new ballgame," Lazar said. "I understand why they are doing it, to help the [Iraqi] economy. But it is certainly affecting our business with the military."

 
Lazar said she heard of Iraqi First from a loyal customer, an Air Force sergeant at Sather Air Base in Baghdad who apologetically asked if Glendale Industries could "donate" white gloves because he could no longer order directly from the company.

Lazar donated the gloves. The sergeant sent her a unit flag as a thank you.

The military describes the program as critical to developing Iraqi economic expansion and entrepreneurship to "enable better lives for the Iraqi people themselves and their families."

"Iraqi First ... allowed us to put more Iraqis to work by procuring locally required supplies and services from Iraqi contractors," Lt. Col. Kevin Zurmuehlen, of the Joint Contract Command-Iraq/Afghanistan, said in a statement outlining the program.

Lloyd Chapman, president of the American Small Business League, isn't convinced that Iraqis selling $6.95 chin straps or $55 chrome-plated helmets to the U.S. military will boost the Iraqi economy.

"The concept of giving preference to anybody in the world over a U.S. company is appalling," Chapman said.

So far, dealing with the new middlemen has been a frustrating experience for Lazar's staff, as Iraqi vendors are not yet familiar with ordering and shipping procedures, or deadlines.

The company is currently preparing to ship sabers, helmets, chin straps, gloves and flag carriers to an Iraqi vendor for sale to an Army base in Al Qayyarah, about 200 miles north of Baghdad.

"It's just making it a little more labor intensive for us and, possibly, more expensive for the military," said Marilyn Matthieson, the company's operations manager.

But the program won't ruin Glendale Industries. As one of the few U.S. companies specializing in ceremonial gear, it does business with civilian and military honor guard units all over the world.

"In the military, pomp and pageantry is very important," Lazar said.

The company still sells directly to the White House, the Department of Homeland Security and the National Guard and ROTC units. It also sells to magicians, "Star Trek" fans, firefighters, police and movie production companies.

Lazar, a former journalist, bought the business 22 years ago from a Cresskill World War II veteran. Her kitchen table served as an office; her garage doubled as a warehouse.

Today, the one-story brick warehouse on Paris Avenue is packed with 12,000 items. The Glendale Industries staff has included many veterans and Lazar has become the unofficial patron saint of honor guards. For Lazar, the ceremonial gear sometimes serves as a reminder of war's grim toll.

"Emotionally, the one that got me the most was ... 100 casket flags ordered by a base in Iraq two years ago," she said. "Just emotionally, we were all bothered by it."

Today, those flags would come from Iraqi companies.

Source: http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk1NSZmZ2JlbDdmN3ZxZWVFRXl5NzE4MDI5MCZ5cmlyeTdmNzE3Zjd2cWVlRUV5eTM=

 


DHS says spending provision could hurt small business contracting

by | Aug 3, 2007 | ASBL News

News

DHS says spending provision could hurt small business contracting

By Elizabeth Newell
www.govexec.com
August 3, 2007

A provision in a House spending bill could hamper the Homeland Security Department's efforts to do business with small companies, an agency official said Thursday.
The provision -- Section 537 of the fiscal 2008 homeland security spending bill (H.R. 2638) -- states that funds for DHS can be obligated only for contracts awarded through full and open competition, except in cases of national emergency.
During a House Small Business Committee hearing Thursday, Paul Schneider, undersecretary for management at DHS, said the language would be "absolutely detrimental" to the department's small business contracting programs because it would not allow for work to be set aside for small firms.
"We're all for competition," Schneider said. "But we want to be able to execute the small business programs we've been exercising because we think they're absolutely essential to stimulate growth in that particular area of the economy."
Rep. Charles Gonzalez, D-Texas, attempted to clarify the purpose of the provision, while admitting it may be susceptible to strict interpretation.
"We're attempting ... to address some problems," Gonzalez said. "And one of those is, of course, to ensure we don't have a proliferation of no-bid contracts or to make sure that we don't have favoritism based on political party affiliation demonstrated in the awarding of contracts."
Gonzalez added that he agrees care is needed to avoid "unintended consequences."
The Bush administration has come out against the provision. In a policy statement, officials said they strongly support competition in awarding contracts, but believe the department should have the ability to use all available procurement tools, including well-established exceptions to full and open competition when justified.
Lloyd Chapman, president of the American Small Business League, said the provision could simply exacerbate an existing reluctance to award contracts to small companies.
"I don't think the Department of Homeland Security has the kind of commitment to small businesses I'd like to see them have," Chapman said. "I see excuses from every agency in Washington and I don't believe them. [The provision] just gives them another excuse to not work with small businesses."
While Chapman said small companies would not be able to compete with large businesses in full and open competition, Todd McCracken, president of the National Small Business Association, disagreed.
"In general, small businesses can compete unless the contracts are unfairly bundled," McCracken said. Contract bundling refers to the practice of combining two or more contracts into a large single agreement, and is believed to put small businesses at a disadvantage.
McCracken said he planned to get in touch with Schneider to discuss any effect the spending bill provision would have on set-asides for small businesses.
While the Senate version of the bill differs from the House version, Sen. John Kerry, D-Mass., chairman of the Small Business and Entrepreneurship Committee, said he would work to ensure any provision enacted does not adversely affect small firms.
"I support fair, open competition for federal contracts, but it must not be done at the expense of America's small businesses," Kerry said. "I will continue to fight for contracting provisions that level the playing field, and that includes designating contracts specifically for small firms. The language in the House bill appears vague and open to interpretation, so I will work with my colleagues to make sure small business set-asides are protected."
The House passed its version of the spending bill in June and the Senate passed its version on July 26; differences between the two will be worked out in conference negotiations.
At the House hearing Schneider implored members of the committee to advocate against the provision.
"If there is anything that you can do, we would really ask for your support in conference getting this turned around," he said. "This is a big deal for us, and we would appreciate your help in that regard."