Two bills look to give small business an edge in contracting

Missouri Republican Sam Graves, chairman of the House Small Business Committee, is introducing a pair of bills Feb. 26 designed to increase small firms’ participation in federal contracting and improve the quality of contracting data.

The Greater Opportunities for Small Business Act would raise the percentage of small businesses among prime federal contract recipients from 23 percent to 25 percent, and the percentage of subcontract recipients to not less than 40 percent of the total. The two-percentage-point increase in prime contracts could mean as much as $10 billion more for small businesses if the targets are met.

In fiscal 2012, the government edged close to the goal, but missed by half a percentage point, awarding $89.9 billion in contracts to small businesses. The government last hit the 23 percent target in 2005.

The Contract Data and Bundling Accountability Act would update the way data is reported on bundled and consolidated contracts.

Small businesses have a harder time competing for bundled contracts because the work requirements can range over separate business functions or be distributed over a larger geographic area than a small business can cover. At the same time, 1997 updates to the Small Business Act require that agencies justify their decisions to consolidate or bundle contracts by conducting market research and identifying cost savings. Additionally, the Small Business Administration is responsible for maintaining a database on bundled and consolidated contracts and notifying Congress about the impact of such contracts on small business.

The Government Accountability Office found in November 2013 that data on bundled and consolidated contracts in federal procurement data systems are inaccurate, and that SBA has not reported to Congress on bundling since fiscal 2010. The new bill would direct the head of the SBA and other procurement officials across government to establish a plan to report on bundling and consolidation and monitor the quality of the data, with consequences -- unspecified in the bill itself -- "for failure to properly identify contracts as bundled or consolidated."

Graves hopes that putting teeth in data reporting requirements will give small businesses the ability to compete for more federal contracts.

"The federal government spends nearly half a trillion dollars on contracted goods and services, therefore, we must ensure that the money is being spent efficiently, and small businesses have proven that they can do quality work cheaper and often faster," Graves said in a statement.