Snowe Dismayed by Federal Government’s Failure to Meet Small Business Contracting Goals

Welcomes Maine Witness Patricia Rice at Senate Hearing

            WASHINGTON, DC – During a Senate Small Business and Entrepreneurship Committee hearing today, U.S. Senator Olympia J. Snowe (R-ME) expressed her alarm that the Federal Government has not met statutory small business contracting requirements.  As Ranking Member of the committee, Snowe called on Congress to develop bipartisan small business procurement legislation that would ensure that all mandated small business goals are not only met, but also exceeded.

            “As Ranking Member of this committee, I am dismayed by the myriad ways that government agencies have time and again egregiously failed to meet most of their small business statutory ‘goaling’ requirements,” said Senator Snowe.  “This afternoon, I look forward to hearing from the Administration on specific and realistic solutions for finally achieving contracting goals for small businesses.”

            To date, just one of four Federal small business contracting programs have met their statutory goals for awarding contract to small firms.  While the small disadvantaged business program has achieved some success, women-owned small businesses in Fiscal Year 2005 failed to meet its 5 percent small business goal, receiving only 3.3 percent of contacts.  Meanwhile, the Historically Underutilized Business Zone (HUBZone) program met only 1.9 percent of its 3 percent goal.  Most troubling of all, service-disabled veteran-owned small businesses received a government-wide total of just 0.6 percent of contracts, far short of the statutory 3 percent small business goal.

            “Shockingly, the Department of Defense granted an abysmal 0.49 percent of contracts to service-disabled veteran-owned small businesses,” said Senator Snowe.  “This is no way to treat those who have given their all for this country – and who seek to contribute even more through business.”

            Given the government’s failure to meet small business contracting goals, Snowe also called on the Government Services Administration to refrain from terminating its office supply “stock” program.  Under the program, small businesses provide office products to warehouses across the nation for stockpiling in case of a national emergency.  Senator Snowe signed a July 9 letter asking GSA to avoid ending the program at least until the Government Accountability Office (GAO) conducts a report on the economic impacts that this potential termination will bear on hundreds of small businesses across the country.

            Turning to HUBZones, Senator Snowe called on the HUBZone program, which she has long championed to be better utilized.  To that end, on July 16, Senator Snowe, along with Senator Kit Bond (R-MO) sent a letter to GAO asking that it investigate how the Federal government can increase the HUBZone Program’s use.

            “In my home state of Maine, only 118 of 41,026 small businesses are qualified HUBZone businesses,” said Senator Snowe.  “HUBZones represent a tremendous tool for replacing lost jobs for our nation’s declining manufacturing and industrial sectors.  Clearly, this program should be better utilized.”

            Senator Snowe welcomed Maine witness Patricia Rice who is the Director of Maine’s Procurement Technical Assistance Center.  Last year, the Center assisted Maine’s small business to gain $123 million in government contracts and helped create and sustain 2,857 jobs.  

            “I couldn’t be more grateful for all Mrs. Rice has accomplished for our state, and I appreciate the benefit of having your testimony here today,” said Senator Snowe.

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