Small Businesses Get Big Break in Bidding for Federal Contracts : Legislation: President Clinton signed the reform package last month. SBA is now spreading the word.

Small businesses will soon have an easier time in bidding for government contracts, thanks to a new law signed by President Clinton last month. But few small businesses know about it.

Accordingly, SBA officials in Washington held a satellite teleconference Monday morning to give small-business operators nationwide a chance to learn more about the Federal Acquisition Streamlining Act.

“The idea was to get the word out that there is a brand new bill,” said SBA Los Angeles District Director Alberto Alvarado. Small-business owners in various states watched televised addresses from a panel of SBA officials before questioning them talk-show style about the reforms.

The new law--parts of which are already in effect--mandates a simplification of procedures, such as reduced paperwork, for bidding on government contracts that are less than $100,000. It also sets up a government-wide computer system called Facnet (Federal Acquisition Computer Network) that allows businesses to bid for contracts electronically.

Businesses also will receive adequate notice that contracts are available, an equal opportunity to participate in bidding, and safeguards to protect themselves through the appointment of a Small Business Procurement Advisory Council, which will closely monitor small-business bidding issues.

The law also increases the amount of government contracts going to small “disadvantaged” businesses and to women-owned businesses. The SBA has been criticized for not doing enough to help women and minority-owned businesses obtain a greater share of the approximately $200 billion a year that the federal government spends on goods and services.

One-third of businesses in the United States are owned by women, but they receive only 2% of government contracts. The law now requires that women-owned companies get 5%.

“Opportunities will come to women-owned businesses who prepare themselves for future changes,” said Betsy Meyers, assistant administrator in the federal Office of Women’s Business Ownership.

Small businesses have been hampered by red tape that is beyond comprehension, new SBA Administrator Philip Lader said.

“The bottom line is that the majority of the American work force is employed by small businesses,” he said, emphasizing the need for the SBA to protect and promote the interests of small businesses.

Jere Glover, chief counsel for the SBA’s Office of Advocacy, encouraged small businesses to get involved by visiting their local SBA office to learn about the new policy. It is outlined in a “Small Business Guide to Procurement Reform,” available at SBA offices.

Glover said the new law may offer a gold mine of opportunity to many small businesses who haven’t considered bidding for government contracts before.