SBA Report Card Innacurate in Reporting Small Business Participation
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Federal Agencies Continue to Misrepresent their Results and Still Cannot Meet their Goals
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SBA Report Card Innacurate in Reporting Small Business Participation
- 1. Tracking Participation in Government Contracting During the Obama Administration
- 2. Our Mission: “To Double the Number of Small and Minority Businesses Contracting with the Federal, the State and the Local Governments by the year 2020”
- 3. DEFINITION OF SMALL BUSINESS BY STATES AND LOCAL GOVERNMENTS * Less than 100 employees * Limited Gross Revenues (e.g., < $1M, $7M, $25M) * Archaic and duplicative registration and certification process
- 4. DEFINITION OF SMALL BUSINESS BY THE FEDERAL GOVERNMENT * Any business meeting a very complex 57 page methodology • NaFCA ‘Solution Summits’ recommended simplification of Methodology * Not dominant in their own NAICS code(s) * Employs less than a defined percentage of dominant businesses in a NAICS code(s) • Grosses less than a percent of the dominant businesses in a NAICS code(s) * Simplification must incorporate revamping Size Protests, Penalties and Enforcement * If you Agree with the Simplification tell your elected officials and SBA about it SizeStandards@SBA.Gov
- 5. DISADVANTAGED BUSINESSES According to P.L. 95-507 * Owned/controlled by a Member of a group Congress has determined is underserved * Race, Ethnicity and Gender are simply ‘characteristics’ of the groups * Current Archaic and Duplicative Certification Process Causes Waste and Abuse
- 6. SET ASIDE CONTRACTS * Established to prevent monopolies, build capacity and level the playing field * Reserved for competition solely among small and disadvantaged businesses * Public Agencies are ‘supposed to’ establish their own contracting goals * Market research is ‘supposed to’ determine what contracts get reserved * Regulations and Procurement Statutes are ‘supposed to’ provide guidance * Size Protests are ‘supposed to’ prevent abuses and safeguard participation * Penalties and their enforcement are ‘supposed to’ deter abusive practices or barriers * Specialized Education for contracting workforce is ‘supposed to’ be available
- 7. HOW TO LEVEL THE PLAYING FIELD * Eliminate the existing ‘barriers’ or ‘abusive procurement practices’ http://bit.ly/Contracting_Barriers * Enforce the Existing Laws http://bit.ly/Public_Laws * Support The Umbrella Initiative Transparency Tools http://www.umbrellainitiative.org/portal
- 8. SHARE OF FEDERAL CONTRACTS What the Obama Administration SBA Report Card Has Claimed FY 2009 FY 2010 FY2011 $96.8 B $97.9 B $91.5 B 21.8% 22.6% 21.6% The Facts Before Anomalies Remove Billions in Ineligible Contracts 18.5 % 19.3 % 17.1 % Anomalies typically reduce the actual results by as much as 15-20 %
- 9. OVERALL PARTICIPATION IN GOV’T CONTRACTING 2010 U.S. Census CCR Database Small Businesses 27.2 M 482,262 (1.7%) Minority Businesses 5.8 M 117,636 (2%) Disadvantaged 21.1 M 260,860 (1.2%)
- 10. SMALL BUSINESS PARTICIPATION 27.2 Million ALL Federal Agencies GSA Schedules 482,262 (1.7%) 13, 337 (< 2%)
- 11. RECOMMENDATIONS 1. Implementation of the Data Quality Act (DQA) 2. Third party independent verification of results 3. Simplification of the SBA Size Standards 4. Private training for the contracting workforce 5. Measure participation level to validate success
- 12. For Additional Information • Contacts • Raul Espinosa Managing Partner raul@UmbrellaInitiative.org 904.347.4726 Ryan Reid Chief Technology Officer Ryan.Reid@UmbrellaInitiative.org 714.881.4574 • • Jacksonville, FL Falls Church, VA Costa Mesa, CA