NSBA Testifies On Medium-Sized Contracting Bill

September 13, 2011

The National Small Business Association testified this week before the U.S. House Committee on Small Business, cautioning against proposed legislation that would create a contracting pilot program for medium-sized businesses.

The hearing, “Beyond the Size Standards: Sustainability of Small Business Graduates”is focused on the Small Business Growth Act (H.R. 1812), introduced by Rep. Gerry Connolly (D-Va.).

Representing the organization is NSBA-member and government contractor Michael Frisbey, the owner of Government Suppliers & Associates, of Knoxville, Tennessee, and Government Sewing & Apparel LLC, which employs directly employs approximately 80 people at a factory in Hope, Arkansas.

In his testimony, Frisbey noted that the government had not yet managed to award 23 percent of prime, federal contracts to small firms, a goal established for it by the U.S. Congress in 1997. He also expressed NSBA’s support for increasing the government’s small-business procurement goal to 30 percent of all federal contacts.

Given this state of affairs, Frisbey argued that the small-business community would be better served by agencies concentrated on finding ways to expand contracting opportunities for small firms, than by the creation of a pilot program aimed at medium-sized firms. He said that the legislation’s creation of a separate, competing program that would assist firms far outside the scope of the traditional definitions of small business would not benefit small firms and, in fact, very well could impair their contracting opportunities. He also argued that it was not at all clear that medium-sized firms need enhanced governmental assistance in well-functioning markets.

Please click here for Frisbey’s full testimony.