2018 – It Was a Very Good Year

By WIPP's Chief Advocate, Ann Sullivan

As 2018 comes to a close (how did that happen already?), I am grateful for the progress WIPP experienced this year as we strive to empower women entrepreneurs through our national advocacy.  Our new, extremely capable President, Candace Waterman, brings strength and new energy to the organization. In addition, WIPP has been blessed with two very dedicated board chairs – Lisa Firestone and Angela Dingle. A new partnership with WBENC brings an expanded network to WIPP through its regional presence, enabling WIPP to bring its advocacy message to a much larger audience.  WIPP leaders continue to lead by example. Putting aside their passion for politics, they work together to achieve legislative/regulatory results no matter which party they support. WIPP supports women who run, believing that more women in Congress will lead to better and different legislative priorities.  We can’t wait to meet the 100+ women who won seats in the 2018 elections.  

One of WIPP’s best assets is its ability to collaborate.  Collaboration is pretty rare in Washington, D.C., because everyone worries about getting credit.  But WIPP sees it differently.  A results driven advocacy strategy requires many voices and the odds are long to get legislation enacted.  This congressional session, almost 10,000 bills were introduced. According to a congressional expert, only about 200 (and the number is declining) pass each year.

WIPP collaborated with the Montgomery County Chamber of Commerce to tackle the issue of small federal contractors who are about to bump into the “no man’s land” of midsize contractors. This effort resulted in movement of legislation to allow a 5-year lookback for purposes of determining size.  The legislation is very close to getting over the finish line in these final days of the 115^thCongress.

Similarly, WIPP collaborated with the HUBZone Council and the Montgomery County Chamber to tackle the federal acquisition strategy known as category management. The danger small business organizations need to guard against is being shut out of large, multiple award contracts.  Our job as advocates is to ensure that women owned businesses can compete for federal contracts.  We accomplish that by collaborating with the greater small business community to ensure our voices are heard.

The Small Business Saturday Coalition, which WIPP heads, showcases our reach. WIPP spearheads passage of a resolution by the House and the Senate officially declaring the Saturday after Thanksgiving as a day when small businesses should be celebrated and patronized. Sponsored by Small Business Committee Chair Risch and Ranking Member Cardin, over half of the Senate signed onto the resolution.  A full 260 Members of Congress engaged in some way by shopping, using social media or other forms of communication to indicate their support.  By engaging our partners in echoing our message, “Shop Small” is on the tip of everyone’s tongue.

Advocacy is not limited to Capitol Hill, it also pertains to federal agencies.  WIPP’s ChallengeHER program engages federal agencies and partners with the Small Business Administration.  The Small Business Administration (SBA) is involved in almost every program we touch.  Whether it is lending, procurement or counseling services for women businesses, the SBA sits squarely in the middle.  Headed by a terrific Administrator, Linda McMahon is always on WIPP’s radar as the chief advocate for small businesses in this Administration. Another capable woman, Emily Murphy, who heads the General Services Administration (GSA), keeps women businesses front and center at her agency which procures just about everything the government buys.  

As we look back on this year, we pause to marvel at what was accomplished. At the same time, we know that while WIPP’s advocacy is strong, but it can always be stronger.  By engagement of its leaders and increased membership, the voice of women businesses continues to grow.  My wish for next year is pretty simple – make WIPP bigger and better than it was this year.   

Happy Holidays from our advocacy team.

Viewing the Election Results Through a Business Lens

By: Ann Sullivan 

When you read this, the election results will likely still be coming in and you will know whether or not the House and Senate have changed control or stayed with the Republican majority.  Although the news media will have interpreted the results according to the agendas they believe voters are familiar with, it may not necessarily speak to what the changes mean to women owned businesses or federal contractors. 

To understand what it means to your business depends on your industry and your priorities.  If you in the health care sector, for example, your interest will most likely go beyond what the average business cares about – increased rates.  If your business involves national security, you most likely will have a different perspective on immigration, that goes beyond border security.  Our business is policy, so we see election results through the lens of how these changes affect the WIPP/business agenda.  In order to achieve results, we work with those in power who can advance our policy priorities.  That means if the control of the House and Senate flips to Democrats, we form new relationships which extend to new Chairs of Committees and a whole new leadership team.  It also means that the business agenda will likely change or at least the focus depending on the interests of Committee chairs and leadership. 

Even if the Republicans keep control of the House and Senate, leadership will change with the departure of Speaker Paul Ryan and Committee Chairs will still move around.  For example, the Senate Small Business Committee is expected to have a new chair, and the House has a policy that with each new Congress, party leaders negotiate the size and Chairs of the Committees.  The ratio of majority/minority members on each Committee is also determined by party leadership.  Obviously, if the Democrats take control of the House/Senate, the changes are far greater.  

I would be remiss if I didn’t point out that all of these changes apply to staff members, since they are employed by each Member of Congress, not the institution.  Staff sizes shrink if the ruling party becomes the minority party, while majority staffs increase.   

With respect to issues, there ares difference of opinion not only between Republicans and Democrats, but also within each party.  Issues such making tax cuts permanent, trade, deregulation, infrastructure, workplace and defense spending and health care depend not only on the party in control, but also the states/districts the leadership represents.  A speaker from Wisconsin is going to have different priorities than a speaker from California, for example.   

What doesn’t change for us is working in a bipartisan manner.  We need friends in both parties to move our agenda. Although the majority in Congress sets the agenda, the minority is usually in a position to stop it, so bipartisanship is a practical reality for our team.   

As election results start rolling in, take a look at the issues agendas of those who won and those who lost. It will give you a better sense of what to expect in January when the new Congress is sworn in.  Or, you can hit the easy button and tune into our team’s next monthly policy briefing where we will analyze the effects of the election on our legislative priorities.   

Understanding election results is business intelligence critical to the success of your business. 

In These Partisan Times, Is There Room for Bipartisanship?

WIPP WORKS IN WASHINGTON

By Ann Sullivan, WIPP Chief Advocate

We all know from the polls and cable talk shows that America has very different political views. The term “a country deeply divided” was heard everywhere last week as analysts and Twitter shared their views on the Supreme Court nomination hearing. The Senate Judiciary Committee reinforced this view by a display of unusual partisanship, showcasing the deep divide between the views of Republicans and Democrats with respect to a Supreme Court appointment.

So, in these partisan times, is there room for an organization like WIPP that strives to be as nonpartisan (or bipartisan) as possible when making policy recommendations? I often have joked that if we offend both sides, we must be doing our job. But seriously, are we outdated—have we lost touch with what our stakeholders and members expect? Is a bipartisan approach to public policy a loser? Should we be pivoting to either one side or the other to increase our effectiveness?

I was having dinner with a friend who was at an event with her Senator, a Republican. Someone asked him the same question—how could a Senator tout his effectiveness when everyone knows that no one in Washington works together? The Senator answered the question by saying that despite what gets reported on the news, Senators work with those in the other party to get things done. He went on to cite many examples of legislation he has worked on with a Democrat to pass into law.

As an advocate for women entrepreneurs, it is certainly harder to get legislative changes passed by Congress than it was a few decades ago. Before widely available technology, Congress depended on advocates to be the eyes and ears of their constituents. Now they hear directly from their constituents within minutes of a breaking news story. Technology has also transformed the ability for any Congressperson to get their message out to their constituents.

Today, these channels are far more expansive than decades ago, when the only media outlets were the four major networks. Now, messages can be communicated broadly through the use of multiple social media outlets and news channels. The Congress is also much more rule and procedure driven than it used to be. Senators used to craft amendments on the way to the floor of an important debate. Now, legislative language has to go to legislative council to draft—a process which is much more laborious. This is due in part to the loss of a collegial trust, which is the underpinning of an effective Congress. 

But even in a contentious hearing, like the recent one on Supreme Court Nominee Brett Kavanaugh, there were two Senators among all the others that came together to propose a bipartisan solution. That may not have been a popular decision for either side, but it is a glimpse of how this place really works most of the time. Despite all the partisan rhetoric that plays to the cameras and creates soundbites galore, work has to continue. House and Senate members generally work across the aisle to get agreement on legislation to secure passage. Although legislation can be passed on a strict party line vote by the majority, it is not advisable. The other party, which has no stake in the success of the legislation, is left to the worst outcome—tagging all their messaging and efforts against it to use as a rallying cry.

WIPP’s membership has women with strong political views and we reflect the divide on issues the rest of the country is experiencing. But we have learned that we can discuss contentious issues without getting personal. We have also learned that we can propose policy changes on which both sides can agree. Business issues, which is our focus, are generally less contentious than social issues—I’ll admit to that. But economic issues have not escaped partisanship. 

Our goal at WIPP is to come up with solutions that make a difference for women entrepreneurs. For example, our advocacy on tax legislation did not tackle the broad question of whether tax reform was needed. Instead we focused on getting the Congress to recognize that most businesses are organized differently than large “C” Corps and thus should get different tax treatment. It was an issue that all of us could agree upon and was a significant policy change for the entire small business community.

I could give you many more examples of WIPP policy positions that made an impact and did not tap into the partisan sentiment surrounding the issue. WIPP works with all Members of Congress, regardless of their party. We work with political appointees in agencies when Administrations change. We are solution driven and we know it takes both sides to make a positive impact for women entrepreneurs. 

It is my hope that we resist the temptation that afflicts many organizations in Washington, D.C.—to be bipartisan in name only. Women business owners are in a unique position to be the leaders in their communities and in the halls of Capitol Hill. By refusing to limit our efforts to those who agree with us or say what we want to hear, we are opening up the door to creative policy solutions. 

Let’s work together — there is plenty of room for those who want to find common ground.

See You In September

by Ann Sullivan

Something happens to Washington in September. The lazy hazy days of summer disappear, and the most beautiful weather arrives. The stifling heat gives way to cool days and turning leaves. And the pace really picks up. The traffic becomes impossible and days are packed with meetings and events as Washington kicks back into high gear. Given that the end of the government’s fiscal year ends on September 30, federal contractors are on high alert as the government tries to spend the remainder of its fiscal year money.

Speaking of government funding, the Congress will be back in full swing, trying to pass its FY19 spending bills before October 1. To date, no appropriations bill for FY19 has been signed by the President, although the House has passed six spending bills and the Senate has passed nine. Now the job of reconciling the differences begins. Republicans would love to show voters in November that a perk of having the party control both the House and Senate is the ability to get the fiscal year funded in a timely manner.

Another big push in September is the Supreme Court nomination of Brett Kavanaugh. Nominated by President Trump, the Senate must approve the nomination by a majority vote. Given the two-seat majority in the Senate, Republicans cannot afford to lose any of their party’s votes to confirm Mr. Kavanaugh.

This year, the legislative schedule will be shortened by the upcoming elections in November. It is customary for the Congress to recess for most of October in order to spend their time in their home states/districts campaigning. Then traditionally, the Congress calls a “lame duck” session in November/December to complete any unfinished business.

This election season is shaping up to be an exciting one, with women running in unprecedented numbers. Arizona will have its first female Senator—both primary winners were women. To date, 26 women are still in the running for the U.S. Senate, 251 for House seats and 18 for Governor. While many women did not win their primaries, this election upended the notion that party bosses have to bless candidates who run for Congressional seats and incumbents are unbeatable. Women in 2018 challenged both of those political adages.

This September starts with remembering the life of Senator John McCain who will lie in state in the Capitol Rotunda—one of only 13 Senators to have received this honor. His life and patriotism will be remembered by all walks of life – no matter the political party. The Senator so wisely said, “Nothing in life is more liberating than to fight for a cause larger than yourself, something that encompasses you but is not defined by your existence alone.”

Pay No Attention to that Man Behind the Curtain

by Ann Sullivan

In the final scene of the Wizard of Oz, the dog Toto pulls back the curtain and Dorothy discovers the man behind the curtain is not the great and powerful Wizard, he’s just a little old man with a megaphone. Sometimes, actions in Washington use the megaphone but there is relatively little “behind the curtain.” That’s how the new rule on Association Health Plans (AHPs), issued by the Department of Labor, feels.

It was with great fanfare that the Administration issued new rules for AHPs. WIPP has supported AHPs since its inception as a necessary tool to allow small businesses to band together to create larger health insurance pools, thus creating more competition and better prices in the small business marketplace. Insurance rules adopted during the Affordable Care Act (aka Obamacare) largely prohibited AHPs from a viable option. Because every insurance plan had to cover 10 “essential health benefits” under the ACA, these plans became mute.

When the Department of Labor announced loosening the regulations to allow AHPs, we applauded. WIPP submitted comments urging better pooling mechanisms, a wider range of health plan options and protections for those with pre-existing conditions. We also urged the Department to include a different “commonality of interest” definition, allowing small businesses to band together beyond a trade, industry, or profession. This would have allowed small business organizations to offer AHP membership to its members, including WIPP.

On June 21, the man behind the curtain showed up. The Department of Labor issued its new AHP rules. By deciding to keep the definition of who can join an AHP to a trade, industry, or profession, business organizations like WIPP, cannot offer an AHP. For example, an accountant in Nevada could join an AHP housed in a national association of accountants, but an organization of women business owners, does not qualify as a trade, industry, or profession, according to the new rules. The AHP can have out-of-state members but must comply with the rules of the state in which it is housed, restricting its ability to be a true “across state lines” option. Important to note is that AHPs are not required to offer the 10 essential benefits, which means education for employers and employees who join AHPs is needed.

News reports suggested that small business associations who have supported AHPs in their policy platforms are not going to take advantage of the new rules. That’s because they can’t—their commonality is business owners, not limited to a specific trade, industry or profession. Giving small business owners more health insurance options continues to be part of our policy platform. As premiums continue to rise, small business exchanges set up by the ACA should not be the only option. The Department of Labor could have done so much more than use their megaphone.

A Little Less Conversation, A Little More Action, Please

by Ann Sullivan

Some days I feel talked to death. The 24-hour news cycle, Twitter, Congressional hearings, roundtables, forums – you name it – everyone’s talking. But to quote an Elvis Presley song, “a little less conversation, a little more action, please.”

Congressional inaction didn’t start yesterday. The budget process has been broken for some time. In fact, Congress passed all 12 appropriations bills by the October 1st deadline (the beginning of the fiscal year) just four times in the last 40 years. However, from 2011 to 2016, not a single appropriations bill passed by itself. For the last 7 out of 10 years, Congress has failed to pass a budget. Finally, the last time the Congress passed all 12 of its appropriations bills was 1994.

The same goes for legislation. Historically, this session of Congress is on pace to pass the least amount of legislation in the last 50 years. Congress has passed 194 pieces of legislation signed into law during the first 18 months of the 115th session of Congress. Of those 194, 23 bills were symbolic or ceremonial. Roughly 1.7% of bills introduced this session of Congress have become law, compared to 4.5% of bills in the 105th session (under President Clinton), and 3.3% of bills in the 110th session (under President George W. Bush.)

No one knows better than Congressional Members that the system is broken – especially its fundamental budget responsibility. A little-known effort is commencing on Capitol Hill – the Joint Select Committee on Budget and Appropriations Process Reform. This Committee, comprised of House and Senate Members of both parties, is tasked with recommendations to reset the way Congress budgets and appropriates the taxpayers’ money. Recently, the Committee asked Members of Congress to share recommendationsand Speaker Paul Ryan testified that the Congress should do a biennial budget. Others suggested getting rid of the Budget Committee, indexing spending to a percentage of the gross national product and eliminating the debt ceiling vote by making it automatic. What struck me most listening to the hearing was the bipartisan interest in fixing the budget process.

Two former Senate Leaders, Tom Daschle (D) and Trent Lott (R), currently lead the Commission on Political Reform as part of their work at the Bipartisan Policy Center. They have shared three recommendations to address the gridlock:

1. Move to a two-year budget cycle, allowing more time for Members to understand programs under their jurisdiction in-depth;
2. Get rid of the Senate filibuster but make the majority 60 votes, not 51 votes;
3. Have a minimum number of amendments that can be offered to legislation, thus encouraging Members to get involved in legislating.

Being an eternal optimist, I believe the Congress can fix the process. One small ray of hope is the Senate Appropriations Committee, which is moving its bills at a much faster clip than we have seen in many years. I anticipate the Joint Select Committee on Budget Reform will produce serious recommendations.

Changing the rules will lead to action. Members of Congress will get back to legislating and time will be spent considering serious issues that need resolution. Getting back to an action-oriented Congress would be the first step toward more action and less talk.

Adding the Voice of Women Business Owners in Addressing the Skills Gap

By: Ann Sullivan 

At a recent meeting with women business owners—midsize and small–they pointed out shortages in the workforce that presented a present and future issue.  The concerns ranged from finding truck drivers and master electricians to highly skilled technical personnel.  Business owners aren’t the only ones talking about the shortages in the workforce, Congress and the Administration are concentrating on strategies to fill what is known as the “skills gap.”

The Obama Administration workforce development priorities focused on promoting community colleges and their two-year, associates degree tracks as a valid alternative to four-year degree programs, as well as encouraging partnerships between community colleges and employers.

The Trump Administration is focusing its efforts on apprenticeship.  Last year, President Trump signed an Executive Order (EO), “Expanding Apprenticeships in America,” which would provide industry associations, unions, and other stakeholders the flexibility to develop industry-recognized apprenticeships, loosening the Department of Labor regulations on apprenticeship programs.  The Administration’s Executive Order also doubled the amount of money for apprenticeship grants, from $90 million to almost $200 million a year. Additionally, the order establishes a new Task Force on Apprenticeship Expansion, chaired by the Secretary of Labor and co-chaired by the Secretaries of Education and Commerce. It would also include representatives from industry, labor, and educational institutions.

Congress is also taking a hard look at the skills gap. In a recent House Small Business Committee hearing, “Workforce Development: Closing the Skills Gap,” the committee discussed career and technical education (CTE), as well as apprenticeships as a strategies to addressing the lack of qualified, skilled workers needed by business and industry. Other Committees on both sides of Congress are also trying to figure out how to chip away at this issue.

WIPP members come to the workforce development issue from two angles:  one as an employer and one as a woman who likely experienced additional challenges in the workplace.  We are sensitive to making sure women are an important part of the workforce and treated fairly.  The article “10 facts about American women in the workforce,” highlights particular issues that women struggle with such as the wage gap, labor participation rates and paid maternity leave.

In fact, the President’s daughter, Ivanka Trump, has also brought forth the struggle with childcare as a priority issue for this Administration— with good reason. Most young children in the U.S. have parents who work outside the home or are business owners. According to the Brookings Institute, in 56% of married families with children under six, both parents work.  For single mothers the employment rate is 6%. Childcare is a necessity for these families, and unfortunately often unaffordable in the United States. Working families are spending on average between 29% to 52% of their take-home pay on childcare costs, yet the U.S. Department of Health and Human Services concludes that affordable childcare should not exceed 7% of family income.

Workforce development is a new issue to WIPP’s policy team and we welcome your thoughts and experiences.  Our goal is to ensure that the voice of women business owners is part of the discussion in both Congress and the Administration.  Businesses of all sizes share a common goal of building America’s workforce to adapt to the economy of tomorrow.  Women as business owners should be taking the lead in this effort by taking steps from strengthening women’s participation in STEAM, to being visible in the highest positions in business and industry.  There is so much work to do and our voice is critical to the solution.

“Grow – Don’t Grow”

By Ann Sullivan

We’ve all experienced a difficult friend or boss who tells you “do this” and then when you do it, they say “no I didn’t mean it that way.”  Then you spend the next hour trying to undo the thing they told you to do in the first place. Frustrating, right? 

That is largely what the federal government has been telling small businesses who enter public sector contacting.  The message to small businesses is “grow.”  The SBA and its stakeholders pour significant resources into helping small businesses succeed.  Those range from SBA District offices in every state, lending and counseling programs and support for programs like ChallengeHER that WIPP sponsors.  Organizations like WIPP encourage their members to think about federal contracting as a complement to commercial business.  We have spent an inordinate amount of resources promoting policies such as the women-owned small business contracting program, subcontracting and acquisition strategies designed to provide more opportunities for the government to buy from women owned firms.

But then, the government says “wait don’t grow” by implementing a pretty rigid system of determining when a company is too big to be small.  SBA determines its this by a system called size standards.  The government determines the average size of business revenue in industry categories and sets a size that a business cannot exceed in order to take advantage of small business contracting programs.  The SBA then takes the average of the last three years of your revenue, deciding whether you are small or have exceeded the size standard, bumping you into being a midsize company.  Ouch.

This is exactly the position WIPP chair, Lisa Firestone finds herself in.  She testified at a

House Small Business Committee hearing on the challenges larger small businesses face when approaching the top of their size standard. Lisa testified on behalf of WIPP, telling her story of watching her company, Managed Care Advisors go from a small boutique healthcare consulting company to the leading provider of Federal Workers’ Compensation Case Management Services. She grew a four person company to facing a daunting dilemma of growing beyond the $15 million size standard for her industry. 

Witnesses at the hearing,  “No Man’s Land: Middle-Market Challenges for Small Business Graduates,” discussed the issue of options available to small businesses who reach the top of their size standard.  Should they stay small, sell their business or venture into a midsize company that has to compete for government business with the 110 very large companies.  According to Bloomberg Government’s recent report, Mid-Tier Market Report: 2018, only 325 companies have made the decision to be a midsize vendor to the federal government.  This is in contrast to the 118,000 small businesses who sell to the federal government. 

How can this trend be reversed?  The Montgomery county Chamber of Commerce, a WIPP partner in the initiative, “Pathway to Growth” proposes the following recommendations:

• Agency: Bring Multiple Award Contracts (MAC) requirements in line with the capabilities of midsize firms. It is essential to sustain midsize businesses participation on these MACs to diversify the types of businesses engaging in the federal market. 

•  Regulatory: Require a five-year look-back for the purpose of Small Business Administration (SBA) size determination. Due to the long contract award process and significant size of task orders, small businesses can quickly outgrow their size standard without having the time and resources to invest in firm infrastructure. This change would allow businesses a smoother transition by changing the receipt calculation by using the lowest three of these preceding five years of receipts, to determine the average.

• Legislative: Deduct research and development (R&D) expenses and expenditures from total revenue for size determination. This recommendation supports the government’s initiative to stimulate innovation and allows companies to pursue and develop new products and processes, without undue penalty.

The execution of these proposals would set the record straight: small businesses should grow – and continue to grow. It’s time for the government to end the mixed signals.