Businesses Will Play Critical Role in Hurricane Katrina Recovery Efforts

The Contract Services Association (CSA) today submitted a statement for the record to the Senate Small Business Committee, which is considering the critical role of the business community in the recovery work following Hurricane Katrina, and the particular avenues that might be open to ensure adequate opportunity in the award of contracts in the rebuilding efforts.

In its statement, CSA noted that

Small businesses – and competition – are key embodiments of the American spirit and our free enterprise system. This was highlighted as far back as 50 years ago with the passage of the 1953 Small Business Act (P.L. 163-83).

Now more than ever, those sentiments [outlined in the preamble] ring true. Following the devastation of Hurricane Katrina, and with Hurricane Rita bearing down on the South just a few short weeks later, we all need to step back and see what part we can play to help the devastated areas. Today’s hearing focuses on a critical element of the rebuilding – the role of small businesses, not only those located in the local community but in the surrounding region as well. But as the committee reviews this issue, CSA would challenge you to consider the tools already available to ensure fair access, and adequate competition, for all businesses that may be able to play a part in the rebuilding efforts. And also determine what flexibility is required to get the assistance needed to the areas, while maintaining the integrity of the acquisition system.

One suggestion for flexibility that CSA would offer is a wavier – for the immediate affected area – of the Service Contract Act (SCA). Under the SCA, only the Secretary of the Department of Labor has the authority to waive the SCA threshold of $2500 – a threshold that is far too low, considering the extent and the expense of the relief efforts. Furthermore, SCA covers all service contracts no matter the size of the company, so even the smallest small business is covered if it receives a contract for more than $2500. Obtaining a wage determination can be a lengthy process – and in the relief and recovery efforts, time is of the essence. Finally, waiving SCA would allow the Government to contract with commercial companies that would not normally do business with the Federal government – and may not do so again – but in this instance have certain valuable skills that the Government should be able to tap.

A full copy of the CSA statement is on its website at www.csa-dc.org

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CSA is the nation’s oldest and largest association of service contractors representing over 200 companies that provide a wide array of services to Federal, state, and local governments.  CSA members perform over $40 billion in Government contracts and employ nearly 500,000 workers, with two-thirds of CSA companies using private sector union labor.  CSA members represent the diversity of the government services industry and include small businesses, 8(a)-certified companies, small disadvantaged businesses, women-owned, HubZone, Native American owned firms and global multi-billion dollar corporations.  CSA promotes Excellence in Contracting by offering significant professional development opportunities for government contractors and government employees, including the only program manager certification program for service contractors.  For more information on CSA, go to:  www.csa-dc.org.