One-Stop Certification
Law makes it easier for 8(a) businesses to compete for federal contract dollars.

By Ellen Jensen

Last month, President Bush signed a $286.4 billion highway bill that includes an amendment, sponsored by U.S. Senators Jim Talent (R-Mo.) and Chris Dodd (D-Conn.), that will make it easier for federally certified 8(a) minority-owned small businesses to compete for state and local highway projects, as well as other state and local contracts that receive federal funding.

From Bill to Law
Through discussions four years ago with the Hispanic Chamber of Commerce of St. Louis, Talent learned about the difficulty that small businesses experienced gaining access to federal and state procurement dollars, because they were required to become recertified as a minority contractor in every jurisdiction they wanted to do business. It was not unusual that business owners would wind up with five to 10 certifications.
 

“There often are different technical requirements for each certifying agency, so it can be cost and time prohibitive,” Talent said.

Since all state and local entities were trying to reach the same goal of ensuring that the businesses qualified for the programs, Talent concluded that the 8(a) certification should cover that goal for all of them. He attached legislation to the 2005 Omnibus Appropriations Act, which President Bush signed into law last December. The legislation makes certain that states and localities cannot require 8(a) certified companies to recertify to participate in state or local programs. The caveat is that the programs have to receive some federal funds, and the business has to be certified through the 8(a) program.

“I was concerned that there would be objections if we made it broader than those state and local programs that are federally funded,” Talent said.

He added that because a substantial number of state and local programs receive federal funding of some kind, a wide range of programs qualify. Talent said he hopes that once state and local entities are comfortable with the process, they will eliminate recertification for all of their programs.

Harry Alford, president of the National Black Chamber of Commerce has been following the legislation’s progress with interest. He said the law should enhance the opportunities for 8(a) businesses and make a lot of the paperwork less cumbersome. Not surprisingly, he said, the chamber’s members are excited about the changes as well.

“It’s almost like Christmas,” Alford said. “Certification always has been a big gripe. Some states are ridiculous with the certification process. We have these people that are certified; they should be admitted into state and local programs without any more hassle.”

Implementation
Now that the law is in effect, the challenge is to get the word out to all state and local entities so that the law can be enforced and small businesses actually can benefit from it. Talent is taking steps to make certain that state and local governments are aware that this law is in effect, so it can be enforced appropriately. For example, the highway bill amendment makes the Department of Transportation responsible for notifying state and local governments about the law as it awards federal highway dollars.

Minority chambers of commerce also have been instrumental in helping to disseminate information. The national Black Chamber of Commerce has been sending out e-mail blasts to its members, and Alford has sent letters to all 50 governors, notifying them of the law.

“The chambers have taken it upon ourselves to make sure the law is implemented, and we are starting to get responses from the states’ procurement departments,” Alford said.

The U.S. Small Business Administration also will be instrumental in implementing the provision and is working to determine the best way to implement the law. As the agency comes up with procedures, it will communicate them to the public through its local offices.

The Future
Talent said he hopes that the law also will encourage more businesses across the country to participate in the 8(a) program. There tends to be a disproportionate number of participants in and around Washington, DC. One of his goals is to make the minority contracting system more transparent.

“One of the ironies is that these programs were established to encourage minority businesses to become certified and start winning some government contracts, but they are so difficult to access that many businesses do not bother with them,” Talent said. “Then people say the programs are not working because there are not enough businesses in the pool of participants.”

He added that it’s a constant challenge to put oneself in the shoes of the people who are dealing with certification and procurement in the real world. The issues they face often are practical ones instead of ideological ones—issues such as: “How do we come up with the money and manpower to negotiate the government certification process?” Part of the legislators’ job is to try to solve some of those practical issues, one at a time.

Ellen Jensen is the managing editor of Kansas City Small Business Monthly magazine.