Small Business Fair Competition Act H.R. 3558

Sounds good, right? But this bill would actually allow businesses that have outgrown their small business status (because of government contracts) to continue competing for those contracts effectively blocking new small business contenders from winning those contracts.

When I first read about this new bill, H.R. 3558 – Small Business Fair Competition Act, it seemed reasonable that the government client would benefit from being able to continue contracting with a company they were satisfied with. But, too many of these contracts won by “small businesses” were actually won by businesses that are not at all small (see Stop Fraud). Large corporations have setup small businesses as subsidiaries to take advantage of loose laws and regulations that are needed badly to ensure the intent of the reams of legislation designed to help small businesses compete more effectively for government contracts.

The 5 minute video below by small business activist Lloyd Chapman offers an overview of what the bill would do and why he opposes H.R. 3558:

For more information on the larger issue of large businesses posing as small to out muscle truly small businesses visit Lloyd’s YouTube channel at: Lloyd Chapman ASBL