Facts

It is the declared policy of Congress that the government should aid, counsel, assist, and protect, insofar as is possible, the interests of small-business concerns in order to preserve free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts for property and services for the government be placed with small business enterprises, to ensure that a fair proportion of the total sales of government property be made to such enterprises, and to maintain and strengthen the overall economy of the nation.

BACKGROUND
Congress has been fostering fair treatment of small business since 1941 with the establishment of the Select Committee on Small Business. The basis of the Small Business Program is to foster free competition which is basic to the economic well-being and security of the Nation. This status cannot be achieved without the potential of small businesses being encouraged and developed. Contracting with these firms strengthens the economy, generates competition, lowers overall costs, creates innovations, provides more jobs than any other sector, and enhances good business practices.

The Small Business Program: came into being in 1942 with the Small Business Mobilization Act. With that Act, Congress recognized that business concerns operating small plants did not have the economies of scale necessary to compete with large plants and a price differential might be required to keep such plants mobilized for the war efforts. In the Armed Services Procurement Act of 1947 Congress declared: “a fair proportion of the total purchases and contracts for supplies and services for the Government shall be placed with small business concerns.” In 1953 the Small Business Act was passed to stimulate the growth of small business firms and has been periodically amended by executive orders and related provisions of public law (PL). The Small Business Act specifically states

The Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns in order to preserve free competitive contracts or subcontracts for property and services for the Government be placed with small business enterprises...