Part of the reasoning for changing procurement policies (which have had the effect of limiting opportunities for small business) was to bring down the cost of meeting the governments product and services needs. The result has been just the opposite. The rules need to change to allow more oversight by government officials and provide opportunity for small business. One way to increase the number of contracts that small business can bid on is to unbundle the large mega contracts. From a historical prospect many of these contracts came to be by bundling many smaller contracts into the large contracts we see today. These bundled contracts represent lost opportunities for all categories of small business. The result of unbundling the large contracts will be to provide contracting opportunities for small business while increasing competition and decreasing costs.

The Fairness in Procurement Alliance (FPA) was very dissapointed with the fact that SBA did not address - at their press conference - the issue of the 'set-aside exemptions' and what the Agency intends to do to help eliminate them.

These 'exemptions' are alleged 'unlawful' regulations [FAR 8.402(a); FAR 8.404(a) and FAR 19.000(b)] which have been alleged to have NO statutory grounds for the 'exemptions' in their authority and they specifically contradict the statutory 'set-aside provisions' of The Small Business Act. Yet, these exemptions have allowed the government (primarily DOD, GSA and State) to exempt small businesses from their most meaningful contracts.

In short, these 'exemptions' are responsible for having diverted - over the last decade - $640 Billion worth of Federal contracts away from small businesses!

The following link provides useful information on the subject.

http://www.prweb.com/releases/2007/05/prweb525536.htm

Administrator Preston agreed - in response to my question during the press conference - "to pursue and deal at the highest levels in those agencies to help solve the issue." (of the exemptions..)Let's trust he does! FPA is challenging the exemptions through GAO and it intends to do so through the Courts as well!

The communities FPA represents, which are the ones for whom Congress created the 'set-aside program,' a constituency of 10 million small businesses, would welcomes media attention on this topic.

We are not pleased with the continuing excuses, the lip service and the lack of attention small businesses and their issues are receiving.

It is a well known fact that contracts that are supposed to go to SBA Contractors goes to Big Business. It is also a well known fact that the SBA is understaffed, overworked, and does not replace anyone that leaves. It has been a Political Sham for years, and the Hill has been bought.

There are many reasons that small business numbers are manipulated but one of the the main reasons is that the 23% small business goal(proposed to be raised to 25% or higher) has no basis as being reasonaly achievable. Therefore, there is an incentive for agencies to "game" the numbers so that the procuring agencies look like they are achieving their goals. If the regulations allowed the "gaming," as was and is to a degree still the case, so much the better.

At least SBA has begun to ask agencies to make small business contracting statistics more accurate and transparent.

Lets look at the small business stats in a few years when the new recertification rules result in most, or all, of the long term contracts being recertified. My guess is that they will drop significantly.

Given this Administration's (aka the Texas Mafia) track record on telling the truth this report card is no surprise. The SBA abandoned the small business community years ago. Senior management has an agenda to shrink the district offices, produce overblown success stories and act as an insurance policy for large banks at taxpayer expense. The Reagan administration comments were correct "it is a rat hole."