Help Small Business & the Shrinking Federal Industrial Base

As a small business constituent, I write to urge Congress to solve the growing problem of the shrinking small business Federal industrial base, which has declined by 40 percent in the last 10 years. Small businesses like mine are supported in the federal marketplace through set-aside contracts that help them grow. Large businesses have distinct advantages of capital and scale in any competition. Businesses on the verge of growing from small to large, face profound obstacles due to the static nature of current law. Advanced small business contractors on the cusp of exceeding their size status face a difficult choice: (1) risk entering the "valley of death" (also known as the "contracting cliff") by competing as a mid-tier against much larger firms, or (2) stay small, which can limit their growth potential. Without proper support systems in place to protect companies during the transition of growth from small to mid-size or large, attempts to grow can be fatal. Many contractors either do not survive or exit the federal marketplace altogether. This is a significant contributor to the shrinking industrial base. I urge you to support legislation that creates a time-limited pilot transition program for eligible small businesses—those that are bumping up against current Small Business Administration (SBA) size thresholds. This program should incentivize these businesses to transition into the larger prime contracting pool without immediately losing access to all small business set-aside contracts. This would ensure that these transitioning small businesses can continue to compete and grow, while also allowing new and emerging small businesses to enter the market and gain the experience and qualifications necessary for success. This program, also knows as the SUCCESS Act, should provide small businesses with the tools we need to develop a strong long-term strategy and grow our businesses, while also protecting both federal contractors and the industrial base. I am very proud of the successful business that I have built and the work that we do for the federal government. I am confident that with the right support, small businesses like mine can continue to play a vital role in the defense industrial base.