Women's Business Enterprise Council PA-DE-sNJ Opposes SBA Proposed Rule on Federal Contract Procedures |
| Published In: Business, Delaware, New Jersey, Pennsylvania |
| Friday, January 25, 2008 12:32 PM |
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| PHILADELPHIA, Jan. 25 /PRNewswire/ -- The Women's Business Enterprise Council PA-DE-sNJ (WBEC) today opposed the Small Business Administration's (SBA) proposed rule to severely limit the number of industries in which women business owners can expect a fair opportunity to bid on Federal contracts, saying that it flaunts Congressional intent. WBEC is an affiliate of the Women's Business Enterprise National Council (WBENC), the leading advocate and authority on women's business enterprises as suppliers to the nation's top corporations. "The ruling is disappointing since, for years, the SBA has recognized women-owned businesses as a leading engine of the economy. Now it has curtailed a law that would enable women to compete fairly for Federal contracts," said President, Geri Swift. Although women-owned firms account for 41 percent of all privately-held firms in the U.S., they currently receive only 3.3 percent of the Federal contracts. The Equity in Contracting for Women Act, passed into law in 2000, would allow federal contracting officers to set aside up to five percent of all contracts to women-owned businesses; but the SBA has proposed a rule that would limit eligibility to businesses in only four industries in the more than 2000 potential categories. The difference in Federal spending between 5 percent and 3.3 percent was $7.5-billion based on 2006 numbers, according to WBENC. This is expected to negatively impact communities where 10.4-million women-owned firms employ more than 12.8 million people and generate $1.9 trillion in revenues. "At a time when the economy is foundering, this proposed ruling is creating a barrier for women's businesses that are a source of growth," President, Geri Swift declared. For the past two decades, women-owned firms have grown at around two times the rate of all firms (42 percent vs. 24 percent). "The government also can take a lesson from America's corporations that are leveling the playing field for women's business enterprises by setting goals and implementing best practice processes to drive those goals throughout their organizations," said Linda Denny, President and CEO of WBENC. "They have been rewarded with greater quality products and services, innovation and shareholder value." Further raising the bar of entry for women entrepreneurs in the area of government procurement, the SBA has also proposed that in order for an agency to set aside a new contract under the proposed rule, the procuring agency would have to conduct an appropriate analysis of its own procurement history to demonstrate past discrimination against women-owned small businesses. If the SBA recommendation is accepted women owned business would be the only category subject to the additional requirement that would effectively block all opportunities. "I urge women's business enterprises and indeed any individual who believes in leveling the playing field for women in business, to register your comments with the SBA and object to this rule before the public comment period ends on February 25. You can also contact your Congressional delegate or the House Small Business Committee," Denny concludes. For specific action steps and additional information, access the Women Impacting Public Policy website: http://www.wipp.org/news_details.asp?story_id=538&memberonly=False. For information about WBENC, please access www.wbenc.org. For information about WBEC PA-DE-sNJ, please access www.wbecouncil.org. SOURCE Women's Business Enterprise Council |
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