ITED STATES. CONGRESS. HOUSE. COMMITTEE ON SMALL BUSINESS. FEDERAL GOVERNMENT COMPETITION WITH HEARING BEFORE THE COMMITTEE ON SMALL BUSINESS HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTH CONGRESS FIRST SESSION WASHINGTON, DC, JULY 18, 2001 Serial No. 107-19 Printed for the use of the Committee on Small Business LIBRARY OF CONCRESS JAN 03.2002 74-727 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 2001 For sale by the Superintendent of Documents, U.S. Government Printing Office LARRY COMBEST, Texas JOEL HEFLEY, Colorado COMMITTEE ON SMALL BUSINESS DONALD MANZULLO, Illinois, Chairman ROSCOE G. BARTLETT, Maryland MIKE FERGUSON, New Jersey EDWARD L. SCHROCK, Virginia SHELLEY MOORE CAPITO, West Virginia NYDIA M. VELÁZQUEZ, New York DANNY K. DAVIS, Illinois WILLIAM PASCRELL, New Jersey DONNA M. CHRISTIAN-CHRISTENSEN, Virgin Islands ROBERT A. BRADY, Pennsylvania TOM UDALL, New Mexico DAVID D. PHELPS, Illinois GRACE F. NAPOLITANO, California MARK UDALL, Colorado JAMES R. LANGEVIN, Rhode Island BRAD CARSON, Oklahoma ANIBAL ACEVEDO-VILA, Puerto Rico Eakes, John, Owner & President, Royal Laundry Systems Hamerschlag, Arthur, Deputy CFO, Veterans Health Administration Reisland, Scott, Owner & Manager, Denali Grizzly Bear Cabins/Campground. 30 FEDERAL GOVERNMENT COMPETITION WITH SMALL BUSINESS WEDNESDAY, JULY 18, 2001 HOUSE OF REPRESENTATIVES, Washington, DC. The Committee met, pursuant to call, at 10:15 a.m. in room 2360, Rayburn House Office Building, Hon. Donald A. Manzullo (chairman of the Committee) presiding. Chairman MANZULLO. The full Committee on Small Business will come to order. Today, the Committee will examine the extent, impact and fairness of direct competition by the government with small businesses. We will hear testimony on a VA hospital in Illinois competing with a private laundry owner; the Postal Service competing with private mailbox services, including a couple from Granville, New York, driving them out of business; the National Park Service competing with private recreational services, including an Alaskan campground owner and local Tourmobile owner; and the Federal Transit Authority competing with charter bus services. We also have written testimony on the Air Force and Army providing river rafting services in Colorado-the Air Force providing river rafting services; I did read that right-in competition with private outfitters there. That witness could not be here today, but his statement is on the table, along with other witness statements provided to the Committee. The relevant federal agencies have also been invited to participate. Two of these agencies will present witnesses today, while the others have chosen only to present material for the record. Evidently they do not have enough bureaucrats to send one here to testify on their behalf. These examples represent a larger pattern, a pattern that costs small businesses contracts, revenues and jobs. Such competition by the government seems unfair by definition since the government shares little or none of the regulatory and tax burdens that it imposes on these small businesses. I look forward to the testimony of the witnesses before us. On behalf of the Committee, I thank you all for coming, especially those who traveled from quite a distance. I now yield for an opening statement by the gentlelady from New York, Congresswoman Velázquez. [Chairman Manzullo's statement may be found in appendix.] Ms. VELÁZQUEZ. Thank you, Mr. Chairman. I am happy that the Committee is examining this issue today because I believe these |