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Washington, D.C., October 30th – Congressman Moran, Northern Virginia Democrat, successfully included an amendment to the Small Business Contracting Program Improvements Act (H.R. 3867) requiring a study to determine if large contractors are gaming the system by using bureaucratic maneuvers to block small businesses from receiving federal contracts. The Moran measure was passed by a unanimous voice vote.
“Too often, small businesses who have been awarded a contract are being bullied by larger firms who have an incentive to game the system,” said Moran. “By employing so-called frivolous ‘protests,’ larger firms are able to drive up the cost of competing for government contracts beyond what many small businesses can afford.”
(‘Protests’ are a bureaucratic maneuver which allows firms currently in possession of a contract to contest agency efforts to transfer that same contract, upon its expiration, to a different firm.)
“Let me be clear, not all large contractors engage in this sort of activity. But the issue needs to be studied to determine the extent and frequency of this sort of maneuvering. My amendment directs the SBA to study this issue, with the goal of developing recommendations to ease the financial burden on small businesses during the protest of small business contracts and to discourage the use of these frivolous protests.
“Small businesses can’t compete dollar for dollar with larger firms. By delaying the agency process for awarding government contracts and thus requiring small businesses to engage in a lengthy and costly adjudication process, some smaller contractors are being crippled economically.
“The federal contracting system was established with an eye towards promoting small business, our nation’s economic engine for jobs and economic growth. The system shouldn’t be used to disadvantage these firms. The Moran study will determine the extent of the problem and provide options to restore fairness to the contracting ‘protest’ process.”
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