Citing a shortage of accurate data on small business contracting, a House
panel last week approved an umbrella bill (H.R.
1481) aimed at forcing agencies to curb practices seen as freezing out
smaller bidders and requested a new Government Accountability Office study on
small business goals.

"We know that when small businesses compete for federal work, it creates
jobs, improves the quality of work, and saves taxpayers' money," said House
Small Business Committee Chairman Steve Chabot, R-Ohio. "This bill is a
commonsense approach to make sure that Washington is working with Main Street –
not locking it out of the procurement process altogether."

Combining six separate bills, the package would restrict "bundling" of
services or goods previously provided under separate contracts to the detriment
of small business and curb use of so-called reverse
auctions, in which contractors bid electronically for contracts at
progressively lower prices.

The bill would require the Small Business Administration, which announced
last year that agencies for the first time met the goal of awarding 23
percent of contracts to small businesses, to factor in use of subcontractors in
their performance. The committee's analysis of contract data from fiscal
2011-2014 showed that the number of small business contracting actions fell by
almost 60 percent and the average size of a contract action increased 230 percent.

"Under the [SBA's] scorecard system, the federal government received an A
grade for fiscal 2013," Chabot said in a statement. "While an A grade and a
reasonable percentage of small business prime contracting dollars would seem to
indicate that a healthy percentage of dollars are being awarded to small
businesses, [data] show that the use of small businesses is declining even as
the percentage of dollars awarded to small businesses increases. Additionally,
it is worth noting that in obtaining its A, the federal government did not meet
half of its numerical goals."

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