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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

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1981

83–190 O

.6 634
1981

COMMITTEE ON GOVERNMENT OPERATIONS

JACK BROOKS, Texas, Chairman L. H. FOUNTAIN, North Carolina

FRANK HORTON, New York DANTE B. FASCELL, Florida

JOHN N. ERLENBORN, Mlinois BENJAMIN S. ROSENTHAL, New York

CLARENCEJ. BROWN, Ohio DON FUQUA, Florida

PAUL N. McCLOSKEY,Jr., California JOHN CONYERS, JR., Michigan

THOMAS N. KINDNESS, Ohio CARDISS COLLINS, Illinois

ROBERT S. WALKER, Pennsylvania JOHN L. BURTON, California

M. CALDWELL BUTLER, Virginia GLENN ENGLISH, Oklahoma

LYLE WILLIAMS, Ohio ELLIOTT H. LEVITAS, Georgia

JOEL DECKARD, Indiana DAVID W. EVANS, Indiana

WILLIAM F.CLINGER, JR., Pennsylvania TOBY MOFFETT, Connecticut

RAYMOND J. McGRATH, New York HENRY A. WAXMAN, California

HAL DAUB, Nebraska FLOYD J. FITHIAN, Indiana

JOHN HILER, Indiana TED WEISS, New York

DAVID DREIER, California MIKE SYNAR, Oklahoma

WENDELL BAILEY, Missouri EUGENE V. ATKINSON, Pennsylvania

LAWRENCEJ. DENARDIS, Connecticut STEPHEN L. NEAL, North Carolina

JUDD GREGG, New Hampshire
DOUG BARNARD, JR., Georgia
PETERA. PEYSER, New York
BARNEY FRANK, Massachusetts
LI

INGTON, Illinois
TOM LANTOS, California

WILLIAM M. JONES, General Counsel

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

COMMERCE, CONSUMER, AND MONETARY AFFAIRS SUBCOMMITTEE

BENJAMIN S. ROSENTHAL, New York, Chairman JOHN CONYERS, JR., Michigan

LYLE WILLIAMS, Ohio EUGENE V. ATKINSON, Pennsylvania

HAL DA UB, Nebraska STEPHEN L. NEAL, North Carolina

WILLIAM F.CLINGER, JR., Pennsylvania DOUG BARNARD,JR., Georgia

JOHN HILER, Indiana PETER A. PEYSER, New York

Ex OFFICIO

JACK BROOKS, Texas

FRANK HORTON, New York
PETER S. BARASH, Staff Director
THEODORE J. JACOBS, Chief Counsel
DONALD P. TUCKER, Chief Economist
STEPHEN R. McSPADDEN, Counsel

(II)

CONTENTS

Page

Hearing held on March 28, 1981.

1

Statement of-

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

Small Business Administration, accompanied by Raymond L.

Harshman, District Director, Detroit District Office; James 0.

Gordon, Assistant Regional Administrator for Minority Small

Business and Capital Ownership Development; and Robert Murphy,

Assistant District Director for Minority Small Business in Detroit--- 245

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

Army Corps of Engineers, Detroit District, accompanied by Allen

Shapiro, district counsel.

121

Conyers, Hon. John, Jr., a Representative in Congress from the

State of Michigan, and acting chairman, Commerce, Consumer,
and Monetary Affairs Subcommittee: Opening statement.-

1
Featherstone, Ruth, Director, Fair Housing and Equal Opportunity
Division, Department of Housing and Urban Development.

233

Hughes, Dr. Richard..

160

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

40

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.

178

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

110

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

by Franklin Sims and James Cooper.

231

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

4
Sewell, Douglas, co-owner, American Office Products -

137
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..,

76
Letters, statements, etc., submitted for the record by-

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.--- 28-30

Featherstone, Ruth, Director, Fair Housing and Equal Opportunity

Division, Department of Housing and Urban Development:

Prepared statement.--

237-244

Gilmer, Margaret, contracting officer (retired), Veterans Adminis-

tration Medical Center, Allen, Mich.: Prepared statement..

87

Gordon, James O., Assistant Regional Administrator for Minority

Small Business and Capital Ownership Development, SBA: Pre-

pared statement.

320-392

Harshman, Raymond L., District Director, Detroit District Office,

SBA: Prepared statement and additional statement.--- 246-319, 397-

417

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