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Ruling on DoD contracts could hurt small businesses

Published Dec 1, 2008

Senator Ben Pangelinan is concerned that disadvantaged and small businesses will be left in the cold because of a recent decision out of a U.S. Court of Appeals in Texas that changes the guidelines for DoD contracts.  Pangelinan says the court ruled the DoD requirement to give 5% of it's contracts to disadvantaged and small businesses unconstitutional.

"That means now that we don't have any kind of preference or advantage for small and disadvantaged businesses of which a lot of Guam businesses are under special designations," Pangelinan explained.

Pangelinan says local businesses will have a difficult time competing with the larger mainland corporations, which means federal dollars will instead flow primarily off-island.

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