SMALL BUSINESS ADMINISTRATION 8(a) CONTRACT

PROCUREMENT PROGRAM

HEARING

BEFORE THE

SELECT COMMITTEE ON SMALL BUSINESS UNITED STATES SENATE

NINETY-FOURTH CONGRESS

SECOND SESSION

ON

THE SMALL BUSINESS ADMINISTRATION 8(a) CONTRACT

PROCUREMENT PROGRAM

JANUARY 21, 1976

Printed for the use of the Select Committee on Small Business

67-996 O

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1976

SELECT COMMITTEE ON SMALL BUSINESS

[Created pursuant to S. Res. 58, 81st Cong.]
GAYLORD NELSON, Wisconsin, Chairman

WILLIAM B. CHERKASKY, Executive Director
JUDAH C. SOMMER, Minority Counsel
PATRICIA D. JACOBS, Assistant Minority Counsel

CONTENTS

Statement of-

Aceves, Jose, national executive director of the Latin American

Manufacturers Association, Washington, D.C

Adams, Theodore A., Jr., president, Unified Industries, Inc., Alex-

andria, Va., accompanied by Barry Johnson, Oklahoma Manufactur-

ing Co

Allen, William J., president, Central Contractors Association, Seattle,

Wash...

Barrington, E. E., president, AVI Manufacturing Co., Gardena, Calif

Brown, Catharo, president, Sophisticated Images Associates, ac-

companied by Arthur Der Derian__

Cormier, Lawrence J., president, Association of Minority Enterprises

of New York...........

Debro, Joseph, executive vice president, JDA Consulting Group,

Seattle, Wash.......

Fletcher, Harold K., Associate Administrator for Producrement

Assistance, Small Business Administration_

Page

151

105

87

78

31

140

53

165

68

Grayson, John N., president, Univox California, Inc., Los Angeles,
Calif..

Hill, Lydia A., executive director, National Association of Minority
CPA's, Inc., Washington, D.C., accompanied by Bert N. Mitchell,
CPA, chairman of the board

Johnson, Edward, president, Tri-Par Fuel Corp., Bronx, N.Y.;

Lawrence Cormier, president, Ebony Oil Corp., Jamaica, N. Y.;

Kenneth Barboza, president, O'Sullivan Fuel Oil, Inc., New Haven,

Conn.; L. H. Smith, president, L. H. Smith Oil Corp., Indianapolis,

Ind.; Kern Grimes, president, Grimes Oil Co., Inc., Boston, Mass.;

accompanied by Les Lepow, Esq., counsel, Nicholson and Carter,

Washington, D.C.

Jones, Jerry T., president, Sonicraft, Inc., and chairman, National
Association of Black Manufacturers, Inc., accompanied by Eugene
Baker, executive director, NABM_.

474

Mitchell, Kermit G., president, Air-Speed, Inc., Cambridge, Mass..

EXHIBITS

2 220

Statement of Hon. J. Glenn Beall, Jr., a U.S. Senator from the State of

Maryland.

2

Statement of Hon. Edward W. Brooke, a U.S. Senator from the State of

Massachusetts...

2

Statement of Hon. Ernest F. Hollings, a U.S. Senator from the State of

South Carolina..

3

Statement of Hon. J. Bennett Johnston, a U.S. Senator from the State of

Louisiana....

4

Letter dated January 21, 1976, to Hon. Jacob K. Javits, U.S. Senate, from

Hon. Edward M. Kennedy, U.S. Senate.-

5

Statement of Hon. Edward M. Kennedy, a U.S. Senator from the State of

Massachusetts. -

5

Article, "Blacks Try to Solve 'The Big Problem'," by Norman Lockman,

from the Boston Globe, December 7, 1975...

6

Article, "Losing Out to a 'Gentleman's Agreement'," by Norman Lockman,

from the Boston Globe, December 8, 1975..

8

Article, "Investment Cash Available, Getting It Is Hard," by Norman

Lockman, from the Boston Globe, December 14, 1975..

10

Article, "Fighting for a Bigger Slice of the Economy," by Norman Lock-
man, from the Boston Globe, December 16, 1975
Letter dated January 21, 1976, to Hon. Gaylord Nelson, U.S. Senate, from
Hon. Bob Packwood, U.S. Senate__
Statement of Hon. Frederick W. Richmond, a Representative in Congress
from the 14th Congressional District of the State of New York...
Letter dated January 21, 1976, to Hon. Harry F. Byrd, Jr., U.S. Senate,
from Raymond D. Watts, General Counsel, Senate Small Business
Committee_ -

Letter dated January 12, 1976, to Hon. Harry F. Byrd, Jr., U.S. Senate,
from Jerald L. Feinstein, vice president, DOT Systems, Inc.
Letter dated January 5, 1976, to Hon. Harry F. Byrd, Jr., U.S. Senate,
from Harold K. Fletcher, Associate Administrator for Procurement
Assistance, Small Business Administration..........

Letter dated December 16, 1975, to Hon. Harry F. Byrd, Jr., U.S. Senate,
from Jerald L. Feinstein, vice president, DOT Systems, Inc..
Letter dated December 5, 1975, to Howard James, Small Business Adminis-
tration, from Jerald L. Feinstein, vice president, DOT Systems, Inc.___
Letter dated December 7, 1973, to the Regional Director, Small Business
Administration, from Ciro Farina, Director, Socio-Economic Policy
Staff, General Services Administration___

Contract dated March 12, 1974, between the Small Business Administra-
tion and Sophisticated Images Associates---

Four quotations submitted to the Small Business Administration by
Sophisticated Images Associates___

Letter dated November 26, 1974, to Catharo P. Brown, Sophisticated
Images Associates, from Maynard E. Whitebird, Whitebird, Inc..
Letter dated May 23, 1974, to Mr. Brown, from Marilyn P. Anderson,
managing officer, Special Enterprise Division, First Wisconsin Bank...
Letter dated November 13, 1974, to Dick Miller, Small Business Admin-
istration, from General Services Administration - -
Contract pricing proposal for Sophisticated Images Associates_
Letter dated May 6, 1975, to Sophisticated Images Associates, from C. R.
Haizmann, Contract Negotiator, Small Business Administration____.
Memorandum dated June 18, 1975, to the Deputy Secretary of Defense;
Under Secretary of Transportation; Assistant Secretary for Adminis-
tration and Management, HEW; Deputy Administrator, GSA; Director,
OMBE; Deputy Administrator, SBA; Deputy Administrator, NASA;
and Deputy Administrator, VA, from John K. Tabor, Under Secretary,
Department of Commerce.

Letter dated September 5, 1975, to James A. Baker III, Under Secretary
of Commerce, from Harold K. Fletcher, Associate Administrator for
Procurement Assistance, Small Business Administration
Letter dated October 23, 1975, to James A. Baker III, Under Secretary of
Commerce, from Harold K. Fletcher, Associate Administrator for
Procurement Assistance, Small Business Administration ---
Letter dated February 12, 1976, to Hon. Jacob K. Javits, U.S. Senate, from
Harold K. Fletcher, Associate Administrator for Procurement Assistance,
Small Business Administration__.

184

193

196