FOR IMMEDIATE RELEASE
September 24, 2009
Petaluma, Calif. - Huntsville Alabama Congressman Parker Griffith (D - AL5) has introduced a new bill in the House of Representatives that will allow divisions of Fortune 500 firms and thousands of other large businesses to receive billions of dollars in federal contracts earmarked for small businesses.
Several Fortune 500 firms in Congressman Griffith's district such as Boeing, Northrop Grumman and British Aerospace (BAE) are currently receiving millions of dollars in federal small business contracts through loopholes in federal contracting law.
If H.R. 3558 becomes law, Boeing, Northrop Grumman, BAE and their subsidiaries could continue to receive federal small business contracts indefinitely. Boeing and Northrop Grumman are amongst Congressman Griffith's largest campaign contributors. (http://tiny.cc/JWuUg)
Currently, there are 5,126 small businesses registered to do business with the federal government in the State of Alabama, according to the Central Contractor Registration database. If H.R. 3558 is passed and signed into law, more than 99 percent of the small businesses in Alabama would be put at a significant competitive disadvantage.
In 2005, the Small Business Administration Office of Inspector General (SBA IG) referred to the diversion of federal small business contracts to corporate giants 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)
Since 2003, over a dozen federal investigations have found that Fortune 500 firms in the United States and some of the largest firms in Korea, Italy, Holland, France and England have received billions of dollars in federal small business contracts.
Another bill that has been introduced in the House of Representatives, "the Fairness and Transparency in Contracting Act of 2009," or H.R. 2568, is designed to close all of the loopholes, and halt the flow of federal small business contracts to large businesses.
H.R. 2568 was introduced by Congressman Hank Johnson (D - GA) and has 15 co-sponsors. Congressman Johnson's bill is backed by small business groups and chambers of commerce across the country.
Research by the American Small Business League (ASBL) estimates that legitimate small businesses are losing over $100 billion a year in federal small business contracts through various loopholes in federal contracting law and policy.
ASBL estimates that if H.R. 2568 becomes law, over $100 billion a year in federal small business contracts will be redirected to middle class firms nationwide. If Congressman Griffith's bill, H.R. 3558, becomes law billions of dollars in federal small business contracts will continue to be diverted to corporate giants.
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Please click here to watch a short clip about the ASBL's concerns regarding H.R. 3558: http://www.youtube.com/watch?v=KbGwwEaEGSM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, September 24, 2009
Monday, September 21, 2009
Senate Committee Snubs Small Business Champions
FOR IMMEDIATE RELEASE
September 21, 2009
Petaluma, Calif. - On Tuesday, September 22, 2009, the Senate Committee on Small Business and Entrepreneurship will hold a roundtable discussion regarding contracting reform for small businesses, yet no individual with any track record of successfully campaigning for small businesses has been invited to testify.
The American Small Business League (ASBL) is raising concerns regarding the lack of small business voices that will be present at the committee-run roundtable event. The roundtable is tentatively scheduled to include: Joseph Jordan from the U.S. Small Business Administration (SBA), and representatives from the U.S. Department of Transportation, and the Department of Defense, according to a committee staffer.
The ASBL points to the fact that it is the only organization that has written a bill to address long standing abuses in federal small business contracting programs. Since 2002, the ASBL has waged a seven-year battle to end the diversion of federal small business contracts to large corporations. Despite the ASBL's documentable track record of advocacy, the committee has snubbed them repeatedly.
"We don't expect to be invited to these types of meetings because the Senate Committee on Small Business has no interest in contracting reform," ASBL President Lloyd Chapman said. "Since 2003, over a dozen federal investigations have found that billions of dollars in contracts earmarked for small businesses have been diverted to Fortune 500 firms. This issue has been featured on every major television network and in every major newspaper in the country, yet the committee has failed to lift a finger to stop it for seven years. 2009 represents the tenth anniversary of the diversion of federal small business contracts to large corporations."
Information in the Federal Procurement Data System-Next Generation (FPDS - NG) indicates that the Obama Administration included billions of dollars in contracts awarded to Fortune 500 firms and even some of the largest corporations in the world towards its fiscal year (FY) 2008 small business goals. Firms such as: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in South Korea and the Italian Finmeccanica SpA, received billions of dollars in federal small business contracts during FY 2008.
In the last decade, no member of the Senate Small Business Committee has proposed legislation to stem the flow of federal small business contracts to corporate giants. ASBL points to the fact that in 2009, the Senate Small Business Committee unanimously passed a bill that would allow companies owned by some of the nation's wealthiest investors to receive federal small business contracts.
"Small business owners around the country refer to that committee as the Senate Anti-Small Business Committee," Chapman said.
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September 21, 2009
Petaluma, Calif. - On Tuesday, September 22, 2009, the Senate Committee on Small Business and Entrepreneurship will hold a roundtable discussion regarding contracting reform for small businesses, yet no individual with any track record of successfully campaigning for small businesses has been invited to testify.
The American Small Business League (ASBL) is raising concerns regarding the lack of small business voices that will be present at the committee-run roundtable event. The roundtable is tentatively scheduled to include: Joseph Jordan from the U.S. Small Business Administration (SBA), and representatives from the U.S. Department of Transportation, and the Department of Defense, according to a committee staffer.
The ASBL points to the fact that it is the only organization that has written a bill to address long standing abuses in federal small business contracting programs. Since 2002, the ASBL has waged a seven-year battle to end the diversion of federal small business contracts to large corporations. Despite the ASBL's documentable track record of advocacy, the committee has snubbed them repeatedly.
"We don't expect to be invited to these types of meetings because the Senate Committee on Small Business has no interest in contracting reform," ASBL President Lloyd Chapman said. "Since 2003, over a dozen federal investigations have found that billions of dollars in contracts earmarked for small businesses have been diverted to Fortune 500 firms. This issue has been featured on every major television network and in every major newspaper in the country, yet the committee has failed to lift a finger to stop it for seven years. 2009 represents the tenth anniversary of the diversion of federal small business contracts to large corporations."
Information in the Federal Procurement Data System-Next Generation (FPDS - NG) indicates that the Obama Administration included billions of dollars in contracts awarded to Fortune 500 firms and even some of the largest corporations in the world towards its fiscal year (FY) 2008 small business goals. Firms such as: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in South Korea and the Italian Finmeccanica SpA, received billions of dollars in federal small business contracts during FY 2008.
In the last decade, no member of the Senate Small Business Committee has proposed legislation to stem the flow of federal small business contracts to corporate giants. ASBL points to the fact that in 2009, the Senate Small Business Committee unanimously passed a bill that would allow companies owned by some of the nation's wealthiest investors to receive federal small business contracts.
"Small business owners around the country refer to that committee as the Senate Anti-Small Business Committee," Chapman said.
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