News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
March 17, 2005

CONTACT: Kate Davis, Allyson Ivins, (202) 225-4038

Small Businesses Get Increased Access to Overseas Contracts
Velázquez amendment enables small firms to compete for international contracts

WASHINGTON - For small businesses, accessing the $300 billion federal marketplace continues to be a challenge - particularly for those contracts performed overseas. Only one percent of the government overseas contracts are awarded to small companies, and less than 520 of the more than 23 million small businesses in the United States, are performing work abroad.

Currently there is no system for holding federal agencies accountable for providing this nation's small businesses with international contracting opportunities, as they are required to do for domestic contracts. Yesterday, Congresswoman Nydia Velázquez, Ranking Democrat on the House Small Business Committee, successfully passed an amendment that would require contracts funded by H.R. 1268, The Supplemental Appropriations Bill, to be included in the calculation of the federal government's small business achievement goals.

"Unfortunately, while 23 percent of contracting dollars spent domestically must include small businesses, there is no requirement that small companies have access to the bulk of overseas contracts," Congresswoman Velázquez said. "This amendment changes that by requiring that small companies have access to international contacts, just as they do for domestic work. By requiring that contracts funded by this bill are calculated in the federal government's small business goals, we start to instill credibility in the system, while ensuring that small firms receive their fair share."

H.R. 1268 provides an additional $81.3 billion for operations in Iraq and Afghanistan. Most of this funding will be spent through contracts for overseas work. However, without the Velázquez amendment the bulk of the contracts would have potentially been awarded to large corporations.

The small business contracting goals were established to ensure participation in the federal marketplace. However, the federal government has failed to meet its mandated small business contracting goal for the fourth year in a row - costing them $15 billion in lost contracting opportunities in FY 2003 alone. Congresswoman Velázquez's amendment ensures that small businesses have access to overseas contracting opportunities, while at the same time protects taxpayer dollars by ensuring that the company that can do the highest quality work for the lowest price will win the contract.

"We should not differentiate between contracting dollars spent domestically, and those spent internationally," Congresswoman Velázquez said. "By ensuring that small businesses have a shot at winning some of the contracts in this multi-billion spending bill, we are providing them with an opportunity. This amendment gives small businesses a chance to compete and succeed."

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