Concerns Over Recent Federal Procurement Executive Order
The Chamber warns that this Executive Order jeopardizes decades of small business protections.
Today, the American Small Business Chamber of Commerce (ASBCC), the prominent voice representing small business federal suppliers, issued a strong response to the recent Executive Order concerning federal procurement titled "Restoring Common Sense to Federal Procurement."
According to ASBCC, this Executive Order raises alarms as it grants federal agencies considerable power to alter or eliminate protections for small businesses without the need for Congressional approval, public notice, or any form of transparency.
Repercussions of the Executive Order
The ramifications of this Executive Order, signed in a recent session, are serious. It has the potential to undermine long-established safeguards for various small business contracting programs, particularly those aimed at supporting Veteran-Owned, Women-Owned, HUBZone, and other small businesses.
President of ASBCC, Charmagne Manning, emphasized, "This Executive Order reads like a procedural memo, but its implications are profound. It opens the door for agency leaders to quietly dismantle 70 years of bipartisan law that has been crucial for small businesses to have equitable opportunities for federal contracts. The economic fallout could be rapid, affecting small business revenues and jeopardizing countless jobs."
Key Concerns Raised
The ASBCC memo titled 'Dismantling the Executive Order on 'Restoring Common Sense to Federal Procurement' highlights several critical issues, stating that the government has failed to reference any statutory small business requirements— including the essential 23% small business contracting goal.
The memo provides a detailed outline of how the authorities introduced by this Executive Order could be misused:
- The immediate ability to bypass established set-aside rules;
- The potential for a rewrite of the Federal Acquisition Regulation (FAR) that might eliminate the infrastructure enforcing small business regulations;
- Legal risks linked to redefining basic terms like "fair market price" to prioritize larger firms over emerging ones;
- The ripple effects on job creation, regional economies, innovation, and national security.
Historical Context and Support
The ASBCC memo further articulates that the small business community isn't asking for additional privileges but rather the enforcement of existing laws. Manning stated, "Congress made its intentions clear. American taxpayers warrant a supply base that is dynamic and diverse, not one that is whimsically consolidated by bureaucratic maneuvering."
This impending shift in procurement strategy could severely impact billions in small business revenues and presents a threat to countless jobs tied to these vendors. Importantly, these businesses are integral to the economies across various congressional districts nationwide.
Supporting Documents from ASBCC
In conjunction with the memo, ASBCC has produced three supplementary reports outlining the importance of protecting small businesses in federal contracting:
- America's Economic Engine: The Importance of Small Business in Federal Contracting;
- Bipartisan Foundations: The Historical Support for Small Business Contracting Laws;
- Guaranteed by Law: Understanding the Statutory Framework for Small Business Participation in Federal Contracting.
Call to Action
ASBCC is currently developing a national strategy framework intended for use by elected officials, watchdog agencies, and business leaders committed to maintaining small business access. The Chamber is calling for immediate oversight hearings from Congress and urging Inspectors General and the SBA Office of Advocacy to act before critical damage is inflicted upon the small business ecosystem.
About ASBCC: The American Small Business Chamber of Commerce serves as a leading independent force committed to ensuring fair access to supplier contracts for small businesses. For more information, you can visit their official site.
Frequently Asked Questions
What are the key concerns around the new Executive Order?
The new order may undermine decades of small business protections and allow federal agencies to bypass established contracting rules.
What is ASBCC's position on the Executive Order?
ASBCC believes the Executive Order jeopardizes small businesses' ability to compete for federal contracts, urging for the enforcement of existing laws.
How might this affect local economies?
By limiting small business participation in federal contracts, local economies could suffer from reduced revenues and job losses.
What supporting documents has ASBCC released?
ASBCC has published three reports focusing on the economic and historical significance of small businesses in federal contracting.
What actions is ASBCC advocating for?
They are urging Congress to conduct oversight hearings and encouraging agency accountability to protect small businesses.
