News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release
December 27, 2007     

CONTACT: Erin Donar,  (202) 225-4038

Administration Contracting Proposal Fails Women Business Owners
House Small Business Committee will convene hearing next month to demand a justification for program guidelines.

WASHINGTON – Today, the Small Business Administration (SBA) announced that the long-awaited Women’s Procurement Program will operate under narrow inclusion criteria, restricting the number of firms that will benefit from its support.  For nearly a decade, the Federal Government has failed to achieve its women-owned business-contracting goal, and this initiative will do nothing to reverse this trend. The House Committee on Small Business has serious concerns about the proposal and will hold a hearing next month to determine if the agency ignored Congressional intent in crafting this program.   

“After nearly seven years of studies, delays and empty promises, the Administration had a chance today to finally show its commitment to women-owned firms – unfortunately, this did not happen,” said Chairwoman Nydia M. Velázquez. “These entrepreneurs are being shut out of billions of dollars in federal contracting opportunities, yet their concerns are falling on deaf ears. This is extremely disheartening and it cannot continue.”

In 2000, H.R. 4897, theEquity in Contracting for Women Act of 2000, sponsored by Chairwoman Velázquez, created the Women’s Procurement Program to help women more successfully compete for government work. However, the SBA stalled repeatedly to implement the program by conducting study after study over five years to determine how the initiative should work.   These tactics were successfully fought in a lawsuit by the US Women’s Chamber of Commerce on behalf of women business owners when the DC Circuit Court ruled that the federal government was unreasonably delaying enactment.

“Today’s announcement flies in the face of the Equity in Contracting for Women Act of 2000, which was intended to assist the many industries where women were unfairly prevented from securing federal contracts. Instead, this proposal would create an initiative benefiting only a tiny fraction of the businesswomen of this country,” said Chairwoman Velázquez. “It is a sad day for the female entrepreneurs of this country when the Administration will use whatever means necessary to hinder their participation in the federal marketplace.”

The program unnecessarily limits eligibility for women businesses to only four out of 140 possible industries.  As a result, only those businesses in the following business categories will be able to participate.

• National security and international affairs;
• Coating, engraving, heat treating, and allied activities;
• Household and institutional furniture and kitchen cabinet manufacturing; and
• Other motor vehicle dealers.

This approach will not result in any noticeable change in contracting opportunities for women, and will simply maintain the status quo of shutting out these entrepreneurs.

“This is clearly not a serious attempt to address the problems facing women business owners in this country. To suggest that the only women who deserve support are in industries as small as kitchen cabinet manufacturing is downright insulting,” said Chairwoman Velázquez. “The Administration needs to go back to the drawing board and come up with an effective program that will help ensure the success of female entrepreneurs across the country – this is what the women of America deserve and it is the right thing to do.”

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