Following Hearing, Small Business Subcommittee On Investigations Ranking Member Adams Introduces Legislation To Better Monitor Purchase Card Activity For Fed Small Business Contractors
Washington, DC – Congresswoman Alma S. Adams (NC-12), Ranking member of the Small Business Subcommittee on Oversight and Investigations introduced the Small and Disadvantaged Business Enhancement Act, legislation to expand oversight over the government purchase card system. The bill also includes a provision that ensures that all small business contracting programs are under the purview of the office of Small and Disadvantaged Business Utilization. The legislation was introduced last week and included in a larger bill, which passed out of the Small Business Committee today.
The legislation follows a joint Small Business Subcommittee on Investigations, Oversight and Regulations, and House Veteran Affairs Subcommittee on Oversight and Investigations hearing to discuss reports citing the Department of Veterans Affairs violated federal procurement laws with regard to government purchase cards. According to Jan Fry, the Deputy Assistant Secretary for Acquisition & Logistics for the Department of Veterans Affairs, his initial discovery revealed that the VA’s Office of Management had issued approximately 2,000 government purchase cards that were being used illegally.
“As Ranking member of the Small Business Subcommittee on Oversight and Investigations, I believe we must ensure our small businesses have access to federal contracts,” said Congresswoman Adams. “The reckless misuse of government funding uncovered by the VA has prevented some minority owned businesses from accessing the federal dollars owed to them. This legislation would ensure every agency properly monitors purchase card activity – to better free up the funds allocated to small businesses.”
“This legislation will ensure that contracting officers are not circumventing our procurement rules and shortchanging small and disadvantaged businesses from federal projects,” said Congresswoman Nydia M. Velázquez (D-NY), Ranking Member, House Committee on Small Business. “I applaud Ms. Adams for drafting this bill, which will help more entrepreneurs win federal work.”
“Our small businesses, especially those owned by our veterans, continue to be shortchanged by irresponsible spending at the VA,” said Congressman Cresent Hardy, Chair of the Subcommittee on Investigations, Oversight and Regulations within the House Small Business Committee. “This common sense legislation will ensure a level of competition that is desperately needed for our small business owners that can offer their goods and services to the federal government. By utilizing some of the swiftest and nimblest companies in America, we can reduce federal spending and serve our veterans more effectively.”
Purchase cards are issued to federal employees and can only be used to purchase goods valued at or under the micro-purchase threshold of $3,000 or to pay for goods and services that were obtained under a contracting vehicle.