PROPOSED LEGISLATION TO AMEND THE SMALL BUSINESS ACT (H.R. 2133)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP95B00895R000200050015-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Document Release Date: December 2, 2008
• Sequence Number: 15
• Publication Date: March 29, 1984
• Content Type: MEMO

17
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29 March 1984
STAT MEMORANDUM FOR!
STAT
STAT
STAT
Legislation Liaison officer
Intelligence Community Staff
Assistant General Counsel
SUBJECT: Proposed Legislation to Amend the Small
Business Act (H.R. 2133)
This is in response to your request for our views on whether
H.R. 2133 could have an impact on the Intelligence Community if
enacted. I have had discussions with an attorney in
our office who works on contract and procurement matters, and
attorneys from NSA, DIA and Defense. The consensus of legal opin-
ion appears to be that there is a potential adverse impact from
this bill. While the specific degree of the impact may vary among
Intelligence Community components depending upon their individual
statutory authorities, all agree that there would be problems in
implementing the bill within the Intelligence Community as contem-
plated by the drafters. You should be aware, however, that CIA
strongly believes that its legal authorities are sufficient to
exempt its activities from the effects of this bill.
I understand you have been asked to respond to Alan C. Chase,
who is a staffer for the House Armed Services Committee, and I
have attached for your review and consideration comments you may
wish to raise with Mr. Chase regarding the potential impact of the
bill. However, I would like to caution you that my coordination
has been informal, and each interested agency should be given a
chance to weigh in formally before presenting these views to
Congress as their official positions. In this way any attempt to
remedy the problems we have raised can be given careful review to
ensure the protection of Community equities. Please do not hesi-
tate to call me if you have any questions or comments.
STAT cc: LD/OLL
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INFORMAL COMMENTS ON H.R. 2133
As proposed H.R. 2133 would impose requirements on intelli-
el-
Bence agencies that would be detrimhactivities andlthat
ligence Community contracting and procurement
could not be implemented saandrits stringenteadministrative
Community. The bill's approach requirements are simply withemethent struc c uresof Intel-
ligence Community contracting and p
Contracting and procurement activities by ntelligence m thosco ing
government agencies. As a rule Intelligence Communityn o t the
and procurement activitie~oc~~ehbg~lbecausetthe,indication of the
procure
goods and services they
items procured often may convey the size and scope of the United
States intelligence effort. Accordingly, security related re-
quirements on Intelligence Community contractsofre stringectsolic-
Such contracts are most often not the p
itation, as the classified natsrutol izmany ationIntelligence
normalmmensyof
i
contracting activities preven alteanes
notifying small businesses of potential contractingsopp r are
and precludes compliance with reporting q
integral components of the procedures
In addition, there are con rovions
agerial problems associated with implementation ofFits provisions
within components of the Intelligence Community. l by members of the Intelligenceo the estab-
lishment of additional layers goals of the
H.R. 2133 procedures and would be detrimental to the gsmall business community.
It should be noted that the compons f thethetelligencei-
Community do not disagree with the philosophy ness Act. Quite the contrhinvolvedninethesentirearangenof
subcontracts to small businesses activities.
the Intelligence Community contracting and procurement
dominant acoi in
in fact, small businesses in many areas play a
Commun providing goods and servicS billlwouldlbento removelfromolntellis?
However, the impact of this
gence Community components the flexibility that is neededotoiate
obtain goods and services from small necessary for
to the intelligence Community's
the acquisition of the best support consistent with demands of the
proposed acquisition.
A number of sections of H.R. 21crestablishmdefiniy
threshhold for Small Business Act qualification,
guidance regarding qualified bidding lists, or relate to the
establishment of small business goals and plans by executive
agencies. While those provisions obviously have an impact on
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overnment-
wde, teytdonlsconsequencesttolIntelligence Com-
wide they do not have serious
contracting. The provisions that raise significant
concerns for the Community address:
(1) The creation of an apparent mandatory set-aside
for small business concerns as it relates to
contracting out A-76. (Section 4 (b), page 5,
line 12).
(2) Creation of a mandatory se0 set-aside or esfo(sprocurement
contracts valued at t2
4(e), page 10, line 14).
(3) Creation of a presumption for small business
concerns contracting between 125,000 but less
than $2,000,001 where waiver may be grant
by head of the buying activity (Section 4 (e)
page 10, line 19).
(4) Additional competition requirements for the
purchase of spare parts beyond those currently
required in existing regulations. (Section 4 (b)
page 4, line 14)
omprovisions
All of the above listed
contractingeofficersltoyrespond
intelligence Community component
requirements by imposing addi-
without any measurable
tional to Intelligence Community
ional bureaucratic steps and procedures
increase in government efficiency or enhanced small business con-
tracting opportunities.
-
Component members
A-76 contracting-outearena. Suchacontracts
liar problem in the requirements and restrictions on
usually carry with them security rcontractor employees that may not necessarily existtwit in other
government components. These restrictions quite
extensive interview of large esm accecandidates
securityrstanda
contractor to provide employe acceptable from include a smaller
Y
point. Small businesses by definition g
number of candidates and, therefore, may be lsliBelyetoCiecable
to perform or to comply with contract provisions. g
At76 recognizes these smallencibuses,ib-ut
it does neither the n
ness any service if acontract
rovidehnecessarytclearedepersonnel toe
contractor is unable to p
satisfy a contract as contemplated under the requirements of H.R.
2133. e Concerns with H.R. to3H.Rre43261inr1982thoCongressional appre-
exFrAssed with respect for the Intelligence
ciation for the problems that the bill posed
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Community subsequently resulted in thenlang1age contained
c U.S.C. 638 (e)(2), which exempts the
requirements relating to small business set-asides for research and development. While present concerns do not focus on the spe-
cific consider sensi-
tive area of research and development, the rocurement activit~alland
tive aspects of IntelligenCthatnearlPer amendment is eq Y
the House Report accompanying of the Small
relevant in considering H.R. 2133 and the impact Business Act generally on intelligence activities.
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