Do Federal Agencies Hate Small Businesses?

The issue has nothing to do with hate, but with 'preference.' The main reason 'set-asides' were created was to eliminate the unfair monopoly which large businesses have had over public procurement for decades. The transparency and oversight demanded by Congress has shown that the Federal procurement community unfairly and unethically prefer to do business with large businesses.

In short, small businesses have suffered from a type of discrimination which is un-American and the problem is that these businesses do not have the resources to pay for legal representation to fight illegal regulations (i.e., FAR Exemptions); unfair procurement practices (i.e., end-user unfair justifications) and unethical contracting (when large businesses unlawfully take contracts reserved for small business without fear of prosecution.)

Congressional sources have estimated that these abuses have diverted $640 Billion in contracts away from the statutory rights of small businesses over the last decade.

There is a fundamental problem with the views of the Cato Institute and that is their assumption that large businesses will offer the government a better price for their commodities. Frankly, the record proves entirely the opposite. Small businesses can always offer the government a 'better price.' The saving - to taxpayers - will be in the billions if only they are given a fair chance to compete.

There's also another flaw on the assumptions of the Cato Institute and that is that 'set-asides' hand-outs. They are not. Small businesses are supposed to compete among themselves for these contracts only if large businesses were not as greedy and keep out.

Let's set the record straigh. All that small businesses want is 'to level the playing field.'

Thank you for the opportunity to make a difference,

Raul Espinosa, Founder

Fairness in Procurement Alliance

Raul Espinosa, Founder - Fairness in Procurement Alliance (FPA) of FL 2:11PM October 23, 2008