House Republican Seeks to Curb 'Deceitful' Subcontracting

February 2, 2012

Seeking to level the playing field for small businesses in federal contracting, the chairman of a House subcommittee on Thursday introduced a bill to "give small contractors a voice when their work is being unfairly insourced," a reference to the Obama administration's three-year effort to rely less on contractors in federal procurement.

Rep. Mick Mulvaney, R-S.C., leader of the Small Business Subcommittee on Contracting and Workforce, said his Subcontracting Transparency and Reliability (STAR) Act is needed because "there are many unfair roadblocks that exist for many small businesses who perform federal contracting work. When contracts are set aside for small businesses in order to foster job creation, competition, innovation and a healthy industrial base, the government has a vested interest in ensuring that the small business performs a significant portion of the work, otherwise, the small business could deceitfully pass through the work to a large contractor."

The STAR act, Mulvaney said, would help firms that might not otherwise have the means to fight "deceitful" subcontracting and unjustified insourcing. 

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