TWENTY-NINE OF 50 FED AGENCIES SPEND $-0- WITH DISABLED VET BUSINESSES

As it orders more American soldiers to the Gulf region, the Bush Administration faces embarrassment by recently released data showing it has done little to comply with a federal law aimed at helping disabled veteran-owned small businesses benefit from government procurement spending.

Twenty-nine of 50 federal agencies reported spending none of their procurement dollars with service disabled veteran-owned small businesses during the first three quarters of FY 2002 despite a 1999 law setting a federal-wide goal to spend 3 percent of contracting dollars with such firms.

According to data released recently by the Federal Procurement Data Center (FPDC), agencies reporting they spent nothing with disabled veterans small companies included the Office of the President and the Small Business Administration. The FPDC has not posted agencies figures for the last quarter of FY 2002.

DoD reported spending $67 million or .08% and the Dept. of Veterans Affairs said it spent $18 million or .51% with service disabled veteran-owned businesses during the same period. None of the large federal agencies even approached the 3% goal set by Congress.

Procurement spending with companies owned by veterans who did not have service connected disabilities (a far larger population) was also low for the same period -- the Office of the President: .37%, SBA: 1.02%, and DoD: .32%. Even the Dept. of Veterans Affairs, the agency tasked with working with the SBA to help other agencies reach veterans' businesses, and which had a 7 percent procurement goal for veterans in FY 2002, achieved only 1.96% for the first three quarters.

The Veterans Entrepreneurship and Small Business Development Act of 1999 (P.L. 106-50), introduced by then Representative Jim Talent, R-MO, established the federal buying goal for small disabled veteran-owned companies, and required federal agencies to help disabled and other veterans enter the federal procurement system.

There are more than 24 million U.S. veterans, an estimated 3.5 to 4 million of whom own their own small business. There are nearly 2.2 million veterans with service-connected disabilities, and about 10 percent of them own small businesses. Many disabled and other veterans offer products or services not intended for government markets, and others say they won't do business with the federal government due to negative experiences or for other reasons.

However, when surveyed, many of the more than 3,000 service disabled veteran-owned businesses and 19,000 veteran-owned businesses listed in PRO-Net reported they rarely, if ever, receive such contract opportunity notices from the government or its contractors. SBA's PRO-Net database was created to enable federal agencies and large corporations to send email contract and subcontract opportunity notices to disabled veteran-owned, veteran-owned and other small businesses.

Some disabled veterans assert that what is needed is sustained, comprehensive business assistance combined with a real commitment to meeting the 3 percent goal. Instead, they say they typically receive hype about the commitment of agencies to the 3 percent goal (but say they see little evidence of actual implementation). Many say they get no service, or minimal service: a flyer or brochure, or in rare instances a half-day outreach seminar with no follow-up. Information (often misinformation) may be provided, they report. But ongoing services and service coordination aren't provided.

Weve lost 16 servicemembers and seen scores of men and women experience serious wounds, injuries and illnesses that will affect them for the rest of their lives in the Afghanistan campaign alone since this law intended to help rehabilitate disabled veterans was enacted," said Joseph Forney, a disabled veteran who owns a small business in Hesperia, CA.

If the commitment to fully implement laws helping those who served their nation isnt evident during wartime, will it ever be?" asked Forney who lost an arm during service in the Navy.

"More than 1,800 veterans now die each day. By 2020 the veterans population will decline from 24 million to 16 million. I suggest the federal government start achieving this 3 percent goal program before most of the intended beneficiaries apply for Social Security or more final veterans' benefits," Forney said.

Federal Procurement Data Center information on agencies' procurement spending with veterans and other socioeconomically disadvantaged groups are found at www.fpdc.gov.