Bush Officials Claim Small Business Contracts are Miscoding Errors for the Seventh Consecutive Year
Petaluma, Calif. – For the seventh consecutive year, Bush Administration officials are still claiming that billions of dollars in federal small business contracts have been diverted to Fortune 500 firms through miscoding, human error and computer glitches.
A recent Washington Post story failed to mention 15 federal investigations, which found that blatant abuse and loopholes are rampant within federal small business contracting programs. Several investigations even found fraud.
As early as 1995, the Small Business Administration Office of Inspector General (SBA IG) found fraud in federal small business contracting programs. In its semiannual report to Congress the SBA IG stated, “of a particular fraudulent practice: companies that SBA, after sustaining protests against them, had prohibited from representing themselves as small businesses, under a particular SIC code, were continuing to falsely certify themselves as eligible for small business set-aside contracts.” (http://www.sba.gov/ig/igsemiannual.html)
In 2003, the SBA Office of Advocacy commissioned a report from Eagle Eye Publishers, which found "vendor deception" as one of the reasons large firms received federal small business contracts. (http://www.asbl.com/documents/eagkeeye_report%202002.pdf) The American Small Business League (ASBL) sued the SBA under the Freedom of Information Act (FOIA) forcing the SBA to release the original draft of the report that found fraud to be the cause of the problem. However, the edited version of the report released by the SBA had removed "vendor deception" as a reason for the diversion of federal small business contracts to Fortune 500 firms and other large businesses.
In 2005, based on information provided by ASBL President Lloyd Chapman, the SBA IG issued Report 5-16 which found large firms had received federal small business contracts by making "false certifications" and "improper certifications." (http://www.sba.gov/IG/05-16.pdf)
Based on information provided by Chapman, the SBA IG found that GTSI and Insight Public Sector had misrepresented themselves as small businesses in order to receive federal small business contracts. In one investigation, GTSI was recommended for debarment for misrepresenting themselves as small and in another investigation Insight Public Sector paid a $1 million fine to settle a case in which the firm had misrepresented themselves as a small business to receive federal small business contracts. (http://www.asbl.com/showmedia.php?id=533)
In 2005, the ASBL filed a lawsuit in Federal District Court, Northern District of California, which forced the SBA to release GTSI's name as the firm that had been recommend for debarment. (http://www.asbl.com/showmedia.php?id=530)
This July, the Department of the Interior (DOI) Office of Inspector General released an investigation, which found the DOI had reported millions of dollars in small business awards to Fortune 500 firms. That investigation found Fortune 500 firms had listed themselves as small businesses in the government's Central Contractor Registration (CCR) database. (http://www.asbl.com/showmedia.php?id=1092)
In February, Senator Obama released the statement, “It is time to end the division of federal small business contacts to corporate giants.” Since then, Senator Obama has not mentioned the issue publicly and has not offered any specific solutions as to how his administration plans to address the problem.
Working with Senator Barbara Boxer (D - CA), ASBL President Lloyd Chapman has drafted legislation entitled, “The Small Business Fairness and Transparency in Contracting Act.” The draft legislation is based on the definition of a small business in the Small Business Act of 1953, which states that a small business must be independently owned and operated. The legislation would preclude the federal government from reporting awards to publicly traded firms as small business contracts.
"The GAO first reported this problem in 2003, there have now been over a dozen investigations and hundreds of stories. It is time for Congress to pass legislation to stop small businesses from being cheated by the government," ASBL President Lloyd Chapman said.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, October 23, 2008
Tuesday, October 21, 2008
Bush Dismantles Economic Programs for Small Business as Economy Continues Downward Spiral
Petaluma, Calif. - Ninety-eight percent of all companies in the United States have less than 100 employees. Twenty-seven million firms fall into the category of small business, and small businesses employ 56 percent of our nation's population. These companies are responsible for over 90 percent of the new jobs, over 90 percent of U.S. exports and over 90 percent of innovation in American business. Congress realized America's small businesses were the heart and soul of our nation's economy when they passed the Small Business Act in 1953.
Our nation is in the midst of one of the most dramatic economic downturns in modern history. More than ever, America's 27 million small businesses need the economic benefits the Small Business Act was designed to provide.
None of this seems to matter to President George W. Bush. Although President Bush regularly panders to small businesses in his speeches, his policies paint a different picture. At the same time that President Bush backed the $700 billion dollar Wall Street bailout, he continued to dismantle existing federal programs designed to assist American small businesses.
During his two terms, President Bush has systematically dismantled each and every program established under the Small Business Act to assist American small businesses, especially those firms owned by women, minorities and veterans.
President Bush's anti-small business policies began during his first week as president. The first thing he did to dismantle America's small business programs was to remove the Administrator of the Small Business Administration (SBA) from the President's Cabinet. Then he began to cut the SBA's budget and staffing more than any other federal agency.
Since 2003, over a dozen federal investigations have been released, which have all found rampant and government-wide fraud, abuse, loopholes and a blatant lack of proper oversight in federal small business contracting programs. Several of the investigations found that the Bush Administration has diverted billions of dollars in federal small business contracts to many of the largest corporations in the world.
Current federal law requires that a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses. However, every year the federal government awards billions of dollars in small business contracts to some of the largest corporations in the U.S. and Europe.
Report 5-15 from the SBA Office of Inspector General states, "One of the most important challenges facing the SBA and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."
Several Bush officials have privately acknowledged that at least 50 percent of all federal small business contracts or about $70 billion a year actually go to corporate giants. Based on information obtained in a series of successful Freedom of Information Act (FOIA) lawsuits filed against the Bush Administration, the American Small Business League (ASBL) estimates legitimate small businesses are being cheated out of over $100 billon each year.
Last year, the Bush Administration adopted a policy that will allow Fortune 500 firms to continue to receive government small business contracts until 2012. (http://www.asbl.com/showmedia.php?id=592)
Last month, Bush officials began to dismantle one of the government's only programs to assist minority-owned firms, the Small Disadvantaged Business contracting program.
Senator McCain has never objected to any of the Bush Administration's anti-small business policies. During more than two years of campaigning, not once has Senator McCain mentioned his intention to restore America's small business programs. If Senator John McCain is elected president, he will likely finish what Bush started and completely dismantle all federal programs designed to assist American small businesses.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Our nation is in the midst of one of the most dramatic economic downturns in modern history. More than ever, America's 27 million small businesses need the economic benefits the Small Business Act was designed to provide.
None of this seems to matter to President George W. Bush. Although President Bush regularly panders to small businesses in his speeches, his policies paint a different picture. At the same time that President Bush backed the $700 billion dollar Wall Street bailout, he continued to dismantle existing federal programs designed to assist American small businesses.
During his two terms, President Bush has systematically dismantled each and every program established under the Small Business Act to assist American small businesses, especially those firms owned by women, minorities and veterans.
President Bush's anti-small business policies began during his first week as president. The first thing he did to dismantle America's small business programs was to remove the Administrator of the Small Business Administration (SBA) from the President's Cabinet. Then he began to cut the SBA's budget and staffing more than any other federal agency.
Since 2003, over a dozen federal investigations have been released, which have all found rampant and government-wide fraud, abuse, loopholes and a blatant lack of proper oversight in federal small business contracting programs. Several of the investigations found that the Bush Administration has diverted billions of dollars in federal small business contracts to many of the largest corporations in the world.
Current federal law requires that a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses. However, every year the federal government awards billions of dollars in small business contracts to some of the largest corporations in the U.S. and Europe.
Report 5-15 from the SBA Office of Inspector General states, "One of the most important challenges facing the SBA and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."
Several Bush officials have privately acknowledged that at least 50 percent of all federal small business contracts or about $70 billion a year actually go to corporate giants. Based on information obtained in a series of successful Freedom of Information Act (FOIA) lawsuits filed against the Bush Administration, the American Small Business League (ASBL) estimates legitimate small businesses are being cheated out of over $100 billon each year.
Last year, the Bush Administration adopted a policy that will allow Fortune 500 firms to continue to receive government small business contracts until 2012. (http://www.asbl.com/showmedia.php?id=592)
Last month, Bush officials began to dismantle one of the government's only programs to assist minority-owned firms, the Small Disadvantaged Business contracting program.
Senator McCain has never objected to any of the Bush Administration's anti-small business policies. During more than two years of campaigning, not once has Senator McCain mentioned his intention to restore America's small business programs. If Senator John McCain is elected president, he will likely finish what Bush started and completely dismantle all federal programs designed to assist American small businesses.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, October 20, 2008
Obama Tries to Retract Statement to End Billions in Contracting Fraud
Petaluma, Calif. – Without explanation, presidential candidate Senator Barack Obama (D – IL) has attempted to retract a statement he made in February of this year pledging to end billions of dollars in fraud and abuse in federal small business contracting programs.
Senator Obama’s original statement was in response to over a dozen federal investigations, which have found that the Bush Administration has diverted billions of dollars in federal small business contracts to Fortune 500 firms. In report 5-15, the Small Business Administration Office of Inspector (SBA OIG) referred to the issue as one of the biggest challenges facing the entire federal government today. (http://www.sba.gov/IG/05-15.pdf)
In February, Senator Obama’s original statement was:
The Obama campaign has now gone so far as to modify the original quote by removing Senator Obama’s statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
On Tuesday of last week, CNN ran a story on the fact that neither of Senator Obama’s recent rescue plans for small businesses or the middle class made any mention of his February statement calling for the end of the diversion of federal small business contracts to “corporate giants.” There has been absolutely no response from the Obama campaign to the story.
Since making his original statement in February, Senator Obama has refused to mention the issue publicly or include any mention of it in his criticism of the Bush Administration. To date, Senator Obama and his campaign have not released a statement on this issue in any capacity. Additionally, no member of the media has even asked Senator Obama why he has tried to distance himself from his pledge to end fraud and abuses in government small business contracting programs.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Senator Obama’s original statement was in response to over a dozen federal investigations, which have found that the Bush Administration has diverted billions of dollars in federal small business contracts to Fortune 500 firms. In report 5-15, the Small Business Administration Office of Inspector (SBA OIG) referred to the issue as one of the biggest challenges facing the entire federal government today. (http://www.sba.gov/IG/05-15.pdf)
In February, Senator Obama’s original statement was:
“I am proud to have the support of the American Small Business League and their grassroots efforts to help protect American small business. Helping American small business is part of our movement for change and the end of politics as usual. 98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation’s economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants.” (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The Obama campaign has now gone so far as to modify the original quote by removing Senator Obama’s statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Currently, the statement on Obama’s website reads, “Ninety-eight percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource…..Helping American small business is part of our movement for change and the end of politics as usual.” (http://my.barackobama.com/page/content/sbhome/)
On Tuesday of last week, CNN ran a story on the fact that neither of Senator Obama’s recent rescue plans for small businesses or the middle class made any mention of his February statement calling for the end of the diversion of federal small business contracts to “corporate giants.” There has been absolutely no response from the Obama campaign to the story.
Since making his original statement in February, Senator Obama has refused to mention the issue publicly or include any mention of it in his criticism of the Bush Administration. To date, Senator Obama and his campaign have not released a statement on this issue in any capacity. Additionally, no member of the media has even asked Senator Obama why he has tried to distance himself from his pledge to end fraud and abuses in government small business contracting programs.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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