Pacific Business News
Monday, September 29th 2008
All 16 female U.S. senators signed a letter asking the Small Business Administration to either improve or withdraw a proposed regulation establishing a new federal contracting program for women-owned businesses.
The SBA's proposed rule would set aside contracts for women in only four industries and would require federal agencies to find they had discriminated against women in the past. The SBA contends these restrictions are necessary in order for the program to withstand legal scrutiny.
Past court rulings have required that procurement programs benefiting certain groups should be narrowly tailored and apply only to victims of actual discrimination.
Legislation enacted in late 2000 directed the SBA to establish a program that sets aside federal contracts for women-owned businesses in industries where women have been underrepresented.
"I find it inexcusable that after wasting well over seven years before issuing any proposal whatsoever, the SBA is now apparently seeking to finalize a defective rule with few, if any, improvements," said Sen. Olympia Snowe of Maine, the ranking Republican on the Senate Small Business and Entrepreneurship Committee. "The SBA should either propose drastic enhancements that reflect the intent of Congress or simply allow the next administration to address this critical issue." [To read the entire story, go to: http://pacific.bizjournals.com/extraedge/washingtonbureau/archive/2008/09/29/bureau3.html?market=pacific ]
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