SMALL BUSINESS SUBCONTRACTING PROGRAM (Part 2) HEARING BEFORE THE SUBCOMMITTEE ON SBA AND SBIC AUTHORITY, MINORITY ENTERPRISE AND GENERAL SMALL BUSINESS PROBLEMS OF THE COMMITTEE ON SMALL BUSINESS HOUSE OF REPRESENTATIVES NINETY-EIGHTH CONGRESS SECOND SESSION WASHINGTON, DC, APRIL 10, 1984 Printed for the use of the Committee on Small Business 38-471 O U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1984 CONTENTS Mitchell, Hon. Parren J., chairman, Subcommittee on SBA and SBIC Author- ity, Minority Enterprise and General Small Business Problems: Opening Beres, Allan W., Assistant Administrator, Office of Acquisition Policy, General Services Administration, accompanied by John Wynn, Direc- tor, and Calvin Snowden, Deputy Director, Office of Small and Disad- vantaged Business Utilization, GSA. Fairman, Robert L., Assistant Secretary for Administration, Department of Transportation, accompanied by Armando Mena, Director, Office of Small and Disadvantaged Business, and Roger Martino, Chief, Procure- ment Management Division, DOT.. Grinstead, Vice Admiral Eugene A., Director, Defense Logistics Agency, Department of the Navy, accompanied by Ray Dellas, Director, Small and Disadvantaged Business Directorate.... Hall, James B., Deputy Assistant Secretary of the Army for Acquisition, Herrera, Heriberto, Deputy Administrator, U.S. Small Business Adminis- tration, accompanied by Henry Wilfong, Associate Administrator, Mi- nority Small Business and Capital Ownership Development, and Rich- ard Ďurkin, Acting Associate Administrator for Procurement and Tech- Sansone, Rear Adm. Joseph S., Deputy Chief of Naval Materiel for Con- tracts and Business Management, Department of the Navy Sullivan, William F., Associate Deputy Administrator for Logistics, Veter- ans Administration, accompanied by Clyde Cook, Director, Office of Procurement and Supply, and Ramsey Alexander, Special Assistant for Equal Opportunity, Office of Construction, VA. Wade, James P., Principal Deputy Under Secretary of Defense for Re- search and Engineering, Office of the Secretary of Defense, accompa- nied by Norma Leftwich, Director, Small and Disadvantaged Business Utilization, and Harvey Gordon, Assistant Deputy Under Secretary for Weiss, Brig. Gen. Bernard L., Director of Contracting and Manufacturing Policy, Headquarters, Department of the Air Force Additional material supplied for the hearing record: Addabbo, Hon. Joseph P., a Representative in Congress from the State of New York: List of questions for the witnesses and responses. Beres, Allan W., Assistant Administrator, Office of Acquisition Policy, General Services Administration: Prepared statement with attach- Fairman, Robert L., Assistant Secretary for Administration, Department Hall, James B., Deputy Assistant Secretary of the Army for Acquisition, 430 Additional material supplied for the hearing record-Continued Herrera, Heriberto, Deputy Administrator, U.S. Small Business Administration: List of recommendations Prepared statement with attachments... Sansone, Rear Adm. Joseph S., Deputy Chief of Naval Material for Con- Information on military recruitment advertising contracts Section 8(a) awards by DARCOM for fiscal years 1981, 1982, and 1983 Sullivan, William F., Associate Deputy Administrator for Logistics, Veterans Administration: Prepared statement with attachments 234 244 334 223 522 622 Wade, James P., Principal Deputy Under Secretary of Defense for Re- 556 Questions and reponses 565 Weiss, Brigadier General Bernard L., Director of Contracting and Man- 431 Questions and responses... Appendix A.-Policy Letter 80-1 Appendix B.-Policy Letter 80-2, and supplement 1 Appendix C.-Fact sheet, The Subcontracting Program.... 440 APPENDIX 707 709 695 SMALL BUSINESS SUBCONTRACTING PROGRAM (Part 2) TUESDAY, APRIL 10, 1984 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON SBA AND Washington, DC. The subcommittee met, pursuant to notice, at 9 a.m., in room 2359-A, Rayburn House Office Building, Hon. Parren J. Mitchell (chairman of the subcommittee) presiding. OPENING STATEMENT OF CHAIRMAN MITCHELL Mr. MITCHELL. Good morning. Today is the second in a series of hearings that this subcommittee will conduct to determine compliance with the subcontracting program for small and small disadvantaged businesses. I regret that I was unable to be here for the first day of the hearing, and I want to thank my colleagues who took over for me: Congressman Wyden, Congressman Addabbo, my very good friend, and Congressman Hayes, who chaired another hearing for me yesterday. On the first day of the hearing, the subcommittee heard testimony from the trade associations, the Defense Contract Administration Services Region, Los Angeles, CA; and field commanders from the Departments of Army, Navy, and Air Force. Today, we will hear from the Office of the Secretary of Defense, the military service, and other Federal agencies who will present testimony to the subcommittee regarding their implementation of the subcontracting program. I hope it will be testimony which will disabuse my mind of what may be a bias that I have with regard to the implementation of subcontracting, particularly with reference to small and small disadvantaged businesses. Based on our report of the hearings from last year, it was concluded that it is apparent that the small, and small disadvantaged business goals are omitted from subcontracting plans much more frequently than small business goals. Based on those hearings, no reasons were fully explained or given to the committee for those omissions. I hope that 1 year later will find those mistakes corrected, and I can be in a much more optimistic and pleasant frame of mind. |