Chairmen Ask Why Agency Failed to Issue Required Reports Two Years in a Row
WASHINGTON – House Small Business Committee Chairman Steve Chabot (R-OH), joined by House Oversight and Government Reform Committee Chairman Jason Chaffetz (R-UT), today demanded answers from the Office and Management and Budget (OMB) about its failure to submit required annual reports to Congress on the federal government’s efforts to reduce the paperwork burden on individuals and small businesses. OMB failed to issue these required reports for both FY2015 and FY2016 and previously pledged to publish the reports this Fall.
“The failure to produce these reports in a timely fashion demonstrates a fundamental breakdown in OIRA’s management function,” Chabot and Chaffetz wrote in their letter to the OMB Office of Information and Regulatory Affairs. “Congress enacted the Paperwork Reduction Act to minimize the paperwork burden on individuals, small businesses, and others imposed by the federal government and improve the responsibility and accountability of the OMB and all other federal agencies to Congress and the public for collecting information.”
You can view the full letter HERE.
WASHINGTON—Small Business Committee Chairman Steve Chabot (R-Ohio) was elected by his House peers today to serve as Chairman of the Small Business Committee for the 115th Congress.
“I’m honored to serve a second term as Chairman of the House Small Business Committee and I’m grateful for the confidence of my colleagues as we build on the great work of all of our Committee Members from the last two years,” Chairman Chabot said. “We now have an historic opportunity to bring swift and lasting regulatory relief and certainty to the 1 out of 3 Americans who work at a small business. We will keep working for greater access to capital for our entrepreneurs, more ways to save taxpayer dollars through small business contracting, and we’ll continue to break new ground in the areas of cybersecurity and exporting opportunities to protect and create small business jobs.”
Chabot added, “Working with all of our colleagues in the House, Senate and the new Administration, I know we can make America great again one new idea, small business, and community at a time.”
See highlights of the Small Business Committee’s work HERE.Read More
WASHINGTON – House Small Business Committee Chairman Steve Chabot (R-OH) made the following statement after the House passed a five-year reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs as part of the 55th National Defense Authorization Act (NDAA).
“In an era of unfair global competition, making it easier for American small businesses to develop and commercialize new, innovative products is essential for both our economic and national security,” Chairman Chabot said. “SBIR and STTR are critical parts of this effort because their awards go to small innovators who have always been on the cutting edge of groundbreaking research and life-saving technology. The long-term reauthorization passed by the House today will provide certainty to thousands of small businesses who use these programs today and open doors for the inventors of tomorrow.”
“In the new Congress, the Small Business Committee will continue to work to find new ways to make these programs stronger and more effective,” Chairman Chabot added.
Small businesses applauded the House passage of the SBIR/STTR reauthorization saying it will provide them with much-needed certainty in the coming years.
“The Small Business Technology Council is incredibly appreciative to Congress and Chairman Chabot for ensuring that a 5-year SBIR/STTR reauthorization is included in the 2017 National Defense Authorization Act,” said Jere Glover, the Executive Director of the Small Business Technology Council. “SBIR companies across the country will be relieved that these vital innovation programs will be continued, and the prompt passage of SBIR/STTR reauthorization will give them the certainty and confidence that all businesses need to grow and plan for the future.”
“Without Chairman Chabot's hard work, dedication, and leadership on this issue, this never would have been possible. Our members are deeply grateful to him for and all he has done for small business over the years,” Glover added.
“As a CEO of a small business in southwest Ohio that is focused on research supporting Federal Agencies, I am deeply appreciative of Chairman Chabot’s diligent leadership of the Small Business Committee,” said Ron Shroder, the CEO and President of Frontier Technology, Inc., a small business in Beavercreek, Ohio. “Chairman Chabot’s ability to include the 5 year SBIR/STTR Reauthorization within the 2017 National Defense Authorization Act (NDAA) benefits small businesses throughout the country. With small businesses representing approximately 50% of the employment in the country, this program is very important to our future.”
Key Small Business Committee Provisions Included in Defense Bill
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) made the following statement after the House of Representatives passed the conference report of the FY17 National Defense Authorization Act (NDAA).
“The FY17 NDAA recognizes that small businesses play a vital and indispensable role in providing for the common defense,” Chairman Chabot said. “Small businesses create jobs as part of the defense industrial base, innovate new technologies for our warfighters and ensure taxpayers get the most bang for their buck through competitive contracting. I am especially proud that so many of the bipartisan contracting reforms authored by members of our Committee were included in the final NDAA.”
“These common-sense contracting and acquisition reforms will open new doors for small businesses in the coming year and set the stage for additional reforms in the new Congress,” Chairman Chabot added.
For a detailed section-by-section summary of the small business provisions in the FY2017 NDAA click HERE.
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) made the following statement after a federal judge enjoined President Obama’s controversial executive order imposing costly new rules on how employers pay overtime to their workers. The nationwide preliminary injuction delays the December 1st implementation deadline, giving small employers more time to plan for and fight back against the burdensome new mandate.
“Judge Mazzant’s injunction is a victory for America’s 28 million small businesses. As they look towards Small Business Saturday this weekend, small employers and their employees can breathe just a little bit easier knowing they have been given a reprieve from the pain caused by this disastrous new rule. For over a year, our Committee has been warning that the overtime rule was an unlawful overreach that would lead to job losses, demotions, less flexibility, lower wages, and reduced benefits for millions of workers. Our Committee looks forward to working with the new administration to give regulatory relief to small businesses and get the government off their backs so they can focus on creating jobs. “
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) has demanded regular updates from Wells Fargo after the company admitted that thousands of accounts owned by small businesses were harmed by the improper sales practices of Wells Fargo employees.
Chairman Chabot’s letter is a follow-up to official inquiries the Committee made last month to both Wells Fargo and the Small Business Administration (SBA) to determine the scandal’s impact on any Wells Fargo accounts associated with small businesses.
“In Wells Fargo’s response to my letter, it admitted that thousands of the deposit and credit card accounts that were harmed by the improper sales practices of Wells Fargo employees were accounts owned by small businesses.” Chairman Chabot wrote in his letter to Wells Fargo.
“The response also indicated that Wells Fargo plans to work with a third party to review all accounts dating back to 2009 in order to identify those that may have been affected,” Chabot added. “I believe that a more in-depth review is important to ensure that any individual or small business that may have been harmed is made whole. Because Wells Fargo will be implementing this additional review, it is possible that the information that you provided in response to my letter will change. Accordingly, I request that Wells Fargo provide the Committee with updates throughout its review and keep the Committee informed.”
You can view Chairman Chabot’s full letter HERE.
In their response to Chairman Chabot’s initial request for information, the SBA informed the Committee of the following:
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) today praised House passage of H.R. 5982, the Midnight Rules Relief Act, bipartisan legislation to give Congress the power to stop, with one vote, all last minute regulations issued by the Obama administration.
"Over the last eight years, the Obama administration has gone on a regulatory rampage," Chairman Chabot said in his speech on the House floor. "For each year, the administration’s major rules have cost over $100 billion annually. A disproportionate share of those enormous costs have fallen on America’s 28 million small businesses."
"This common-sense, bipartisan legislation will give Congress the power to stop all midnight rules with one vote. Next weekend, we will celebrate Small Business Saturday – an opportunity to celebrate small businesses and recognize they are the key to making our economy succeed. Midnight regulations are an imminent threat to their success," Chabot concluded.
BACKGROUND: Earlier this week, Chairman Chabot, House Majority Leader Kevin McCarthy and other House Committee Chairmen sent a letter to the heads of all Cabinet departments and federal agencies warning them against moving forward with Midnight Regulations.
WASHINGTON – House Small Business Committee Chairman Steve Chabot (R-OH), House Majority Leader Kevin McCarthy (R-CA), and all Chairmen of the standing committees of the U.S. House of Representatives this evening warned the Obama Administration against enacting any last-minute rules and regulations in their final days in office. In their letter, addressed to the heads of all Cabinet departments and federal agencies, the House Republican leaders wrote:
“Earlier this year, President Obama’s Chief of Staff stated that the Administration will “do audacious executive action throughout the course of the rest of the year.” As you are aware, such action often involves the exercise of substantial policymaking discretion and could have far-reaching impacts on the American people and economy. Considering these potential consequences, we write to caution you against finalizing pending rules or regulations in the Administration’s last days. By refraining from acting with undue haste, you will ensure that agency staff may fully assess the costs and benefits of rules, making it less likely that unintended consequences will harm consumers and businesses. Moreover, such forbearance is necessary to afford the recently elected Administration and Congress the opportunity to review and give direction concerning pending rulemakings. Should you ignore this counsel, please be aware that we will work with our colleagues to ensure that Congress scrutinizes your actions – and, if appropriate, overturns them – pursuant to the Congressional Review Act.”
You can view the letter HERE.
Later this week, the House will consider H.R. 5982, The Midnight Rules Relief Act, bipartisan legislation to give Congress the power to stop all of the “midnight rules” with one vote.Read More
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) and Ranking Member Nydia M. Velázquez (D-NY), wrote to the Office of Management and Budget criticizing the implementation of Category Management, a procurement policy that has been shown to negatively harm small businesses.
“By moving ahead with its Category Management scam, OMB has decided to deny small businesses the ability to fully and fairly compete for federal contracts,” Chairman Chabot said. “I will continue to work with Ranking Member Velázquez and members of our Committee in a bipartisan manner to fight back against this destructive policy on behalf of American taxpayers and small businesses.”
“Not only does Category Management lock entrepreneurs out of the federal marketplace, but it means agencies are paying more for goods and services, wasting taxpayer dollars,” Ranking Member Velázquez said. “I am proud to stand with small business contractors and join with Chairman Chabot in calling for an end to this harmful policy.”
The full text of the letter is below.
November 7, 2016
Ms. Darbi Dillion
Office of Federal Procurement Policy
Office of Management and Budget
1800 G Street NW
Washington, DC 20006
Dear Ms. Dillion:
We are writing this comment letter in our capacities as Ranking Member and Chairman of the House Committee on Small Business, which has jurisdiction over federal procurement matters that impact small companies. We are alarmed that the Office of Federal Procurement Policy continues to move forward with Category Management despite its negative impact on not only small businesses but the agencies which use its contracting vehicles.
Earlier this year, we wrote a letter to Administrator Denise Turner Roth at the General Services Administration detailing the impact this strategy has had on small businesses. In numerous hearings conducted by the Committee, we have found that though Category Management has been billed as the strategy that can get agencies the lowest price, all evidence points to the contrary. Vendors on the Multiple Award Schedule (MAS) continually provide agencies with lower prices than those offered by Category Management contract holders. Yet, agencies and contracting officers cannot take advantage of lower prices due to the fact that some Category Management vehicles have become mandatory by their agency. Ultimately, this results in wasteful spending of taxpayer dollars by agencies, forcing them to pay more than necessary for goods and services. The proposed Circular will exacerbate this problem as it plans for mandatory vehicles government-wide.
Additionally, the contracting vehicles that have resulted from Category Management have reduced the overall number of businesses that have been able to compete for contracting opportunities. Many of these vehicles have bundled so many goods together in one contract that previously qualified small businesses can no longer fulfill the requirements, despite having previously provided some of the goods or services under the MAS contracts. As a result, the number of small firms serving as suppliers to the government in certain areas has been reduced from hundreds to just a few handfuls.
This is worrisome for a number of reasons. First, it reduces competition between firms holding Category Management contracts, providing relatively little incentive to lower prices. Furthermore, the Category Management may reduce the industrial base as it is unclear whether firms not awarded a contract under Category Management vehicles will be able to keep their doors open. With contracting officers and agencies forced to use Category Management contracts, many small firms will be excluded from the federal marketplace entirely, thus preventing robust competition that is needed to ensure agencies receive the best value for goods and services.
The issues of Category Management and strategic sourcing have been raised in numerous hearings before the Committee. During these meetings, we have heard small businesses recount the severe and sometimes devastating impact these strategies have had not only on their bottom line and their employees but also their federal agency customers. We have attached the transcripts of these hearings so that you may see the full impact these policies have on the small firms.
Lastly, we would like to express our frustration at the process the Office of Federal Procurement Policy has used in soliciting comments for the proposed Circular. Though this policy document will have far-reaching effects on businesses large and small as well as all federal agencies, your office decided to forego the customary 60-day comment period. When Committee staff reached out your office to determine whether this period would be extended, they were told your office was working on a deadline and, as such, the November 7th deadline would stand. This is simply unacceptable as many small businesses have not had opportunity to comment. The process chosen has also not allowed for substantial analysis on the impact this policy could have on small business as no Regulatory Flexibility Act analysis occurred due to the nature of the change. Furthermore, your office has not engaged in meaningful discussions with stakeholders as there has been no outreach done to either agencies or industry associations.
Therefore, we request that the Office of Federal Procurement Policy suspend any issuing of this proposed Circular until the office can evaluate the impact on small businesses. Additionally, we request that the comment period be re-opened, allowing for more input from agencies as well as relevant industry stakeholders to be taken into consideration so as to ensure all businesses have access to contracting opportunities throughout the federal marketplace.
Nydia M. Velázquez
WASHINGTON – House Small Business Committee Chairman Steve Chabot (R-OH) and Ranking Member Nydia Velázquez (D-NY) led a bipartisan group of lawmakers in asking Health and Human Services Secretary Sylvia Matthews Burwell to review new Medicare regulations that may harm small medical laboratories and the senior citizens they serve. The letter was signed by several members of the Small Business Committee in response to concerns over the Department of Health and Human Services implementation of the Protecting Access to Medicare Act of 2014 (PAMA).
“We are concerned that under the process outlined in final regulations issued on June 17, 2016, many laboratories, especially small community and regional laboratories, may not have the necessary reporting capabilities in place,” the bipartisan group of lawmakers wrote in their letter. “These laboratories could struggle to properly report data and comply with the regulations, which could result in significant problems for CMS’ implementation efforts, as highlighted in a recent report issued by the Office of the Inspector General (OIG). In addition, the impact of these regulations could ultimately threaten the ability of small laboratories to provide needed services to Medicare beneficiaries.”
In their letter, Chabot and Velázquez emphasized the importance of small medical laboratories to small and rural communities across America. By jeopardizing Medicare payments for these small businesses and subjecting them to new penalties, the Committee leaders expressed concern that the facilities will be unable to continue to serve senior citizens who depend on them.
You can read the full bipartisan letter HERE.Read More
Little Rock, AR 72202
Chairman Carlos Curbelo has scheduled a hearing of the Committee on Small Business Subcommittee on Agriculture, Energy and Trade titled, “Ready for Liftoff: The Importance of Small Businesses in the NASA Supply Chain.” The hearing will begin at 11:00 A.M. on Tuesday, July 12, 2016 in Room 2360 in the Rayburn House Office Building.
1. Hearing Notice
2. Witness List
Subcommittee Chairman Carlos Curbelo (R-FL)
Opening Statement (As Prepared for Delivery)
Mr. Chris Carberry
Explore Mars, Inc.
2361 Rayburn HOB
Washington, DC 20515