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

For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
March 11, 2009                                                                                                             (202) 226-3636

President Signs Bill Reversing Anti-Women Contracting Policy  

Bush-Era Rules for Women’s Procurement Program Halted

WASHINGTON, D.C. —The spending bill for the federal government that President Barack Obama signed into law today halts a controversial Bush Administration regulation, which would have limited opportunities for women to better compete in the federal marketplace.  Rep. Nydia Velázquez (D-NY), the Chairwoman of the House Small Business Committee, said the Bush Administration’s proposal for implementing the Women’s Procurement Program was the wrong direction and applauded the Obama Administration for its action.

“By stopping the Bush-era regulations from proceeding, President Obama has made clear that women’s opportunities to compete for their fair share of federal contracts will be a priority from now on,” Velázquez said.  “The direction the Bush Administration was taking for implementation of the Women’s Procurement Program was simply wrong.  The final outcome of this policy would have ultimately hurt female entrepreneurs.”

While current law mandates a 5 percent federal contracting goal for women-owned businesses, the Bush Administration never met that benchmark.  In 2006, for example, only 3.4 percent of government projects were awarded to female entrepreneurs.  Chairwoman Velázquez authored the Women’s Procurement Program (WPP), which was part of the Equity for Contracting for Women Act in 2000.  It was intended to help women access the federal marketplace by allowing federal agencies to restrict competition for contracts to women-owned businesses.  However, the Bush Administration crafted rules implementing the Act in such a way that would have been unworkable.  For example, in crafting the rules, the Administration used a methodology that found women had only been underrepresented in just four out of 140 industries, meaning that only in those four industries would women business owners be eligible for contracting assistance.

“Today the Bush administration’s absurd proposal to create more red tape and agency roadblocks for female entrepreneurs is stopped,” Velázquez said.  “Had the Bush Administration been allowed to go forward with this plan, it would have essentially gutted the Women’s Procurement Program and made it harder for female entrepreneurs to succeed.” 

A number of women’s organizations, including the Women’s Chamber of Commerce, had gone to court to oppose the Bush Administration’s interpretation of the WPP.  Velázquez herself had filed an amicus curiae brief supporting the challenges to the Bush Administration’s rules.  On Wednesday, Velázquez said that the economic recovery legislation enacted late last month would result in an influx of new federal contracts, meaning that it was all the more important that the Bush Administration’s misguided procurement rules be stopped.

“With the passage of the American Recovery and Reinvestment Act of 2009, the federal marketplace will become more active than ever, opening opportunities for small businesses that will create jobs in communities across the country,” said Velázquez.  “In the coming months, our Committee will work to ensure that the Women’s Procurement Program is correctly implemented so female entrepreneurs have a fair chance to compete for the public works projects that will rebuild our economy."

# # #