New Regulations, Agency Scorecards Add Transparency
and Accountability
WASHINGTON - The U.S. Small Business Administration
(SBA) today announced several measures to help small businesses
secure more federal government contracts. The centerpiece of SBA's
efforts is a new regulation requiring small businesses to recertify
their size status on long- term contracts when a contract option
is exercised, when a small business is purchased by or merged
with another business or at the end of the first five years of
a contract.
"This regulation will go a long way toward
ensuring that contract awards get in the hands of small business
owners, federal agencies get the proper credit toward their small
business contracting goals and small business contract awards
are fairly and accurately reported," said SBA Administrator
Steven C. Preston. "It is a win-win situation for everyone."
This regulation was developed in coordination
with the Office of Management and Budget's Office of Federal Procurement
Policy (OFPP.)
"We need accurate data on business size,"
said Administrator for the OFPP Paul Denett. "However, small
businesses must be given fair opportunity to grow as they perform
federal contracts. This rule is intended to strike the right balance
between fostering growth and accurate data gathering."
Historically, size status has been determined
at the time of the initial offer on the contract and is retained
over the life of the contract. However, federal agencies are increasingly
using long-term contracts that with the exercise of contract options
can extend to 20 years. The new regulation does not require termination
of contracts if size status changes, nor does it require changes
to contract terms and conditions.
SBA, also in cooperation with OFPP, is announcing
today a Small Business Procurement Scorecard for 24 federal agencies.
The scorecard, which is modeled after the President's Management
Agenda, will help more aggressively track and monitor the status
of each agency's small business goal achievement.
"This scorecard is intended to increase
transparency and accountability in the small business procurement
arena," said Administrator Preston. "Additionally, it
will highlight successes that can be shared between agencies and
result in additional ways to engage the small business contracting
community."
In late September, OFPP Administrator Denett
and SBA Administrator Preston issued a memorandum requiring agencies
to review their procurement data and identify any necessary changes
to help resolve apparent discrepancies in the Federal Procurement
Data System.
The SBA also announced that additional procurement
personnel will be hired to help identify government contracting
opportunities for small businesses and will work with the Administration's
Integrated Acquisition Environment initiative to more effectively
cover the federal buying activities.
"These actions announced today underscore
the fact that the SBA is committed to creating an environment
where small businesses can enter the federal marketplace as equal
competitors," said Administrator Preston. "This environment
is created when agencies reduce contract bundling, consider small
businesses as part of their overall procurement strategy, and
ensure all agency reporting is accurate and reliable."
The recertification regulation will be available
Nov. 15, at The Federal Register's Web site at: http://www.archives.gov/federal-register/the-federal-register/indexes.html.
On Nov. 15 and thereafter, click on "Today" at that
site to view the regulations.
