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Small Business Contractors Say Insourcing Could Hurt SMBs

Written by Jenna Weiner
Published: 5/18/2010

A group of small business contractors is fighting back against plans to bring jobs back into the government.

Led by one of the federal government's former top career procurement officials, a group of small business federal contractors has come together to oppose the Obama administration's insourcing efforts, reports. While the administration's efforts are well-intentioned, the group argues they could actually mean bad news for entrepreneurs.

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The government is currently trying to bring contracted work back into agencies such as the Department of Defense, but the new coalition argues that the timing of this move is poor and will result in "unintended consequences" for small businesses.

"Pulling jobs out of the private sector in this economy is not good public policy," Rob Burton of the law firm Venable LLP told the website. Burton, who was a deputy administrator at the Office of Management and Budget's Office of Federal Procurement Policy under George W. Bush, is now leading the initiative against insourcing.

Burton cited a number of examples in which small contractors have been forced to reduce their operations as jobs are absorbed by the government.

Speaking to the website Washington Technology, American Small Business Coalition CEO Guy Timberlake said that entrepreneurs are adapters and called such a transition natural. While one business may be pressured by insourcing, another field will gain opportunities, he said.

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