Press Releases

WASHINGTON, DC – The House Small Business Committee, Subcommittee on Contracting and Technology held a hearing today titled, “Ensuring Stimulus Contracts for Small and Veteran-owned Businesses,” consisting of witness panels of representatives from federal agencies, small businesses and advocates for veterans.  The purpose of the hearing was to examine the efforts of federal agencies to ensure that small businesses, particularly those owned by veterans, obtain their fair share of federal contracts from the recently-enacted American Recovery and Reinvestment Act or otherwise known as the “stimulus bill.”

“Each year federal agencies on all levels fall short of their promised contracting levels for small businesses.  Today we are here to identify how we can ensure that the funding in the American Recovery and Reinvestment Act specifically designated for our nation’s small businesses will actually reach its intended recipients,” said Ranking Member Aaron Schock (IL-18).

According to the Congressional Research Service, there is approximately $311 billion of discretionary spending in the stimulus bill for FY 2009 and FY 2010.  There is no accurate estimate of the available dollars that will be spent by the federal government on private sector contracts.  The Small Business Act requires that small businesses have “a fair proportion of the total purchases and contracts for property and services for the Government in each industry category are placed with small business concerns…”  In addition, the federal government must meet the requirements of providing at least 23 percent of their prime federal contracting dollars to small businesses.

Mr. Jim Schmidt, President of the Hohulin Fence Company in Goodfield, IL, testified as a veteran business owner and voiced his concerns for the future of his business during the economic crisis and fairness in receiving federal contracts.  “Congress and the Administration must ensure that the funds available through the American Recovery and Reinvest Act are made accessible to small businesses through equitable contract administration,” said Mr. Schmidt.