By Lloyd Chapman
President, American Small Business League
For the last seven years I have fought with the United States Government in the courts, in Congress and in the media over one simple principle, Fortune 500 firms should not be allowed to receive federal small business contracts.
I would imagine it would be difficult to find many people in America that would disagree with that principle; particularly now, as our nation struggles to deal with its worst economic downturn in 80 years. The latest U.S. Census Bureau data indicates that 98 percent of all U.S. firms have less than 100 employees. These 27 million small businesses employ over 55 percent of the private sector workforce and create over 97 percent of all net new jobs. Those same small businesses are responsible for over 50 percent of the Gross Domestic Product (GDP) and over 50 percent of all innovations.
Federal law requires that a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses.
This all makes sense doesn't it? Small businesses create virtually all net new jobs in America. Most taxpayers work in small businesses. Aren't we trying to stimulate the economy and create jobs? What better way is there to achieve both of these goals than to spend 23 percent of federal infrastructure dollars with small businesses?
Other than the Federal government, guess who my biggest opponents have been… every major organization in America that claims to represent small businesses. I have discovered that the overwhelming majority of so-called small business groups are actually funded by Fortune 500 firms, and consequently they support the political agenda of Fortune 500 firms. Groups like the U.S. Chamber of Commerce that claim 96 percent of their members are small businesses with less than 100 employees, actually have 15 Fortune 1000 firms represented on their board of directors which have received federal small business contracts. The same thing is true for the U.S. Hispanic Chamber of Commerce. Several of the U.S. Hispanic Chamber of Commerce's corporate sponsors have received federal small business contracts. That's the real reason they are not supporting H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. H.R. 2568 was proposed on May 21 by Congressman Hank Johnson (D - GA), and would stop the federal government from counting corporate giants towards its small business goals.
The National Federation of Independent Businesses (NFIB) claims to be "the voice of small business." In reality, NFIB primarily lobbies for the political agenda of Fortune 1000 firms. Even minority and women's groups are funded by Fortune 500 firms, and take their marching orders from those firms. Groups like the U.S. Hispanic Chamber of Commerce, the U.S. Women's Chamber of Commerce, and the National Small Business Association (NSBA) are funded by big business, and push the political agenda of corporate giants in America.
If you're not convinced, lets take a look at the facts. Since 2003, a series of federal investigations have been released which found that Fortune 500 firms and thousands of other large businesses have received billions of dollars in federal small business contracts. The Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration [SBA] and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The American Small Business League (ASBL) estimates up to $120 billion a year in federal small business contracts actually go to big businesses.
Since 2002, the story has been covered in virtually every major newspaper in the country, dozens of magazines, and in most of our nation's mainstream media outlets including CNN, ABC and CBS. Additionally, this issue has been the subject of hundreds of radio interviews, and hundreds of stories in Internet based publications. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)
Now, take a look at the website for any group in America that you believe represents the best interest of small businesses. Try and find any mention of the issue at any time during the last seven years. Remember, over 500 stories in the media have covered the issue along with more than a dozen federal investigations. Despite the press, the federal investigations and thousands of business closures, you won't find anything.
You won't find any press releases calling for an end to the problem on the U.S. Chamber of Commerce's website. You will not find any mention of the issue anywhere on NFIB's website. You will not find any mention of the diversion of billions of dollars in federal small business contracts to Fortune 500 firms on the U.S. Hispanic Chamber of Commerce's website. There will be no mention of one of the largest challenges facing the entire federal government today on the U.S. Women's Chamber of Commerce website. Finally, if you examine the NSBA's website, you will not find any discussion of legislation they have written to address the issue, or lawsuits they have filled to try and end the rampant abuses against small businesses.
I would advise any small business that belongs to any of these groups to quit wasting your time and money, and drop out today. You have been duped.
The irrefutable truth is that a vast majority of supposed small business groups in America are shams. They are funded by, run by and for the benefit of Fortune 500 firms. The truth is, no major small business group in America will even mention the diversion of federal small business contracts to corporate giants. Look for yourself. If you disagree, send me the proof that I'm wrong to info@asbl.com.
-###-
Thursday, July 23, 2009
Tuesday, July 21, 2009
Rep. Johnson applauds American Small Business League for its Work on Small Business Contracting
FOR IMMEDIATE RELEASE
July 21, 2009
Petaluma, Calif. - Congressman Hank Johnson (D - GA), today issued a press release applauding the American Small Business League (ASBL) and its President Lloyd Chapman for their efforts as an advocate for small businesses, specifically businesses owned by minorities, women and veterans. (http://www.asbl.com/documents/hr2568%20_4_.pdf)
On May 21, Congressman Johnson proposed bipartisan legislation known as the "Fairness and Transparency in Contracting Act of 2009." H.R. 2568 would provide small businesses across the country with billions of dollars in additional contracting opportunities. Chapman originally drafted the concept for the bill with guidance from the nation's preeminent expert on contracting law, Professor Charles Tiefer.
"Lloyd Chapman and the American Small Business League deserve recognition for the hard work they have done trying to bring an end to the diversion of federal small business contracts to corporate giants," Johnson said. "Their efforts, along with the passage of H.R. 2568, will provide a significant boost to our nation's middle class economy."
For more than 7 years, the ASBL has tirelessly fought to stop widespread abuses, which have lead to the diversion of more than $100 billion a year in federal small business contracts to corporate giants.
In 2002, information provided by Chapman lead to the first Government Accountability Office (GAO) investigation into the diversion of federal small business contracts to large corporations. As a result of the investigation, the first congressional hearing into widespread abuses in small business contracting programs took place on May 7, 2003. Since then, more than 15 investigations have separately confirmed that Fortune 500 corporations and other companies, which exceed the government's small business size standards, are receiving billions of dollars in federal small business contracts. Chapman and the ASBL have been instrumental in spurring government inquiries into this issue. (http://www.asbl.com/documentlibrary.html)
In one such report, 5-15, the Small Business Administration (SBA) Office of Inspector General stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.asbl.com/documents/05-15.pdf)
Chapman has spent more than 20 years advocating for the rights of small businesses across the country. During that time, Chapman and the ASBL have won a series of federal lawsuits, which have forced the release of information that proves Fortune 500 corporations have received small business contracts. In its history, the ASBL has worked diligently to raise awareness about the diversion of federal small business contracts to large corporations and to advocate for small businesses across America.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
July 21, 2009
Petaluma, Calif. - Congressman Hank Johnson (D - GA), today issued a press release applauding the American Small Business League (ASBL) and its President Lloyd Chapman for their efforts as an advocate for small businesses, specifically businesses owned by minorities, women and veterans. (http://www.asbl.com/documents/hr2568%20_4_.pdf)
On May 21, Congressman Johnson proposed bipartisan legislation known as the "Fairness and Transparency in Contracting Act of 2009." H.R. 2568 would provide small businesses across the country with billions of dollars in additional contracting opportunities. Chapman originally drafted the concept for the bill with guidance from the nation's preeminent expert on contracting law, Professor Charles Tiefer.
"Lloyd Chapman and the American Small Business League deserve recognition for the hard work they have done trying to bring an end to the diversion of federal small business contracts to corporate giants," Johnson said. "Their efforts, along with the passage of H.R. 2568, will provide a significant boost to our nation's middle class economy."
For more than 7 years, the ASBL has tirelessly fought to stop widespread abuses, which have lead to the diversion of more than $100 billion a year in federal small business contracts to corporate giants.
In 2002, information provided by Chapman lead to the first Government Accountability Office (GAO) investigation into the diversion of federal small business contracts to large corporations. As a result of the investigation, the first congressional hearing into widespread abuses in small business contracting programs took place on May 7, 2003. Since then, more than 15 investigations have separately confirmed that Fortune 500 corporations and other companies, which exceed the government's small business size standards, are receiving billions of dollars in federal small business contracts. Chapman and the ASBL have been instrumental in spurring government inquiries into this issue. (http://www.asbl.com/documentlibrary.html)
In one such report, 5-15, the Small Business Administration (SBA) Office of Inspector General stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.asbl.com/documents/05-15.pdf)
Chapman has spent more than 20 years advocating for the rights of small businesses across the country. During that time, Chapman and the ASBL have won a series of federal lawsuits, which have forced the release of information that proves Fortune 500 corporations have received small business contracts. In its history, the ASBL has worked diligently to raise awareness about the diversion of federal small business contracts to large corporations and to advocate for small businesses across America.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Congress Considers Two Bills to End Contracting Abuses
FOR IMMEDIATE RELEASE
July 21, 2009
Petaluma, Calif. - Congress is considering two separate bills written to halt the diversion of billions of dollars in federal small business contracts to many of the largest firms in the world.
Since 2003, over a dozen federal investigations have been released which found thousands of firms such as British Aerospace (BAE), Rolls-Royce, AT&T, Wal-Mart, Xerox, Home Depot, General Dynamics, Raytheon, John Deere, Dell Computer and Dutch conglomerate Buhrmann NV have all received federal small business contracts.
The American Small Business League (ASBL) estimates that over that $100 billion a year in federal small business contracts actually go to Fortune 500 firms and other clearly large businesses. (www.asbl.com)
In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
In Report 5-16, the SBA OIG reported that in some cases large businesses received federal small business contracts because current policy allows large businesses to self certify their status as small businesses. The SBA OIG referred to the abuses as "False certifications." (http://www.asbl.com/documents/05-16.pdf)
In the Senate Committee on Small Business and Entrepreneurship, congressional leaders are considering S. 2300, the Small Business Contracting Revitalization Act, as a potential solution to longstanding abuses in federal small business contracting programs. That said, the bill would allow large businesses to continue to self certify, but would require them to do so annually.
In the House of Representatives, congressional leaders are considering H.R. 2568, the Fairness and Transparency in Contracting Act which eliminates self certification and puts the onus on federal contracting officials to ensure that Fortune 500 firms and other publicly traded firms no longer receive federal small business contracts. Current federal law stipulates that a small business must be "independently owned." Since publicly traded firms are publicly owned, they would not qualify as "independently owned" for the purpose of federal small business contracting programs. H.R. 2568 stipulates that federal contracting officials and prime contractors would no longer be able to report awards to publicly traded firms as small business awards.
The ASBL originally drafted H.R. 2568, which was introduced by Congressman Hank Johnson (D - GA) on May 21. To date, H.R. 2568 has received letters of support from more than 45 Chambers of Commerce and small business organizations around the country.
In a recent appearance on CNBC, U.S. Chamber of Commerce spokesman Giovanni Coratolo refused to back H.R. 2568. Fifteen Fortune 1000 firms represented on the U.S. Chamber of Commerce Board of Directors have received federal small business contracts.
-###-
July 21, 2009
Petaluma, Calif. - Congress is considering two separate bills written to halt the diversion of billions of dollars in federal small business contracts to many of the largest firms in the world.
Since 2003, over a dozen federal investigations have been released which found thousands of firms such as British Aerospace (BAE), Rolls-Royce, AT&T, Wal-Mart, Xerox, Home Depot, General Dynamics, Raytheon, John Deere, Dell Computer and Dutch conglomerate Buhrmann NV have all received federal small business contracts.
The American Small Business League (ASBL) estimates that over that $100 billion a year in federal small business contracts actually go to Fortune 500 firms and other clearly large businesses. (www.asbl.com)
In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
In Report 5-16, the SBA OIG reported that in some cases large businesses received federal small business contracts because current policy allows large businesses to self certify their status as small businesses. The SBA OIG referred to the abuses as "False certifications." (http://www.asbl.com/documents/05-16.pdf)
In the Senate Committee on Small Business and Entrepreneurship, congressional leaders are considering S. 2300, the Small Business Contracting Revitalization Act, as a potential solution to longstanding abuses in federal small business contracting programs. That said, the bill would allow large businesses to continue to self certify, but would require them to do so annually.
In the House of Representatives, congressional leaders are considering H.R. 2568, the Fairness and Transparency in Contracting Act which eliminates self certification and puts the onus on federal contracting officials to ensure that Fortune 500 firms and other publicly traded firms no longer receive federal small business contracts. Current federal law stipulates that a small business must be "independently owned." Since publicly traded firms are publicly owned, they would not qualify as "independently owned" for the purpose of federal small business contracting programs. H.R. 2568 stipulates that federal contracting officials and prime contractors would no longer be able to report awards to publicly traded firms as small business awards.
The ASBL originally drafted H.R. 2568, which was introduced by Congressman Hank Johnson (D - GA) on May 21. To date, H.R. 2568 has received letters of support from more than 45 Chambers of Commerce and small business organizations around the country.
In a recent appearance on CNBC, U.S. Chamber of Commerce spokesman Giovanni Coratolo refused to back H.R. 2568. Fifteen Fortune 1000 firms represented on the U.S. Chamber of Commerce Board of Directors have received federal small business contracts.
-###-
Subscribe to:
Posts (Atom)
