News from U.S. Senator Olympia J. Snowe
Chair, Senate Committee on Small Business and Entrepreneurship
For Immediate Release: June 7, 2006
Contact: Chris Chichester, 202-228-5843

Snowe Amendment To Expand Small Business Government Credit Card Purchases Passes

(Washington, D.C.) U.S. Senator Olympia J. Snowe (R-ME), Chair of the Senate Committee on Small Business and Entrepreneurship, today announced the Senate has unanimously passed the Purchase Card Waste Elimination Act (S. 457), legislation that requires the Federal government to ensure small business participation in government credit card purchases that are not subject to competitive bidding.

"Federal agencies spend $16 billion each year through credit card orders that are not subject to Federal competitive requirements, which leaves me concerned about fair small business participation in these purchases,” said Senator Snowe. “My amendment directs the Office of Management and Budget to better track Federal government credit card purchases and meet a 23 percent small businesses participation goal for purchases up to $2,500. The Federal government must work with the credit card industry and must train its purchasing officials to ensure that small businesses have access to these opportunities.”

Senator Snowe noted that since credit card purchases less than $2,500 (or $15,000 in emergencies) are not subject to general competitive bidding requirements, small businesses could be excluded in favor of larger and more established businesses. The amendment encourages the Federal government to work with credit card companies to help track small business spending more accurately and locate small businesses that accept government credit cards.

The Purchase Card Waste Elimination Act would require the government to utilize a strategic approach to its credit card spending. Senator Snowe’s amendment applies the Strategic Sourcing Guidance of the Office of Management and Budget to Federal credit card orders, which will require that small business participation be a necessary part of the government’s strategic approach to purchasing.

Under Senator Snowe’s leadership, the Senate Committee on Small Business and Entrepreneurship has been working with the Office of Management and Budget, the General Services Administration, and major credit card associations such as Visa and MasterCard to promote accurate accounting of Federal credit card purchases from small businesses.


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