Washington DC – Today, the House Small Business Committee Subcommittee on Contracts and Infrastructure is holding a hearing entitled “.Leveling the playing field: Challenges facing small business contracts. ”
Subcommittee Chairman Larota’s prepared opening statement:
good morning. Welcome to today's Small Business Subcommittee hearing on leveling the playing field and challenges facing small business contracting.
First of all, I would like to thank the witnesses who have joined us today. Some of them came here from Long Island, which is one of the best places in the country. Thank you very much for taking your valuable time. We look forward to hearing your testimonies.
Today, our subcommittee will focus on several important issues facing Main Street America. First, the number of small businesses receiving federal contracts has declined by 50% over the past decade. Additionally, the number of small businesses entering the federal contracting system has declined by nearly 60%. Second, the regulatory burden placed on small businesses seeking to enter into federal contracting is too high. Finally, we will address systemic deficiencies in the federal acquisition process that undermine small business participation in contracting.
Pointing out the problem is not enough. The focus should be on how to solve these three and other issues, recognizing the important role that Main Street plays in increasing competition, innovation, and revitalizing the economy.
It is embarrassing, even shameful, that our small businesses have been systematically locked out of federal contracts for decades. This decline is not surprising as the Biden administration is actively misdirecting our economy and national security.
At a time when the country needs a strong defense industrial base, small businesses are being shut out of government contracts in this field.
In particular, my district has the second largest industrial park in the country after Silicon Valley in Hauppauge. More broadly, Long Island is home to more than 167 defense and aerospace companies, more than 3 million square feet of industrial and commercial space, and 10,000 full-time employees (FTE). Economic activity reaches $3 billion.
With the decline of the nation's small and medium-sized defense contractors, it is important to recognize and promote the important efforts of our existing industries, such as Long Island's industrial defense industry, whose contributions provide immediate support to our military. It is now possible to prepare for
When considering contracts with the Department of Defense, you need to consider not only the prime but also the suppliers that provide parts for submarines, ships, and aircraft, as well as the hierarchy of companies that provide critical services.
The bureaucratic red tape that small businesses are forced to navigate is also extremely harmful and burdensome.
Needless to say, the complexity of these barriers makes it even more difficult for small businesses to enter the federal market.
For example, getting involved in federal contracting requires a thorough understanding of the long and burdensome regulations associated with federal procurement, Defense Federal Acquisition, and the Federal Register.
These cumbersome and bureaucratic documents total more than 94,000 pages and require thousands of man-hours to read. I think we can all agree that small businesses don't have the talent to successfully accomplish this.
Finally, we need to examine the current systemic failures in the federal government's takeover process that consistently undermine Main Street.
When large companies partner with small businesses to win small business contracts, practices such as self-certification and joint ventures are ripe for abuse by large companies to the detriment of small businesses.
Fraud in self-certification is rampant, and the Biden administration is seeking to exacerbate rather than correct it.
I recently worked with my colleague across the aisle, fellow New Yorker Ranking Member Velasquez, to phase out self-certified women-owned small businesses from government-wide procurement goals and ensure that the program is completely removed from the program. I introduced a bill to protect sexuality. .
As with other small business programs in the federal government, we must ensure that structures and guidance are in place to ensure businesses are accurately represented.
Our goal on this committee is to create a path for small business success. We must ensure that each small business is given the opportunity to grow without drowning in bureaucratic red tape.
Thank you very much for joining us today.
The lived experiences of our witnesses, which we will soon hear, will help the Committee work to make meaningful improvements to ensure that small businesses are fully represented in the federal procurement market.
We must work together to stop the decline in small business contracts and keep Main Street open.
With that, I turn over to my distinguished colleague, Ranking Member for the State of Michigan, Ms. Scholten.
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