House Democrat challenges SBA's 8(a) revocation from USAID
Rep. Nydia Velázquez (D-N.Y.) speaking at a press conference in January as part of the Congressional Hispanic Caucus. Gettyimages.com/Kayla Bartkowski / Staff
By
Nick Wakeman
Rep. Nydia Velázquez says pulling 8(a) authority over a single bribery case could undermine broader small business contracting without evidence of systemic problems.
The House Small Business Committee's leading Democrat is raising concerns that the decision to revoke 8(a) contracting authority at the U.S. Agency for International Development has implications beyond a single agency.
SBA on Wednesday revoked USAID’s 8(a) authority in the wake of a bribery scandal involving a now-former contracting officer.
Rep. Nydia Velázquez (D-N.Y.) said SBA’s action was not needed because the Justice Department had successfully prosecuted four defendants, all of whom pled guilty.
The case “shows that existing laws may not be perfect, but are working to root out and penalize fraud,” she said in a statement.
SBA agency is “now using that single case to cast doubt on the entire 8(a) Program without offering any evidence of a broader issue,” she added. “If the agency has legitimate concerns, it should be transparent. So far, it has offered only selective and misleading claims.”
Velázquez also said she is troubled by SBA making its announcement in the final quarter of the government’s fiscal year.
“This has the potential to reduce small business participation in federal contracting and limit the dollars flowing to firms that need them most,” she said. “Instead of helping small businesses compete in the federal marketplace, SBA is stripping away the very tools that enable them to succeed."
SBA took its action against USAID before the completion of an audit of the 8(a) program announced in June.