SBA has joined contractor groups in urging Congress to repeal a law.(Washington Insider)

Set-Aside Alert, April, 2005

SBA has joined contractor groups in urging Congress to repeal a law that prohibits the Defense Department from awarding outsourcing contracts to companies unless their employee health plans are equal to those available to federal employees.

SBA Administrator Hector Barreto and other agency leaders say the restriction "is harming small business."

In a March 15 letter to Rep. Jerry Lewis (R-CA), chairman of the House Appropriations Committee, the SBA officials said, "[T]he practical effect of this provision is to bar small businesses from competing for these DOD contracts.

Federal employee unions backed the provision in the 2005 Defense Appropriation Act, saying it would level the playing field in public-private job competitions under OMB...

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