Congress keeps HUBZone priority -- for now
"Shall" wasn’t erased. It’s once again standing its ground against another effort to get rid of it.
The fiscal 2010 National Defense Authorization Act conference report didn’t include the one-sentence provision that would have put small businesses in historically underutilized business zones, or economically depressed areas, on the same level as small businesses in the Small Business Administration’s 8(a) program and those owned by service-disabled veterans.
Sen. Olympia Snowe (R-Maine), ranking member of the Small Business and Entrepreneurship Committee, today said members of the House removed the provision from the conference report.
Sen. Mary Landrieu (D-La.), the committee's chairwoman, offered the amendment, which was included in the Senate’s defense authorization act. "I am extremely disappointed that my colleagues did not find this provision important enough to remain in the bill,” she said.
“The ongoing controversy over the order of contracting priority between service-disabled veteran’s small-business programs, the HUBZone program and the 8(a) Business Development Program needs immediate attention," Landrieu said.
HUBZone companies have an advantage in that the Small Business Reauthorization Act of 1997 states that “a contract opportunity shall be awarded” on the basis of a set-aside competition among HUBZone companies. Meanwhile, 8(a)s and vets only have a “may” when it comes to set-aside contracts.
"Getting a defense authorization bill passed through quickly was the goal," a spokesman for the House Small Business Committee said today. The House may consider how best to address the fraud issues associated with the HUBZone program later, he said.
If not, there’s always Wally.
Rep. Wally Herger (R-Calif.) this week introduced a one-line bill to strike the shall and pencil in may regarding HUBZone companies.
Herger has heard from many business owners in his district that the HUBZone program in its current form prevents them from bidding on contracts with the Forest Service. Some of the contracts are worth more than $100,000.
How many other lawmakers are hearing from small businesses? Enough to erase shall?
We've seen it again. It will be tough.
For now though, HUBZones are favored, more than 8(a)s and vets.
Posted by Matthew Weigelt on Oct 09, 2009 at 12:48 PM