Construction Set-aside Amendments: Hearings Before Subcommittee No. 2 of the Committee on Banking and Currency, House of Representatives, Eighty-seventh Congress, Second Session on H.R. 10518, a Bill to Amend the Small Busniess Act to Provide that the Program Under which Government Contracts and Set Aside for Small Business Concerns Shall Not Apply in the Case of Contracts for Maintenance, Repair, Or Construction

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Page 87 - Government's total purchases, would thereby help to maintain a healthy community of small firms and, hence, would assure the existence of a broadly competitive industry. (2) It is obvious that the effect of the reservation of any procurement for competition exclusively for small business firms, pursuant to the Small Business Act, potentially rules out lower bids of large business firms. Therefore, it Is impossible to tell whether, or the extent to which, there might have been lower bids from large...
Page 120 - Union of America, AFL-CIO, a labor organization of approximately half a million members. The members I have the privilege of representing are employed on virtually all phases of building, heavy and highway projects. I am grateful for the opportunity to have the view of the organization which I serve considered by you...
Page 167 - ... the law and regulations require that all bidders, large or small, must be responsible and competent. A new company finds it most difficult to prove its competency. Part of the proof of competency is past successful operation in the very field of business in which the award is to be made. Part of the proof of responsibility is evidence of financial ability to perform. Just as the procurement office must find these facts, so too must the SBA official find them in order either to issue a certificate...
Page 85 - ... year. We have, of course, brought up to date the statistics relating to small business participation in .construction awards. With your permission, in the interest of time, I would like to submit it for the record. I would be pleased to respond to questions this committee might have on this subject. I have included in my statement comments with respect to the five questions most frequently asked us concerning the small business set-aside program : ( 1 ) What is the small business set-aside procedure?...
Page 3 - ... to bid on a single Army Engineers project in its area. The firm has obtained subcontracting work on eight set-aside contracts, but it may be fairly presumed that the money the Government formerly saved on the company's low bids is not being saved now. (3) The set-aside program stultifies initiative by placing a premium on reliance on Government subsidy. ( 4 ) It puts a penalty on success, whether by large or small firms. The interference by the Small Business Administration in the construction...
Page 85 - Interest of war or national defense programs, or in the interest of assuring that a fair proportion of Government procurement Is placed with small business concerns. Bids or proposals received from firms which are not small business concerns shall be considered nonresponslve. (b) Definition. A "small business concern...
Page 2 - ... big business." These examples which are part of the record of last year's hearings showed an average increased cost of 4 percent due to the low bidder's rejection. This cost the taxpayers $593,084 but only scratches the surface of the subject. It is impossible even to estimate the total cost of set-asides because construction firms that are qualified by every standard in the world except the SBA size standard customarily do not submit bids on the majority of set-aside work. They have learned...
Page 28 - Total 14, 252, 161. 73 14, 775, 245. 75 593,084.02 4 EXAMPLES OF INCREASED COST EXAMPLE NO. 1 Flood control improvement project, Onondaga County, NY, IFB-CIVENG30-023-62-32 Low bidder: Syracuse Constructors, Inc $208,492 Rejected because of affiliation with "large
Page 32 - NO. 21 Black Hills Ordnance Depot, Igloo, S. Dak., rehabilitation of water supply depot, contract No. DA-39-010-ORD-505 : Low bid submitted by South Dakota Improvement Co $82, 360. 75 Rejected because of affiliation with "large
Page 151 - Such a step would be inconsistent with oft-expressed intent of Congress that small firms share equitably in Government prime contracts. It would also be inconsistent with the desire expressed by the President that all Government procurement agencies adopt every feasible measure to increase the small business share of the procurement dollar. The importance of the construction set-aside program to the Government can be measured by the fact that approximately 90 percent of the members of the construction...

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