House panel passes measure to boost small business contracting

The Small Business Administration would be able to contest the awarding of certain federal contracts under a measure that the House Small Business Committee passed Wednesday.

The measure (H.R. 2867), called the "Small Business Opportunity Enhancement Act of 2001," was approved by a voice vote.

Proponents of small business rights charge that the bundling of federal contracts and large federal contracts shut out small businesses. If there are disagreements between the SBA and the federal agency involved over how a contract was awarded, the bill provides that the director of the Office of Management and Budget would resolve the matter within 10 days.

Ranking member Nydia M. Velázquez, D-N.Y., who sponsored the legislation, said the bill "will help small businesses get their fair share of federal contracts by increasing SBA's power to dismantle large contracts," and by "giving small businesses more time to partner up and bid."

The bill also extends the amount of time a small business has to submit a bid for a bundled federal contract from 30 days to 60 days.