Nydia Velázquez

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment. Mr. Chairman, I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, it is becoming increasingly concerning that companies may be receiving HUBZone contracting preferences inappropriately. Since 2003, the SBA Inspector General has released two reports identifying the potential for contracting fraud in this program. Most recently, in 2006, the IG has found that more than 80 percent of companies are not eligible 3 years after they were approved. In nearly 20 States, we have identified multimillion dollar properties in areas designated as HUBZone. If a company located in one of these zones employed people who lived in similar conditions, they would be eligible for contracting preferences over small businesses. The gentleman's amendment addresses the issue that some areas of the country are designated HUBZone. That should not be. At the same time, this will also require the SBA to examine why some deserving areas are not being designated appropriately. To resolve this inconsistency, the amendment requires the SBA to carry out a study that includes recommendations for alternative ways to evaluate HUBZone eligibility. There is no rational reason why some of the most affluent areas in the country are eligible for government contracting preferences, while truly deserving areas are overlooked. We are prepared to accept this amendment, and I will yield to Mr. Chabot for any comments he may have.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, in recent years, the Federal marketplace has seen phenomenal growth. However, while procurement opportunities are increasing, agencies are failing to meet their small business, women, service-disabled veterans, minority and low-income contracting goals. This has not only cost small businesses billions of dollars in lost opportunities but deprives the government of a valuable supplier. Our Nation's entrepreneurs play an important role in the procurement system, providing diversity, competition, and ensuring we get the best value for the taxpayers' dollar. To help them get a start, there is an array of contributing programs offering technical assistance, purchasing flexibility and targeted benefits. Unfortunately, due to legislative neglect, under funding and mismanagement by several administrations, the programs have fallen far short of their full potential, leaving many small businesses outside of the Federal marketplace. The Small Business Contracting Program Improvements Act, introduced by myself and Representative Mary Fallin, will change that by making important improvements to women, minority, HUBZone and service-disabled veteran contracting programs. H.R. 3867 will immediately implement the Women's Procurement Program that has languished in the current administration's endless delays. It also updates the economic criteria for the 8(a) program, reflecting current fiscal realities. The last time Congress addressed the 8(a) program was almost 20 years ago, when a gallon of gas was 90 cents and the average cost of a home was less than $90,000. For too long we have forced minority businesses to operate under antiquated financial standards that in many cases were simply setting them up to fail. Most importantly, this legislation will give our service-disabled veterans top priority when it comes to contracting. For those men and women returning from Iraq and Afghanistan, many with life-altering injuries, this bill will provide the tools to start a new endeavor and begin a new life. These changes would go a long way to addressing many of the program's shortcomings that have frustrated our Nation's small business owners. Mr. Chairman, H.R. 3867 also fights fraud in the Federal marketplace. Contracting opportunities are a privilege, not a right. The Small Business Contracting Improvement Act makes that clear. For the first time, we are imposing a business code of conduct on all participants, requiring the Federal Government to verify that individuals are who they claim and empowering small firms to police their own programs. This will restore integrity to these critical programs. Through modernizing programs and increasing accountability, H.R. 3867 brings SBA's contracting programs into the 21st century. It is for this reason that this legislation has attracted remarkably broad support, including the National Federation of Independent Business, the Associated General Contractors, the American Legion, Veterans of Foreign Wars, AMVETS, the U.S. Hispanic Chamber of Commerce, the National Black Chamber of Commerce, the U.S. Women's Chamber of Commerce, the International Franchise Association, as well as the National Defense Industrial Association and the Aerospace Industries Association. This is a measured approach that balances the need to give program flexibility within the realities of current agency buying strategies. It is good for small business, good for the agency, and, most importantly, good for taxpayers. I urge my colleagues to support this legislation. Mr. Chairman, I reserve the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to a member of the Small Business Committee, the gentleman from Pennsylvania (Mr. Sestak).

Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from Texas (Mr. Reyes), an original cosponsor of the legislation and chairman of the Intelligence Committee.

Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from California (Mr. Baca), chairman of the Congressional Hispanic Caucus. (Mr. BACA asked and was given permission to revise and extend his remarks.)

Ms. VELAZQUEZ. Mr. Chairman, I have no further speakers and I am prepared to close if the gentleman is prepared to close.

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.

Ms. VELAZQUEZ. Mr. Chairman, I just want to thank the gentleman from Ohio for working with me on this amendment. I urge adoption of the amendment, and I yield back my time.

Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I ask unanimous consent to claim the time in opposition.

Ms. VELAZQUEZ. Mr. Chairman, while I am not opposed to the amendment, I ask unanimous consent to claim the time in opposition.

Ms. VELAZQUEZ. Mr. Chairman, I reserve the right to object. I am surprised that the gentleman is withdrawing his amendment since I was prepared to accept the amendment. I think this is a problem that needs to be addressed. I am willing to work with the gentleman to address this issue.

Ms. VELAZQUEZ. Mr. Chairman, I withdraw my reservation.

Ms. VELAZQUEZ. Mr. Chairman, I would like to thank the gentleman for offering this amendment. Certainly, frivolous litigation is a problem in any scenario. Our justice system is a valuable tool for the good-faith settling of claims, but it is costly and time consuming, and should never be used for purposes other than what was originally intended. If incumbent contractors are, in fact, using the bid process size protest mechanisms to extend the length of contracts, this problem needs to be addressed. Small businesses face enough barriers in their efforts to enter the Federal marketplace. Having to fight frivolous lawsuits should not be one of them. If businesses, particularly mega-contractors, are using their position to prevent qualified contractors from doing Federal work by exploiting a loophole, the American taxpayer loses out. The gentleman's amendment addresses this issue by requiring a study to determine the number of relevant protests, the financial impact on small businesses, and recommendations for solving any problems discovered. The protest process was designed to create due process, not to create unfair advantages. This study will help to determine if there is a problem that needs to be further addressed. I appreciate the gentleman bringing attention to this small business barrier, and although frivolous lawsuits can be devastating for anyone in the business community, it can be a particular burden for smaller companies. Adding litigation costs to an already limited cash flow is unrealistic for many small businesses, and I will be interested to see if this is what they're being forced to do. It would allow our committee to fully understand if further changes are needed. We are prepared to accept this amendment, Mr. Chairman, and I will yield to Mr. Chabot for any comments he may have.

Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I ask unanimous consent to claim the time in opposition.

Ms. VELAZQUEZ. Mr. Chairman, I urge the adoption of this amendment, and I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment, and I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment, and I yield back the balance of my time.

Ms. VELAZQUEZ. I am.

Ms. VELAZQUEZ. Mr. Speaker, this is simple. This motion to recommit will take away contracts from veterans with service disabilities. At this time, I would like to submit for the Record a letter from the American Legion that clearly states, ``We steadfastly oppose any amendments to alter the legislation's provisions that assist veteran- owned businesses in section 101.'' The American Legion, Washington, DC, October 17, 2007. Hon. Nydia M. Velazquez, Chairwoman, House Committee on Small Business, Rayburn House Office Building, Washington, DC. Dear Chairwoman Velazquez: On behalf of the 2.7 million members of The American Legion I am writing to strongly endorse the Small Business Contracting Program Improvements Act, which is scheduled for markup in the Committee on Small Business as early as this week. Further, we steadfastly oppose any amendments to alter the legislation's provisions that assist veteran-owned businesses in section 101. Recently, the entrepreneurial needs of America's veterans have been brought to the forefront, particularly those that have sustained a disability as a result of their active-duty service in the armed forces. With nearly a quarter of newly discharged veterans considering starting their own businesses, the importance of opening the federal marketplace to veterans, who are entrepreneurs, has never before been so important. Unfortunately, there has been no appreciable progress toward meeting the three percent service-connected disabled veterans' government-wide contracting goal. Federal agencies have fallen well short, accomplishing levels of only 0.2 percent in 2003; 0.4 percent in 2004; 0.6 percent in 2005; and 0.9 percent in 2006. As a result, Congress must take stronger action. We are pleased that the Small Business Contracting Program Improvements Act takes the clear and compelling action necessary to ensure that veterans receive their fair share of federal contracting opportunities. This legislation will result in increases to contracts awarded to veteran-owned companies. As the veterans' community continues to grow, the time is now to enact this important initiative. We thank you, Chairwoman Velazquez, for introducing this legislation and we applaud the Committee for moving this measure in an expeditious manner. The American Legion looks forward to working with the Committee on this and future legislation to assist this country's small businesses. Sincerely, James E. Koutz, Chairman, National Economic Commission. The ranking member knows that this amendment was introduced in the committee's markup and it was defeated 16-8. Further, let me say that the underlying bill ensures that service- disabled veterans are given a preference in seeking Federal contracts. These individuals have consistently been shut out of the Federal contracts. Despite a 3 percent service-disabled veteran contracting goal since 1999, the highest accomplishment is less than 1 percent. These men and women have served our country, and they deserve better. If the motion to recommit is adopted, and I want to make this clear, if this motion to recommit is adopted, veterans will no longer be a top priority. There will be no guarantee that service-disabled veterans will benefit from additional contracting opportunities. Instead, we would have competing programs, which is what we tried in this bill to rid ourselves of. Agencies will be more inclined to overlook disabled veterans in their award for sole source contracts. And also, I would like to add for the Record, that this type of change is opposed by the American Legion, the National Black Chamber of Commerce, the Hispanic Chamber of Commerce, the U.S. Women's Chamber of Commerce, and the Associated General Contractors. This motion will block business opportunity for service-disabled veterans. The American Legion opposed this motion, and we agree that this motion to recommit will be making it harder for veterans to secure Federal contracts. You know, these are men and women coming back to our country from Afghanistan and Iraq. These are injured, service-disabled veterans who deserve the support of the American public and our Federal Government. I ask Members to oppose this motion to recommit. As I mentioned, it was defeated 16-8 in the markup. This is merely an attempt at a second bite of the apple, and it should be defeated.

Ms. VELAZQUEZ. I would yield.

Ms. VELAZQUEZ. Let me just say to the gentleman that I don't know why you insist this section 101 to be stricken when you clearly know that this amendment was defeated in committee, not by Democrats, but Democrats and Republicans. It is opposed by every veteran organization in America. Again, it will take Federal contracting away from disabled veterans. You know that we have failed these veterans before, and what we are doing is making sure that they have an opportunity to get a fair share of Federal contracts. Mr. Speaker, I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment. I yield back the balance of my time.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Madam Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and enter into the Record any extraneous materials on the bill under consideration.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that the Clerk be authorized to correct section numbers, punctuation, and cross- references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 3867.