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Prevent GSA Region 3 from Revoking $591M of Minority Contracts for Minority Businesses

Economic Development

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LETTER TO THE EDITOR

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I hope this message finds you well. I am writing to urgently seek your support in halting an alarming decision made by GSA Region 3 that poses a significant threat to the contract opportunities historically benefiting minority-owned businesses. The sudden withdrawal of these opportunities not only undermines the progress we have made in promoting diversity and inclusivity but also jeopardizes the growth and sustainability of minority enterprises. 

We implore you to join us in advocating for the preservation of these crucial minority contract opportunities. By doing so, we can ensure that historically marginalized businesses continue to have fair access to government contracts and the accompanying benefits. It is of utmost importance to maintain the progress we have achieved in fostering a more inclusive economy that values diversity and promotes equal opportunities for all.

We call upon individuals, organizations, and government officials to take a stand against this regressive decision. Together, we can send a resounding message that diversity and inclusivity are not negotiable, and we will not allow the rollback of hard-earned opportunities for minority entrepreneurs.

Now is the time to unite and amplify our voices to protect the rights and livelihoods of minority-owned businesses. Together, we can urge GSA Region 3 to reconsider their withdrawal and reinstate the contract opportunities, ensuring that these businesses can continue to contribute to our economy and thrive.

We are launching the Coalition for Creating Opportunity Within Our Community (COWOC), a collective of minority firms aiming to empower our community. As an esteemed minority entrepreneur under NAICS code 561200 - Facilities Support Services, your voice and support would be invaluable in our efforts.

The changes made by GSA Region 3 regarding contract opportunities for NAICS 561200 - Facilities Support Services have been concerning. Opportunities that were previously reserved for our SBA Certified 8(a), Economically Disadvantaged Women Small Owned Business (EDWOSB), Woman Owned Small Business, HUBZone Certified, and Service-Disabled Veteran-Owned Small Business programs now appear to be shifting towards promoting unrestricted participation for large businesses, including non-minority businesses.

GSA Region 3 has initiated a secretive bidding process that combines minority set-aside contracts and converts them to unrestricted participation, effectively excluding our minority 8(a) development contracts from the program. This decision has been made without considering the potential consequences on the social and economic development of our minority business community. Furthermore, there is no provision for replacement opportunities, and this change has occurred without prior approval from the SBA. Unfortunately, this unfair procurement practice has extended to GSA REGION 11 | NATIONAL CAPITAL.

Our efforts to shed light on this distressing situation and overcome the obstacles faced by minority businesses in accessing prime contract opportunities within GSA Region 3 have been met with dismay. Over $591 million worth of contracts that were meant to be set aside for us or for projects we were actively involved in have been awarded to unrestricted large businesses. What adds to the irony is that a significant majority of these businesses were previously part of the 8(a)-development program but have now graduated from it. 

While competition is inherent in the business world, it is crucial for us to unite, voice our concerns, and strategize together. If we fail to do so, we may find ourselves not only competing against each other but also against Fortune 500 companies for opportunities that were always intended for our minority community and the generations that follow us.

The struggle to secure contracts even after participating in the 8(a)-development program for nine years is disheartening for many small minority-owned businesses. Therefore, I write this not only on behalf of our company but for all the small businesses owned by minority entrepreneurs who come after us, seeking opportunities within our minority community. Let us strive to be more than mere subcontractors to larger companies; let us become a source of prime contract opportunities for the United States Government, the country we live in and serve.

Our minority community has faced significant setbacks and experienced a notable decline in opportunities following the introduction of the GSA's best-in-class initiative in February 2018. Despite being categorized as a small, disadvantaged business and qualifying for the Economically Disadvantaged Business set-aside under GSA's best-in-class schedules, we soon discovered that this initiative was not designed for minority businesses in GSA Region 3 and GSA Region 11. GSA's Mid-Atlantic Region (R3) has also increased the duration of many of our minority Facilities Support Services contracts from 5 years to 10 years, making it challenging to demonstrate past performance within the required timeframe. The deck is stacked against minority entrepreneurs.

I would like to personally invite you to contribute to our cause by signing our petition, which can be accessed through the following link: [insert link]. Your participation would greatly enhance the impact of our efforts.

If you are interested in joining the Minority Firm Coalition, kindly send an email to stop@cowoc.org. We would be excited to have you on board as we collaborate towards creating greater opportunities for minorities. Together, we aim to overcome the following seven objectives:

  1. Objective: Ensure the return of minority contracts that agencies have taken away from the minority community.
  2. Objective: Cease the bundling of minority contracts for unrestricted large Federal Supply Schedule (FSS) procurements.
  3. Objective: Maintain the same minority set aside if minority contracts are transitioned to GSA Schedules/FSS.
  4. Objective: Prevent agencies from claiming exemption under FAR 8.404(a) to avoid compliance with SBA regulations, which require their concurrence to remove a contract from the 8(a) program when resoliciting it as a Federal Supply Schedule (FSS) procurement.
  5. Objective: Address the unavailability or inaccessibility of the Small Business Dashboard at smallbusiness.data.gov, which previously provided access to information on how agencies are performing in terms of their minority goals.
  6. Objective: Seek confirmation from agencies that the unfair practice of revoking contracts for minority businesses is not occurring in other agencies, services, or within all agencies.
  7. Objective: Under the COWOC (Creating Opportunity Within Our Community) enforcement strategy, we proactively reach out to large businesses, aiming to foster collaborations with minority firms that can assist them in achieving their small business goals. It is both surprising and concerning that despite being aware of these goals, a significant number of these businesses lack the necessary metrics to assess their compliance. This discrepancy raises a crucial question: What purpose do these goals serve if they are not effectively enforced?
We appreciate your dedication to advancing minority representation in contracting and look forward to working together to achieve these objectives. 

For further information and in-depth insights on the challenges faced by minority communities in terms of opportunities, I have prepared some supporting documents. These materials will provide you with valuable context and help you better understand the issues we are striving to address.

Click the Link to download Filed Named: 1_20230620_Revoking Minority Contracts_1

Click the Link to download Filed Named: 2_Where Does It End Mesh Law Article

Click the Link to download Filed Named: 3_20230609_Pre-Bid Agency Level Protest of TeamGOV - ATF

Click the Link to download Filed Named: 4_TeamGov PubKLaw Article

Click the Link to download Filed Named: 5_“New” Procurement Pulls Work out of 8(a) Program - Schoonover Article

Click the Link to download Filed Named: 6_Memoradum to 8(a) issues.

Click the Link to download Filed Named: 7_Summary of New Changes to the SBA’s 8(a) Regulations – Schwabe Article

Click the Link to download Filed Named: 8_20210804_TeamGOV_GAO_Pre-Award Protest_B-419865

Click the Link to download Filed Named: 9_20210809_GSA_Protest_Motion_to_Dismiss_B-419865

Click the Link to download Filed Named: 10_20210811_TeamGov Answer to Motion to Dismiss_B-419865

Click the Link to download Filed Named: 11_20211124_GAO_Decision_B-419865

Click the Link to download Filed Named: 12_20200603_Trademasters Service_GAO_Protest_B-418522

Thank you for considering our urgent request for support. Together, we can make a difference and ensure a more equitable future for all. If you have experienced this in any other industry or from any other agency, please e-mail stop@cowoc.org.

Furthermore, we are keen to align with the current administration's mission of increasing equity and leveling the playing field for underserved small business owners. The Biden-Harris Administration has announced reforms to address these issues, as outlined in the following links:

Biden-Harris Administration Announces Reforms to Increase Equity and Level the Playing Field for Underserved Small Business Owners: https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/02/fact-sheet-biden-harris-administration-announces-reforms-to-increase-equity-and-level-the-playing-field-for-underserved-small-business-owners/

8(a) MAS Pool Initiative Will Help More 8(a)-certified Firms Gain Access to Federal Contracting Opportunities: https://www.sba.gov/article/2023/05/25/biden-harris-administration-launch-new-initiative-increase-federal-contracting-small-disadvantaged

Original source can be found here.

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