#United States #Washington #Small Business #ASBCC #federal procurement

Strong Rebuttal from ASBCC on Federal Procurement

In a move that sent shockwaves through the small business community, the American Small Business Chamber of Commerce™ (ASBCC) has issued an incisive policy memo challenging a new Executive Order that significantly alters the federal procurement landscape. Signed on April 15, 2025, the order, titled "Restoring Common Sense to Federal Procurement," has been criticized for potentially undermining longstanding protections for small businesses.

The Grave Concerns Raised

According to the ASBCC, this executive order grants federal agencies expansive powers that could effectively dismantle 70 years of small business contracting laws without the need for legislative approval, public transparency, or oversight. Charmagne Manning, the President of ASBCC, articulated her grave concerns, stating, "This Executive Order reads like a procedural memo, but its implications are profound."

Manning elaborated that the order opens up pathways for federal agencies to quietly eradicate crucial protections for small entities, jeopardizing not just small business revenues, but also the local economies that rely on these firms. "The economic fallout could be swift—gutting small business revenues, devastating local economies, and putting tens of thousands of jobs at risk," she emphasized.

Key Elements of the ASBCC Memo

The ASBCC's memo provides a thorough analysis of how the order threatens the fabric of federal contracting frameworks. Notable concerns outlined include:
1. Deviation Authority: The executive order allows immediate bypassing of set-aside rules designed to ensure a fair distribution of contracts among diverse suppliers.
2. FAR Rewrite Implications: Changes to the Federal Acquisition Regulation (FAR) could eliminate the enforcement infrastructure that supports small business participation.
3. Redefinition of Terms: The memo raises alarms over the potential redefinition of critical terms like "fair market price" that could exclude emerging firms from competitive opportunities.
4. Wider Economic Impact: The weakening of small businesses could have ripple effects on competition, innovation, job creation, and even national security.

Historical Context and Legal Framework

In support of its arguments, the ASBCC has detailed the historical context of small business support in federal contracting laws and cited Congressional findings that affirm small businesses' integral role in the economy. The memo argues that the government's commitment to a 23% contracting goal for small businesses is now at serious risk. The ASBCC also points out the legal foundations established by cases such as Kingdomware Technologies vs. United States which reaffirmed the importance of the Rule of Two in federal contracts.

Calls to Action

ASBCC's memo is coupled with a strong call to action. They demand Congress conduct immediate oversight hearings and encourage agency Inspectors General along with the SBA Office of Advocacy to step in before irreversible harm occurs. Manning highlighted, "We’re not asking for special treatment—we're asking for the law to be followed. The American taxpayer deserves a dynamic, diverse, and resilient supplier base—not one that's consolidated through bureaucratic shortcuts."

Furthermore, the ASBCC has developed three supporting reports that outline the critical need for small business protections in federal contracting. These resources include analyses on the economic contributions of small businesses and bipartisan support for relevant laws.

Conclusion

As the landscape of federal procurement shifts, the fight to preserve small businesses' access to contracts remains a critical battle for the ASBCC and its supporters. The organization urges vigilance among elected officials, industry leaders, and the public to ensure that the values of fairness and inclusivity in federal procurement practices are upheld. What unfolds in the coming months will be telling of the future for small businesses in America.

For additional information and to review the full policy memo, visit ASBCC website where further resources and reports are available.