Fri, Mar 26, 2010
Says Federal Contracting Process Is Too Complex
Unlike large enterprises with more resources, smaller
businesses in the aerospace industry face daunting challenges in
doing business with the federal government, a leading aerospace
executive told the House Small Business Committee Wednesday. "The
federal contracting process is complex and, for small businesses,
the process can be too difficult to manage," said Robert R. Sprole,
III, president and CEO of Therm, Inc., which manufactures jet
engine turbine air foils.
Sprole, representing AIA and its nearly 300 member companies,
told the committee that, in the aerospace business, small companies
represent about 70 percent of manufactured items.
Small companies have found three major challenges in doing
business with the federal government, specifically the Department
of Defense. These are:
- Barriers to entry for federal contracting are onerous.
- Financial requirements that are difficult for large businesses
may be fatal for smaller ones.
- As they grow, smaller businesses face new obstacles for
retaining government business.
Sprole welcomed the ongoing review of export control rules as
the current system makes it difficult and expensive for a small
business to obtain an export license. On behalf of AIA, Sprole
urged Congress to order a study of how this complex maze of laws
and regulations can be simplified. "By opening the contracting
process to new businesses, new jobs will be created, contracting
requirements will be more easily understood and businesses,
particularly small firms, will be encouraged to grow and prosper,"
he said.
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