CSBJ Daily

A group of business owners told the House of Representatives yesterday that federal procedures for government contracts make it difficult for small businesses to compete.

Business owners said the new contracting systems place a premium on speed rather than value.

“With less than 20 percent of federal contracts going to small business across the U.S., it is clear that this system isn’t working,” said Chairwoman Nydia M. Velázquez. “A process that excludes entrepreneurs and fails to get the best value for taxpayers is unacceptable.”

Government contracts have increased by $200 billion during the last 25 years, but agencies also have reduced their procurement personnel by more than half. To compensate, more responsibilities are being shifted to automated systems. That makes things easier for contracting officers and the federal bureaucracy, but it shuts out small businesses

Witnesses also testified that the new procedures create considerable administrative burdens and a wide range of unnecessary costs for small firms.