Rep. Johnson proposes Small Business Fairness, Transparency bill
Congressman: Bill will level playing field for small, local and minority-owned businesses
WASHINGTON – With Georgia’s small businesses in mind, Rep. Hank Johnson (GA-04) today introduced “The Fairness and Transparency in Contracting Act of 2011.”
The bill will ensure that federal small business contracts go to genuine small businesses instead of subsidiaries of large companies. “The Fairness and Transparency in Contracting Act” is a direct result of more than 15 investigations that exposed widespread abuses in the federal small business contracting programs.
The Small Business Administration Inspector General found in 2002 that at least 4.4 percent of 1,000 contractors awarded federal funds designated for small businesses did not meet basic requirements to receive those contracts.
To correct this, “The Fairness and Transparency in Contracting Act” would modify the definition of a small business in the Small Business Act by including the additional requirement that no publicly traded company can qualify as a small business. It also allows a person to file a complaint if they have evidence that a small business contract was improperly awarded.
“Large companies need to stop masquerading as small businesses to get government contracts,” said Johnson. “Especially given how many small businesses are struggling in this economy, my bill will go a long way in helping stop this abuse.”
If passed, the bill would require the SBA to submit to Congress an annual report detailing the nature of the complaints and the resolution.
Small businesses are the foundation of the nation’s economy. According to the U.S. Census Bureau, businesses with 20 employees or less make up 90 percent of all U.S. firms and those firms are responsible for 97 percent of net new jobs.
The DeKalb Chamber of Commerce, which supports the bill, was pleased Johnson introduced “The Fairness and Transparency in Contracting Act.”
“Our small businesses need a level playing field,” said Chamber President Leonardo McClarty. “Congressman Johnson’s bill will close loopholes and make it more equitable so small businesses can compete for billions of dollars in federal contracts.”
California-based American Small Business League President Lloyd Chapman lauded Johnson’s efforts.
“Every small business in America owes Congressman Johnson a debt of gratitude for re-introducing this bill,” said Chapman. “Small businesses create more than 97 percent of all net new jobs, and this bill will do more to help those firms than any stimulus plan proposed so far. It will help small businesses create millions of jobs and provide a dramatic boost to the middle class.”
Notification and reporting requirements include:
● Notification for government agencies and contractors of changes in the bill
● Requires SBA to make public which companies are receiving small business contracts
● Requires each federal agency to report on their Web site a list companies receiving small business contracts from that agency.
● Requires that the agency responsible for maintaining the database of all federal contractors provide an adequate warning about the penalties for misrepresenting that status of a business concern or person in order to obtain certain federal contracts
Among the organizations supporting the bill are the Minority Business Round Table, The California Hispanic Chamber of Commerce, California DVBE Alliance, California Small Business Association, The New Mexico 8a & Minority Business Association, Sacramento Hispanic Chamber of Commerce, California Black Chamber of Commerce, The Asian American Business Roundtable, Georgia Black Chamber of Commerce and DeKalb Chamber of Commerce, among dozens of other groups.
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| Read the bill |