Obama asked to back small businesses in DoD contracts

U.S. lawmakers, including Guam Delegate Madeleine Z. Bordallo, have asked President-elect Barack Obama to support small businesses that bid for military contracts.

Bordallo, in a statement issued yesterday, said she and 14 other members of the U.S. House of Representatives had written Obama calling for equal treatment of small businesses in the bidding for Department of Defense contracts.

The letter follows the Nov. 4, 2008, decision by the U.S. Court of Appeals for the Federal Circuit in Texas that declared unconstitutional the DoD’s program for small businesses owned and controlled by “socially and economically disadvantaged individuals.”

“The decision by the U.S. Court of Appeals in Texas is disappointing for all socially and economically disadvantaged individuals,” states Bordallo in the statement. “The Department of Defense is our government’s largest purchaser, and it is important that all individuals and small businesses are given the equal opportunity to apply and be considered for a DoD contract.”

The media statement notes that the University of Guam is setting up a Procurement and Technical Assistance Center to help small businesses apply for federal contracts.

“The military buildup [in] Guam will increase the number of the military contracts available [in] Guam, and it is important that the Department of Defense be inclusive of all individuals and small businesses in its consideration of whom to award federal contract dollars. This is an issue that my colleagues in the U.S. House of Representatives will continue to work on in Congress as well as with the incoming Obama administration,” the statement adds.

Northern Marianas Delegate-elect Gregorio Kilili Sablan echoed Bordallo’s statement. He said, “It is important for Guam, and for the Northern Mariana Islands, that local businesses receive fair consideration in obtaining military contracts and purchases. The court’s decision does not promote fairness for Guam’s and for our local businesses and I stand ready to support Congresswoman Bordallo’s efforts to redress this inequity in Congress.”

Also known as the 1207 Program, the DoD program that has been ruled unconstitutional was created with an annual goal of awarding 5 percent of DoD contracts to certain entities, including small businesses.

Citing the Small Business Administration’s Small Business Goal Report and Small Business Procurement Scorecard, Bordallo’s release says the Defense Department ranks as one of the lowest federal agencies in regards to the number of contracts awarded to “historically underutilized business” zone entities, small businesses, and women and veteran-owned businesses in fiscal year 2007.

The release says that the lawmakers’ letter to Obama urges the incoming president to take measures to ensure that all individuals and small businesses are included in the bidding process for DoD contracts.