And They SWaM and They SWaM
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31 responses to “And They SWaM and They SWaM”
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Love the headline…”and they swam and they swam right over the dam.” Darn if this really isn’t where I came in, as the issue of “minority set-asides” was front and center in the 1981 campaign for Governor. Former Governor Godwin got tagged as a racist for criticizing the idea while endorsing Marshall Coleman. Others will understand this better, I’m sure, but in my experience this creates a huge number of problems. Not the least of which is how games are played to have businesses qualify for these certifications when they really are neither small, or minority or woman-owned. Silent partners abound.
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“Not the least of which is how games are played to have businesses qualify for these certifications when they really are neither small, or minority or woman-owned. Silent partners abound.”
Ahh yes I’m aware of some “DBE’s” who’s CEO drives around a Ferrari.
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Try Alaskan-owned to see some creative business arrangements.
At least the 250/$10M State definiton beatsvthe 500 the Feds use. SAIC qualified because they were a conglomeration of small units. Damned tough competing against some arrangements sometimes.
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“… this creates a huge number of problems. Not the least of which is how games are played to have businesses qualify for these certifications when they really are neither small, or minority or woman-owned. Silent partners abound.”
You make an excellent point. Qualification requirements should be tightened if they’re going to go down this path.
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Love the headline…”and they swam and they swam right over the dam.” Darn if this really isn’t where I came in, as the issue of “minority set-asides” was front and center in the 1981 campaign for Governor. Former Governor Godwin got tagged as a racist for criticizing the idea while endorsing Marshall Coleman. Others will understand this better, I’m sure, but in my experience this creates a huge number of problems. Not the least of which is how games are played to have businesses qualify for these certifications when they really are neither small, or minority or woman-owned. Silent partners abound.
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Try Alaskan-owned to see some creative business arrangements.
At least the 250/$10M State definiton beatsvthe 500 the Feds use. SAIC qualified because they were a conglomeration of small units. Damned tough competing against some arrangements sometimes.
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“… this creates a huge number of problems. Not the least of which is how games are played to have businesses qualify for these certifications when they really are neither small, or minority or woman-owned. Silent partners abound.”
You make an excellent point. Qualification requirements should be tightened if they’re going to go down this path.
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Aka 8(A), but SWaM is way cooler. The feds do a pretty good job with programs like the SBIR and STTR. One promotes small businesses and the other small-large partnerships.
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Aka 8(A), but SWaM is way cooler. The feds do a pretty good job with programs like the SBIR and STTR. One promotes small businesses and the other small-large partnerships.
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” (“Minority” includes African-American, Asian American, Hispanic American, and Native American. The law further defines those terms.)”
Never a dull moment when dealing with the Imperial Clown Show in Richmond.
Asian Americans are, on average, wealthier and better educated than any other racial class – including whites. In fact, they are so successful that our politicians are dreaming up lotteries to exclude qualified Asian-American children from dominating Thomas Jefferson High School. You see, in a fair contest the Asian-Americans would dominate that Science & Technology magnet school. So schemes must be implemented to prevent the most qualified from dominating TJ.
Yet the half-wits in our state government believe there should be set asides for Asian-Americans.
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Worked for an man who came here for college (UVa), became a citizen, and started his business.
He asked about “Small Disadvantaged” status and was told he didn’t qualify as a minority.
His reponse? “I’m a Turkish Jew. If you can find a smaller minority, I’d like to meet one.”
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Last time I looked closely at SWAM programs, Asians participated in numbers all out of proportion to their Virginia population. Talk about disparate impact! Someone ought to go through the list of SWAM vendors and tag them by racial/ethnic classification. It’s hard to tell blacks from whites that way, but Asian names stand out, and so do Hispanic names usually.
Then, of course, there is the issue of a “woman” owned business. How many woman-owned businesses are owned by husbands and wives, in which the wife owns 51% and the husband owns 49%? If there is a way to game the system, you can be damned sure that someone will figure it and others will copy.
The only conceivable moral justification for SWAM is to help African Americans start small businesses — on the indisputable grounds that African Americans suffered centuries of discrimination. As Don alludes to, the idea that Asians in Virginia suffer discrimination is ludicrous. (Well, they’re being discriminated against in K-12 education and higher-ed these days, but not in business.) Asians have prospered. The idea that they need help in business in equally ludicrous.
One more point: The federal minority set-aside program is at least designed to grow minority business enterprises with the long-term goal of graduating them from the program. I’m not sure… does SWAM have that same goal?
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Buy America is the same church and different pew.
You can buy a LOT of stuff much cheaper from overseas.
So at the core of the issue – for both minority/other set asides or larger scale “Buy American” – what are we trying to achieve?
My impression is that we are willing to sacrifice cost and productivity in order to benefit a group we think needs special treatment – and yes, that includes American manufacturers who cannot compete worldwide on their products and services – like Steel or Apple phones… etc..
Would we ever say that only cellphones made in the USA could be sold here – so that we have our own cell phone industry?
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Any company, large or small, would have legal standing to sue any government, state or federal, that awarded a contract to another company solely on the basis of the awarded company being women or minority-owned. This practice violates the Constitution’s provisions for all citizens to have equal protection under the law. The fact that some make-it-up-as-you-go-along judges have in the past ruled differently does not change the unconstitutionality of these practices.
Northam is either ignorant of the Constitution or he sees it as an annoyance and to be avoided. This is a dangerous situation for a king let alone a governor.
Regarding small businesses: Many of the government’s programs are favorable to small businesses because they are generally more efficient (and cheaper) at delivering innovation. This is why when there is open competition for R&D (Research & Development) contracts they are often won by small businesses. Sometimes contract award decisions need to made on the basis of “best value” instead of simply “cost.” Many projects in AI/ML (Artificial Intelligence/Machine Learning) are selected this way and the winners are consistently small businesses.
It is much harder to argue that paying more for commercial products is good for the country simply because the size of the business is small.
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” (“Minority” includes African-American, Asian American, Hispanic American, and Native American. The law further defines those terms.)”
Never a dull moment when dealing with the Imperial Clown Show in Richmond.
Asian Americans are, on average, wealthier and better educated than any other racial class – including whites. In fact, they are so successful that our politicians are dreaming up lotteries to exclude qualified Asian-American children from dominating Thomas Jefferson High School. You see, in a fair contest the Asian-Americans would dominate that Science & Technology magnet school. So schemes must be implemented to prevent the most qualified from dominating TJ.
Yet the half-wits in our state government believe there should be set asides for Asian-Americans.
-
Worked for an man who came here for college (UVa), became a citizen, and started his business.
He asked about “Small Disadvantaged” status and was told he didn’t qualify as a minority.
His reponse? “I’m a Turkish Jew. If you can find a smaller minority, I’d like to meet one.”
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Last time I looked closely at SWAM programs, Asians participated in numbers all out of proportion to their Virginia population. Talk about disparate impact! Someone ought to go through the list of SWAM vendors and tag them by racial/ethnic classification. It’s hard to tell blacks from whites that way, but Asian names stand out, and so do Hispanic names usually.
Then, of course, there is the issue of a “woman” owned business. How many woman-owned businesses are owned by husbands and wives, in which the wife owns 51% and the husband owns 49%? If there is a way to game the system, you can be damned sure that someone will figure it and others will copy.
The only conceivable moral justification for SWAM is to help African Americans start small businesses — on the indisputable grounds that African Americans suffered centuries of discrimination. As Don alludes to, the idea that Asians in Virginia suffer discrimination is ludicrous. (Well, they’re being discriminated against in K-12 education and higher-ed these days, but not in business.) Asians have prospered. The idea that they need help in business in equally ludicrous.
One more point: The federal minority set-aside program is at least designed to grow minority business enterprises with the long-term goal of graduating them from the program. I’m not sure… does SWAM have that same goal?
-
Buy America is the same church and different pew.
You can buy a LOT of stuff much cheaper from overseas.
So at the core of the issue – for both minority/other set asides or larger scale “Buy American” – what are we trying to achieve?
My impression is that we are willing to sacrifice cost and productivity in order to benefit a group we think needs special treatment – and yes, that includes American manufacturers who cannot compete worldwide on their products and services – like Steel or Apple phones… etc..
Would we ever say that only cellphones made in the USA could be sold here – so that we have our own cell phone industry?
-
Any company, large or small, would have legal standing to sue any government, state or federal, that awarded a contract to another company solely on the basis of the awarded company being women or minority-owned. This practice violates the Constitution’s provisions for all citizens to have equal protection under the law. The fact that some make-it-up-as-you-go-along judges have in the past ruled differently does not change the unconstitutionality of these practices.
Northam is either ignorant of the Constitution or he sees it as an annoyance and to be avoided. This is a dangerous situation for a king let alone a governor.
Regarding small businesses: Many of the government’s programs are favorable to small businesses because they are generally more efficient (and cheaper) at delivering innovation. This is why when there is open competition for R&D (Research & Development) contracts they are often won by small businesses. Sometimes contract award decisions need to made on the basis of “best value” instead of simply “cost.” Many projects in AI/ML (Artificial Intelligence/Machine Learning) are selected this way and the winners are consistently small businesses.
It is much harder to argue that paying more for commercial products is good for the country simply because the size of the business is small.
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Buy American?
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Buy American?
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Every few years, Virginia looks at its purchasing statistics and laments that the SWAM share of state spending is much lower than it “should be.” New goals are set, new programs created, and the cycle starts again.
I used to work in the program end, trying to help SWAM businesses get certified, educate them on state purchasing procedures and host events where agencies met with potential vendors to learn about opportunities and get “tips” on submitting winning bids. Over the years, I’m sure Virginia has spent millions on these programs. After I left, they even re-named an agency to reflect its focus on procurement assistance.
I met literally thousands of eager. motivated entrepreneurs over the years, lured to selling to the state by the goals and the implied promises. I taught them the processes, as did colleagues in other parts of the state. We waited hopefully for success stories, but they were few and far between. We never spent much time analyzing why we weren’t moving the needle; we just doubled down on the same things.
I’ve thought about some of the possible reasons SWAM shares of state procurement are lower than we think they should be, based on my experiences:
1. I think there’s a mismatch between capabilities and the state’s spending profiles. Just because SWAM businesses make up x% of businesses does not mean that the state purchases that percentage of products or services that SWAM businesses provide.
2. Getting SWAM-certified is relatively complicated, especially for a small business. Navigating procurement processes and procedures is more complicated still. For many businesses, selling into the private sector is just easier and more profitable for marketing effort expended.
3. A lot of state contracts arise “suddenly” and are “inside baseball.” It’s hard to be a small business “johnny on the spot” for these, no matter how much an agency wants to get contracts to small businesses. Although not a state procurement, the Richmond statue removal contract is an example of this. Of course, even though the procurement went outside the rules, the underlying contractor was a SWAM business.I always believed the state should help businesses without regard to their potential to be a state vendor. Not that many companies make a living just selling to the state the way companies can make a good living just selling to the Federal government, even with the high overhead that entails.
My attitude is obviously not the one favored, but we should at least try to find some other ways of increasing SWAM percentages than constantly changing the goals and pushing directives down to agencies.
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Thank you for your comments. It is really helpful to have the perspective of someone who has direct experience in implementing this program. Although I was never involved in state procurement (heaven forbid!), your comments ring true, based on what I heard and know about the program.
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Every few years, Virginia looks at its purchasing statistics and laments that the SWAM share of state spending is much lower than it “should be.” New goals are set, new programs created, and the cycle starts again.
I used to work in the program end, trying to help SWAM businesses get certified, educate them on state purchasing procedures and host events where agencies met with potential vendors to learn about opportunities and get “tips” on submitting winning bids. Over the years, I’m sure Virginia has spent millions on these programs. After I left, they even re-named an agency to reflect its focus on procurement assistance.
I met literally thousands of eager. motivated entrepreneurs over the years, lured to selling to the state by the goals and the implied promises. I taught them the processes, as did colleagues in other parts of the state. We waited hopefully for success stories, but they were few and far between. We never spent much time analyzing why we weren’t moving the needle; we just doubled down on the same things.
I’ve thought about some of the possible reasons SWAM shares of state procurement are lower than we think they should be, based on my experiences:
1. I think there’s a mismatch between capabilities and the state’s spending profiles. Just because SWAM businesses make up x% of businesses does not mean that the state purchases that percentage of products or services that SWAM businesses provide.
2. Getting SWAM-certified is relatively complicated, especially for a small business. Navigating procurement processes and procedures is more complicated still. For many businesses, selling into the private sector is just easier and more profitable for marketing effort expended.
3. A lot of state contracts arise “suddenly” and are “inside baseball.” It’s hard to be a small business “johnny on the spot” for these, no matter how much an agency wants to get contracts to small businesses. Although not a state procurement, the Richmond statue removal contract is an example of this. Of course, even though the procurement went outside the rules, the underlying contractor was a SWAM business.I always believed the state should help businesses without regard to their potential to be a state vendor. Not that many companies make a living just selling to the state the way companies can make a good living just selling to the Federal government, even with the high overhead that entails.
My attitude is obviously not the one favored, but we should at least try to find some other ways of increasing SWAM percentages than constantly changing the goals and pushing directives down to agencies.
-
Thank you for your comments. It is really helpful to have the perspective of someone who has direct experience in implementing this program. Although I was never involved in state procurement (heaven forbid!), your comments ring true, based on what I heard and know about the program.
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“Finally, the bill would exempt SWaM contracts from the requirements of state procurement law.”
The Levar Stoney clause?
Seriously, though, I was not too far from being okay with this bill until I read that. It is nothing short of an invitation to corruption and graft.
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As a matter of fact, although most of the bill applies to state agencies and institutions of higher education, that exemption language also applies to local governments.
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“Finally, the bill would exempt SWaM contracts from the requirements of state procurement law.”
The Levar Stoney clause?
Seriously, though, I was not too far from being okay with this bill until I read that. It is nothing short of an invitation to corruption and graft.
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As a matter of fact, although most of the bill applies to state agencies and institutions of higher education, that exemption language also applies to local governments.
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The idea is well-meaning, but it’s too easy to game the system.
I knew of several SWAM firms where the wife was the owner but the husband ran the business. Some architects applying for state design projects selected fairly good size engineering firms (which still met the small business definition) which were run by well-to-do Cubans or Asians to improve their SWAM score, which could be the deciding factor when the firms were otherwise equally qualified.
Construction contractors are required to maximize SWAM participation. Some contractors do this by further splitting up subcontracts so smaller businesses can do some work, helping SWAM subs with bonding, and going the extra mile in other ways.
College maintenance people have complained SWAM and procurement laws require them to get small items from SWAM vendors, who just get them from Lowes and mark them up. The colleges can’t go to Lowes or a wholesaler themselves and save the markup.
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The idea is well-meaning, but it’s too easy to game the system.
I knew of several SWAM firms where the wife was the owner but the husband ran the business. Some architects applying for state design projects selected fairly good size engineering firms (which still met the small business definition) which were run by well-to-do Cubans or Asians to improve their SWAM score, which could be the deciding factor when the firms were otherwise equally qualified.
Construction contractors are required to maximize SWAM participation. Some contractors do this by further splitting up subcontracts so smaller businesses can do some work, helping SWAM subs with bonding, and going the extra mile in other ways.
College maintenance people have complained SWAM and procurement laws require them to get small items from SWAM vendors, who just get them from Lowes and mark them up. The colleges can’t go to Lowes or a wholesaler themselves and save the markup.
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