| Remove the "Foreign Exemption" from Federal Contracting |
| Agency |
Federal Acquisition Council (FAR) |
| Submitter |
The Fairness in Set-Aside Procurement Coalition |
| Nominated |
February 27, 2009 |
| Description |
The Federal Acquisition Council should eliminate the foreign exemption in federal contracting that is found in FAR Part 19.000(b). FAR Part 19 implements most of the acquisition programs of the Small Business Administration. These programs include those for small business owners, women-owned small businesses, service-disabled veterans, HubZone small businesses, the subcontracting assistance program, the 8(a) program and the small disadvantaged business program. FAR Part 19.000(b) exempts federal agencies from awarding prime and subcontracts to business groups for work that is being performed in foreign countries. Currently, federal contracts performed by these businesses in foreign countries are not counted toward the agency's annual federal small business goal of 23 percent.
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| Small entities affected |
All small businesses that are ready, willing and able to perform work for federal agencies in foreign countries.
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| Regulatory burden |
Small businesses are not encouraged to participate in bidding on federal contracts if the work is to be performed in foreign countries. This burden imposes an artificial market restriction on the basic economic theory of free and open competition.
. |
| Proposed burden reduction |
The FAR Council should eliminate this section of Part 19. This elimination should assist agencies in helping to meet their annual statutory procurement goal of 23 percent.
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| Small entity benefits |
This reform should increase the amount of contract awards to small businesses as prime contractors and as subcontractors. The end result should be a much stronger and viable small business sector that can compete in the global marketplace.
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| Status | This nomination has been submitted to the FAR council for review.
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| Advocacy contact |
Major Clark, advocacy@sba.gov |
