FOR IMMEDIATE RELEASE
October 1, 2009
Petaluma, Calif. – Alabama Congressman Parker Griffith (D-AL-5) is claiming that a bill he wrote would carry the ‘unintended consequence’ of allowing the subsidiaries of some of his largest campaign contributors to receive billions of dollars in federal small business contracts.
During an interview with the Times Daily newspaper regarding H.R. 3558, the Small Business Fair Competition Act, Congressman Griffith claimed that it was not his intention to create loopholes to allow two of his largest campaign contributors, Boeing and Northrop Grumman to land billions of dollars in federal small business contracts.
In the story, American Small Business League (ASBL) President Lloyd Chapman stated, "It is simply not believable that Congressman Griffith accidentally wrote a bill that is going to allow the subsidiaries of some of his largest campaign contributors like Boeing and Northrop Grumman to get small business contracts. It is absurd." (http://www.timesdaily.com/article/20090930/ARTICLES/909305008/1011/NEWS?Title=Griffith-Bill-needs-more-work)
The ASBL was the only organization to uncover the supposed accidental loophole. Yet, as opposed to thanking the organization, Griffith accused the group of seeking notoriety.
Recent data released by the Obama Administration indicates that Fortune 500 defense contractors in Congressman Griffith's district such as Boeing, Northrop Grumman and British Aerospace (BAE) are receiving federal small business contracts. Critics of Griffith and his bill believe that he was clearly trying to create a loophole to allow Fortune 500 corporations to continue to take contracts intended for small businesses.
Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts are diverted to Fortune 500 firms with a concentration on the defense and aerospace industry.
In 2005, the Small Business Administration Office of Inspector General 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)
Even President Obama weighed in on the issue, when in February of 2008 he released the statement, "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)
"Congressman Griffith's excuse that the language in H.R. 3558, that would allow large businesses to continue to receive federal small business contracts, was an accident is simply not believable," ASBL President Lloyd Chapman said. "It's ludicrous. I think Congressman Griffith is just another crooked politician and a classic example of everything the public hates about Washington. I think the American people are sick and tired of large corporations buying legislation from members of Congress, like Parker Griffith, that damage the middle class."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, October 1, 2009
Wednesday, September 30, 2009
Alabama Congressman Introduces Bill to Give Small Business Funds to His Top Campaign Contributors
FOR IMMEDIATE RELEASE
September 30, 2009
Petaluma, Calif. - On September 14, 2009, Alabama Congressman Parker Griffith (D - AL5) introduced a new bill, H.R. 3558, which will allow some of his largest campaign contributors to land billions of dollars in federal small business contracts. (http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3558ih.txt.pdf)
Boeing and Northrop Grumman are two of Congressman Griffith's largest campaign contributors. If H.R. 3558 becomes law, Boeing, Northrop Grumman and hundreds of Fortune 1000 firms will be able to hold on to billions of dollars in federal contracts earmarked for middle class firms. (http://tiny.cc/mp06p )
Information from the Federal Procurement Data System-Next Generation (FPDS-NG) indicates the Obama Administration counted billions of dollars in contracts to many of the largest firms in the world towards the government's 23 percent small business contracting goal. During fiscal year (FY) 2008, the Obama Administration included over $775 million in awards to Textron in the government's small business data. Textron is a Fortune 500 firm with 43,000 employees and annual revenue of over $14 billion. In addition to Fortune 500 firms in the U.S., billions of dollars in contracts awarded to corporate giants in Italy, England, France, Holland and Korea were included in the Obama Administration's small business statistics.
The American Small Business League (ASBL) estimates that legitimate small businesses are losing over $100 billion a year in federal small business contracts as a result of the abuses. The ASBL has won a series of lawsuits against several federal agencies, which have forced the release of thousands of pages of data indicating that corporate giants in the U.S. and abroad have received hundreds of billions of dollars in federal small business contracts for over 10 years. (http://www.asbl.com/aboutus.html)
The Small Business Administration Office of Inspector (SBA OIG) condemned the diversion of federal small business contracts to corporate giants in Report 5-15, referring to the abuses 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)
If Congressman Griffith's bill becomes law, billions of dollars in federal small business contracts could be diverted to Fortune 500 firms, corporate giants around the world, and their subsidiaries indefinitely.
In May of 2009, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009, which will have the opposite effect of H.R. 3558. The ASBL played a major role in the drafting of H.R. 2568. The bill will halt the flow of federal small business contracts to large business. The ASBL estimates H.R. 2568 will redirect over $100 billion a year back to legitimate small businesses and deliver the largest economic stimulus for middle class firms to date.
(http://www.asbl.com/documents/hr2568.pdf)
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
September 30, 2009
Petaluma, Calif. - On September 14, 2009, Alabama Congressman Parker Griffith (D - AL5) introduced a new bill, H.R. 3558, which will allow some of his largest campaign contributors to land billions of dollars in federal small business contracts. (http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3558ih.txt.pdf)
Boeing and Northrop Grumman are two of Congressman Griffith's largest campaign contributors. If H.R. 3558 becomes law, Boeing, Northrop Grumman and hundreds of Fortune 1000 firms will be able to hold on to billions of dollars in federal contracts earmarked for middle class firms. (http://tiny.cc/mp06p )
Information from the Federal Procurement Data System-Next Generation (FPDS-NG) indicates the Obama Administration counted billions of dollars in contracts to many of the largest firms in the world towards the government's 23 percent small business contracting goal. During fiscal year (FY) 2008, the Obama Administration included over $775 million in awards to Textron in the government's small business data. Textron is a Fortune 500 firm with 43,000 employees and annual revenue of over $14 billion. In addition to Fortune 500 firms in the U.S., billions of dollars in contracts awarded to corporate giants in Italy, England, France, Holland and Korea were included in the Obama Administration's small business statistics.
The American Small Business League (ASBL) estimates that legitimate small businesses are losing over $100 billion a year in federal small business contracts as a result of the abuses. The ASBL has won a series of lawsuits against several federal agencies, which have forced the release of thousands of pages of data indicating that corporate giants in the U.S. and abroad have received hundreds of billions of dollars in federal small business contracts for over 10 years. (http://www.asbl.com/aboutus.html)
The Small Business Administration Office of Inspector (SBA OIG) condemned the diversion of federal small business contracts to corporate giants in Report 5-15, referring to the abuses 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)
If Congressman Griffith's bill becomes law, billions of dollars in federal small business contracts could be diverted to Fortune 500 firms, corporate giants around the world, and their subsidiaries indefinitely.
In May of 2009, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009, which will have the opposite effect of H.R. 3558. The ASBL played a major role in the drafting of H.R. 2568. The bill will halt the flow of federal small business contracts to large business. The ASBL estimates H.R. 2568 will redirect over $100 billion a year back to legitimate small businesses and deliver the largest economic stimulus for middle class firms to date.
(http://www.asbl.com/documents/hr2568.pdf)
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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