President Obama Recognizes the Role of Small Business in Economic Recovery; Takes Action to Improve Small Business Access to Federal Contracts

Today, President Obama issued a memorandum announcing strong steps for his Administration to learn how federal agency spending can be more fair and open to small business contractors, bring greater transparency to the contracting process and data, and act to invigorate federal spending with small firms.

Unfortunately, this announcement most likely comes as an early warning of sub-par FY 2009 achievement of small business federal contracting goals (this data has not yet been publicly released) and continued pressure by small businesses and trade association leaders to end the long standing failure of the federal government to assure a fair and open marketplace inclusive of small businesses including businesses owned by women, minorities, socially and economically disadvantaged individuals, and service-disabled veterans.

Even if these steps are being taken now to lessen the impending bad news, we can be heartened by the seriousness of President Obama's response. As detailed below, Mr. Obama is bringing together a very senior level Task Force from a wide range of federal agencies and policy leaders to provide proposals and recommendations within 120 days, and is establishing within 90 days a website to bring greater accountability and transparency, allow for the oversight of the Federal Government's progress in small business contracting, and to bring improved collection, verification, and availability of Federal procurement data.

The focus on transparency and accuracy of data is very likely a response to the February 2010 Small Business Administration Inspector General Report that serious and numerous inaccuracies within the data used by the SBA to report on small business goaling achievement and the ongoing complaints by small businesses and trade associations (ours included) that the data is flawed and many contracts counted towards small business goals were actually awarded to big businesses.

The U.S. Women's Chamber of Commerce will actively outreach to members of the Task Force to emphasize that the steps needed to invigorate Federal contracting with small businesses must not be confined to more and more PR focused "outreach" sessions. As many of our members have told us over the course of several years, many very qualified and prepared small businesses are registered in CCR and actively seeking contracts. But, the doors must be open. Contracting officers need the tools necessary to assure women-owned and other small businesses are securing contracts. And, contracting officers and agency leaders must be held accountable for the failure to assure small businesses have fair access to contracts.

We believe increased transparency including deeper and more timely reporting of contract actions (including bundled contracts), contract officers responsible for awards, and the firms receiving contracts will spur agency leaders to act with more strength in leadership. Additionally, best practices developed by agencies who are meeting small business contracting goals should be widely communicated and put into place in agencies that continue to lag behind.

And, without question, the implementation of the Women's Federal Procurement Program after a decade of delay, will give contracting officers an exacting tool to finally put an end to the failure of the federal government to ever reach the recommended goal for contracting with women-owned firms.

I encourage you to register at the group we have setup at the Small Business Contractors' Forum that will track the progress of the Task Force and enable us to receive your input as we bring your voice to Washington. We must take this opportunity for input with great seriousness and provide thoughtful input.

Thank you.

Margot Dorfman, CEO
U.S. Women's Chamber of Commerce

Details of President Obama's Memorandum and Task Force

(View entire memorandum at the White House website.)　

Co-Chairs of the Task Force:

• Secretary of Commerce
• Director of the Office of Management and Budget
• Administrator of the Small Business Administration

Members of the Task Force:

• Secretary of the Treasury
• Secretary of Defense
• Attorney General
• Secretary of Labor
• Secretary of Housing and Urban Development
• Secretary of Transportation
• Secretary of Veterans Affairs
• Secretary of Homeland Security
• Administrator of General Services
• Administrator of NASA
• Director of the Minority Business Development Agency
• Director of the Office of Science and Technology Policy
• Director of the Domestic Policy Council
• Director of the National Economic Council
• Chair of the Council of Economic Advisors

The Task Force shall provide to the President, not later than 120 days, proposals and recommendations for:

• Using innovative strategies to increase opportunities for small business contractors
• Removing barriers to participation by small businesses by unbundling large projects, improving training of Federal acquisition officials with respect to strategies for increasing small business contracting opportunities, utilizing new technologies to enhance the effectiveness and efficiency of Federal program managers, acquisition officials, and the Directors of Offices of Small Business Programs (and OSDBUs), their managers, procurement center representatives in identifying and providing access to opportunities
• Expanding outreach strategies to match small businesses with contracting and sub-contracting opportunities
• Establishing policies, including revision or clarification of existing legislation, regulations, or policies that are necessary or appropriate to effectuate the objectives of this memorandum

Within 90 days a website shall be developed that:

• Illustrates the participation of small businesses (including socioeconomic) in federal contracting.
• To foster greater accountability and transparency in, and allow oversight of the Federal Government's progress, this website shall be designed to encourage improved collection, verification, and availability of Federal procurement data and provide accurate data on the Federal Government's progress in ensuring that all small businesses have a fair chance to participate in Federal contracting opportunities.

Outreach and Inclusion:

• In developing its recommendations, the Task Force shall conduct outreach with reps of small businesses and small business associations.