A modest proposal to improve small business federal contracting

Last week, I had the honor of testifying before the U.S. House of Representative’s Natural Resources Committee, on H.R. 6504—a bill that would enshrine 8(a) and HUBZone status for Native CHamoru and Native Northern Marianas Islands Organizations. 

Congressman Blake Moore (R-Utah) asked me an interesting question: if I had a magic wand, how would I improve small business federal contracting? 

As I was answering, the five-minute timer hit zero, leaving my thought incomplete. So, I’d like to take this post and offer a modest proposal to improve small business contracting.

Responding to Rep. Moore, I said that SBA is overworked and understaffed. Perhaps this is best shown at SBA’s Office of Hearings and Appeals.

As many small businesses know, SBA OHA has broad jurisdiction. Among other things, it considers NAICS code appeals, as well as appeals relating to size determinations and to some 8(a) and woman-owned small business eligibility determinations. In recent years, it has also seen its jurisdiction expand to cover matters relating to service-disabled veteran-owned small business verifications (from VA’s CVE), and it will soon consider appeals relating to HUBZone eligibility determinations.

OHA’s jurisdiction doesn’t end there. It also considers a variety of issues relating to SBA’s lending programs—including appeals challenging PPP forgiveness denials.

This is an incredible docket. But for all this, SBA OHA only has two administrative judges and just a few attorney advisors. 

That’s not enough. Each of these matters involve significant factual and legal questions—and case files that are often hundreds of pages long. Writing an informed opinion addressing these issues is no easy task. To give questions each proper attention takes time.

Unfortunately, the time spent on these issues often means that eligibility determinations—or contract awards—are delayed. This isn’t a knock against SBA OHA; to the contrary, I think it does a tremendous job giving each matter serious thought (even if I occasionally disagree with its decisions).

Here’s my modest proposal: provide SBA (particularly SBA OHA) with more resources, so that it can better meet these demands. Having only two administrative judges (and a handful of support personnel) is not enough to meet this workload. Increasing personnel—perhaps to five judges—would allow SBA OHA to more timely address these issues. In turn, this could help speed up small business contracting.

Now, small business contractors might be wondering why I’m posting about this. For this reason: during my testimony, I was struck by how many members of Congress were unfamiliar with SBA’s contracting programs, or their benefits to small businesses. I think every small business federal government contractor should tell their representatives of the importance of these programs, and offer suggestions on how to improve them. After all, bragging about these programs—and how they translate to local opportunities—is a sure-fire way to earn support.

What do you think about my proposal? Do you have any others? I’d love to hear from you.