House and Senate subcommittees on Small Business have approved a new Small Business bill to expand opportunities for small businesses to receive a larger share of the federal contract expenditures.  The SBA Reauthorization Act (1) opens up SBA loan programs to “fast growing contributors of the economy” (2) limits contract bundling by providing small business better access to federal contracts (3) strengthens oversight and enforcement of small business subcontracting plans and ensures small business subcontractors are not neglected (4) improves the Historically Underutilized

Business Zone (HUBZone) program and (5) specifies the government-wide goal for small business participation in any multiple award contract to be not less than 23% of the total dollar value of all awards under that contract.

The new act, which amends the Small Business Act, will change the term “bundling” contracts to “consolidating” contracts (where small contract requirements are combined into a larger contract frequently preventing small business from competing) and require an agency conduct market research, identify alternative contracting approaches and determine if consolidation is justified for any defense contract over $5 million or $2 million for other agencies.  Where the SBA Act provides that consolidation “is necessary and justified” when the benefits of consolidation substantially exceed the benefits of alternative approaches the amendment states “savings in administrative or personnel costs alone” do not amount to sufficient justification for a contract consolidation.  Also, the amendment provides that contracts between $2,500 and $1 million may be set aside for competition limited to small business concerns if the CO is able to obtain offers from two or more small business who are competitive in market price, delivery, schedule and quality.  In addition, the bill not only emphasizes a 23% government-wide goal but instructs individual agencies to establish separate small business contracting goals.

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