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REPUBLICAN PRESS RELEASE

July 26, 2007

VA subcommittee examines how veteran-owned businesses can be better supported

For more information, contact: Jeff Phillips (202) 225-3527

Washington, D.C. — The Subcommittee on Economic Opportunity held an oversight hearing today on contract bundling to determine how to ensure that veteran entrepreneurs get their fair share of the federal procurement pie.

“It is important that contracting processes promote small business development, especially those owned by veterans and service-disabled veterans,” said subcommittee ranking member John Boozman (R-Ark.).

Boozman noted that during the 109th Congress, from 2005 through 2006, he and Stephanie Herseth-Sandlin (D-S.D.) passed what may be called landmark legislation that improved opportunities for veteran and service-disabled veteran-owned business at the Department of Veterans Affairs (VA).

“There is a serious problem facing small businesses and that is the diversion of dollars meant for small businesses to companies that are often mega-corporations,” said Boozman. “While there are sometimes valid reasons such as a company outgrowing its small business status over the period of a long contract, an article in the July 16, 2007, issue of Defense News states that 37 percent of small business set-aside dollars, about $11.9 billion, went to the nation’s largest companies.”

“Large companies have capabilities vital to the national economy that cannot be replicated by small business. However, a small business also provides a significant portion of the nation’s jobs and creative thinking, which is vital to our economy as well,” Boozman said.

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Larry Scott  --