Nydia M. Velazquez: “there are some who said that capping small business opportunity in certain industries increases opportunities in other…”

“there are some who said that capping small business opportunity in certain industries increases opportunities in other industries. That might have been the theory behind the program in 1988 when it was created, but that has not been the case. Different industries offer different opportunities; some are very favorable to small businesses. The Department of Defense has not achieved its small business goal for the past 4 years. That is the reality. So, clearly, they are not making up the difference someplace else. Under the comp demo program, small businesses are guaranteed 40 percent participation in the targeted industries. If the agency does not achieve 40 percent with small firms, it can reinstate small businesses' set-asides. One need look no further than the goal for architectural and engineering services, which has never been achieved. We have asked the Department of Defense. They do not reinstate set- asides when the achievement with small businesses is less than 40 percent. Forty percent small business participation is a good thing. Normally, small businesses only get 23 percent. If a small business's participation decreases from 78 percent to 40 percent, that is the loss of 38 percent, and that is what is happening now. The bottom line, Mr. Chairman, is, if you support small business opportunity in the Federal marketplace, you should support this amendment. The CHAIRMAN. The question is on the amendment offered by the gentlewoman from New York (Ms.…”