A Vision for U.S. International Assistance Reform

SBAIC (Small Business Association for International Companies) is proud to offer our vision for this challenge. We are an association of over 150 American small businesses who serve the U.S. government by implementing international assistance programs. Our insights and recommendations derive from our direct experience implementing these programs over many years as owners and managers of American small businesses.

U.S. international assistance is not charity. It is the use of taxpayer funds to achieve outcomes important to the American people. We know from experience that great progress is made in developing countries – just as it is here in the U.S. – when driven by the private sector. Likewise, international assistance must both catalyze the private sector in developing countries and be supported by U.S. private sector implementing partners. As the engine of the U.S. economy, American small businesses are especially well suited for this challenge.

OUR RECOMMENDATIONS FOR SUCCESSFUL INTERNATIONAL ASSISTANCE REFORM

To assure alignment with U.S. policy, harness innovation by expanding the industrial base, and fully tap the power of the private sector, SBAIC members recommend:

For example, these programs would:

• Reduce the spread of disease globally, to reduce the likelihood of global pandemics and increase stability and welfare in geo-strategically important countries.
• Strengthen the economies of U.S. allies, create trade opportunities for U.S. companies (including in critical minerals), create jobs to reduce migration pressures, and counter China’s Belt and Road Initiative, among other malign influences.
• Strengthen public, private, and civil institutions in geo-strategically important countries.
• Provide aid to desperate people during humanitarian and natural disasters.
• Support the ability of the Administration to broker deals and architect wins.

Developing-country private sectors should be priority counterparts for international assistance, building their capacity and expanding their resources to tackle their country’s most pressing challenges. American small businesses are best placed to help developing country small businesses become growth engines and conduits for US investments and exports. The federal government should draw upon American private sector organizations — especially small businesses — to implement much of international assistance, leveraging their expertise to help solve developing country problems. Assistance should leverage America’s private sector interests by creating opportunities for trade, investment, and collaboration for U.S. businesses in developing countries.

Competence starts at the top. U.S. international assistance leaders must align closely with the objectives of international assistance, have deep experience in such programming, and manifest strong management abilities. To oversee international assistance programming globally, the U.S. needs a cadre of personnel with experience in varied technical areas and regions, and in sufficient numbers to accomplish an international assistance mission that spans multiple countries, sectors, and policy objectives.

U.S. international assistance has overly devolved to a handful of large organizations, creating overwhelming barriers to entry, even to those offering equally, if not better, solutions and personnel. We must resist the pattern of repeat awardees and ensure procurement results that reflect the innovation and cost effectiveness that are the American hallmarks. This requires evaluation criteria that don’t disfavor smaller or newer partners, and training for contract officers and technical evaluation committees to guard against inadvertently preference size and known brands. Priorities in the Executive Order (EO) “On Restoring Common Sense to Federal Procurement” should be quickly implemented, e.g., making opportunities and requirements readily accessible and understandable, ease doing business with the federal government – especially for smaller entities newer to government procurement, transparently tracking and reporting procurement results.

The Small Business Act, adopted in the 1950s, and small business set-asides initiated in federal procurement processes in the 1970s recognize the key role these organizations play as the engine of the U.S. economy (see box). These efforts have helped counter market consolidation in the federal procurement space while bringing increased competition, innovation, and cost efficacy in line with the EO on procurement reform. In reforming international assistance, we must ensure required levels of set-asides (just under 25%) and subcontracting requirements.