News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
September 30, 2004

CONTACT: Kate Davis, Allyson Ivins, (202) 225-4038

Scorecard V: Despite Growing Federal Marketplace, Small Business Contracts
Fail to Increase
House Small Business Committee Democrats highlight missed opportunities

WASHINGTON - Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Member of the House Small Business Committee, and her Democratic colleagues on the committee, today released their annual Scorecard report, highlighting that small firms' opportunity to do business with the federal government are falling, and in turn costing small businesses $15 billion in contracting opportunities for FY 2003. Scorecard V reiterated that small businesses are not able to keep pace with the growing federal marketplace.

"For the fourth straight year in a row the federal government has missed their small business contracting goal. Despite the federal marketplace's record growth - having achieved $285 billion in FY 2003 - the number of federal contracts awarded to small businesses did not increase. The Bush administration's rhetoric over the past year has said it is a priority to open up the federal marketplace to small businesses; however, Scorecard V documents a record low for the grades, and illustrates that small firms aren't receiving more contracts."

Scorecard V reviews 22 federal agencies, which make up over 99 percent of all government contract dollars. The report, which is the first-ever comprehensive report of its kind, grades each agency on its' achievement of the mandated small business contracting goal. The grades for Scorecard V reached a record low, with an overall grade of D, and seven agencies receiving F's.

Scorecard V outlines the number of causes for the low scores, including failures of Bush administration small business procurement policies. Most notable is the failure to stop the practice of creating mega contracts known as contract bundling, and the need to modernize key small business procurement programs.

The report highlights that SBA had used inaccurate data from the Federal Procurement Data System (FPDS), which misrepresented the true state of small business access to the federal marketplace and inflated the achievement goals for several of the agencies reviewed. These findings were recently confirmed in a General Accounting Office (GAO) investigation. Scorecard V highlighted a major breakdown in the federal government's tracking system. SBA claimed earlier this year that they had achieved record small business contracting goals, but announced three months later that the numbers had to be revised downward.

"Scorecard V highlights the fact that FPDS has ceased to become a credible source for measuring small business participation in the federal marketplace," Congresswoman Velazquez said. "The administration has turned FPDS into a smokescreen to misrepresent the true federal small business contracting goal achievements. In the end it hurts not only small businesses, but also the American taxpayer, as the federal government will not be receiving the affordable quality service and products offered by small firms."
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Congresswoman Velázquez and her democratic colleagues on the committee outlined solutions to the barriers facing small business access to the federal marketplace, including stopping the practice of contract bundling, and ensuring that small businesses are able to receive subcontracts and overseas contracts. These provisions were included in a bipartisan reauthorization bill that has been blocked for over a year by the White House and Republican Leadership. "If President Bush truly cared about helping small businesses access the federal marketplace, then he would stop the rhetoric, and start working to pass legislation that did just that," Congresswoman Velázquez said.

To receive a copy of the report, please call or e-mail Press Secretary Kate Davis at kate.davis@mail.house.gov or Press Assistant Allyson Ivins at allyson.ivins@mail.house.gov.

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