A Message from the President
Evaristo "Tito" Bonano

The first annual Small Business Conference sponsored by the U.S. Department of Energy (DOE) last month in Denver was a resounding success, particularly for the New Mexico 8(a) & Minority Business Association. The Conference highlighted the success of the Association’s procurement initiatives with Sandia National Laboratories (SNL) to increase the participation of New Mexico minority companies in contracting activities with the Laboratories. These initiatives have received national attention prior to, and during, the Conference. The Association worked closely with the Latin American Management Association (LAMA), DOE and the Minority Business Summit, which is comprised of all the national minority business trade associations.

The New Mexico business delegation was the hit of the event. We had the largest delegation and our presence and participation was evident. We are extremely proud that New Mexico companies were the recipients of half of the awards. CONGRATULATIONS for a well-deserved recognition to the following New Mexico firms! Ching-Ching Ganley, President, Abba Technologies, Inc. was awarded the national Asian high-tech firm. Steve Roche, President, Tecumseh Professional Associates, Inc. was awarded the National Native American firm and Alice Quintanilla, President, Information Asset Management, Inc. was awarded the national Hispanic firm. We are very proud of these outstanding business owners.

Sandia National Laboratories was awarded the Department of Energy Prime Contractor of the Year Award. The DOE Albuquerque Operations Office received the U.S. Department of Energy Secretarial Small Business Award for FY1999 Achievement – Head of Contracting Agency of the Year Award. The New Mexico 8(a) & Minority Business Association received the Minority Business Summit Excellence Award 2000 for the SNL initiative. The Association membership should be very proud of the Association’s accomplishments. This award is a tribute to Dr. Miguel Rios, Chairman/CEO, Orion International Inc. and his leadership in spearheading this important initiative.

Anna Muller and I were speakers in plenary sessions at the Conference. My presentation summarized the SNL model from the perspective of the minority business community. Anna Muller’s presentation focused on the type of alliances needed that will allow our companies to participate in large procurements that the DOE has forecasted for the next two fiscal years. The SNL presentation focused on the procurement procedural changes to adopt and implement the SNL model.

With all modesty, the Association is recognized as a regional and national advocacy trade association. There was a great deal of interest in our initiatives with Sandia National Laboratories and Los Alamos National Laboratory. We received many inquiries from out-of-state companies and organizations that want to join our Association.

A contentious issue is brewing: whether there should be a preference for 8(a) companies over companies in HUBZones. The Senate Small Business Committee favors parity but the House Small Business Committee, SBA and the New Mexico 8(a) & Minority Business Association support a preference for 8(a)s. The Association is planning to meet with the New Mexico Congressional delegation to express our support.

The New Mexico 8(a) & Minority Business Association will join the Minority Business Summit Trade Association to seek a statutory goal for 8(a) contracts similar to the 5% targets now in place for small disadvantaged businesses and women and the 3% goal for HUBZone companies and veteran-owned businesses.

Contract bundling is a problem for small, minority and women-owned businesses. A characteristic of contract bundling is the lumping together of goods and services into larger requirements. The New Mexico 8(a) & Minority Business Association has been disappointed by the large number of existing contracts that are being successfully performed by small, 8(a) and SDB firms that are being bundled, to the detriment of the firms. Contract bundling is a major cause of small and minority businesses having difficulty in securing government contracts.

The New Mexico 8(a) & Minority Business Association is calling on federal agency leadership to make it possible for small businesses to compete even in this era of consolidation. The federal government is in a period of realignment but the Association believes there is still potential for an increase in contract dollars going to small and disadvantaged businesses.

A regulation went into effect in December to implement the portion of the Small Business Reauthorization Act of 1997 (PL 105-135) restricting the use of bundling.

The regulation defines bundling as "the aggregation of two or more contracts whose combined average annual value is $10 million." It also requires that bundling can only be justified if it produces "measurably substantial benefits." (Federal Register, 125/99pp57366-70)

Unless SBA increases the number of procurement center representatives (PCRs), the anti-bundling regulations that went into effect Dec. 27, 1999 will have limited impact, advocates for minority and women entrepreneurs contend.

"The PCRs are our first line of defense with respect to the bundling nightmare," says Stephen Denlinger, president of the Latin American Management Association. "Yet the number of PCRs has shrunk from over 100 down to around 35," he adds. "Small and minority business interests are inadequately represented throughout the federal establishment. The bottom line is that we need more money from Congress for PCRs."

The New Mexico 8(a) & Minority Business Association will join LAMA in lobbying Congress to increase the number of PCRs.

Latin American Management Association (LAMA) is pleased to announce Anna Muller, President of NEDA Business Consultants, Inc., and Evaristo "Tito" Bonano, President of Beta Corporation International, as new members on LAMA’s Board of Directors. This establishes a strong link between LAMA and the New Mexico 8(a) & Minority Business Association, one of the most powerful and effective regional minority business organizations in the country.

LAMA was established in 1972. The organization is the oldest national Hispanic business organization in the country. LAMA’s basic mission is to bring the Hispanic business community into the prime contracting programs of the federal government, and as subcontractors to major corporations throughout the country. LAMA focuses on the technical spectrum of the Hispanic business community. This includes areas such as information technology, telecommunications, electronics design and manufacturing, precision manufacturing for aerospace and defense applications, engineering, environmental consulting and remediation, etc.

The New Mexico 8(a) & Minority Business Association and the U.S. Small Business Administration congratulate the U.S. Corps of Engineers, Albuquerque District, on being the federal leader in 8(a) procurements in New Mexico.

Mr. Orlando Silva, Assistant District Director, U.S. Small Business Administration, comments, "Theresa Armijo, Chief of Contracting at the U.S. Army Corps of Engineers, Albuquerque District, does a fantastic job in following the "Order of Precedence" as it relates to procurement considerations. Moreover, the Corps of Engineers in New Mexico enthusiastically participates in the 8(a) Business Development Program, not only because of federal regulations, but because the COE’s experience with New Mexico 8(a) firms has been outstanding." Ms. Armijo knows her customers will get a quality product at a reasonable price. "In fact," Ms. Armijo says, "Many times, our customers will specifically request New Mexico 8(a) contractors." Our hats are off to the U.S. Army Corps of Engineers, Albuquerque District.