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Senator Questions Bush?s Veteran Business Efforts

Veterans Business Journal

Sat, April 1, 2006

by John Dowling

U.S. Senator Daniel Kahikina Akaka is America’s first senator of Native Hawaiian ancestry, and the only Chinese American member of the United States Senate.

Like many of his generation, Sen. Akaka’s youth was interrupted by World War II. Upon graduation from high school, he enlisted in the U.S. Army and served in the Army Corps of Engineers from 1943 to 1947 including service on Saipan and Tinian. He was a teacher and principal before being elected to the U.S. House in 1976. Rep. Akaka was appointed to the Senate when Sen. Spark Matsunaga passed away, subsequently winning election to the office in 1990, and re-election in 1994 and 2000.

Sen. Akaka is the ranking member on the Veterans’ Affairs Committee and the Armed Services Subcommittee on Readiness and Management. On Feb. 27, Sen. Akaka and Sen. John Kerry (D-Mass), ranking member on the Committee on Small Business and Entrepreneurship, questioned the Bush Administration’s efforts to comply with a law increasing federal contracting opportunities for small businesses owned and controlled by service-disabled veterans.

More than two years ago Congress passed the Veterans Benefits Act of 2003 that included a provision requiring 3 percent of all contracting dollars awarded by the federal government go to service-disabled veteran companies. However, that goal has not been met and a mere 0.38 percent went to firms owned by service-disabled veterans in 2004, the last year that results are available. The government’s inability to meet the statutory goal in 2004 cost these firms nearly $9 billion in contracts.

Sen. Kerry subsequently sent letters to 20 federal agencies asking for specific strategies they are implementing to help service-disabled veterans who own small businesses. To view the letters and see how the various government agencies responded, go to the U.S. Senate Committee on Small Business and Entrepreneurship at http://sbc.senate.gov/democrat/correspondence.cfm.

Veterans Business Journal asked Sen. Akaka his views on federal contracting for veteran-owned small businesses.

VBJ.. You recently wrote a letter, co-signed by Sen. John Kerry, expressing concern that federal agencies may not be fully utilizing a procurement program for small businesses owned and controlled by service-disabled
veterans. Why did you take this action?

Akaka.. I believe that it is important to ensure that our federal laws are implemented and that programs intended to benefit veterans and the economy As the ranking member of the Senate are utilized to their full potential. Committee on Veterans’ Affairs, and a veteran myself, I believe service-disabled It takes veterans deserve as many opportunities as this nation can afford them. a lot for an individual to own a business and to participate in the federal We need to ensure that our federal agencies are doing procurement process. their part to provide procurement opportunities to service-disabled veteran-owned businesses.


VBJ.. You mentioned in your letter that the Act has not been implemented as Congress intended. How did Congress originally intend it and what is the difference between how it is being implemented now?

Sen. Kerry subsequently sent letters to 20 federal agencies asking for specific strategies they are implementing to help service-disabled veterans who own small businesses.

Akaka.. In 2004, Congress recognized that federal agencies were not meeting the 3 percent government-wide goal for procurement from service-disabled veteran-owned small business. We enacted P.L. 108-183 to provide additional opportunities for service-disabled veterans to contract with the government by authorizing a federal contracting officer to award sole source contracts to
small businesses owned and controlled by
service-disabled veterans. The authorization was made as an amendment to the Small Business Act.

VBJ.. What other actions has the Senate taken to ensure that federal agencies complying with the Veterans Benefits Act of 2003 (P.L. 108-183)?

Akaka.. As ranking member of the Small Business Committee, Sen. Kerry has sent letters to 20 federal agencies asking for specific strategies they are implementing to help service-disabled veterans who own small businesses. Our joint letter to the Small Business Administration asks a series of questions. We hope the responses that are provided to us will shed some light regarding why we have not seen a meaningful increase in procurement contracts for service-disabled veteran-owned small businesses. This is a problem that needs to be fixed.

VBJ.. How can Congress assist the efforts of veteran and service disabled owned companies to be competitive in procuring federal contracts?

"This is a problem that needs to be fixed," said Sen. Akaka speaking about the lack of procurement contracts for SDVOBs.

Akaka.. Congress has sought to provide tools to assist service-disabled veterans enhance their entrepreneurial skills, including being competitive in federal procurement process. Congress recognized this need and issued a federal charter for the National Veterans Business Development Corporation (The Veterans Corporation) in 1999. The Veterans Corporation is charged with creating and enhancing entrepreneurial business opportunities for veterans, including service-disabled veterans. The Veterans Corporation is currently developing a program to help veterans to increase their competitiveness in the federal procurement process. It also provides veterans with extensive information on securing federal contracts.

VBJ.. Are there any other legislative initiatives being considered to assist SDVOBs and VOBs succeed in the federal procurement process?

Akaka.. Before we draft additional legislation, I believe it is critically important to understand what is really going on and why federal agencies are not meeting the procurement goals that we have established for service-disabled veteran-owned small businesses. This is why I look forward to reviewing the responses to the letter that Sen. Kerry and I sent out. Once we have fully assessed the situation, we will be in a better position to determine what legislation action, if any, will be appropriate.

VBJ.. House Resolution 3082 calls for a requirement that 9 percent (6 percent VOBs in addition to the current 3 percent for SDVOBs) of procurement contracts entered into by the Department of Veterans Affairs are awarded to small business concerns owned by veterans. If most federal agencies can’t meet the 3 percent, is it really productive to increase the raise the bar to triple the minimum threshold for Veterans Affairs?

Akaka.. I think it’s always good to raise the bar. We always need to work toward our goals. What we need to do here is to ensure that the agencies and veterans have the right tools to make this a reality.

VBJ.. The costs of the war in Iraq, both fiscal and physical, are mounting. What is Congress doing to ensure that current troops have the resources they need to win the war on terrorism while the veterans who sacrifice themselves for their nation are taken care of in the long term?

Akaka.. As the ranking member on the Senate Veterans’ Affairs Committee as well as a senior member on the Armed Services Committee, I continue to work with my colleagues to ensure that our service members have the best equipment, training and weapons to successfully execute their missions. At the same time, I have continued to emphasize that we have a duty to these service members and their families to take care of them once they complete their terms of service. For that reason I have worked to increase funding for veterans health care and research and have sought additional resources for increased funding for the Veterans Benefits Administration, Board of Veterans’ Appeals, and Office of the Inspector General. I continue to stress to my colleagues that costs for veterans’ health care and services is a cost of war. I believe there is a direct correlation between the budgets for the Departments of Defense and Veterans Affairs. If one increases, so must the other – our care for our service members cannot stop just because they return from the battlefield or successfully complete their term of service.

VBJ.. What obligations do we have to ensure SDVOBs, VOBs, and veterans in general, succeed in post-military transition?

Akaka.. We have a tremendous obligation to those who have set-aside their own lives to serve in our armed forces. Entrepreneurial education for disabled service members who are transitioning from military to civilian life and want information on starting a small business is critically important.
I applaud the efforts of the Departments of Veterans Affairs, Defense, and Labor to ensure a seamless transition for the men and women that serve. We must make certain that each service member is receiving high quality assistance. All soldiers, sailors, airmen, and Marines, including the men and women who are coming back from Iraq and Afghanistan, should have nothing less than a seamless reintegration into civilian society.

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