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Operations. Commiers, consumer, and wengary mys
MAJOR PROBLEMS WITH SBA'S SECTION 8(a) PROGRAM
FOR DISADVANTAGED SMALL BUSINESSES

HEARING

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON

GOVERNMENT OPERATIONS

HOUSE OF REPRESENTATIVES

NINETY-SEVENTH CONGRESS

FIRST SESSION

MARCH 28, 1981

Printed for the use of the Committee on Government Operations

83-190 O

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1981

6634

1981

COMMITTEE ON GOVERNMENT OPERATIONS

JACK BROOKS, Texas, Chairman

L. H. FOUNTAIN, North Carolina
DANTE B. FASCELL, Florida
BENJAMIN S. ROSENTHAL, New York
DON FUQUA, Florida
JOHN CONYERS, JR., Michigan
CARDISS COLLINS, Illinois
JOHN L. BURTON, California
GLENN ENGLISH, Oklahoma
ELLIOTT H. LEVITAS, Georgia
DAVID W. EVANS, Indiana
TOBY MOFFETT, Connecticut
HENRY A. WAXMAN, California
FLOYD J. FITHIAN, Indiana
TED WEISS, New York

MIKE SYNAR, Oklahoma

EUGENE V. ATKINSON, Pennsylvania STEPHEN L. NEAL, North Carolina DOUG BARNARD, JR., Georgia PETER A. PEYSER, New York BARNEY FRANK, Massachusetts HAROLD WASHINGTON, Illinois TOM LANTOS, California

FRANK HORTON, New York
JOHN N. ERLENBORN, Illinois
CLARENCE J. BROWN, Ohio
PAUL N. MCCLOSKEY, JR., California
THOMAS N. KINDNESS, Ohio
ROBERT S. WALKER, Pennsylvania
M. CALDWELL BUTLER, Virginia
LYLE WILLIAMS, Ohio

JOEL DECKARD, Indiana

WILLIAM F. CLINGER, JR., Pennsylvania RAYMOND J. McGRATH, New York

HAL DAUB, Nebraska

JOHN HILER, Indiana

DAVID DREIER, California
WENDELL BAILEY, Missouri

LAWRENCE J. DENARDIS, Connecticut
JUDD GREGG, New Hampshire

WILLIAM M. JONES, General Counsel
JOHN E. MOORE, Staff Administrator
ELMER W. HENDERSON, Senior Counsel
JOHN M. DUNCAN, Minority Staff Director

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CONTENTS

Page

Hearing held on March 28, 1981....

Statement of-

Browne, Paul R., Associate Administrator for Business Development,

Small Business Administration, accompanied by Raymond L.

Harshman, District Director, Detroit District Office; James O.

Gordon, Ássistant Regional Administrator for Minority Small

Business and Capital Ownership Development; and Robert Murphy,

Assistant District Director for Minority Small Business in Detroit___

Carter, Wanda C., Acting Chief, Procurement and Supply Division,

Army Corps of Engineers, Detroit District, accompanied by Allen

Shapiro, district counsel.

Conyers, Hon. John, Jr., a Representative in Congress from the
State of Michigan, and acting chairman, Commerce, Consumer,
and Monetary Affairs Subcommittee: Opening statement--
Featherstone, Ruth, Director, Fair Housing and Equal Opportunity
Division, Department of Housing and Urban Development___

Hughes, Dr. Richard..

McMurtry, Walter M., Jr., president, Inner-City Improvement
Forum.

Madison, William F., Director, Office of Small and Disadvantaged

Business Utilization, General Services Administration, accompanied

by Kenneth E. Nale, Thomas Grafton, and Harry S. Gordon,

procurement officials__

Patrick, Charles, executive director, National Association of Mi-
nority Automobile Dealers_-

Perez, Leo, president, CLI Design Engineering Services, accompanied

by Franklin Sims and James Cooper..

Raymond, Carol, Executive Director, Minority Business Oppor-
tunity Committee_.

Sewell, Douglas, co-owner, American Office Products..
Tiano, Frank, Chief, Purchase and Contract Section, Veterans' Ad-
ministration Medical Center, Allen, Mich., accompanied by A.
Zamberlan, Director, Veterans' Administration Medical Center,
Ann Arbor, Mich., and Margaret Gilmer, contracting officer (re-
tired), VA Medical Center, Allen, Mich...

Letters, statements, etc., submitted for the record by-

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Carter, Wanda C., Acting Chief, Procurement and Supply Division,
Army Corps of Engineers, Detroit District: Prepared statement... 125-136
Conyers, Hon. John, Jr., a Representative in Congress from the
State of Michigan, and acting chairman, Commerce, Consumer,
and Monetary Affairs Subcommittee Executive Order No. 11458.
Featherstone,_Ruth, Director, Fair Housing and Equal Opportunity

Division, Department of Housing and Urban Development:

Prepared statement..

28-30

Gilmer, Margaret, contracting officer (retired), Veterans' Adminis-
tration Medical Center, Allen, Mich.: Prepared statement...

Gordon, James O., Assistant Regional Administrator for Minority

Small Business and Capital Ownership Development, SBA: Pre-

pared statement...

87

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