OPTIMUS Corporation CEO Eric Adolphe Testifies Before Senate Committee on Small Business and...

Business Editors/Political & High-Tech Writers

WASHINGTON--(BUSINESS WIRE)--March 18, 2003

Eric Adolphe, CEO of OPTIMUS Corporation, a leader in public safety technology, today testified before the Senate Committee on Small Business and Entrepreneurship on the negative effects

The hearing, entitled "Small Businesses Continue to Lose Federal Jobs by the Bundle," included expert witnesses from government and industry, and examined the harmful impact that bundling has on small business growth. According to the Small Business Administration (SBA) Office of Advocacy, contract bundling costs the small business sector an estimated $13 billion annually.(1)

In his testimony, Adolphe called contract bundling "the key government contractual challenge that we face." According to Adolphe, small disadvantaged businesses and 8(a) firms like OPTIMUS are essentially "shut out of numerous federal contracts" because "current contract bundling practices...don't enable a level playing field." To illustrate this point, Adolphe pointed to a specific instance of a federal government agency that bundled all of its software development requirements into one omnibus contract, and failed to meet its contractual obligation to subcontract a significant portion of the work to small businesses. "Before that, small businesses could have competed directly for the work, based on their expertise. Now, one large government contractor handles millions of dollars worth of work - whether or not they are the right firm for the job," stated Adolphe.

"To make matters worse, even though many large contracts are awarded partly on the pledge to subcontract a certain amount of work to small business, there is no legal recourse for small contractors when these pledges are not upheld," stated Adolphe. He also explained that bundling "doesn't just affect small business growth; it can...cause agencies to settle for less - at higher prices."

About OPTIMUS Corporation

OPTIMUS Corporation enhances public safety and quality of life through innovative, customer-driven solutions. OPTIMUS products and services increase efficiency while reducing transaction costs, enabling governments and organizations to significantly improve service delivery. Since 1992, OPTIMUS has been helping to ensure public safety and our nation's vital infrastructure.

OPTIMUS has provided tools and services in mission critical environments at the U.S. Coast Guard, Department of Defense, District of Columbia Government, Environmental Protection Agency, Federal Aviation Administration, Federal Highway Administration, National Highway Traffic Safety Administration, NASA, and others. For more information, visit www.optimuscorp.com.

(1) Based on 2001 Figures: SBA Office of Advocacy