One Word Can Change Everything

If you are a government contractor or want to be, you need to be aware of a problem with just one word that has thrown federal contracting into chaos. The difference in the small business law is over "shall" vs. "may."  That one word means that if you are a company located in a HUBZone, your program gets preference with respect to contracting.  And if you are a contractor in any of the socio-economic small business contracting programs, it spells "trouble" for you.  The issue is referred to as the parity in federal agencies, Capitol Hill and the White House.  Shaking your head?  Here's the background.

What is "parity" with respect to federal procurement?

Parity is the concept that all of the small business programs administered by the Small Business Administration (SBA) are equal to one another, with no one program will having precedence over the other. This policy, which was intended by original drafters of the law, has been upset by a recent Government Accountability Office (GAO) decision. This decision found that the HUBZone program has precedence over all of the small business programs, due to the way the law was originally drafted.  WIPP, along with the SBA and the Obama Administration, and many other organizations, support changing the law to fix this problem.

What is the impact to you?

-          HUBZone contractors will have preference over other small business contracts.

-          The Court's reading of the Act could re-direct to HUBZone firms tens of billions in federal procurement dollars.

-          This could cause a flood of protests in any non-HUBZone procurement, paralyzing the procurement process.  

-          Render the new women's procurement program expected to be finalized this year dead on arrival.

What Can You Do To Help?

Now more than ever, legislation action is needed to restore parity to the SBA small business programs. Call or write to your Senators and Representatives and ask them to support passage of S.3190 and H.R. 3729. You can write directly to your Congressional Delegate by clicking here. You can find their phone numbers on www.senate.gov; or www.house.gov.  Click on the Senator/Representative you are trying to reach.