Soon, it may be harder for women-owned businesses to win federal contracts.
According to a Small Business Administration proposed rule, which was published in the Federal Register last December, would limit the number of federal contracts set aside for women-owned businesses that are shown to be underrepresented by women. The only four where female business would still be preferred are: national security and international affairs; coating, engraving, heat treating and allied activities; household and institutional furniture and kitchen cabinet manufacturing; and motor vehicle dealers. Such a narrow list of industries was contrary to findings that women were underrepresented in 87% of all the industries where the government awards contracts, the United States Women’s Chamber of Commerce has argued. The chamber sued in 2004 to force the SBA to follow the Congressional mandate. The SBA, in response, said that writing the rules was a “complex and controversial responsibility” to establish guidelines to set-aside contracts based on gender. “The legislation requires us to establish that women-owned small businesses are underrepresented in an industry in which a set-aside would be created”, said Christine Mangi, the agency’s spokeswoman.
While the number of women-owned firms grows at a rate almost twice that of all business, women entrepreneurs lag behind in capital, contracting awards and their ability to access viable networks. Senator John Kerry, Chairman of the Senate Committee
on Small Business and Entrepreneurship, addressed these critical concerns at the round table today – 20 years after the passage of the Women’s Business Ownership Act. “I’m vehemently opposed to the Administration moving forward with the unconstitutional
women’s procurement rule that makes it harder for women to access federal contracts,” said Kerry. “If the Bush administration gets its way, the underlying principals of the Woman’s Procurement Program will be severely undermined and any meaningful
change that we could have enacted will be vastly constrained.
There are some Democratic lawmakers trying to block this rule. A short provision added to the fiscal 2009 appropriations bill would prohibit the SBA from enacting such a rule. The Senate Appropriations Committee approved the bill on July 10, 2008. It is unknown whether the provision will be included in the final bill passed by Congress, however.
Women Senators Call to Scrap Federal Contracting Plan
Tags: government contracts, government contracts for women, government contracts women
