[Pages S4330-S4334]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FEDERAL PROCUREMENT OPPORTUNITIES FOR WOMEN-OWNED BUSINESSES
Mr. ALLARD. Mr. President, I ask unanimous consent that the Senate
now proceed to the immediate consideration of S. Res. 311, submitted
earlier by Senator Bond and Senator Kerry.
The PRESIDING OFFICER. The clerk will report the resolution by title.
The assistant legislative clerk read as follows:
A resolution (S. Res. 311) to express the sense of the
Senate regarding Federal procurement opportunities for women-
owned small businesses.
There being no objection, the Senate proceeded to consider the
resolution.
Mr. BOND. Mr. President, I rise in support of the Senate Resolution I
introduce today which calls attention to the Federal Government's
failure to meet the statutory goal to award 5 percent of Federal
contract dollars to women-owned small businesses. I am very pleased
that members of the Senate Committee on Small Business have cosponsored
this Resolution, including the committee's ranking member, Senator
Kerry, Senator Burns, Senator Snowe, Senator Landrieu, Senator
Lieberman, Senator Edwards and Senator Abraham, who authored last
year's initiative in the committee to help women reach the 5-percent
goal. In addition, Senators Bingaman and Murray have joined us as
cosponsors of the resolution.
This is Small Business Week 2000. It is very appropriate that we
recognize the important roles played of women-owned small businesses in
our Nation's
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economy and communities. The number of small businesses owned and
controlled by women is expanding at a very rapid rate, and today, they
total 38 percent of all businesses in the United States. Importantly,
their numbers are expanding at such a pace that it is anticipated
women-owned small businesses will make up over 50 percent of all
businesses by 2010. That is an astounding statistic.
In 1994, Congress recognized the important role women-owned small
businesses play in our economy. During the consideration of the Federal
Acquisition Streamlining Act, FASA, the Senate approved a provision
directing that 5 percent of all Federal procurement dollars be awarded
each year to women-owned small businesses. The goal includes 5 percent
of prime contract dollars and 5 percent of subcontract dollars and was
included in the final FASA Conference Report and enacted into law.
The Federal departments and agencies have failed to meet the 5
percent goal since it was enacted by Congress in 1994. After Senator
Abraham chaired a committee field hearing in Michigan on the state of
women business owners, he offered an amendment addressing the failure
of the Federal departments and agencies to meet the 5 percent goal
during the Committee on Small Business markup of the ``Women's Business
Centers Sustainability Act of 1999,'' S. 791. The amendment was adopted
unanimously by the Committee and enacted into law, Public Law 106-165.
It directed the General Accounting Office to undertake an audit of the
Federal procurement system and its impact on women-owned small
businesses, which is underway at this time.
The statistics for Federal procurement for FY 1999 have been
released. Again, the 5 percent goal for women-owned small businesses
was not met--and again the Federal departments and agencies fell over
50 percent short of the goal--reaching only 2.4 percent. The failure of
the Administration to meet this goal, which is designed to produce
opportunities for start-up and growing small, women-owned businesses,
is disturbing. Over 5 years have passed since the enactment of FASA,
and the Federal Government continues to respond by taking baby steps
toward meeting this Congressionally-mandated goal.
The resolution before the Senate today urges the President to adopt
an administration policy in support of the 5-percent goal. Further, the
resolution urges the President to go to the heart of the problem--to
those Federal departments and agencies that are not carrying their
share of the burden in meeting the goal. Specifically, the resolution
asks the President to hold the head of each department and agency
accountable for meeting the 5-percent goal.
Is it asking too much to require cabinet secretaries and agency heads
to work harder to comply with a statutory goal? Of course not. It's all
a matter of priorities. And I think supporting women-owned business
should and must be a priority for each and every cabinet secretary and
agency head. In other words, we are demanding performance not promises.
Were it not for the growth of the small business community over the
past decade, our economy would not be its booming self. Women-owned
small businesses have contributed significantly to our economic
strength and stability. We need to help stimulate this growth to
strengthen further the foundation of our business success. The 5
percent Federal procurement goal is a significant component to help
women-owned business to start-up and flourish.
We should not lose sight of the fact that our laws are not keeping up
with the new realities of business, particularly for women-owned
businesses, who are heating up the economy. We need to be ever vigilant
and remain alert to changes in the business climate so that laws and
government policies are relevant and helpful. We in Congress should be
prepared to jettison antiquated laws. And we need to recognize that
occasionally the best government policy will be to step aside to avoid
hindering progress and growth.
Future Congresses and Administrations will have a tremendous impact
on the success of women-owned businesses. That is why I am joining with
Senators Kerry, Olympia Snowe, Mary Landrieu, Dianne Feinstein, and Kay
Bailey Hutchison to convene a National Women's Business Summit on June
4-5, 2000, in Kansas City, Missouri. The summit will give women small
business owners the opportunity to help formulate national policies on
women's small business issues by gathering input from women business
leaders, elected officials and other experts. Results and
recommendations from this summit will be communicated directly to the
Congress. More information about the summit can be found on my Senate
office Web site at www.senate.gov/bond.
As we begin Small Business Week, I hope my colleagues in the Senate
will take a moment and recognize the important role small businesses
play in our economy. And I urge them to reinforce their support for the
5-percent Federal procurement goal and women-owned small businesses by
voting in favor of the Senate resolution.
Mr. KERRY. Mr. President, women-owned businesses have scored a double
victory today. President Clinton and a bi-partisan coalition of
Senators have unveiled separate but complementary national policies to
increase procurement opportunities for businesses owned by women.
Though on its face Federal procurement may not sound like an
important issue to the general public, or even a term that many
recognize, it is one of the most lucrative, yet difficult, markets for
small businesses to access, particularly those owned by women and
under-represented minorities. For example, in 1999, women-owned
businesses made up 38 percent of all businesses but received only 2.4
percent of the $189 billion in Federal prime contracts. We can do
better. And, before we enact new laws, we should promote and enforce
the ones we have.
First, I want to offer my strong support and sincere compliments to
President Clinton for signing an executive order today that reaffirms
and strengthens the executive branch's commitment to meeting the five-
percent procurement goal for women-owned businesses. His staff has
worked for months with the Small Business Administration, SBA, the
National Women's Business Council, the Women's Coalition for Access to
Procurement, Women First, Women's Construction Owners and Executives,
and the Women's Business Enterprise National Council to draft a
feasible plan to help Federal agencies and departments increase the
number of contracts awarded to businesses owned by women. Announcing
that plan this afternoon is timely.
Today I join my colleague Senator Bond to introduce a resolution that
encourages the President to adopt a policy that reinforces and enforces
a procurement law Congress passed in 1994. That law, the Federal
Acquisition Streamlining Act, established a government-wide goal for
all heads of Federal departments and agencies to award five percent of
their prime and subcontracts to women-owned businesses. First, this
resolution asks the President to adopt a policy that supports the law
and encourages agencies and departments to meet the goal. Second, this
resolution asks the President to reinforce the law by holding the heads
of agencies and departments accountable for meeting the five-percent
goal.
I believe the President's executive order goes beyond the Senate's
request and establishes a strong system within the Federal Government
for increasing the number of contracts that go to women-owned
businesses. I think it is very smart to hire an Assistant Administrator
for Women's Procurement within the SBA's Office of Government
Contracting. Increasing opportunities for women-owned businesses is a
full-time job and devoting staff to this area is good use of resources.
I also think it is good policy for the Assistant Administrator to
evaluate the agencies' contracting records on a semi-annual basis. This
has two benefits. One, it encourages the procurement offices to run
their operations like good small businesses. If you ask, most business
owners will tell you that a key to running a successful business is
having a solid business plan and regularly measuring your costs against
revenues and projecting adequate inventory or staff to meet the demands
of your products or services. I think it is a very good idea for
contracting officers to do the same. Two, this policy
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allows the SBA to work with an agency that is not meeting its goal
midway through the year rather than finding out at the end of the year
when it is too late.
Lastly, I like the Administration's plan because it takes a holistic
approach to procurement. Rather than just focusing on the agencies and
departments, it requires the Assistant Administrator to organize
training and development seminars that teach women entrepreneurs about
the complex world of Federal procurement and the SBA's procurement
programs. It will be much easier for women-owned businesses to compete
for Federal contracts if they understand the process and how to find
out about opportunities.
I think it is important to note that while the government as a whole
is not contracting as it should with women-owned firms, there are some
outstanding exceptions. Some Federal agencies have taken the lead in
working with women owned firms, and should be congratulated. According
to the Federal Procurement Data System, the Department of Housing and
Urban Development, the Consumer Product Safety Commission, the Federal
Mine Safety & Health Review Commission, the Nuclear Regulatory
Commission, and the Small Business Administration have all not only met
the five percent goal, but have come in at around fifteen percent or
better. That is three times the goal set by Congress.
These Federal agencies know that working with women-owned firms is
not simply an altruistic exercise. These firms are strong, dependable
and do good work. These firms provide a solid service to their
customer, and the Federal contracting officers know it. In total, 20
Federal agencies either met or exceeded the five percent goal.
Therefore, we know that it is indeed possible for Government agencies
to meet the five percent goal. With this resolution, it is our hope
that agencies will work harder, following the examples of the agencies
I discussed earlier, to contract with women-owned firms.
I've supported many initiatives over the years to increase resources
and opportunities for businesses owned by women. Most recently, I
supported Senator Landrieu's legislation to re-authorize the National
Women's Business Council for 3 years, and to increase the annual
appropriation from $600,000 to $1 million. Part of that increase will
be used to assist Federal agencies meet the five-percent procurement
goal for women-owned businesses. The Council has provided great
leadership in this area, making increased contracting opportunities a
priority since it was created in 1988, and earned praise from Democrats
and Republicans for two extensive procurement studies it published in
1998 and 1999. The first study tracked 11 years of Federal contracting
so that we have measurable data, and the second study identified and
analyzed public and private sector practices that have been successful
in increasing contracting opportunities for women business owners. The
additional resources will allow the Council to build on that study and
put the information to good use, ultimately increasing competitive
contracting opportunities for businesses owned by women.
In addition to supporting reauthorization of the National Women's
Business Council, last year I introduced the Women's Business Centers
Sustainability Act of 1999. Now public law, that legislation is helping
Centers address the funding constraints that have been making it
increasingly difficult for them to sustain the level of services they
provide after they graduate from the Women's Business Centers program
and no longer receive federal matching funds. It is important to note
that SBA requires Women's Business Centers to provide procurement
training.
As part of that bill, we passed an amendment addressing Federal
procurement opportunities for women-owned small businesses. The
amendment expressed the sense of the Senate that the General Accounting
Office should conduct an audit on the federal procurement system for
the preceding three years. Unlike the Council's previous studies and
reports that focused on data and best practices, this report was to
focus on why the agencies haven't met the congressionally mandated
five-percent procurement goal for small businesses owned by women.
Mr. President, the Federal agencies have begun to make progress since
Congress enacted the five-percent procurement goal, but I want the
contracting managers to remember that this goal is a minimum, not a
maximum. Out of the more than 9 million businesses owned by women in
this country, I believe that the Federal Government can find ones that
are qualified and reliable, with good products and services, to fill
their contracts if they make it a priority.
I believe that the President's Executive Order establishes a strong
system within the Federal Government for increasing the number of
contracts that go to women-owned businesses, and I look forward to
seeing the Federal departments and agencies meet the five-percent goal
this year, as the Senate resolution emphasizes.
I ask unanimous consent that this statement and a copy of the
Executive Order be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Executive Order
increasing opportunities for women-owned small businesses
By the authority vested in me as President by the
Constitution and the laws of the United States of America,
including the Small Business Act, 15 U.S.C. 631, et seq.,
section 7106 of the Federal Acquisition Streamlining Act of
1994 (Public Law 103-355), and the Office of Federal
Procurement Policy, 41 U.S.C. 403, et seq., and in order to
strengthen the executive branch's commitment to increased
opportunities for women-owned small businesses, it is hereby
ordered as follows:
Section 1. Executive Branch Policy. In order to reaffirm
and strengthen the statutory policy contained in the Small
Business Act, 15 U.S.C. 644(g)(1), it shall be the policy of
the executive branch to take the steps necessary to meet or
exceed the 5 percent Government-wide goal for participation
in procurement by women-owned small businesses (WOSBs).
Further, the executive branch shall implement this policy by
establishing a participation goal for WOSBs of not less than
5 percent of the total value of all prime contract awards for
each fiscal year and of not less than 5 percent of the total
value of all subcontract awards for each fiscal year.
Sec. 2. Responsibilities of Federal Departments and
Agencies. Each department and agency (hereafter referred to
collectively as ``agency'') that has procurement authority
shall develop a long-term comprehensive strategy to expand
opportunities for WOSBs. Where feasible and consistent with
the effective and efficient performance of its mission, each
agency shall establish a goal of achieving a participation
rate for WOSBs of not less than 5 percent of the total value
of all prime contract awards for each fiscal year and of not
less than 5 percent of the total value of all subcontract
awards for each fiscal year. The agency's plans shall
include, where appropriate, methods and programs as set
forth in section 4 of this order.
Sec. 3. Responsibilities of the Small Business
Administration. The Small Business Administration (SBA) shall
establish an Assistant Administrator for Women's Procurement
within the SBA's Office of Government Contracting. This
officer shall be responsible for:
(a) working with each agency to develop and implement
policies to achieve the participation goals for WOSBs for the
executive branch and individual agencies;
(b) advising agencies on how to implement strategies that
will increase the participation of WOSBs in Federal
procurement;
(c) evaluating, on a semiannual basis, using the Federal
Procurement Data System (FPDS), the achievement of prime and
subcontract goals and actual prime and subcontract awards to
WOSBs for each agency;
(d) preparing a report, which shall be submitted by the
Administrator of the SBA to the President, through the
Interagency Committee on Women's Business Enterprise and the
Office of Federal Procurement Policy (OFPP), on findings
based on the FPDS, regarding prime contracts and subcontracts
awarded to WOSBs;
(e) making recommendations and working with Federal
agencies to expand participation rates for WOSBs, with a
particular emphasis on agencies in which the participation
rate for these businesses in less than 5 percent;
(f) providing a program of training and development
seminars and conferences to instruct women on how to
participate in the SBA's 8(a) program, the Small
Disadvantaged Business (SDB) program, the HUBZone program,
and other small business contracting programs for which they
may be eligible;
(g) developing and implementing a single uniform Federal
Government-wide website, which provides links to other
websites within the Federal system concerning acquisition,
small businesses, and women-owned businesses, and which
provides current procurement information for WOSBs and other
small businesses;
(h) developing an interactive electronic commerce database
that allows small businesses to register their businesses and
capabilities as potential contractors for Federal agencies,
and enables contracting officers to
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identify and locate potential contractors; and
(i) working with existing women-owned business
organizations, State and local governments, and others in
order to promote the sharing of information and the
development of more uniform State and local standards for
WOSBs that reduce the burden on these firms in competing for
procurement opportunities.
Sec. 4. Other Responsibilities of Federal Agencies. To the
extent permitted by law, each Federal agency shall work with
the SBA to ensure maximum participation of WOSBs in the
procurement process by taking the following steps:
(a) designating a senior acquisition official who will work
with the SBA to identify and promote contracting
opportunities for WOSBs;
(b) requiring contracting officers, to the maximum extent
practicable, to include WOSBs in competitive acquisitions;
(c) prescribing procedures to ensure that acquisition
planners, to the maximum extent practicable, structure
acquisitions to facilitate competition by and among small
businesses, HUBZone small businesses, SDBs, and WOSBs, and
providing guidance on structuring acquisitions, including,
but not limited to, those expected to result in multiple
award contracts, in order to facilitate competition by and
among these groups;
(d) implementing mentor-protege programs, which include
women-owned small business firms; and
(e) offering industry-wide as well as industry-specific
outreach, training, and technical assistance programs for
WOSBs including, where appropriate, the use of Government
acquisitions forecasts, in order to assist WOSBs in
developing their products, skills, business planning
practices, and marketing techniques.
Sec. 5. Subcontracting Plans. The head of each Federal
agency, or designated representative, shall work closely with
the SBA, OFPP, and others to develop procedures to increase
compliance by prime contractors with subcontracting plans
proposed under section 8(d) of the Small Business Act (15
U.S.C. 637(d)) or section 834 of Public Law 101-189, as
amended (15 U.S.C. 637 note), including subcontracting plans
involving WOSBs.
Sec. 6. Action Plans. If a Federal agency fails to meet its
annual goals in expanding contract opportunities for WOSBs,
it shall work with the SBA to develop an action plan to
increase the likelihood that participation goals will be met
or exceeded in future years.
Sec. 7. Compliance. Independent agencies are requested to
comply with the provisions of this order.
Sec. 8. Consultation and Advice. In developing the long-
term comprehensive strategies required by section 2 of this
order, Federal agencies shall consult with, and seek
information and advice from, State and local governments,
WOSBs, other private-sector partners, and other experts.
Sec. 9. Judicial Review. This order is for internal
management purposes for the Federal Government. It does not
create any right or benefit, substantive or procedural,
enforceable at law or equity by a party against the United
States, its agencies, its officers, its employees, or any
other person.
William J. Clinton.
The White House, May 23, 2000.
Mr. ABRAHAM. Mr. President, today I join my colleagues from the
Senate Small Business Committee, Chairman Kit Bond and Ranking Member
John Kerry, in support of increased involvement of women-owned small
businesses in the Federal procurement process.
I have had the opportunity to speak with many women business leaders
in Michigan on this matter, and the general opinion is that there are
certain doors that are closed to women business owners. In a field
hearing I held in Michigan last summer on issues to women in business,
I found that many times women business owners face the same problems as
men in the private sector. However, when looking at the representation
of women in terms of federal procurement dollars, the difference is
striking.
Six years after posting a modest five-percent goal of Federal
procurement dollars for women-owned small businesses, Federal
departments and agencies have fallen far short. Last year, only 2.4
percent of the total dollar value of all Federal prime contracts went
to women business owners. This shortfall is staggering when taking into
account that women-owned small businesses are the fastest growing
segment of the business community in the United States. In fact, by the
year 2010, women-owned small businesses are expected to make up more
than one-half of all businesses in the United States.
As a result of this striking information, I introduced an amendment
to last year's Women Business Centers Sustainability Act that called
for a GAO report studying the trends, barriers and possible solutions
to this deficiency. I am proud to report that this report stands to be
completed by the end of the year. However, this alone will not provide
Federal procurement opportunities for women-owned small businesses. The
administration must become actively involved in demanding Federal
departments and agencies accomplish the five-percent procurement goal.
Mr. President, I have been advocating this issues for quite some time
now. My colleagues and I in the Senate Small Business Committee have
consistently supported efforts empowering the spirit of
entrepreneurship in American women. In my view, these actions must be
adopted and enforced on all levels of government.
I hope my colleagues in the Senate will join me in encouraging the
President to hold the heads of the Federal departments and agencies
accountable to ensure that the five percent goal is achieved during
this fiscal year.
Mr. BURNS. Mr. President, today I join Senator Bond, Senator Kerry,
and others in support of a Senate resolution urging the President to
adopt a policy to ensure that the 5-percent Federal procurement goal
for women-owned small businesses is met.
In 1994, Congress enacted the Federal Acquisition Streamlining Act,
establishing a Government-wide goal for small businesses owned and
controlled by women. This act allows for no less than five percent of
the total dollar value of all prime contracts and subcontract awards
for each year.
Over the past few years, we have witnessed the growth of women-owned
businesses, including federal contracts. Over the past ten we've seen
thousands of women entrepreneurs start or expand their own businesses.
It is important we realize that women-owned businesses are the fastest
growing segment of the business community in the United States. In
fact, in the next ten years, it is expected that women-owned businesses
will make up more than one-half of all businesses in the United States.
This week has been designated as Small Business Week, therefore it is
only fitting that the Senate should pass this resolution to symbolize
the Senate's concern that the Federal departments and agencies have not
made adequate effort in meeting the five percent goal established in
1994 as part of the Federal Acquisition Streamlining Act. I fully
support this Senate resolution and urge Federal agencies to make a
concerted effort to meet this 5-percent goal.
Mr. ALLARD. Mr. President, I ask unanimous consent that the
resolution be agreed to, the preamble be agreed to, the motion to
reconsider be laid upon the table, and any statements relating to the
resolution be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The resolution (S. Res. 311) was agreed to.
The preamble was agreed to.
The resolution, with its preamble, reads as follows:
S. Res. 311
Whereas women-owned small businesses are the fastest
growing segment of the business community in the United
States;
Whereas women-owned small businesses will make up more than
one-half of all business in the United States by the year
2010;
Whereas in 1994, the Congress enacted the Federal
Acquisition Streamlining Act of 1994, establishing a
Government-wide goal for small businesses owned and
controlled by women of not less than 5 percent of the total
dollar value of all prime contracts and subcontract awards
for each fiscal year;
Whereas the Congress intended that the departments and
agencies of the Federal Government make a concerted effort to
move toward that goal;
Whereas in fiscal year 1999, the departments and agencies
of the Federal Government awarded prime contracts totaling
2.4 percent of the total dollar value of all prime contracts;
and
Whereas in each fiscal year since enactment of the Federal
Acquisition Streamlining Act of 1994, the Federal departments
and agencies have failed to reach the 5 percent procurement
goal for women-owned small businesses: Now, therefore, be it
Resolved, That--
(1) the Senate strongly urges the President to adopt a
policy in support of the 5 percent procurement goal for
women-owned small businesses, and to encourage the heads of
the Federal departments and agencies to undertake a concerted
effort to meet the 5 percent goal before the end of fiscal
year 2000; and
(2) the President should hold the heads of the Federal
departments and agencies accountable to ensure that the 5
percent goal is achieved during fiscal year 2000.
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