July 22, 2004


Ms. Rachel Karton
Coverdell Drug-Free Workplace Program
U.S. Small Business Administration
409 Third Street, SW
Washington, District of Columbia 20416


Dear Ms. Karton:

Several Coverdell Drug Free Workplace Program (DFWP) grant recipients recently received a letter from you stating that their grants are terminated because “...reductions in the budget have caused SBA to revise the award process and limit the next Request for Proposals to lead Small Business Development Centers only.”

When the Workplace Drug Testing Act was passed in 1998, the report language clearly stated, “… an ‘eligible intermediary’ as an organization located in the United States established to develop comprehensive drug-free workplace programs or to supply drug-free workplace services or to provide other assistance and services to small businesses. Eligible intermediaries must have a specific history of no less than two-years experience in establishing drug-free workplace programs and have an existing drug-free workplace program themselves. Nothing in this Section is intended to encourage competition between profit and not-for-profit organizations.” (See senate report 105-348, page 2.)

In other words, according to the law, the public funding cannot be given exclusively to non-profit entities, such as SBA Small Business Development Centers, that will compete with commercial drug testing service providers.

Furthermore, Section C of SBA’s guidance document, the Small Business Development Centers (SBDC) 2004 Program Announcement For FY2005 or CY2005, states, “SBDCs should not compete with the private sector and shall make every effort to avoid the appearance of competition with the private sector.”

We understand that reductions in congressionally appropriated funds will lead to changes in the grant process.  Private sector drug testing service providers, however, have the experience, knowledge, innovation, and technologies to effectively institute Drug Free Workplaces that government entities do not. As such, we request that you amend the award procedures to comply with the law established by Congress by allowing all current grantees to apply for the grants.

We appreciate your prompt attention to this matter. Should you have questions, please feel free to contact me at (800) 355-1257.

Sincerely,


Melissa Moskal
Director of Government Relations


Cc:       House Committee on Small Business

Rep. Rob Portman

            Rep. Sanford Bishop

            Rep. Phil English

            Rep. Gene Green

            Rep. Johnny Isakson

            Rep. John Lewis

            Rep. Jim Marshall

            Rep. Vic Snyder

            Rep. Mark Souder

 

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