The SBA has proposed a new rule designed to increase women's share of federal contracting dollars, the
Los Angeles Times reports
.
The proposal allows federal contracting officials to set aside contracts for women-owned small businesses. The rule, seven years in the making, is intended to help federal agencies reach a goal of awarding 5 percent of federal contracts to female owners. The proposed rule was published December 27 in the Federal Register, and remains open to public comment until February 25.
Read the proposed rules.
The proposed rule would limit the contract set-asides to four industry areas in which the SBA says women-owned small firms don't get their fair share of federal contract dollars. Those areas are national security and international affairs; coating, engraving, heat treating and allied activities; household and institutional furniture and kitchen cabinet manufacturing; and motor vehicle dealers.
The LA Times reported that women's groups and congressional leaders are raising a storm of protest against the plan because of its limited focus.
Sen. John Kerry (D-Mass.), who heads the Senate Committee on Small Business and Entrepreneurship, characterized the proposed rule as "a slap in the face to women business owners."
According to the LA Times, the SBA has acknowledged the limited scope of the rule. However, it also defended its findings. "Supreme Court decisions require legislative findings to justify a gender-based preferences program," the agency said in a statement. "In general, set-asides and other preference programs are subject to a high degree of constitutional scrutiny and require careful study and thorough justification."--Eve Gumpel