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White House Fiscal Responsibility Summit

Page history last edited by Faye Anderson 15 years ago

On Monday, February 23, President Barack Obama will convene a fiscal responsibility summit with senior Administration officials, members of Congress and advocacy groups.   The summit will provide an opportunity to directly engage President Obama on the issue of minority business procurement and contracting.

 

With that in mind, feedback on the following is sought:

 

  • What do you consider to be the top three issues on minority business procurement and contracting? 
  • What actions are needed by the White House or Administration officials to resolve these top three issues? 
  • What is the expected outcome?  How do we measure success?

 

Walter E. Allen, President & CEO, Acumen Building Enterprise, Inc., Oakland, CA

 

Issue 1:

The biggest concern for small business is “pipeline” business.  Small business needs a long term “pipeline” or stable projects and cash flow to hire staff and make capital investments into technology, computer, buildings, or work in process.  The federal government stimulus package represents such a “pipeline.”  If Acumen can win a small piece of the infrastructure, transportation or energy contracts, I will be able to quickly hire more staff, create jobs and put people to work.

 

Issue 2:

Break projects into smaller contracts so smaller firms can prime or lead projects.  The opportunity to prime contracts is critical to the long term success of small business.

 

Issue 3:

Acumen would like to identify energy projects that will be funded.  How do we work through the process?  Working with the Federal government is difficult for a small firm.  Generally, small firms don’t have the resources in place to get through all the paperwork and requirements to win a project.

 

GE, Bechtel and the utility industry have connections and lobbyists that are already plugged-in.  There needs to be more mandatory goals for small business participation (and teeth to the requirements) so small firms can get the experience and grow.  If this does not happen, majority firms will continue to get all the work and not allow small firms a seat at the table to make decisions on cutting up the pie.

 

Faye M. Anderson, Founder, Tracking Change Wiki, Brooklyn, NY

 

Issue 1:

According to the Census Bureau, small businesses have created 60 to 80 percent of all new jobs over the last decade.  They employ nearly half of all private sector employees.  In a speech before the American Small Business League, then-candidate Barack Obama said: 

 

Helping American small business is part of our movement for change and the end of politics as usual.  98 percent of all

American companies have fewer than 100 employees.  Over half of all Americans work for a small business.

 

Small businesses are the backbone of our nation's economy and we must protect this great resource.  It is time to end

the diversion of federal small business contracts to corporate giants.

 

President Obama recently told Black Enterprise:

 

                   Most states, if not all the states, have provisions in place to ensure minority, women and small businesses participation.

                   We expect states to abide by their local rules.  Obviously, federal rules are going to pertain as well when it comes to, for

                   example, making federal buildings more energy efficient.  Should that be part of the package, we’re going to be very clear

                   about making sure that goals are set that ensure participation of every type of business imaginable.

 

Action needed by White House or Administration officials:

Enforce existing law.

 

Expected outcomes:

Small and small-disadvantaged businesses will be able to grow, save and create jobs, increase tax revenues to the Federal government, and reduce deficit spending.

 

 

Martin P. Greene, Attorney, Greene and Letts; National Minority Law Group, Chicago, IL

 

Issue 1:

The members of the National Minority Law Group (NMLG) urge President Obama to undertake all efforts to ensure minority-owned vendors are provided the opportunity to fully participate in each and every effort on the part of government to stimulate the economy.  The waiver of Federal Acquisition Regulation (FAR) small and small-disadvantaged business provision operates as a mechanism of exclusion for minority and women-owned businesses.  Recent history has, however, demonstrated that there is still the compelling need to ensure federal contracting opportunities originally envisioned by the statutes cited in the waiver language.

 

Action needed by White House or Administration officials:

Even though the nation is in crisis, issues such as diversity must not be sacrificed in the justifiable rush to resolve the crisis.  The members of NMLG urge President Obama and his Administration to undertake all efforts to ensure minority-owned vendors are provided the opportunity to fully participate in each and every effort on the part of government to stimulate the economy.  In doing so, we remind the President that providing new business to small business vendors will immediately result in new employment opportunities for many citizens that might not otherwise have them.

 

 

Eddie Griffin, Blogger, Fort Worth, TX

The "minority inclusion act" which guarantees certified minority businesses a piece of the contracting opportunity, did not work in Texas for lack of enforcement under the Bush administration.  Too many white business corporations skirt the law.  Also, there is a disparity in the employment rate (especially companies with federal contracts) and a disparity in federal research grants to historically minority colleges and universities.

 

   

Cynthia Jones-Parks, Jones Worley Design, Inc., Atlanta, GA

 

Issue 1:

Over the last four-to-five years, for many minority business owners, it is as though the economic water faucet has been turned OFF...not turned down...but off!  Opportunities are just not flowing down from large companies to small and minority businesses.  Large firms and government agencies have cut their budgets and greatly reduced outsourcing -- all of which have had a severe impact on minority businesses.  Not holding larger firms and contractors accountable for the inclusion and demonstrated participation of small and minority businesses in approved or awarded local, state and federal contracts.

 

Issue 2:

Not having enough opportunities to contract directly with the government/corporations, oppose to having our services buried in larger more complex scopes of work that make being a subcontractor the only means of contracting.

 

Issue 3:

Not having methods to restructure current debt with lower interests and longer terms to free up operating capital.

 

 

Herb Long, III, CEO, Legion Design/Campbell & Associates, Washington, DC

 

Issue 1:

Lack of enforcement of current M/W/DBE goals.

 

Action needed by White House or Administration officials:

A high-level position is needed with REAL authority to enforce current goals and procurement practices where M/W/DBEs are concerned in both design and construction, as well as, to develop, implement and enforce penalties when goals and procedures are not met or followed (some teeth)

 

Expected outcome:

Departments of Transportation, consultants and contractors take the program and its efforts seriously or are subject to the consequences.

 

Issue 2:

Lack of accountability (tracking) of actual dollars spent with M/W/DBE.

 

Action needed by White House or Administration officials:

Develop a transparent monitoring system that allows for tracking of real and actual dollars spent with M/W/DBE both in design and construction versus the typical “proposed” dollars that are rarely spent with M/W/DBEs.

 

Expected outcome:

This may help to discourage majority firms from utilizing a status to get the work, and then once the project is awarded, the M/W/DBE’s participation is reduced significantly during the negotiation or scoping process.  

 

Issue 3:

Contract Bundling

 

Action needed by White House or Administration officials:

Develop specific parameters regarding contract size

 

Expected 0utcome:

If everyone agrees that small and medium sized firms create the most jobs, then why not create contracts that reflect that. This action will enable the Administration and Departments of Transportation to spread the wealth and level the playing field in all areas of design and construction.

 

 

Laura Murphy, Senior Advisor to President and CEO Marc Morial, National Urban League, Washington, DC

 

Issue 1:

The inability to secure surety bonding that is necessary in many cases to secure bidded opportunities.

 

Issue 2:

Access to information concerning contracting opportunities, which allows for both prime and subcontractor opportunities.

 

Issue 3:

The ability to get working capital financing necessary to fund the start-up of new contracts.

 

 

Warner H. Session, Esq., The Session Law Firm, Washington, DC

 

Issue 1:

Increase the numbers of minority businesses participating in Federal procurement as follows:   (a) improving the contract formation process by providing strong small and disadvantaged business contract language in competitive procurements; and (b) aggressive enforcement of Public Law 95-507 subcontracting goals.  The premise is that existing law is adequate but better execution and enforcement is needed.

 

Issue 2:

The Administration needs to make fundamental structural changes in procurement practices through OMB and through the Office of Federal Procurement Policy.  To that end, there needs to be quarterly meetings between the Administration and the minority business community.

 

Issue 3:

There needs to be more resources dedicated to capacity building either through SBA or the Minority Business Development Agency.

 

 

H. Ron White, Partner in Charge, Adorno & Yoss; Chair, MBEPac, Dallas, TX

 

Issue 1:

There is a need to ensure that Federal, state and local governments adhere to , comply with and enforce minority and disadvantaged business laws, regulations and policies currently  in place.

 

Action needed by White House or Administration officials:

Adherence or compliance with existing laws, regulations and policies.

 

Expected outcomes:

  • Improved and or increased contracting opportunities.
  • Increase employment in major urban markets and specifically in minority communities. 
  • Foster competitive pricing and ultimate savings to the government.
  • Encourage more subcontracting and or joint venture opportunities.

 

Issue 2:

There is a need for the appointment of a Cabinet level officer who is adequately staffed and funded to implement, the Administration’s policies related to minority procurement and contracting opportunities.

 

Action needed by White House or Administration officials:

Stronger enforcement provisions or timely investigations, findings and sanctions where appropriate.

 

Expected outcomes:

  • A Cabinet level officer with authority and resources will hopefully demonstrate a clear policy commitment to the public of the importance of these laws and their value in achieving the Administration’s platform for an inclusive America that will enable all of its citizens an opportunity to achieve.
  • Increased compliance.

 

Issue 3:

It is recommended that the White House and or the Administration appoint commission or commissions consisting of representatives from minority businesses, and the private and public sector to provide oversight of major industries, and state and local governments receiving Federal  funds.  The Commission should be charged with the review, oversight and reporting of their findings annually to the Cabinet Officer, Congress and the public.

 

Expected outcomes:

Such a commission or commissions by regions or states will generate immediate credibility related to the Administration’s commitment to transparency and willingness to involve the minority and corporate business community in providing the oversight and ultimately the remedies.

 

 

Tom W. Williams, Jr., CPA, Chief Executive Officer, Williams, Adley & Company, LLP, Oakland, CA

 

Issue 1:

Size standards are set too low, therefore, small businesses are forced to compete with giants to win a contract. This is true in most if not all NAICS codes.  Size standards for small businesses have not seen a significant move in my professional life, which spans more than thirty years. This forces government contractors to stay small or sell out to larger businesses.

 

Issue 2:

Contract bundling forces agencies to contract with large businesses that will then subcontract to small firms.  Small businesses lose the ability to control their own contracts and are generally forced to compete along with a larger firm.  This, in turn, becomes a “crap shoot.”  If the smaller firm chooses wrong, although it may have done a fantastic job with the government agency, it loses.

 

Useful Links

Fiscal Responsibility Summit Report

(The White House, March 2009)

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