Introduction
This paper will cover the various topics: the history of the small business program, explain the small business set-aside program, assess the dollar threshold for small business contracts, the purpose of source selection evaluation plan, and ranking of criteria for the scenario. History of the Small Business Program
In 1932, President Hoover tried to mitigate the Great Depression by creating The Reconstruction Finance Corporation (RFC). The purpose of the RFC was to try to help businesses no matter what size large and small by providing federal funds. In 1942, Congress created the Smaller War Plants Corporation (SWPC) to help small businesses during World War II. Funds were provided to financial institutions to help give
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Which resulted in the creation of The Competition in Contracting Act of 1984. Its purpose is to allow small businesses to compete to win federal contracts due to competition, which resulted in lower cost. According to SBA (2002-2010): “Small businesses make up: 99.7 percent of U.S. employer firms, 64 percent of net new private-sector jobs, 49.2 percent of private employment, 42.9 percent of private-sector payroll, 46 percent of private-sector output, 43 percent of high-tech employment, 98 percent of firms exporting goods, and 33 percent of exporting value (p1). The bedrock of America’s economy is small businesses. The United States has about 27.9 million small businesses in the year 2010. Small businesses make up the majority share of employers in the United States this is one of the reasons why the SBA was established.
Small Business Set-Aside Program
The Small Business Set-Aside Program (SBSA) had another name, which was Small Business Preference Program the purpose of the program was to help small businesses obtained government contracts this was one of the oldest programs created. The agency contracting officer has to do a market survey and review the procurement history of the business on every business they feel deserves the Small Business Set-Aside Program. There are two types of set-aside programs. They are Total-set aside and Partial-set aside. According to Compton (2010) “Total set-aside are acquisitions that
Federal spending should be aimed at getting families with young children out of these tin shack and back into real homes. In 1931 president Hoover increased federal spending on public work, in action he lessens the unemployment to $700 million dollars. Hoover was hostile to the passage of believing that work relief programs might be demoralizing as a dole. In 1933 the RFC loans were the beginning of a banking crisis, starting the beginning of poverty for families.
Financial Assistance is made up of three different loan categories: · 7(a) General Business Loan, which is most widely used. It provides funds for almost any legitimate business purpose. · Certified Development Company Loans (504 Program) provide long term, fixed rate financing at reasonable rates for businesses to grow. · Other Special Loan Programs include: Micro loans; Lines of Credit; Contract Loans; Physical Disaster Loans; Direst loans to veterans, Vietnam, disabled and handicapped individuals, etc. Another function of the SBA is Investment Capital. This provides small businesses to have money or capital for growth and finance. The Small Business Investment Capital or SBIC provides the capital. Developed in 1958, the SBIC wanted to fill the gap between venture capitol and the needs of small businesses. There are two types of SBIC's, the regular SBIC and the specialized SBIC. The Procurement Assistance function tries to make sure that small businesses get their fair pay, goods and services from the federal government. Procurement Assistance programs include Prime Contracts Assistance, Natural Resources Assistance, Subcontracting Assistance, COC and PASS programs. The SBA also tries to establish goals for contracting with small disadvantaged businesses. The last area of focus is Disaster Loans Assistance, which comes into play for
Many charities, churches and individuals opened breadline in an attempt to solve the problems by the Great Depression as shown in the photo in document 4, a primary source. These breadlines provided free food to those unemployed who couldn’t make money to afford food. These donations were usually very crowded and the main source of food for unemployed Americans. The F.D.R cartoon in document 6, a secondary source shows F.D.R giving remedies to Uncle Sam with the Congress. The remedies were agencies from the New Deal created by F.D.R designed to help Americans find jobs, but they had to be approved by Congress. One agency was the Townsend Plan or the Social Security Act of 1935 shown in document 7, a secondary source. The Townsend Plan was created to help the elderly who could not work during the Great Depression. The elders had to be over 60 years old with no criminal background and could “retire on a pension of $200 per month.” This was a solution to the elders who could not work during the depression. There were also other agencies created by F.D.R to help the unemployed. For example, the agency, CCC or Civilian Conservation Corps helped 18-25 years old men get jobs created by the government. The men had free shelter and food while sending money back to their families. Therefore, the government, various groups, and individuals took many actions in an attempt to
Making of America states that Hoover’s major tool for solving the crisis, the Reconstruction Finance Corporation, had some major flaws. For one, it took too long to begin operating. It was already years into the depression when it was established and this was simply too late. Not only that, but while it had loaned money out, this appeared to have no effect on boosting the economy. According to Biography.com, Hoover another highly fundamental mistake in his administrative approach to the Great Depression. In an attempt to guard America’s industries, Hoover signed the Smoot-Hawley Act into law, which raised taxes on goods to other nations. This inflated tariff on imports to foreign countries, which ultimately led to their refusal to buy American products in a time that money gained from those sales were crucial to economic revival. USHistory.com prescribes the concerns that many individuals have observed, and this was that Hoover did not recognize the seriousness of the issues at different perspectives of the depression, and therefore did little to directly address the desperate needs of the people. This is exemplary by his refusal to enact federal relief funding and programs that could have been greatly beneficial to the critical state of the country.
The U.S. Small Business Administration was founded on July 30, 1953, and has delivered millions of loans, contracts, counseling sessions, loan guarantees, and other types of assistance to small businesses. Even though SBA was formally created in 1953, its philosophy and mission began to form years earlier in other agencies and began largely as a response to the pressures of the Great Depression and World War II (Business, 1988). These events caused mass hardship on the economy, and the best way to promote it again was through small business. The Small Business Preference Program was created to guarantee that small businesses received their fair share of contracts for federal government services and supplies. The intent was to help strengthen the economy by allowing small businesses to get a portion of the property government sold as well. 23% of all Federal-contracting dollars must be awarded to small businesses, and specifically, 5% to women-owned small businesses. There are many different types of small businesses, and each receives a portion of the contract the government gives. The WOSB Program became effective in the FAR on April 1, 2011, and is one of the types of small businesses that are given preferential treatment (SBA.gov).
He wanted to extend businesses (banks, railroads, insurance companies) by keeping in a good shape. As a result to extend business, the Government had relied on local relief organizations to help the unfortunate people. Leading up to the end of Hoover’s single term in office, newly president Franklin D. Roosevelt had created the New Deal. The New Deal would have soon have the three “Rs” (Relief, Recovery, and Reform). In his first inaugural speech, he would state “putting people back to work and managing the economy.”
The Hawley-Smoot Tariff proved to be a disaster. Believing in a balanced budget, Hoover's 1931 economic plan cut federal spending and increased taxes, both of which inhibited individual efforts to spur the economy. Finally in 1932 Hoover signed legislation creating the Reconstruction Finance Corporation. This act allocated a half billion dollars for loans to banks, corporations, and state governments. Public works projects such as the GOLDEN GATE BRIDGE and the Los Angeles Aqueduct were built as a result of this plan.
This left Hoover and the American people, local, and state governments with no choice, but to stand together to balance unemployment through the use of public works, volunteerism, and a laissez-faire government. Although the depression was a devastating time, it also helped to shape Hoovers’ dream of “American Individualism” by allowing him to establish new agencies and his vision of a laissez-faire government. As the American Economy continued to collapse, the people looked to Hoover and the Seventy-Second Congress for help. Hoover had already established himself in his pre-presidency days as a man who “[m]ore than any single American, had encouraged organizations, principally trade association and farm organizations to introduce orderly, rational, and bureaucratic procedures to entire industries” (Fausold 113) and now was the time to put “American Individualism” to work with congress’s help, or so he thought. Hoovers’ first order of business was established new agencies so that American businesses could stimulate the economy. In Hoovers’ Presidency and political life, he was able to establish the Farm Board, Federal Drought Committee, President’s Organization on Unemployment Relief, Reconstruction Finance Corporation (RFC), and Home
During the time leading up to the Great Depression, Hoover was in denial, claiming that the government was “strong”. Hoover “did not want to injure 'the initiative and enterprise of the American people', so when he took action, it was too late. He created a few relief groups, like the President's Organization for Unemployment Relief (POUR) and the Restruction Finance Corporation (RFC). Both plans,
A “set-aside for small business” is the reserving of an acquisition exclusively for participation by small business concerns. A small business set-aside may be open to all small businesses. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial (FAR.2012). Under this aspect of the FAR the contractor can show he was entitled to the set aside status and show that the contract was not awarded to a company that has the same status.
Roosevelt used to combat The Great Depression was the Work Progress Administration (WPA). In document E it says that the purpose of the program is the government gave the unemployed work in construction and art projects. In document I it explains how they put the people to work. The document says that the employment accomplishment greatly needed the projects to stimulate and reorganize the use of our natural resources. This fiscal policy program sought to accomplish to get people to work and to allow them to get money. Another thing it accomplished was that made more products to
The Small Business Administration has many roles in the global and the national economy. One role the SBA has is that it helps many businesses around the world. Some places in the world that the SBA helps are the U.S. Virgin Islands, Guam, and Puerto Rico. Another role that the SBA has is that they help with business that may have had some hard times with the economy. The economy can be very bad at some times and some businesses can get all they help they can get for this business to be running smoothly. Luckily, the SBA wants to help those businesses. They want to better the small business by giving loans to them if they qualify it.
It is nearly impossible to discus the economic situation of the 1930’s without discussing one of the major things that occurred during it: Franklin Roosevelt’s New Deal. The New Deal was put together by Roosevelt in order to satisfy the three R’s; Relieve, Recover and Reform. In doing so, he hoped to bring an end to the great depression. The new deal did not come in one form though. It took on the forms of many separate programs attempting to satisfy relief, recovery or reform. A few of the most notable programs were FDIC (Federal Deposit Insurance Corporation), the CCC (Civilian Conservation Corps), and the PWA (Public Works Association). The New deal did not satisfy each of the three R’s even though. Many of the programs
During the Great Depression when so many went without food and clothing, the destruction of food and cotton was not well accepted by the American public. In response, the Federal Surplus Relief Corporation was created in 1933 to purchase surplus food and distribute it to those
The small business marketplace is extremely dynamic and the changes are fast. Here are some encouraging facts from the US Small Business Administration on small businesses. There are about 30 million small businesses in the United States and employ just over half of the country’s private workforce. They employ a staggering 40% of high tech workers such as computer professionals, scientists and engineers. More than half of the small businesses are home-based businesses and two percent of them are franchises. One of the most important aspects is the fact that a majority of innovations in the United States come from small businesses.