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The death of set-asides at the federal, state and local levels would be devastating for many black businesses.
Homeland Security EAGLE II: Small, 8(a), HUBZone, SDV set-aside. Estimated value $5 billion.
Meanwhile, the Los Angeles County Metropolitan Transit Authority's minority contracting set-aside program was recently overturned in Los Angeles Superior Court.
Others, such as Fred Dual, say the need for set-asides is as great or greater today than ever before.
Rhee wrote that GAO misinterpreted the law when it ruled that HUBZone companies should take priority over all others in set-aside contracts.
Then, women- and minority-owned firms that prospered under the set-asides will find out if a solid track record and bidding prowess are really all that's needed to win government contracts.
The IG raised the issue in connection with an audit of the Navy's Seaport-e contract, which allows small business set-asides. The Navy said all contractors on Seaport-e, including large businesses, had agreed to the set-aside provision as part of their contract.
(D-Mich.) and Gus Savage (D-III.) sponsored the DoD set-aside law, Section 1207 of the Defense Authorization Act that was passed by Congress in 1986, there seemed to be no way of stopping America's huge defense machine.
Ruling on a protest by Mission Critical Solutions of Tampa, FL, GAO told the Army it should have considered a HUBZone set-aside for a follow-on contract for IT support even though the work had previously been set aside for an 8(a) firm.
The committee said it will also examine the impact of GAO's decision in the Delex case, which determined that small business set-asides and "the rule of two" apply to task and delivery orders under multiple award contracts.
The legal standoff is an invitation for protests by HUBZone firms whenever they are passed over for set-asides, because GAO will treat its decision as a precedent in ruling on future protests.
SBA intends to expand its women's contracting program to allow set-asides in 31 industries, rather than the four industries in its previous proposal, but it will not retreat from one controversial requirement: Before any contract can be set aside for woman-owned firms, the procuring agency must show that it has discriminated against women in that industry.