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OUR OPINIONS: Small businesses need a big hand
By David McNaughton
The Atlanta Journal-Constitution
December 28, 2006
Small businesses face enough challenges without having to fight their bigger peers for government work that's intended for the minnows of the economy but goes to the whales by mistake. Microsoft, Wal-Mart and Exxon Mobil have all won contracts meant for small businesses.
It's a persistent problem that's been documented by the Small Business Administration and the Government Accountability Office. Yet it remains unresolved.
Fortunately for small business owners, advocates for that sector of the economy will be positioned to do something about unfair competition when the new Congress convenes in January. U.S. Rep. Nydia Velazquez (D-N.Y.) will head the Small Business Committee in the House, and U.S. Sen. John Kerry (D-Mass.) will lead the Small Business and Entrepreneurship panel in the Senate, The New York Times noted Wednesday. Both expressed concern that small businesses are at a disadvantage under the current system and need help.
A good start would be to insist that contract award regulations be enforced.
Federal law encourages the growth of small business by requiring that 23 percent of the value of government contracts awarded go to such firms. But because of mistakes, confusion or fraud, big business gets work it shouldn't have. House Democrats found $12 billion worth of contracts went to big companies such as Microsoft and Rolls-Royce last year, according to The Associated Press.
It should be obvious to anyone that neither of those companies is a small business.
Changes are past due. If the definitions of a small business are confusing, they should be made clear. If additional information from contract seekers is needed to verify their size, it should be required. If stronger enforcement of the rules by government agencies is necessary, it should be mandated. If the protest process is complicated and weighted toward big business —- as critics charge —- it should be reformed.
—- David McNaughton, for the editorial board (dmcnaughton@ajc.com)
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