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COMMITTEE ON SMALL BUSINESS
NEAL SMITH, Iowa, Chairman TOM STEED, Oklahoma
JOSEPH M. McDADE, Pennsylvania JOHN D. DINGELL, Michigan
SILVIO O. CONTE, Massachusetts JAMES C. CORMAN, California
J. WILLIAM STANTON, Ohio JOSEPH P. ADDABBO, New York
WILLIAM S. BROOMFIELD, Michigan FERNAND J. ST GERMAIN, Rhode Island TIM LEE CARTER, Kentucky PARREN J. MITCHELL, Maryland
DAN QUAYLE, Indiana HENRY B. GONZALEZ, Texas
DAN MARRIOTT, Utah JAMES M. HANLEY, New York
TOBY ROTH, Wisconsin JOHN J. LAFALCE, New York
LYLE WILLIAMS, Ohio BERKLEY BEDELL, Iowa
OLYMPIA J. SNOWE, Maine FREDERICK W. RICHMOND, New York DOUGLAS K. BEREUTER, Nebraska ALVIN BALDUS, Wisconsin
ED BETHUNE, Arkansas RICHARD NOLAN, Minnesota
ARLEN ERDAHL, Minnesota RICHARD H. ICHORD, Missouri
THOMAS J. TAUKE, Iowa HENRY J. NOWAK, New York
JOHN EDWARD PORTER, Illinois
THOMAS G. POWERS, General Counsel
SUBCOMMITTEE ON GENERAL OVERSIGHT AND MINORITY ENTERPRISE
JOHN J. LAFALCE, New York, Chairman JAMES C. CORMAN, California
TIM LEE CARTER, Kentucky JOSEPH P. ADDABBO, New York
LYLE WILLIAMS, Ohio PARREN J. MITCHELL, Maryland
DOUGLAS K. BEREUTER, Nebraska
ROBERT I. BRICKMAN, Subcommittee Counsel
Harvey, Thomas E., Principal Deputy, Assistant Secretary of the
Additional Material supplied for the hearing record—Continued
McBride, Gerald, Assistant Administrator for Acquisition Policy,
La Falce ---
ness Utilization, Defense Logistics Agency: Prepared statement.-Rellins, Donald E., Director, Small and Disadvantaged Business
Utilization, Office of the Secretary of the Air Force, Department
of the Air Force: Prepared statement.--
Office of the Deputy Under Secretary of Defense for Research and
Exhibit 1: Instructions regarding implementation of Public Law
95-507. Representative subcontracting plans:
263 266 292 299
308 313 319
Appendix C.-Department of Defense:
Exhibit 1: Defense logistics agency -
347 439 741 1015
IMPLEMENTATION OF SUBCONTRACTING PROVISIONS
OF PUBLIC LAW 95-507 (Part 2)
TUESDAY, FEBRUARY 19, 1980
HOUSE OF REPRESENTATIVES,
AND MINORITY ENTERPRISE OF THE
Washington, D.C. The subcommittee met, pursuant to notice, at 10:10 a.m., in room 2359A, Rayburn House Office Building, Hon. John J. LaFalce (chairman of the subcommittee) presiding.
Mr. LaFalce. The Subcommittee on General Oversight and Minority Enterprise will come to order.
OPENING STATEMENT OF CHAIRMAN LaFALCE Mr. LAFALCE. First, I would like to apologize to everyone present. I like to be on time, but the Banking Committee, of which I am a member, was having a markup session today on my bill, and I had to be there. We just concluded.
This morning's hearing is a followup to our December 4, 1979, hearing at which we reviewed the then unsatisfactory performance of the Federal agencies with respect to their implementation of the subcontracting provisions of Public Law 95–507. Since that time, considerable corrective activity has taken place, including a memorandum from President Carter to the heads of all departments and agencies.
In addition to calling their attention to the subcontracting provisions of Public Law 95–507, the President directed each head to:
Review the performance of your agency with regard to the subcontracting provision of the law, and take every action required to insure that, henceforth, no contract covered by the provisions of this law is let by your agency which does not have the subcontracting plan.
This morning, we have with us many of the agencies which appeared on December 4 that we may learn precisely what actions have been taken and are contemplated with respect to the subcontracting provisions of this new law. While the subcommittee's initial inclination was to hold this hearing in April or May, the apparent neglectful performance by GSA has precipitated our convening this hearing at an earlier date.
GSA had, in response to followup questions submitted in connection with the December 4 hearing, advised the subcommittee, by letter dated January 29, that it had issued 93 solicitations without the
required subcontracting notice, and 61 contracts valued at over $460 million without the required subcontracting plans. These data were subsequently supplemented and amended by letter dated February 7 to reflect merely 58 contracts awarded which were valued at approximately $100 million. This counterpoints with the remaining four
an agencies testifying at our last hearing, all of whom have subsequently indicated to us that no deficient solicitations or contracts have gone out since our last hearing. As a result of their response to our questions, as well as their testimony at our last hearing, we have not called back the Department of the Interior nor the Veterans Administration, both of which appear to have the implementation of the subcontracting provisions well under control.
At this morning's hearing, we plan to review with the agencies the steps that they are taking to insure full implementation of this new law, and to review with them problems they may be encountering. I hope that this hearing proves productive both for the subcommittee as well as the representatives of each of the agencies.
Dr. Carter, do you have a statement?
I want to thank you for calling these meetings on Public Law 95– 507. I was not able to be at the December meeting, much as I would have liked to be there. However, I read your testimony, and I must say that I was greatly disappointed. The prepared remarks were uninformative and the responses to the questions were unenlightening.
It seems to me that this law has been the law of the land long enough so that the agencies before us in December and today have had ample time to implement this program as the Congress intended it to do.
Thank you, Mr. Chairman.
Mr. LaFalce. It is my intent to move rather quickly, but proceed in the following fashion. We have three panels. The first is of administrative agencies; the second is of the military agencies; the third is of civilian agencies.
With that in mind, I would like to call to the table the Office of Federal Procurement Policy and the Small Business Administration.
Mr. Currie, would you please proceed.
TESTIMONY OF JAMES D. CURRIE, ACTING ADMINISTRATOR,
OFFICE OF FEDERAL PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET; ACCOMPANIED BY THOMAS F. WILLIAMSON, ASSOCIATE ADMINISTRATOR FOR ACQUISITION LAW, OFFICE OF FEDERAL PROCUREMENT POLICY
Mr. CURRIE. Thank you, Mr. Chairman.
On my left is Thomas F. Williamson, the Associate Administrator for Acquisition Law in the Office of Federal Procurement Policy.
I will try to limit my comments to just some highlights of my testimony, as you requested.
Mr. LAFALCE. That will be fine.
Without objection, your entire prepared statement will be inserted in the record.