Casey Introduces Bill to Help Minority and Women-Owned Businesses

Casey Introduces Bill to Help Minority and Women-Owned Businesses
 
WASHINGTON, DC— U.S. Senator Bob Casey (D-PA) today introduced a bill aimed at protecting minority and women-owned businesses. The bill will prevent contractors from fraudulently adding minority and women-owned businesses to bids without the intention of following through to deliver work to listed sub-contractors. In Pennsylvania alone, there are over 80,000 minority business enterprises (MBE) employing more than 87,000 workers and over 327,000 women business enterprises (WBE) employing about 470,000 workers. 

“Especially in the current economic climate, supporting small businesses is vital to our economic recovery,” said Senator Casey.  “This piece of legislation will help women and minority-owned businesses by protecting them from fraud and providing support for them to grow and create jobs.”
 
“We applaud Senator Casey for his efforts in righting wrongs.  Our MSDC certified-MBEs provide innovation, cost savings, and timely delivery and should be afforded every opportunity to fully serve its customers.  Ultimately, this bill levels the playing field for certified-MBEs, spurs business growth and puts Americans back to work,” said Alex Nichols and Wade Colclough, both president and chief executive officers representing  Eastern and Western PA Minority Supplier Development Councils – a corporate members purchasing council and affiliate of the National Minority Supplier Development Council.
 
In some cases, prime contractors have reportedly listed MBEs or WBEs as sub-contractors on their bids in order to strengthen their applications. This sometimes occurs without the knowledge of the MBE or WBE.  When a contract is awarded, the MBE or WBE are sometimes unaware of their inclusion in the contract and sometimes do not receive the business from that contract.  This bill would:
 
•  Require subcontractors identified on a solicitation for a competitive proposal made by an executive agency be notified by the prime contractor before the application is submitted.  A written agreement between the prime contractor and the subcontractor must be submitted to the contracting officer that includes the identity of the subcontractor, the scope of the work to be performed under the subcontract and the dollar amount of the subcontract.
 
• Failure to notify subcontractors of their inclusion on proposals will result in the following: First time offense: fine of 20 percent of the overall contract; second time offense: fine of fifty percent and prohibited from seeking federal contracts for one year; third time offense: permanently prohibited from seeking federal contracts.
 
• Establish a reporting mechanism that allows a subcontractor to report fraudulent activity by a contractor.
 
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February 18th, 2011 | Posted in Front Page Stories | 3 Comments

3 thoughts on “Casey Introduces Bill to Help Minority and Women-Owned Businesses”

  1. Frank says:

    Here’s a flash. Why not eliminate this racist discriminatory government contract requirement that’s based on skin color and gender? I’ve owned a small business for 25 years and have never won a government contract and the reason is simple. I’m white and a male. Small business owners are being screwed. How about awarding contracts based on qualifications instead of the color of your skin and your sex?

  2. justjack says:

    The problem is typical “Big Govrernment” interference. Obviously, they have enabled this fraud to exist by even creating this discriminatory and unConstitutional ‘favored class’ of citizens. Would a Black female Hispanic qualify for triple the advantage of other citizens? Maybe, if these socialist vote pandering politicians get their way……….
    Jp.

  3. ArtL says:

    i read the proposed legislation of Senator Casey and wish to comment on it.. I had furnished many contracts to Philadelphia and since the mid 1980’s there has been similar legislation. THE PROBLEM WITH THIS IS THAT MANY COMPANIES {NOT ALL OF COURSE} HAVE SUCH AGREEMENTS WITH MINORITY FIRMS AND/OR WOMEN OWNED FIRMS TO PROVIDE SERVICES FOR A PREDETERMINED COST.. UNFORTUNATELY- MANY TIMES THIS SERVICE IS NOT PROVIDED AT ALL- THOUGH THE MONEY AGREED UPON IS PAID TO SUCH A COMPANY. THUS THEY PROFIT FROM THE PRIMARY CONTRACTOR SENDING THEM THE FEE FOR SERVICES AND PROVIDE NO SERVICE WITH NO COST TO THE MINORITY AND/OR WOMEN OWNED FIRM. AND YET THEY MEET THE REQUIREMENTS FOR MINORITY AND OR WOMEN OWNED FIRMS AS REQUIRED BY THE CONTRACT. NEEDLES TO SAY THE COST OF THE CONTACT IS HIGHER AS THE MONIES PAID MUST BE INCLUDED IN THE CONTACT BID PRICE. BELIEVE ME- THIS HAPPENS ALL THE TIME. { the prime contractor is awarded the contract and the sub contractor is paid their monies with no expenditure on their part. a win-win situation for both of them

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