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SMALL BUSINESS ASPECTS OF SELECTED RECOMMENDATIONS OF THE COMMISSION

ON GOVERNMENT PROCUREMENT

REPORT

OF THE

SELECT COMMITTEE ON SMALL BUSINESS UNITED STATES SENATE

ON

SELECTED RECOMMENDATIONS OF THE COMMISSION
ON GOVERNMENT PROCUREMENT, BASED ON HEAR-
INGS BEFORE THE SUBCOMMITTEE ON GOVERNMENT
PROCUREMENT, MAY 17 AND 18 AND OCTOBER 10 AND
11, 1973

29-941

MARCH 28, 1974.-Ordered to be printed

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1974

SELECT COMMITTEE ON SMALL BUSINESS

[Created pursuant to S. Res. 58, 81st Cong.]
ALAN BIBLE, Nevada, Chairman

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CONTENTS

Page

CHAPTER I. INTRODUCTION_.

A. Commission on Government Procurement_

B. Hearings of Subcommittee___

C. Summary and Recommendations.

CHAPTER II. NEW STANDARDS FOR "FAIR PROPORTION".

A. Commission Recommendation No. 47.

B. Findings of Subcommittee__

C. Conclusions and Recommendations _ _

CHAPTER III. SMALL BUSINESS SUBCONTRACTING PROGRAM.

A. Commission Recommendation No. 48...

B. Findings of Subcommittee__

C. Conclusions and Recommendations_

A. Commission Recommendation No. 1..

B. Findings of Subcommittee____

C. Conclusions and Recommendations....

CHAPTER V. CONSOLIDATION OF PROCUREMENT STATUTES.

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3

3

5

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CHAPTER IV. CREATION OF FEDERAL PROCUREMENT POLICY OFFICE_

A. Commission Recommendation No. 2..

B. Findings of Subcommittee_

C. Conclusions and Recommendation

STATEMENTS OF SENATORS SAM NUNN, J. BENNETT JOHNSTON, Jr., JAMES
ABOUREZK, AND FLOYD K. HASKELL.

STATEMENT OF SENATOR WILLIAM V. ROTH, Jг___

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APPENDIXES

A. Memorandum of Congressional Research Service, Library of Congress, "Legislative History of the Phrase 'Fair Proportion' in Small Business Act," Oct. 1, 1973...

B. Armed Services Procurement Regulation 1-707.3; Federal Procurement Regulations 1-1.710-3_.

C. Letter from Hon. Thomas S. Kleppe, Administrator, Small Business Administration, to Senator William D. Hathaway, Chairman, Subcommittee on Government Procurement, Dec. 12, 1973__

D. Letter from Hon. Charles L. Ill, Assistant Secretary of Navy (Installa-
tions and Logistics), to Senator William D. Hathaway, Chairman,
Subcommittee on Government Procurement, April 27, 1973...

E. Letter from J. Robinson, Subcontract Manager, Edo Corp., College
Point, New York, to Senator William D. Hathaway, Chairman,
Subcommittee on Government Procurement, Sept. 14, 1973.

F. Letter from C. H. Anderson, Aerojet Manufacturing Company, Fuller-
ton, Calif., to Senator William D. Hathaway, Chairman, Subcom-
mittee on Government Procurement, Sept. 21, 1973.

G. Deviation Authority by Armed Services Procurement Regulation
Committee, July 16, 1973____

H. Armed Services Procurement Regulation 3-808.4, Profit Factors, and
3-808.5, Assignment of Values to Specific Factors_-

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93D CONGRESS 2d Session

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SENATE

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REPORT No. 93-760

SMALL BUSINESS ASPECTS OF SELECTED RECOMMENDATIONS OF THE COMMISSION ON GOVERNMENT PROCUREMENT

MARCH 28, 1974.-Ordered to be printed

Mr. HATHAWAY (for Mr. BIBLE) from the Select Committee on Small Business, submitted the following

REPORT

CHAPTER I. INTRODUCTION

A. COMMISSION ON GOVERNMENT PROCUREMENT

The Subcommittee on Government Procurement conducted hearings on May 17 and 18 and October 10 and 11, 1973,2 to examine, among other things, several of the recommendations of the Commission on Government Procurement. The Subcommittee was interested in considering those recommendations by the Commission which appeared to have the greatest concern for the small business contracting community. Four recommendations were selected-two from the small business chapter of the Commission report, and two others of general and far-reaching application to the procurement process, but with particular aspects of small business interest. They are:

COMMISSION RECOMMENDATION NO. 47, PART A

Procurement from Small Business

Establish new standards for annually measuring the performance of procuring agencies and their prime contractors in using small business. Standards for measuring performance, including the sound use of set-aside techniques, should assess progress made in assisting small businesses to obtain a fair proportion of awards-not just statistical percentages.

1 Hearings before the Subcommittee on Government Procurement, Senate Small Business Committee, on Selected Recommendations of the Commission on Government Procurement and Procurement from Small Business in Labor Surplus Areas, 93rd Cong., 1st Sess., May 17 and 18, 1973.

Hearings before the Subcommittee on Government Procurement, Senate Small Business Committee, on Procurement from Small Business in Labor Surplus Areas and Small Business Subcontracting Program, 3rd Cong., 1st Sess., October 10 and 11, 1973.

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