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 June 13: Hank seeks to protect small businesses (CrossRoadsNews)06/29/2009Fourth District Congressman Hank Johnson is going after big businesses that take federal contracts intended for small businesses. On May 21, Johnson introduced H.R. 2568 – the Fairness and Transparency in Contracting Act of 2009 – to ensure that small business government contracts go to small businesses instead of subsidiaries of large companies. The bipartisan legislation comes in the wake of 15 investigations that exposed widespread abuse in federal small business contracting programs. The Small Business Administration’s inspector general discovered that in 2002, at least 4.4 percent of 1,000 contractors awarded federal funds meant for small businesses were corporations that did not meet basic requirements to receive the contracts. Johnson said it is unconscionable that some large corporations are the beneficiaries of small business contracts. “Especially given how many small businesses are struggling in this recession,” said Johnson, whose district includes portions of DeKalb, Rockdale and Gwinnett counties. “H.R. 2568 will go a long way in helping correct this egregious error.” The inspector general’s investigation revealed that Bechtel, a large construction company, and computer giant Hewlett Packard were awarded small business contracts by government agencies, and that the funds were counted toward the agencies’ small business contracting goals. If successful, Johnson’s bill will modify the definition of a small business by including an additional requirement that no publicly traded company can qualify as a small business in relation to these contracts. The bill will also allow a person to file a complaint if they have evidence that a small business contract was improperly awarded and require the SBA to submit an annual report to Congress detailing the nature of the complaints and the resolution. Lloyd Chapman, president of the American Small Business League, said every small business in America owes Johnson a debt of gratitude for introducing H.R. 2568. “Small businesses create more than 97 percent of all net new jobs, and this bill will do more to help firms than any stimulus plan proposed so far,” Chapman said. “It will create millions of new jobs and provide a dramatic boost to the middle class.” Leonardo McClarty, DeKalb Chamber of Commerce president, said small businesses need as much support as they can get in today’s economy. “Hopefully this bill would close loopholes and make it more equitable so small businesses can compete, grow and succeed in the marketplace,” he said. |
