House Committee Advances Velazquez Contracting Legislation

Washington, DC –Today, the House Committee on Small Business approved legislation aimed at reforming and strengthening rules that help small businesses and other disadvantaged firms compete in the federal marketplace. H.R. 4341, the “Defending America’s Small Contractors Act of 2016”, includes provisions from a number of bills authored by the Committee’s membership including a measure introduced by Rep. Nydia M. Velázquez (D-NY), the top Democrat on the Committee.

“The federal marketplace spends almost half a trillion dollars billion on goods and services every year,” said Velázquez. “The legislation the Committee approved today will help small businesses win their fair share of federal contracts, fueling growth and creating good paying jobs.”

Over the last year, the Committee has held a series of oversight hearings examining how the federal procurement process functions and ways the system could be improved. Federal agencies are required to ensure certain percentages of contracting work go to small businesses and other targeted firms, such as those owned by women, minorities and veterans. However, the hearings have found that these businesses continue to encounter significant barriers when seeking to compete in the federal marketplace.

“When small businesses are awarded federal contracts the result is a win-win,” noted Velázquez. “A federal contract can help a small company expand and hire additional workers, while the government receives quality goods and services. The provisions in this bill will help more small businesses engage in this process, diversifying the federal government’s supply chain and strengthening our industrial base.”

Provisions in the bill made a number of changes, increasing transparency in agency contracting and procurement goals so there is a clearer picture of how federal dollars are spent. Additionally, there are several measures that clarify the language of the Small Business Act, making it easier for contracting officers and small businesses to not only understand, but, also, implement and comply with contracting and procurement law. As the federal government changes how it purchases goods and services with greater reliance on strategic sourcing, task orders and larger procurement vehicles, the bill would also help small businesses engage in newer procurement processes.

“In Fiscal Year 2014, $2.8 billion in federal prime contracts was spent in New York City,” Velázquez noted. “It is important that local, smaller businesses are able to navigate the process and compete for these dollars.”

The legislation passed on voice vote with strong bipartisan support. As the Ranking Democrat on the Committee, Velázquez negotiated the content of the bill with the Chairman, Rep. Steve Chabot (R-OH), and helped ensure other Democratic Members’ legislation was incorporated including:

• H.R. 4325, the Unifying Small Business Terminology Act of 2016 (Rep. Velázquez);

• H.R. 4337, Education for Contracting Personnel Improvement Act of 2016 (Rep. Grace Meng (D-NY));

• H.R. 4330, Improving Contract Procurement for Small Business Through More Accurate Reporting Act of 2016 (Rep. Yvette Clarke (D-NY));

• H.R. 4329, the Transparency in Small Business Goaling Act of 2016 (Rep. Judy Chu (D-CA));

• H.R. 4326, the Small and Disadvantaged Business Enhancement Act of 2016 (Rep. Alma Adams (D-NC)); and

• H.R. 4339, the Improving Small Business Advocacy Act of 2016 (Rep. Maxine Waters (D-CA)).

“I want to thank Chairman Chabot and all my colleagues for working in such a productive, bipartisan fashion,” Velázquez concluded. “I believe when this measure is enacted it will help many New York City entrepreneurs navigate the procurement process, win federal work, expand their customer base and create greater opportunity in our City.”

The bill now must be considered by the full U.S. House of Representatives.

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