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Stimulus Language Protecting Small Business Contracting

Thursday, April 2, 2009  
Posted by: Megan Markoff
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It is important to note that the following language was included in the Stimulus bill.  This language protects sole sourcing of government contracts for small businesses.  The Congressional staff that we spoke to about the requirement of all contracts to be competitively bid believed that the stimulus language on small business contracting will be included in any reform package, nevertheless, we will be looking that any reform to make sure that it will not usurp the Small Business Act. The Stimulus language is as follows:


SEC. 1610. (a) None of the funds appropriated or otherwise made available by this Act, for projects initiated after the effective date of this Act, may be used by an executive agency to enter into any Federal contract unless such contract is entered into in accordance with the Federal Property and Administrative Services Act (41 U.S.C. 253) or chapter 137 of title 10, United States Code, and the Federal Acquisition Regulation, unless such contract is otherwise authorized by statute to be entered into without regard to the above referenced statutes.


Section 1610 prohibits the use of funds for contracts and grants not awarded in accordance with the Federal Property and Administration Services Act, or chapter 137 of title 10, United States Code and Federal Acquisition Regulation, or as otherwise authorized by statute. The provision is not intended to override other specific statutory authorizations for procurements, including the Small Business Act and the Javits-Wagner-O'Day Act.

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