Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005

EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR DEFENSE, THE GLOBAL WAR ON TERROR, AND TSUNAMI RELIEF, 2005 -- (House of Representatives - March 16, 2005)

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AMENDMENT OFFERED BY MS. VELáZQUEZ

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

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Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume.

(Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Ms. VELAZQUEZ. Mr. Chairman, Federal contracts for overseas work have increased substantially over the last several years. This rapid increase in government buying is largely the result of the war in Iraq and combating terrorism. Since the spring of 2003, Congress has appropriated close to $200 billion for operations in Iraq and Afghanistan. The supplemental appropriations bill we are considering today provides an additional $81 billion.

Much of this funding will be spent on contracts for overseas work, and most of these contracts will be awarded to large corporations. 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. My amendment would change that by requiring that small businesses have access to international contracts just as they do for domestic work.

Federal agencies currently do not include overseas contracts when calculating their small businesses goals. Therefore, there are no means of holding agencies accountable for providing U.S. small companies with access to international work. As a result, only 1 percent of government overseas contracts are awarded to small companies, and barely 500 of the more than 23 million U.S. small businesses are performing work abroad. 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.

These goals were enacted to ensure small business participation in the Federal marketplace. However, the Federal Government has failed to meet its small business goal in each of the last 5 years. In one year alone, this failure cost U.S. small businesses over $15 billion in lost contracting opportunities.

We have a lot to make up for with our Nation's small business owners. We can start by ensuring that they have access to overseas contracts.

Mr. Chairman, there are 23 million small businesses in the United States. They represent 99 percent of all employers, create three out of four new jobs, and employ more than half of all private sector workers. Historically, when the government has needed to build up for military operations, it has turned to small businesses to fulfill its procurement needs because of their flexibility and quick response time.

Mr. LEWIS of California. Mr. Chairman, will the gentlewoman yield?

Ms. VELAZQUEZ. I yield to the gentleman from California.

Mr. LEWIS of California. I appreciate the gentlewoman from New York yielding. Como esta.

Ms. VELAZQUEZ. Gracias.

I am sorry. I thought this was English-only here.

Mr. LEWIS of California. I wanted to say to the gentlewoman, first, I very much appreciate the thrust of her amendment. While we are prepared to accept her amendment, let me add to that there could be some resistance, perhaps, on the part of the State Department. If there is resistance, it is because they have never seen fit to apply the existing law to overseas contracts. I think that is a small mistake on their part, frankly, if they have not. I think the gentlewoman is not just raising an important point but a point that needed to be made.

Ms. VELAZQUEZ. Mr. Chairman, I really appreciate the gentleman's support of this amendment. I would say that it does not surprise me that the Department of State would raise a concern because they are the worst offenders when it comes to fulfilling the statutory goals set by Congress regarding contracting practices on behalf of small businesses in our Nation. I would love to see that the gentleman work with me on behalf of small businesses and make sure that in this $81 billion there is small business participation. They can do the work and they can do it more effectively than many of the large corporations that are mismanaging and misappropriating much of the money that has been spent so far.

Mr. LEWIS of California. Let me say to the gentlewoman that her amendment is overdue. I am happy to accept it and I am happy to be her partner on behalf of small business in America.

Ms. VELAZQUEZ. I thank the gentleman.

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