CONGRESSMAN HANK JOHNSON
Georgia's Fourth Congressional District

Rep. Johnson proposes Small Business fairness, transparency bill

Congressman tries to level playing field for small, local, minority-owned businesses

May 26, 2009

WASHINGTON -- With the country’s and his district’s small businesses in mind, Congressman Hank Johnson (GA-04) proposed bipartisan legislation May 21 known as the “Fairness and Transparency in Contracting Act of 2009.”

 

Designed to ensure that small business government contracts go to small businesses instead of subsidiaries of large companies, H.R. 2568 is a direct result of more than 15 investigations that exposed widespread abuses in the system.

 

The Small Business Administration Inspector General found in 2002 that at least 4.4 percent of 1,000 contractors awarded federal funds designated for small businesses did not meet basic requirements to receive those contracts.  

 

Specifically, the study revealed that computer giant Hewlett Packard – among others – was awarded small business contracts by government agencies, and subsequently those funds were counted toward the respective agencies’ small business contracting goals.

 

To correct this, H.R. 2568 would modify the definition of a small business in the Small Business Act by including the additional requirement that no publicly traded company can qualify as a small business in relation to these funds. It also allows a person to file a complaint if they have evidence that a small business contract was improperly awarded.

 

“It’s unconscionable that some large corporations are the beneficiaries of small business contracts,” said Johnson. “Especially given how many small businesses are struggling in this recession. H.R. 2568 will go a long way in helping correct this egregious error.”

 

If passed, the bill would require the SBA to submit to Congress an annual report detailing the nature of the complaints and the resolution.

 

Small businesses are the foundation of the nation’s economy. According to the U.S. Census Bureau, businesses with 20 employees or less make up 90 percent of all U.S. firms and those firms are responsible for 97 percent of net new jobs. 

 

The DeKalb Chamber of Commerce, which supports the bill, was pleased that Johnson introduced H.R. 2568.

 

“Small businesses truly need as much support as they can get, especially in today’s economy” said Chamber President Leonardo McClarty. “Hopefully this bill would close loopholes and make it more equitable so small businesses can compete, grow and succeed in the marketplace.”  

 

American Small Business League President Lloyd Chapman lauded Johnson’s efforts.

 

“Every small business in America owes Congressman Johnson a debt of gratitude for introducing this bill,” said Chapman. “Small businesses create more than 97 percent of all net new jobs, and this bill will do more to help those firms than any stimulus plan proposed so far. It will create millions of new jobs and provide a dramatic boost to the middle class economy.”

 

Notification and reporting requirements include:

 

� Notification for government agencies and contractors of changes in the bill

� Requires SBA to make public which companies are receiving small business contracts

� Requires each federal agency to report on their Web site a list companies receiving small business contracts from that agency.

� Requires that the agency responsible for maintaining the database of all federal contractors provide an adequate warning about the penalties for misrepresenting that status of a business concern or person in order to obtain certain federal contracts

 

Among the organizations supporting the bill are the Minority Business Round Table, The California Hispanic Chamber of Commerce, California DVBE Alliance, California Small Business Association, The New Mexico 8a & Minority Business Association, Sacramento Hispanic Chamber of Commerce, California Black Chamber of Commerce, Georgia Black Chamber of Commerce and DeKalb Chamber of Commerce.

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