Summary: Paul Renker, AIA, from St. Petersburg, Fla., testified on July 30 before the U.S. House of Representatives Small Business Committee Subcommittee on Regulations, Health Care, and Trade, during a hearing to explore federal regulatory burdens to small business. This hearing follows the February 2008 announcement by the Small Business Administration (SBA) of its 2008 Top 10 Rules for Review and Reform, an initiative designed to identify and address existing federal regulations creating barriers to small business that should be reviewed and may need revision.

Disputing the Federal Acquisition Regulation
Among the rules the committee chose to explore was 48 CFR 52.232-10, the Federal Acquisition Regulation (FAR) for fixed-price architectural-engineering services, that allows federal agencies to withhold up to 10 percent of design fees until project completion, at the discretion of the contracting officer.

Renker, who first brought this withholding issue to the AIA's attention, testified on the negative effect of this regulation on his small business. He explained: "Rules like the 10 percent retainage and reverse auctions present considerable roadblocks to small and emerging A/E firms that want to help design and build the buildings that are literally symbols of our nation's vitality, stability, and grandeur. We hope that as this subcommittee continues to explore ways of ensuring that federal procurement laws and regulations provide ample opportunities for small businesses to compete."

The AIA will continue to work with Congress and the SBA toward solutions that address the issues surrounding the Federal Acquisition Regulation.