U.S. District Court: SBA Must Implement Women's Procurement Program

Press Release

U.S. District Court: SBA Must Implement Women's Procurement Program

December 8, 2005

[Washington, D.C.] The U.S. Women's Chamber of Commerce congratulates the court for upholding the rights of Americans to expect the executive branch to implement the laws established by Congress. 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." The SBA must submit a proposed schedule for implementation of the program within 45 days, and take part in a status hearing.

"Women business owners are losing billions of dollars in opportunities every year as we wait for the SBA and Administrator Barreto to simply do their jobs," said U.S. Women's Chamber of Commerce CEO Margot Dorfman. "We're happy to know our court system will hold the executive branch accountable for implementing the laws established by Congress, and we continue to wait for the SBA to implement this important economic program in support of women business owners."

"Not only has the court held that the incredible five-year delay in implementing this law is unreasonable, Judge Walton found that our members have sustained concrete injury which has harmed -- and continues to harm them -- and they are entitled to some form of relief," added Dorfman. "Judge Walton makes it clear he will check the progress of the SBA and retain jurisdiction in this case to monitor the SBA's adherence to congressional mandates."

"Even now, the SBA is dragging its feet on the implementation of the Women's Procurement Program. The SBA indicates it will not have the procedures for implementation of the program complete until May 2006, and has established a nine-month time frame for the completion of the new study," Dorfman continues. "The SBA was established to assist small business owners. Instead, after five long years, they still require an additional six months to simply write the procedures necessary to implement this program."

Background

On October 29, 2004, the U.S. Women's Chamber of Commerce filed a complaint 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 is 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 on Dec. 21, 2000. Five years have passed and the SBA has unreasonably delayed its response to this mandate. The SBA has set, orally and in writing, a series of deadlines for accomplishing the steps necessary to implement this program, and all of these deadlines have been missed. And, the Administrator of the SBA recently informed leaders of the U.S. Women's Chamber of Commerce that he has no intention of implementing the program.

On May 26, 2005 over seventy members of Congress signed on to an amicus brief in support of the USWCC complaint seeking to compel the SBA to implement the law they passed.

On December 8, 2005 Judge Reggie B. Walton refused to dismiss the complaint brought by the U.S. Women's Chamber of Commerce against the SBA for failure to implement the Women's Procurement Program, and made it clear through his memorandum that he will closely monitor SBA's progress toward implementation.

View Judge Walton's Memorandum Opinion here: http://www.uswcc.org/SBA-Opinion-113005.pdf.

View the USWCC complaint here: http://www.sblink.us/html/complaint.aspx.

View additional information here: http://www.sblink.us/html/uswcc-wfpp-pc.aspx

About the U.S. Women's Chamber of Commerce

The U.S. Women's Chamber of Commerce™ (http://www.uswomenschamber.com) is the pre-eminent national women's chamber of commerce network whose mission is to develop leaders, accelerate economic growth and provide a community voice for women. The USWCC, a not-for-profit 501(c)6 organization founded in 2001, is growing through councils and strategic alliances across the U.S. Creating and representing the next generation of leadership for women, the USWCC is women's connection to influence, education, opportunity and advancement. Its headquarters offices are located in Washington, D.C.

Contacts:
U.S. Women's Chamber of Commerce™ media contact:
Jill Van Dierendonck
(800) 738-0653

U.S. Women's Chamber of Commerce™ contact:
Margot Dorfman, CEO
(888) 41-USWCC / (888) 418-7922



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