Lloyd Chapman: Obama Administration Wants Secret "Blacklist" for Pentago...

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Defense Authorization Bill Places Subjective Security Concerns Before Competition

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Pentagon Wants Secret Blacklist for Suppliers

SBA Loses Legal Battle Over Crisis Management PR Contract

FOR IMMEDIATE RELEASE
November 29, 2010

Petaluma, Calif. – The Small Business Administration (SBA) has lost another Freedom of Information Act lawsuit filed by the American Small Business League (ASBL). The ASBL filed suit after the SBA refused to turn over information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., an international public relations firm specializing in crisis management.

The ASBL suspects the SBA has spent American tax dollars to hire consultants to help obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.

In one case, the SBA paid $30,000 for a one-day meeting with APCO executives. In winning the lawsuit, the ASBL has now forced the SBA to turn over complete copies of those contracts.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts are going to corporate giants. In Report 5-15, the SBA’s own Office of Inspector General (IG) referred to the issue 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 from March of 2005, the SBA IG reported that large businesses had committed fraud by misrepresenting themselves as small businesses through “false certifications,” and “improper certifications.” Another investigation from the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as “vendor deception.”

In recent years, the SBA has claimed the diversion of federal small business contracts to large corporations has been the result of harmless "miscoding." In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)

“We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud,” ASBL President Lloyd Chapman said. “The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs.”

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Commerce Department & SBA Merger Could Cost Small Business Billions

Petaluma, Calif. – On November 10, the Obama Administration’s National Commission on Fiscal Responsibility and Reform shocked the small business community with the preliminary recommendation that the Small Business Administration (SBA) be absorbed by the U.S. Department of Commerce. The recommendation came as part of a plan that would cut federal spending by $200 billion through 2015.

The Small Business Administration (SBA) is the only federal agency to assist America’s chief job creators, its 27 million small businesses. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations.

As early as November 2008, American Small Business League (ASBL) President Lloyd Chapman predicted that the Obama Administration would attempt to close the SBA by merging it with the Commerce Department. “Based upon the extremely low priority that Obama has placed upon small business issues, it would not surprise me if he tried to completely close the Small Business Administration by combining it with the United States Department of Commerce," Chapman stated.

According to the commission chairs, combining the SBA with the Commerce Department, and shaving its combined budget by 10 percent would save a paltry $1 billion by 2015. However, the ASBL maintains that any savings resulting from a merger would be minuscule and fiscally insignificant in comparison to the staggering damage it would do to the middle class. The savings are especially insignificant when compared to $23 billion in Iraq contracts reported as, “Lost, Stolen, or unaccounted for,” by the BBC in 2008.

“Trying to save money by combining the SBA with the U.S. Department of Commerce is laughable. Not only would combining the SBA with the Department of Commerce save a minuscule amount of money, but it would also do irreparable damage to the nation’s middle class economy. I have been predicting that the Obama Administration would try to do this for a long time. This is not a move to save money. This is a move to try to allow large corporations to keep billions in federal small business contracts,” Chapman said. “Here we are in the worst economic downturn in 80 years. We should be doing everything we can to help small businesses, not destroy the one federal agency designed to help them.”


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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

New York Congresswoman Backs Bill to Bring Billions in Contracts to State

FOR IMMEDIATE RELEASE
November 8, 2010

Petaluma, Calif. – New York Congresswoman Carolyn Maloney (D – 14) has offered her support for legislation that would infuse the state’s business community with billions of dollars in existing government infrastructure spending, save thousands of small businesses and create countless jobs.

H.R. 2568, the Fairness and Transparency in Contracting Act would end widespread fraud and abuse in federal small business contracting programs, while ensuring that the federal government is meeting its 23 percent small business contracting goal. The federal government has a congressionally mandated goal of awarding 23 percent of the total value of all prime contracts to small businesses.

“I admire the American Small Business League’s efforts to make sure that small businesses get their fair share of federal contracts. Since small firms are the engine of our economy, this mission could not be more timely or more necessary,” Representative Maloney said. “I look forward to working with the American Small Business League and my friend and colleague Congressman Johnson to make sure that the Fairness and Transparency in Contracting Act becomes law.”

Since 2003, over a dozen federal investigations have shown that billions of dollars in federal small business contracts have been diverted to corporate giants. In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) referred to the problem as, "One of the most important challenges facing the SBA and the entire Federal government today." (http://www.sba.gov/IG/05-15.pdf)

H.R. 2568 will stop large businesses from taking federal small business contracts by perfecting the Small Business Act's definition of a small business as "independently owned." The bill would prevent the federal government from awarding small business contracts to publicly traded firms, because they are publicly owned and would not qualify as "independently owned."

The American Small Business League has estimated that if passed H.R. 2568 would redirect more than $100 billion a year in federal spending to the nation’s 27 million small businesses. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations. (http://www.sba.gov/advo/research/rs359.pdf)

New York's more than 2 million small businesses are receiving a fraction of the dollars they should be receiving. If signed into law, small businesses in the State of New York could see their volume of federal contracts increase by several billion dollars a year.

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Election Night 2010 Small Business Perspective

Department of Homeland Security Sued Over Boeing Contract

FOR IMMEDIATE RELEASE
November 1, 2010

Petaluma, Calif. – The Department of Homeland Security (DHS) is being sued by the American Small Business League (ASBL) for refusing to release subcontracting reports on contracts awarded to defense giant Boeing. (http://www.asbl.com/documents/Complaint_47KB_Boeing.pdf)

The ASBL filed suit in United States District Court, Northern District of California on Tuesday, October 26. The case was filed after DHS repeatedly refused to respond to a Freedom of Information Act (FOIA) request for Individual Subcontracting Reports (ISR) and Summary Subcontracting Reports (SSR) on a prime contract awarded to Boeing.

The ASBL believes the information contained in the reports may show that Boeing and the DHS cooperated in an effort to circumvent federal law, which requires 23 percent of all federal contracts to be awarded to small businesses. The ASBL is gathering information on several major government prime contractors in preparation for litigation that may include cases filed under the False Claims Act, and Section 16(d) of the Small Business Act.

In 1992, the 9th Circuit Court of Appeals ruled that subcontracting reports are releasable to the public, and do not contain trade secret or proprietary information.

“It is really kind of silly that we are having to file this suit because the 9th Circuit ruled over 20 years ago that this information is releasable. The fact that DHS is willing to get involved with a lawsuit they have no hope of winning, really speaks to the damaging nature of this information,” ASBL President Lloyd Chapman said.

The ASBL has won a series of Freedom of Information Act (FOIA) cases against the federal government. Some of the information obtained by the ASBL indicates the federal government diverted small business contracts to Boeing and hundreds of other Fortune 1000 firms. The Obama Administration is currently awarding small business contracts to firms such as Lockheed Martin, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, and Dell Computer. (http://www.asbl.com/documentlibrary.html)

To date, the ASBL has six outstanding lawsuits in the federal court system and plans to file a series of additional lawsuits before the end of the year.


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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Congress to Investigate Pentagon Comprehensive Test Program

FOR IMMEDIATE RELEASE
October 26, 2010

Petaluma, Calif. – On Thursday, October 21, five members of the House of Representatives, lead by Congresswoman Yvette Clarke (D-NY) asked the U.S. Government Accountability Office (U.S. GAO) to investigate a Department of Defense (DoD) subcontracting program that appears to have slashed subcontracting opportunities for small businesses. In addition to Congresswoman Clarke, the request was backed by Representatives Bennie Thompson (D-MS), Carolyn Maloney (D-NY), Lynn Woolsey (D-CA), and Chellie Pingree (D - ME).

While the stated mission of the Comprehensive Subcontracting Plan Test Program (CSPTP) is to increase contracts to small businesses, the American Small Business League (ASBL) has long maintained that the program actually allows large government prime contractors to circumvent small business subcontracting goals. As established, the program eliminated subcontracting reports available to the public, and penalties for non-compliance with subcontracting goals.

“Federal contracting data calls into question whether the 14 large prime contractors who are participants in the CSPTP are actually meeting their small business subcontracting goals,” the letter states.

The CSPTP was established in 1990. To date the Program has never been evaluated.

“Clearly this program wasn’t designed to help small businesses, it was designed to help prime contractors avoid paying liquidated damages for non-compliance with their small business subcontracting goals,” ASBL President Lloyd Chapman said. “The elimination of this program would force prime contractors to award billions more in subcontracts to small businesses and create jobs across the country.”

Participants of the program include BAE Systems, GE Aviation, Lockheed Martin, Raytheon, and Harris Corporation and seven other prime contractors. According to federal data, participants of the CSPTP received $55.24 billion in contracts from DoD during fiscal year (FY) 2009. 1 out of every 6 dollars spent by DoD during FY 2009 were awarded to participants of the program.

“As a Member of the House Small Business Committee, I know the importance of the federal government meeting goals that it has put in place to create business opportunities for small businesses. Evaluating the Comprehensive Subcontracting Plan Test Program (CSPTP) is imperative so that we fully understand if this program has created the subcontracting opportunities for small and disadvantaged businesses that it was designed to do. For 20 years this program has been in place, and now is the time we fully examine its progress,” stated Rep. Clarke. “Small businesses are the economic engine for our country. Know that I will continue to hold a high level of accountability for our federal government on behalf of our small businesses nationwide.”

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Rep. Altmire: Most Anti-Business Lawmaker

9th Circuit Rules SBA Does Not have to Release Agency Phone Records

FOR IMMEDIATE RELEASE
October 19, 2010

Petaluma, Calif. – On Friday, the 9th Circuit Court of Appeals released its ruling in a lawsuit filed by the American Small Business League (ASBL) against the Small Business Administration (SBA) regarding the agency’s phone records. The case was filed under the Freedom of Information Act (FOIA).

The ASBL originally requested phone records for SBA Press Office Chief Mike Stamler. The ASBL believes that Stamler and the SBA Press Office have engaged in a campaign to discourage the media from reporting on the diversion of federal small business contracts to Fortune 500 firms and corporate giants around the world.

Through the course of litigation, the SBA has claimed that it does not have access to its own phone records. On Friday, the appellate court ruled that the agency is not required to retrieve records from a third party if the government has not specifically contracted for the storage of those records.

Over the last several years, the ASBL has won a series of lawsuits against the SBA, which have shown that the SBA has lied to Congress, the public and the media about the diversion of more than $100 billion a year in federal small business contracts to corporate giants.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in small business contracts awarded to large businesses. In Report 5-14, the SBA Office of Inspector General found the SBA itself had awarded small business contracts to large businesses. The most recent data released by the government shows large recipients of small business contracts like: Lockheed Martin, Boeing, L-3 Communications, Raytheon, British Aerospace (BAE), General Dynamics, Rolls-Royce and Dell Computer.

Despite these findings, the SBA issued a press release claiming that it was a myth that large businesses received federal small business contracts.

During 2010, the ASBL issued similar FOIA requests to several other federal agencies. In each case, the records were released. The SBA is the only agency that has been unwilling to provide its phone records.

“I am disappointed in the 9th Circuit Court’s ruling, but I am gratified that we have been able to show how desperate the SBA Press Office is to withhold potentially damaging phone records. Clearly they have something to hide,” ASBL President Lloyd Chapman said. “I want to promise the SBA, and its Administrator Karen Mills, that the ASBL will continue its legal campaign to expose the fact that the SBA has lied about the diversion of small business contracts to large businesses.”

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Obama Rhetoric on Infrastructure Spending Doesn’t Match Administration Actions

FOR IMMEDIATE RELEASE
October 12, 2010

Petaluma, Calif. – On Monday, President Barack Obama emphasized the importance of putting Americans back to work using federal infrastructure projects. Yet, despite strong rhetoric on jobs, President Obama has failed to stop the purge of jobs caused by the diversion of billions of dollars a month in federal small business contracts to corporate giants.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts, actually flowing into the hands of Fortune 500 corporations and other clearly large businesses. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” (http://www.asbl.com/documentlibrary.html)

The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. Some of the firms the Obama Administration has allowed to be included as small businesses are: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, Dell Computer, French firm Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

Textron Inc., a Fortune 500 firm with 43,000 employees and annual sales over $14 billion, received approximately $775 million in federal small business contracts in a single year. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf

In February of 2008, presidential candidate Barack Obama recognized the magnitude of the problem when he promised to, “End the diversion of federal small business contracts to corporate giants." To date, President Obama has failed to honor that promise. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

In May, the ASBL conducted an examination of the Obama Administration’s track record for small businesses and uncovered a dramatic disparity between President Obama’s rhetoric and his actions. In addition to failing to stop the diversion of federal small business contracts to corporate giants, the Obama Administration has:

1. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag."
2. Failed to allocate more than 3 percent of stimulus funds to small businesses.
3. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.
(www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

GTSI Admitted They Were Not a Small Business on 1999 SEC Documents

FOR IMMEDIATE RELEASE
October 7, 2010

Petaluma, Calif. – In 1999, GTSI, a Top 50 government contractor reported that it was no longer a small business for the purposes of government contracting. Yet from fiscal year (FY) 2004 to FY 2010, GTSI received more than $1.18 billion in federal small business contracts. Data from the Federal Procurement Data System – Next Generation (FPDS-NG) indicates that GTSI received as much as $268 million a year in small business contracts over the 7-year period. (http://www.asbl.com/documents/GTSI_FY1999.pdf; http://www.asbl.com/documents/GTSI_FY2000.pdf)

The company’s 1999 annual report to the Securities and Exchange Commission (SEC) stated, “As a result of the acquisition of the BTG Division in February 1998, GTSI no longer qualifies as a small business for contract awards after February, 1998.” The company reiterated that statement in its 2000 report.

On October 1, the Small Business Administration (SBA) suspended GTSI from federal contracting programs. The suspension came as the result of government allegations that the company inappropriately gained access to contracts set aside for small businesses.

Section 16(d) of the Small Business Act, prescribes penalties of up to $500,000 and up to 10 years in prison for firms that misrepresent themselves as small businesses in order to illegally receive federal small business contracts.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a year in federal small business contracts flowing into the hands of corporate giants around the world. The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

Large businesses included in the Obama Administration’s small business data include: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, and General Electric. (http://www.asbl.com/documentlibrary.html#5-15)

In Report 5-15, the SBA’s 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.”

“This is a serious federal crime that carries a penalty of up to 10 years in prison. The fact that the SBA waited almost 12 years to suspend GTSI after they admitted that they were not a small business, is proof they are assisting these large firms in high-jacking small business contracts. It is time for the Justice Department to step in and take over the investigation from the SBA,” ASBL President Lloyd Chapman said.

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Jobs Bill Should Include Language to Increase Contracts for Small Businesses

Jobs Bill Should Include Language to End the Diversion of Small Business Contracts to Corporate Giants

Petaluma, Calif. – In February of 2008, Barack Obama promised small businesses that if elected president he would, “end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

President Obama’s campaign promise was based upon a series of federal investigations, which found that Fortune 500 firms and thousands of large businesses in the U.S. and Europe received billions of dollars in federal small business contracts. The first federal investigation was held in May of 2003. Today, large businesses continue to receive billions of dollars in federal contracts intended for small businesses.

The American Small Business League (ASBL) strongly encourages Congress to add language to H.R. 5297, the Small Business Jobs Act, which would simply halt the diversion of federal small business funds to corporate giants. The ASBL maintains that ending these abuses would be the most effective and efficient means of stimulating the American economy and creating jobs.

According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations. (http://www.sba.gov/advo/research/rs359.pdf)

The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses.(http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

The federal government has a goal of awarding 23 percent of all government contracts to small businesses. The ASBL has estimated that the government is currently awarding less than 5 percent of its purchases to small businesses. Ending the diversion of federal small business contracts to corporate giants could increase the volume of government dollars awarded to small businesses by more than 18 percent.

In April of 2010, U.S. Senate Committee on Small Business and Entrepreneurship Chair, Mary L. Landrieu (D-LA), estimated that increasing contracts to small businesses by just 1 percent, would create more than 100,000 new jobs. Based on this estimate, ending this fraud and abuse could create more than 1.8 million new jobs. (www.smallbusinessmajority.org/_docs/resources/SBC_Jobs_Package.pdf)

“If President Obama wants to create jobs, it’s real simple; quit giving small business contracts to Fortune 1000 firms and large businesses. He could do that with one or two sentences in the jobs bill,” ASBL President Lloyd Chapman said.


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Contact:
Christopher Gunn
Communications Director
American Small Business League
(707) 789-9575

Obama Jobs Bill Could be Job Killer for Small Businesses

Obama Jobs Bill Could Slash Contracting Opportunities for Small Businesses

FOR IMMEDIATE RELEASE
September 15, 2010

Petaluma, Calif. – President Barack Obama’s small business jobs bill contains a dangerous loophole that could encourage billions of dollars in fraud in small business contracting programs, and protect fraudulent companies from prosecution. The bill is currently pending in the U.S. Senate.

Section 1341 of H.R. 5297, the Small Business Jobs Act, contains provisions that would allow the Small Business Administration (SBA) to develop policies and procedures that would protect large businesses that have misrepresented themselves as small businesses from prosecution for felony contracting fraud.

Since 2003, over a dozen federal investigations have found billions of dollars a month in federal small business contracts have been diverted to Fortune 500 firms, large businesses throughout the U.S. and some of the largest companies in Europe.

In 2005, the SBA Office of Inspector General (SBA IG) referred to the diversion of federal small business contracts to large businesses 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 IG found that large businesses had received federal small business contracts fraudulently by making “false certifications” and “improper certifications.” (http://www.asbl.com/documents/05-16.pdf)

Section 1341 of President Obama’s jobs bill would give the SBA a blank check to develop policies that could protect large corporations from prosecution under the law. Section 16(d) of the Small Business Act prescribes a penalty of up to ten years in prison and a fine of not more than $500,000 per occurrence for firms that have misrepresented themselves as small businesses.

For over a decade, the SBA has attempted to cover-up flagrant abuses in the program by claiming they were the result of miscoding and computer glitches. In one case, Pevco, a Baltimore based small business began losing small business contracts to one of the largest companies in Switzerland. Pevco Chairman Fred Valerino Sr. contacted his congressman, and the SBA responded by claiming that Translogic Corporation received 147 small business contracts over a six-year period “accidentally.”

“The harm done to small businesses by Section 1341, would greatly outweigh any minor benefit the other provisions of the bill might provide,” ASBL President Lloyd Chapman said. “This paragraph could legalize billions of dollars in federal contracting fraud and be tantamount to repealing the small business act. We are going to do everything we can to block this section of the bill. It would only encourage fraud and abuse, divert more federal funds away from legitimate small businesses, and cost America jobs.”


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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Huge Loophole in Senate Jobs Bill

Obama Administration Should Focus Government Spending on Small Businesses

New Obama Economic Policies Will Ignore Simple Solution to Stimulus

President Barack Obama is set to rollout a new economic plan on Wednesday. The American Small Business League (ASBL) predicts that the plan will completely ignore the simplest, most logical and effective means of creating jobs and stimulating the nation’s failing economy; bringing an end to the diversion of federal small business contracts to corporate giants.

Small businesses are the backbone of America’s economy, and a major engine for job creation. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs in America, over 50 percent of the gross domestic product (GDP), and over 90 percent of all U.S. exports and innovations.

Congress established small businesses as the economic engine of the nation with the passage of the Small Business Act of 1953. Today federal law requires a minimum of 23 percent of all federal contracts to be awarded to small businesses. With the annual federal acquisition budget for foreign, domestic, classified and unclassified acquisitions hovering around $1 trillion, small businesses should be receiving roughly $230 billion a year in federal contracts.

On August 27, the Obama Administration announced that it missed its 23 percent goal, awarding 21.89 percent to small businesses. The ASBL has estimated that as a result of the diversion of federal small business contracts to corporate giants, the government actually awarded less than 5 percent of its purchases to small businesses.

To further compound the issue, since 2003 over a dozen federal investigations have found most federal small business contracts actually go to Fortune 500 firms and corporate giants around the world.

President Obama realized the magnitude of this problem during his campaign when he released the statement, “It is time to end the diversion of federal small business contracts to corporate giants.” To date President Obama has failed to honor that promise.

“If President Obama really wants to create jobs in the most cost effective and efficient way, he should direct the Small Business Administration to end policies that divert billions of dollars a month in federal small business contracts to corporate giants,” ASBL President Lloyd Chapman said. “This will create more jobs than anything else, and he could do it without congressional approval.”

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575

An Open Letter to House Speaker Nancy Pelosi from American Small Business League President Lloyd Chapman

FOR IMMEDIATE RELEASE
September 2, 2010

Petaluma, Calif. – Despite at least $3 trillion in government spending aimed at stimulating the economy, a multitude of economic indicators now show that the economy is poised to slip into a double dip recession. I believe, as I am sure you do, that we need to bring down unemployment in order to stimulate the economy. To date, none of the actions taken by Congress or the Obama administration have met that need.
(http://money.cnn.com/news/storysupplement/economy/bailouttracker/)

As you may know, small businesses create the overwhelming majority of net new jobs in America. According to the U.S. Census Bureau, businesses with less than 20 employees create over 97 percent of net new jobs. (http://www.inc.com/news/articles/200708/data.html) Statistics from the Small Business Administration (SBA) Office of Advocacy indicate that small businesses create over 90 percent of all net new jobs. (http://www.sba.gov/advo/research/rs359.pdf) Any effort to create jobs must be focused on small businesses.

One of the most effective economic stimulus programs ever passed by the U.S. Congress was the Small Business Act of 1953. The Small Business Act requires that 23 percent of the total value of all government contracts must go to small businesses. This makes perfect sense, considering the important role small businesses play when it comes to the U.S. economy and job creation.

Since 2003, over a dozen federal investigations have found that most small business contracts actually go to Fortune 500 firms, European conglomerates and thousands of other large businesses around the world. Some of those companies are: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, General Electric, Honeywell International Corporation, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy and has 73,000 employees. (http://www.asbl.com/documentlibrary.html#5-15)

In March of 2005, the SBA Inspector General referred to this problem 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) The SBA Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years. (http://www.sba.gov/ig/onlinelibrary/tmc/index.html) Even President Obama recognized the magnitude of the problem in February of 2008 when he said, “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)

Ending the diversion of small business contracts to large businesses would redirect over $100 billion a year in federal contracts back into the middle class economy. This would be the most powerful economic stimulus to date and can be used to drive demand directly into the hands of our nation’s small businesses. With this economic stimulus in mind, I urge you to support H.R. 2568, the Fairness and Transparency in Contracting Act. It was introduced by Georgia Congressman Hank Johnson, and currently has 26 cosponsors. This bill is a deficit neutral means of ending the 10-year-old contracting scandal that has facilitated the diversion of over $1 trillion in small business contracts to corporate giants.

The single most effective and deficit neutral way to create jobs is to direct existing federal infrastructure spending to the middle class. So if you want to stimulate the economy and create jobs, H.R. 2568 would be the most effective way to do that. It could be passed and signed into law as soon as Congress comes back in session. I believe that H.R. 2568, which would bring over $100 billion a year, and every year, to small businesses, would be more effective than a one-time shot of $30 billion in loans.

As our nation slides into its worst economic disaster in history; it would be inexcusable to allow the continued diversion of billions of dollars a month in small business contracts to corporate giants. I think that the Democratic Party and President Obama would be wise to take dramatic action to stave off a double dip recession before the November election, and I think that H.R. 2568 would accomplish that.

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

An Open Letter to First Lady Michelle Obama from American Small Business League President Lloyd Chapman

FOR IMMEDIATE RELEASE
September 1, 2010

Petaluma, Calif. – I am writing to you today because I am hoping you will help save millions of American small businesses from bankruptcy. I realize that you, as a mother and as someone who came from a hardworking middle class family, could not only sympathize, but also help with the situation we are currently in. I am very concerned, as I am sure you are, about the state of our nation’s economy. And while I know that President Obama is trying to stay positive, all of the economic indicators are alarming, and there is certainly evidence that we could slip into another recession.

Our country is in the worst economic crisis in 80 years, and the situation appears to be degrading. Yet, as I watch what the government has done over the last few years, it does not make much sense to me. I think everyone agrees that small businesses create the overwhelming majority of net new jobs in America. According to the U.S. Census Bureau, businesses with less than 20 employees create over 97 percent of net new jobs. (http://www.inc.com/news/articles/200708/data.html) The Small Business Administration (SBA) Office of Advocacy statistics indicate that small businesses create over 90 percent of all net new jobs. (http://www.sba.gov/advo/research/rs359.pdf) Yet, even though Small businesses create almost all of the net new jobs in America, the government gives the majority of small business contracts to large corporations. That simply does not make sense.

What I am trying to do, and would like your help with, is very logical. I don’t think the government should award small business contracts to Fortune 500 firms and some of the biggest corporations from around the world. I believe that 99 percent of all Americans would agree with me, particularly in this current economic climate, that the government should not be diverting billions of dollars in contracts to large corporations that by law are supposed to be going to small businesses.

Since 2003, there have been over a dozen federal investigations, which have found Fortune 500 firms and thousands of large companies around the world as the actual recipients of federal small business contracts. (http://www.asbl.com/documents/05-15.pdf) The SBA’s Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years. (http://www.sba.gov/ig/onlinelibrary/tmc/index.html)

One of the most powerful stimulus bills ever written was the Small Business Act, which currently states that small businesses are to receive a minimum of 23 percent of the total value of all federal contracts, but that is not happening. On Friday, the SBA released its fiscal year (FY) 2009 small business contracting data and claimed to have awarded over $96 billion, or 21.89 percent, in federal contracts to small businesses. In reality, of the top 100 recipients of small business contracts, 60 were large businesses that received 65 percent of the total contract dollars. Some of the firms included as small businesses were: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, General Electric and Honeywell International Corporation. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

If the Obama Administration were to simply do as federal law mandates and ensure that 23 percent of all federal contracts actually went to small businesses, it would create millions of jobs and could potentially be our strongest defense against a double dip recession.

I have helped draft a bill titled, H.R. 2568, the Fairness and Transparency in Contracting Act. It was introduced by Georgia Congressman Hank Johnson (D-04) and currently has 26 cosponsors. This legislation is deficit neutral, and will do more to help create jobs than anything proposed to date.

I wanted to bring this to your attention in the hope that you will help us with this important cause. As our economy continues to falter, and American families are faced with heartache and despair; action needs to be taken quickly before thousands more lose their jobs and their homes. A real and simple solution exists in the form of H.R. 2568, which could begin to rescue our economy from the precipice.

I am simply asking for you help, to use your influence to do anything you think would be appropriate to convince President Obama to fulfill the campaign promise he made in February 2008 in which he stated, “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)

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Obama Tries to Downplay Questionable Small Business Data

FOR IMMEDIATE RELEASE
August 30, 2010

Petaluma, Calif. – The Obama Administration has released its fiscal year (FY) 2009 Small Business Procurement Scorecard, reporting that the government missed its 23 percent small business contracting goal. In its scorecard, the government claimed to have awarded a mere 21.89 percent to small businesses, while also failing to meet congressionally mandated contracting goals for women, Service Disabled Veteran Owned Small Businesses and HUBZone firms. The Obama Administration missed 4 of its 5 contracting goals. (http://www.businesswire.com/news/home/20100827005701/en)

The American Small Business League (ASBL) maintains that based on a recent evaluation of FY 2009 small business contracting data, the actual percentage of contracts awarded to small businesses is closer to 5 percent. In June, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

The ASBL also identified a series of Fortune 500 corporations and other large firms in the government’s 2009 contracting data. Recipients of small business contracts included: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, General Electric, Booz Allen Hamilton, Thales Communications, General Dynamics, and Dell Computer.

Since 2003, more than a dozen federal investigations have found billions of dollars a month in federal small business contracts flowing into the hands of corporate giants. (http://www.asbl.com/documentlibrary.html)

The ASBL believes the Obama Administration has dramatically inflated the percentage of contracts awarded to small businesses by under-reporting the actual federal acquisition budget and by including billions of dollars in contracts awarded to large businesses. The actual federal acquisition budget for foreign, domestic, classified and unclassified projects is roughly $1 trillion. The Obama Administration’s goaling achievement is based on a number that is less than half of the actual federal acquisition budget.

As the American Small Business League predicted, the Obama Administration released its FY 2009 small business contracting numbers near the close of business on Friday afternoon. The late release of data is a clear indication the Obama Administration was trying to avoid scrutiny form the mainstream media. (http://www.huffingtonpost.com/lloyd-chapman/obama-administration-fabr_b_693359.html, http://www.huffingtonpost.com/lloyd-chapman/obama-administration-will_b_674073.html)

“President Obama is not fooling anyone. These 5 o’clock Friday afternoon press releases are like sending up a signal flare that the data is fabricated,” ASBL President Lloyd Chapman said. “Every year billions of dollars in federal contracts are diverted to Fortune 500 corporations and other large businesses, and every year the government fabricates its numbers. It is time for Congress and the Obama Administration to pass H.R. 2568, the Fairness and Transparency in Contracting Act, and end this abuse once and for all.”

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575

Obama Refusing to Back Private Sector Jobs Bill

FOR IMMEDIATE RELEASE
August 24, 2010

Petaluma, Calif. – President Barack Obama is refusing to back a bill that could create millions of jobs in the private sector. The bill, the Fairness and Transparency in Contracting Act, H.R.2568, was introduced by Georgia Congressman Hank Johnson last May. The American Small Business League (ASBL) wrote the original draft of H.R. 2568. The bill is designed to stop the federal government from diverting over $100 billion a year in federal small business contracts to Fortune 500 firms and many of the largest businesses in Europe.

Since 2003, a series of federal investigations have found billions of dollars a month in federal small business contracts have been diverted to firms like Lockheed Martin, Boeing, Northrop Grumman, Raytheon, General Dynamics, Bechtel, Dell Computer and Xerox. Corporate giants from around the world that have received U.S. government small business contracts include Rolls-Royce, British Aerospace (BAE), French giant Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy and has 73,000 employees. A recent investigation by Stars and Stripes Magazine found the federal government had awarded over $41.6 billion in small business contracts to “miscellaneous foreign contractors.” (http://www.stripes.com/blogs/ombudsman/ombudsman-1.8931/behind-the-media-contractors-veil-1.110840)

H.R. 2568 would stop the federal government from reporting contract awards to publicly traded firms and foreign owned companies as small business awards. The bill is based on language in the Small Business Act, which states that a small business must be “independently owned” in order to receive federal small business contracts.

If President Obama were to sign H.R. 2568 into law, or pass by executive order, over $100 billion in existing federal infrastructure spending would be redirected to legitimate small businesses in the private sector. Since the bill requires no new spending or tax increases, it is deficit neutral. The Obama Administration had estimated that for every billion dollars in infrastructure spending, 40,000 new jobs would be created. Based on those projections, if H.R. 2568 were to become law, over four million new jobs could be created. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html?hp)

The ASBL points to H.R. 2568 as being far superior to the Obama Administration’s $30 billion small business lending bill. As opposed to a one-time infusion of $30 billion in loans, H.R. 2568 would inject over $100 billion a year in federal contracts into the small business economy for decades to come.

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

CNBC: It's All About Jobs with ASBL President Lloyd Chapman

Rep. Carolyn Maloney (D - NY): Congress Can and Should Help Small Businesses

Contracting Reform Bill Will Trump Obama Jobs Bill

This week the United States Senate is slated to vote on another round of lending focused “jobs legislation,” which may do little to stimulate the nation’s economy or create jobs. H.R. 5297, the Small Business Jobs and Credit Act of 2010 would direct $30 billion in federal assistance to community banks as a means of bolstering lending. (http://www.opencongress.org/bill/111-h5297/show)

The American Small Business League (ASBL) is concerned that Congress and the Obama Administration are focusing attention on tired solutions that have not worked, while ignoring solutions that would directly funnel billions of dollars a year in federal spending to America’s 27 million small business owners.

Small businesses are the backbone of the American economy. According to the U.S. Census Bureau small businesses are responsible for more than 50 percent of the nation’s non-farm private sector workforce, 90 percent of innovations, 90 percent of exports and nearly 100 percent of net new jobs. A recent study from the Kauffman Foundation found that companies less than 5 years old create nearly all-net new jobs. (http://www.inc.com/news/articles/200708/data.html)

The ASBL strongly believes the best way to stimulate the nation’s economy is to direct federal infrastructure spending to the middle class.

Since 2003, more than a dozen federal investigations have uncovered the diversion of more than $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe. H.R. 2568, the Fairness and Transparency in Contracting Act would stop the diversion of government small business contracts to corporate giants, and redirect those funds to small businesses in the middle class. The ASBL believes that if passed, H.R. 2568 would do more to stimulate the nation’s economy than anything proposed by the Obama Administration or Congress to date. (http://www.opencongress.org/bill/111-h2568/show)

Recently, the Congressional Oversight Panel, and the National Federation of Independent Businesses (NFIB) released highly critical reports regarding the Obama Administration’s efforts to further bolster community bank lending to small businesses. Both reports indicated that small businesses across the country are in need of business opportunities and increased demand for their products and services as opposed to increased access to capital. (http://www.nfib.com/Portals/0/PDF/sbet/SBET201006.pdf ; http://www.huffingtonpost.com/2010/05/13/federal-oversight-panel-s_n_574781.html)

“It does not make sense to continue giving billions of dollars a year in federal small business contracts to corporate giants, and then turn around and try lending billions of dollars to small businesses who are floundering in a dire economic environment,” ASBL President Lloyd Chapman said.

Georgia Congressman Hank Johnson Champions Small Business Legislation

American Small Business League Endorses Congressman Hank Johnson

PETALUMA, Calif.- Based on his strong track record for small businesses, the American Small Business League (ASBL) has endorsed Congressman Hank Johnson (D – GA) for re-election. The ASBL is the only national small business advocate committed to stopping widespread fraud and abuse in federal small business contracting programs.

“As far as I am concerned, every small business in America owes Congressman Hank Johnson a debt of gratitude. He is leading the charge against the diversion of federal small business contracts to large corporations, and taking on big businesses that are hijacking billions of dollars a month in federal small business contracts,” ASBL President Lloyd Chapman said. “Hank Johnson is a hero to me, and I think he is a hero to every small business in the country.”

During the 111th Congress, Congressman Johnson introduced H.R. 2568, the Fairness and Transparency in Contracting Act. The bill would stop the diversion of billions of dollars a month in federal small business contracts to corporate giants. If signed into law, H.R. 2568 would direct more federal funds into the hands of Georgia’s small businesses than anything proposed by the Obama Administration or any other member of Congress to date. http://www.asbl.com/documents/hr2568.pdf

Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal contracts intended for small businesses actually flowing into the hands of large businesses. H.R. 2568, would put a halt to this ten-year contracting scandal, and redirect billions of dollars in federal infrastructure funds to the middle class economy. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

During FY 2009, Georgia small businesses received $2.15 billion in contracts from the federal government. The ASBL has estimated that the passage of H.R. 2568 could more than double the volume of federal contracts awarded to small businesses in Georgia.

Department of Defense: The Black Hole of Small Business Contracts

By: Kevin Baron, ASBL

The federal government has a congressionally mandated goal when it comes to giving contracts to small businesses. The Small Business Act states,

The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year.” So the government must spend a minimum of 23 percent of all prime contract dollars with small businesses every year.

Each fiscal year, the Department of Defense (DoD) consistently accounts for between two-thirds to three-quarters of our entire governments procurement budget. For example, in fiscal year 2008, it is reported that the government spent a total of approximately $536 billion on prime contracts (not including black-op and intelligence spending, but that is for another post), of which DoD accounted for approximately $392 billion, or 73 percent.

There are several programs that have been set-up through DoD that are supposed to be beneficial for small businesses, but end up doing the complete opposite. One program in particular is the Comprehensive Subcontracting Plan Test Program (CSPTP). The CSPTP was passed by Congress in 1989 and went into effect on October 1, 1990, and is currently set to expire on September 30, 2010 unless reauthorized.

The program was established based on two concepts. The first was to make contracting easier for large prime contractors by reducing their paperwork and reporting requirements on their contracts. The second was to increase the opportunities for small businesses to work with the participating large prime contractors. I am not sure how decreasing transparency on contracts awarded to the biggest defense contractors in the country will increase opportunities for small businesses, but apparently enough members of Congress at the time thought it would work.

About six months ago, I filed a Freedom of Information Act (FOIA) request to DoD asking for the most recent audit, review or evaluation of the program in order to determine if the CSPTP was meeting its stated goals of increasing subcontracts for small businesses, especially Small Disadvantaged Businesses (SDBs), veteran and service disabled veteran owned businesses, woman owned businesses and HUBZones.

I got a phone call a few days later from the Acting Director of the Office of Small Business Programs at DoD, who told me she had received my request and was sending a non-response response, but she wanted to explain. She told me that they had no documents for what I was requesting because the program had never been evaluated. Now, take that in for a moment- a program has been in place for 20 years and has never been evaluated to see if it is working. Essentially, DOD has to conduct an evaluation on the program once it expires, but the program has been reauthorized three times since its inception, and every time it is reauthorized, it kicks back the date of the evaluation.

There are currently 14 participants in the CSPTP, consisting of companies like Boeing, Lockheed Martin, L-3 Communications, Northrop Grumman, and General Dynamics. One of the main problems with the CSPTP is that there is no penalty for non-compliance with the small business subcontracting goals. That means that when a high-dollar contract is awarded to one of these firms, if the small business subcontracting goals that are automatically attached to the contract are not met, or the company fails to meet the small business subcontracting goals as established in their own small business subcontracting plan, there is no punishment or penalties. So where is the incentive for these firms to subcontract with small businesses?

I have filed numerous FOIA requests asking for information on this program and DoD has turned me down on every one to date, although we plan on pursuing legal action if necessary. What we have seen in looking at subcontracting reports on these same firms through other agencies is that often, they are not meeting their small business subcontracting goals. It appears that the CSPTP is nothing more than a loophole to get large defense contractors out of having to meet government mandated small business goals.

The CSPTP needs to be eliminated. DoD accounts for almost three-quarters of the government’s entire procurement budget, and in fiscal year 2009, the 14 firms participating in the program received approximately 18 percent of DoD’s contract dollars. In fiscal year 2009, one out of every six dollars that DoD spent was going to one of the companies that participated in the program. This means that small businesses were losing out on literally billions of dollars in subcontracts every year for the past 20 years.

Now for the kicker, CSPTP reauthorization was not included in the House’s Defense Authorization bill that passed a few weeks ago, however, it is included the in Senate’s version. In S. 3280, a four-year reauthorization of the program is included in Title VIII, subtitle A, section 805.

I have spoken to numerous members of Congress about this program and have not found one yet who was familiar with the CSPTP. Why would this program continue to be reauthorized when no one, including DoD and members of Congress, has any idea as to whether it is working?

http://seminal.firedoglake.com/diary/60091

Jobs Report Proves Congress Should Pass Small Business Bill

A little known bill in Congress could be the best shot the Obama Administration has to cut unemployment. H.R. 2568, the Fairness and Transparency in Contracting Act has been floating around Congress for nearly two years, but has yet to garner attention from the Obama Administration. If the bill passed it would provide a more significant stimulus to the middle class economy than anything proposed by the Obama Administration to date. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)

Georgia Representative Hank Johnson (D-04GA) introduced H.R. 2568. The bill was written to address a longstanding problem in federal small business contracting programs that has allowed large businesses to land the lion's share of federal small business contracts.

The Small Business Administration Office of Inspector General (SBA IG) has named the diversion of federal small business contracts to large businesses as the number one management challenge facing the SBA for the last five consecutive years. The most recent data released by the Obama Administration indicated Textron, a Fortune 500 firm, was the largest recipient of federal small business contracts. Textron received over $775 million in government small business contracts in a single year. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

H.R. 2568 would end the abuses and redirect over $100 billion a year in existing federal infrastructure spending to legitimate small businesses. If President Obama were to sign H.R. 2568 into law, the bill would direct more money into private sector firms than any other economic stimulus program that had been proposed by the Obama Administration or Congress.

According to the US Census Bureau small business employ over 50 percent of the private sector workforce and are responsible for over 90 percent of all net new jobs in America.

The Obama Administration has estimated every billion dollars in stimulus spending will create 40,000 jobs. If those estimates are correct, H.R. 2568 could create 4 million new jobs. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html)

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Small businesses still struggling

Small businesses still struggling

Obama Administration Small Business Forum Shuns Critics

FOR IMMEDIATE RELEASE
June 23, 2010

Petaluma, Calif. - The Obama Administration has finally released the agenda of its June 28 small business forum. When the small business forum was originally announced on June 14, the administration requested input from small business owners and offered them the opportunity to sign up to address members of President Obama's "Interagency Task Force" on small business.

After angry small business owners from around the country registered to attend the forum and speak, the agenda was abruptly modified to apparently preclude any unscripted comments that could embarrass the Obama Administration with the attending press.

Small business owners were provided an agenda for the event via e-mail on Monday, just a week before the forum is scheduled to begin. According to the new guidelines, comments are to be limited to only three narrowly focused categories.

Small business owners that were preparing to blast the Obama Administration for giving less than 3 percent of the stimulus funds to small businesses, and breaking a series of campaign promises to the small business community, will not have that opportunity under the new agenda.

During the 2008 Presidential Campaign, President Obama promised to restore the Small Business Administration's (SBA) budget and staffing, restore the SBA Administrator to a cabinet level position, and implement the 5 percent set-aside contracting goal for women-owned firms, which was passed by Congress in 2000.

In February of 2008, President Obama also 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)

To date, President Obama has failed to honor any of his campaign promises to small business owners. The American Small Business League (ASBL) recently released a study, which found 16 instances where President Obama adopted polices that were harmful to small businesses. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

The most recent data released by the federal government indicates the Obama Administration has diverted billions of dollars in federal small business contracts to corporate giants in the United States, Europe and Asia. Firms included in the Obama Administration small business data included Lockheed Martin, Boeing, Raytheon, General Dynamics, Ssangyong Corporation headquartered in South Korea, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

"If President Obama sincerely wanted to stimulate the economy and help the small businesses that create nearly 100 percent of net new jobs, he would quit diverting federal small business funds to Fortune 500 firms," ASBL President Lloyd Chapman stated.

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Please click here to watch a clip regarding the ASBL's concerns: http://www.youtube.com/watch?v=YJh26mQySos



Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Obama Administration Small Business Forum Rules Discourage Attendance

FOR IMMEDIATE RELEASE
June 21, 2010

Petaluma, Calif. – On Monday, June 14, the Obama Administration surprised small business owners across the country by announcing a small business forum to be held at the U.S. Department of Commerce on June 28. The agenda has been so narrowly focused that it will be difficult, if not impossible, for meeting attendees to bring up President Obama's broken campaign promises to small businesses such as, "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 American Small Business League (ASBL) believes the Obama Administration has fast tracked the registration process and erected barriers as a means of discouraging attendance by small business interests outside the Washington D.C. area.

The ASBL maintains the short notice and other registration barriers may have a chilling effect on the attendance of small business owners who take issue with the Obama Administration's poor track record for small businesses. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

Although the forum was supposedly designed to collect input from small businesses on ways to increase their business with government, no small business registrant has received notification that they will be allowed to speak. Legitimate small business organizations or individual small business owners who had hoped to be heard, will not know if they will be allowed to speak. This has made it extremely difficult for small business owners outside the Washington area to attend. To make matters worse, the forum will be extremely short, which has also discouraged individuals around the country from attending.

The ASBL believes the true purpose of the forum is to gain support in the media for Obama Administration policies that may actually reduce small business contracting opportunities with the federal government.

"I guarantee President Obama will try to use his small business task force and this meeting to push policies that will actually reduce the volume of federal contracts to legitimate small businesses under the guise of helping small businesses," ASBL President Lloyd Chapman said. "A proposal to change the definition of a small business, which would divert small business funds to firms controlled by venture capitalists, is a certainty. I wouldn't be surprised if he tried to weaken small business programs further by breaking up the SBA. Big defense contractors and wealthy venture capitalists want the $150 billion that is supposed to go to small businesses, and they contributed hundreds of millions of dollars to President Obama and congress to achieve that goal."

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Obama Small Business Conference Draws Criticism

FOR IMMEDIATE RELEASE
June 17, 2010

Petaluma, Calif. – On Monday, June 14, the Obama Administration suddenly announced that it will hold a small business forum in Washington D.C. on June 28. Obama Administration officials claim the purpose of the forum is to collect public input on the administration's recently established Interagency Task Force on Small Business. (http://edocket.access.gpo.gov/2010/pdf/2010-14144.pdf)

Small business groups and owners around the country are concerned about the short notice the Obama Administration has given members of the small business community regarding the meeting. The American Small Business League (ASBL) believes the Obama Administration opted to hold the meeting in Washington D.C. on short notice to minimize comments from angry small businesses over the administration's failed small business track record. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

During the 2008 campaign President Obama made a wide variety of promises to the small business community, including a promise to, "end the diversion of federal small business contracts to corporate giants." To date, President Obama has refused to honor those promises.
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

In the most egregious example, President Obama has allowed the continued diversion of more than $100 billion a year in federal small business contracts to Fortune 500 firms and even some of the largest corporations in the world. Since 2003, over a dozen federal investigations have uncovered the diversion of billions of dollars in small business contracts to corporate giants. (http://www.asbl.com/documentlibrary.html)

The ASBL has launched a national campaign to rally small business groups and small business owners around the country to attend the meeting and send comments to the small business task force. The public has until Monday, June 21 to register to attend the event and Wednesday, June 30 to submit comments. (http://edocket.access.gpo.gov/2010/pdf/2010-14144.pdf)

"I'm predicting that the Obama Administration will use its 'small business task force,' and this sham meeting on June 28, to push anti-small business policies like: changing the definition of small business to include larger firms, increasing small business size standards or dismantling the SBA by combining it with the U.S. Department of Commerce," ASBL President Lloyd Chapman said. "If President Obama really wanted to help small businesses he would quit diverting small business funds to Fortune 500 firms. Small business owners around the country need to prepare themselves to oppose any new Obama Administration policy that will actually weaken federal small business contracting programs under the guise of helping small businesses."

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Lloyd Chapman: Help us save the economy with small businesses!

A video letter to the editor of the Central Valley Business Times. http://www.centralvalleybusinesstimes.com/letters/

General Services Administration Officials to be Deposed in Lawsuit Over Contracting Data

FOR IMMEDIATE RELEASE
June 10, 2010

Petaluma, Calif. – On Wednesday, June 9, United States District Court Judge William Alsup denied the American Small Business League's (ASBL) motion for a preliminary injunction against the General Services Administration (GSA). The ASBL originally filed the motion in response to GSA actions to remove information from the federal government's contracting database. Historically, the information has been used to uncover billions of dollars in small business contracts flowing to Fortune 500 firms. (http://www.asbl.com/documents/order_Denying_prelim.pdf)

Investigations by the Small Business Administration Office of Inspector General (SBA IG), U.S. Government Accountability Office (U.S. GAO) and inspector generals from a series of other federal agencies have used the field, "small business flag," to identify large companies masquerading as small businesses to receive federal contracts.

Since 2003, these investigations have uncovered billions of dollars in federal small business contracts actually ending up in the hands of Fortune 500 firms and some of the largest businesses in Europe and Asia. The most recent data released by the government indicates that the recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, General Dynamics, Ssangyong Corporation headquartered in South Korea, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

In response to the court's ruling, the ASBL intends to pursue a permanent injunction against the GSA to prevent the destruction of the field on all future and historical data available to the public.

In the court's ruling, Alsup stated, "In the present action, plaintiff has not shown that the deletion of the search fields was a significant revision. Nevertheless, it should be given opportunity to do so by obtaining discovery on the pedigree of the change." In accordance with Alsup's ruling, the ASBL will subpoena emails and other materials within the GSA. The ASBL believes the information will show that the destruction of the "small business flag" was in fact a "significant revision," in that it will make it difficult, if not impossible, for federal investigators to uncover billions in fraud and abuse in small business contracting programs.

"We are looking forward to deposing senior GSA officials, and issuing subpoenas for their internal documents. I am confident that we can prove the removal of the small business flag is not in the public interest," ASBL President Lloyd Chapman said. "It is obvious the GSA is attempting to reduce transparency, and hide the fact that the Obama Administration is diverting billions of dollars a week in federal small business funds to corporate giants."

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

NASA Sued For Refusing to Release Contracting Data on United Space Alliance

FOR IMMEDIATE RELEASE
June 9, 2010

Petaluma, Calif. – On Tuesday, June 8, the American Small Business League (ASBL) filed suit against the National Aeronautics and Space Administration (NASA) in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after NASA repeatedly refused to release subcontracting reports for contracts issued to United Space Alliance, LLC, a joint venture between defense giants Lockheed Martin and Boeing. (http://www.asbl.com/documents/20100608_NASA_USA_Complaint.pdf)

The ASBL originally requested information on United Space Alliance's compliance with small business subcontracting goals on NASA contracts awarded to the contractor. During fiscal year (FY) 2009, United Space Alliance was awarded over $1.5 billion in contracts from NASA.

Tuesday's suit is the third lawsuit filed by the ASBL against NASA. In February of 2007, the ASBL prevailed in its first suit against NASA, forcing the agency to provide detailed information proving that it falsified its small business contracting statistics by including contracts to a variety of Fortune 500 firms and other large businesses.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts actually flowing into the hands of Fortune 500 corporations and other clearly large businesses. Large recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

"We believe that NASA is withholding data which shows that the agency is inflating the achievement of its congressionally mandated small business goals by including Fortune 500 corporations and other clearly large businesses. We also believe that NASA is withholding data that will prove that they are allowing major prime contractors to falsify compliance with congressionally mandated small business contracting goals," ASBL President Lloyd Chapman said. "It is disappointing to see that President Obama's promise of increased transparency was just another broken campaign promise." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

Obama Proposes Tax Cut for Mega Rich Venture Capitalist Contributors

President Barack Obama has proposed new legislation that will allow many of the nation's wealthiest venture capitalists to avoid paying billions of dollars in federal income tax. Under the new proposal some of President Obama's top campaign contributors in the venture capital industry will be exempt from capital gains tax.

I believe President Obama will also back legislation and policy that will attempt to change the longstanding federal definition of a small business as being "independently owned." President Obama will likely back legislation or policy that will change the federal definition of a small business to include firms owned by many of the nation's wealthiest venture capitalists.

If he is successful, billions of dollars a month in federal small business contracts will be diverted from legitimate small businesses, and into the hands of mega wealthy venture capitalists.

President Obama has maintained close ties to the National Venture Capital Association (NVCA) since his days in the Illinois State Legislature. Wealthy venture capitalists were major contributors to President Obama's campaign. In February of 2009, a story in the Venture Capital Journal titled, "Real Change: New President Gets VC," boasted about the close relationship between President Obama and the venture capital industry. (http://www.vcjnews.com/story.asp?storycode=46450)

President Obama's close ties and political debt to the venture capital industry were clearly demonstrated when he appointed New York venture capitalist, and Tootsie Roll heiress Karen Mills to head the Small Business Administration (SBA). He appointed another venture capitalist, Winslow Sargeant to head the Small Business Administration Office of Advocacy. Both Mills and Sargeant were major contributors and fund raisers during Obama's Presidential campaign.

In addition to millions of dollars in contributions to President Obama, the NVCA and its members have spent millions of dollars lobbying Congress. The vast majority of venture capital industry contributions have been focused on the House and Senate small business committees. A story in AllBusiness.com described House Small Business Committee Chair Nydia Velázquez as "quarterbacking" legislation for well-heeled venture capitalists. (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)

In the past, the NVCA and its members have pushed for pro-venture capital loopholes under the guise of "increasing access to capital for small businesses." Nothing could be further from the truth. In reality, the true purpose of the NVCA political agenda is obviously to increase their access to billions of dollars in federal small business contracts and withdraw profits without paying taxes.

According to the U.S. Census Bureau and the Kauffman Foundation, small businesses employ over 50.2 percent of the private sector workforce, are responsible for more than 50 percent of GDP and create nearly all net new jobs. Legislation or policy that would divert federal small business funds away from American small businesses could have a significant negative impact on the national economy.

If President Obama truly wanted to increase access to capital for small businesses, he would not have allowed CIT, the nation's leading lender to small businesses and firms owned by women, minorities and veterans, to fail. If President Obama were sincere about helping small businesses, he would have kept his campaign promises to: implement the 5 percent set-aside goal for woman owned firms, restore the SBA's budget and staffing, restore the head of the SBA to a cabinet level position, and "end the diversion of federal small business contracts to corporate giants." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

President Obama has broken every campaign promise he made to America's 27 million small business owners. Instead he has continued to allow billions of dollars a month in federal small business funds to be diverted to corporate giants around the world. His administration has tried to cover up the diversion of federal small business contacts to corporate giants by destroying data in the Federal Procurement Data System such as the "small business flag" and the "parent DUNS number." The Obama Administration is refusing to release a wide variety of information that the public can use to monitor the actual recipients of federal small business contracts. They have also refused to release reports on prime contractor compliance with federal small business goals. President Obama even refused to accept the recommendation of his own small business advisory council to end the "Comprehensive Subcontracting Plan Test Program." This program allows prime contractors to ignore federally mandated small business goals and avoid any penalties for noncompliance.

As I have said many times, the media and the American people need to quit listening to President Obama's well written and insincere speeches, and look at what he is actually doing. When you do, it becomes clear that President Barack Obama is no friend to the 27 million small businesses where most American's work. Quite the contrary, his administration has adopted numerous policies that are clearly anti-small business.

I predict that President Obama will continue to pursue legislation and policy that will allow his wealthy contributors in the venture capital industry to hijack billions of dollars in federal small business contracts and avoid paying taxes on their ill gotten gains.

New In-depth Report Challenges Obama Small Business Track Record

FOR IMMEDIATE RELEASE
May 27, 2010

Petaluma, Calif. – The American Small Business League (ASBL) has concluded an examination and report on President Barack Obama's track record for small businesses, and uncovered a dramatic disparity between President Obama's rhetoric and his actions. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)

In its report the ASBL outlines a series of major failures by the Obama Administration. These failures represent broken campaign promises and failures by the administration to recognize the needs of America's chief job creators: Small businesses.

The ASBL investigation was spurred by the administration's refusal to stop the diversion of more than $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe. Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts diverted to corporate giants like Lockheed Martin, Boeing, Dell Computer, Xerox, Office Depot, Starwood Hotels, Raytheon, General Dynamics and French giant Thales Communications.

The ASBL's report found that the Obama Administration has:

1. Failed to adopt any policies or legislation to stop the diversion of federal small business contracts to corporate giants.

2. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag" and "parent DUNS number."

3. Failed to restore the Small Business Administration's (SBA) budget and staffing to pre-Bush Administration levels.

4. Failed to implement the recommendations of his campaign's small business advisory council, which provided solutions to a wide array of small business problems.

5. Failed to stop the dismantling of minority set-aside programs. During the Obama Administration's first months the Rothe Decision virtually nullified small business programs for minorities.

6. Failed to provide assistance to major small business lender CIT during the summer of 2009.

7. Failed to allocate more than 3 percent of stimulus funds to small businesses.

8. Destroyed a decade's worth of federal contracting data used to identify fraudulent contractors.

9. Reduced the availability of documents on small business contracting programs under the Freedom of Information Act (FOIA).

10. Failed to curb widespread fraud in veteran-owned small business programs.

11. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.

12. Failed to implement the 5 percent set-aside goal for women-owned small businesses.

"If you quit listening to what he says and just look at what he's done, these are not the actions of a pro-small business president," ASBL President Lloyd Chapman said.


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Please click here to view a copy of the ASBL’s report: http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf


Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Small Business Advocate Scores Another Victory for Transparency

Small Business Advocate Scores Another Victory for Transparency

ASBL President Lloyd Chapman Slams SBA Press Office Director Mike Stamler

Department of Energy Loses Legal Battle Over Bechtel Contracting Data

FOR IMMEDIATE RELEASE
May 21, 2010

Petaluma, Calif. - The Department of Energy (DOE) has lost a Freedom of Information lawsuit filed by the American Small Business League (ASBL). The ASBL filed the lawsuit after the DOE refused to release information regarding a $3.6 billion federal contract awarded to Bechtel Bettis Inc. The socio-economic status indicated "small business" on hundreds of millions of dollars in awards under the prime contract. (http://www.asbl.com/documents/litigation/Case_10.pdf)

The ASBL requested the information as part of an ongoing investigation into the diversion of federal small business contracts to Fortune 500 firms.

Since 2003, more than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to Fortune 500 corporations. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General described the problem 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)

The DOE refused to release the names of Bechtel officials overseeing the contract. Specifically, DOE withheld the name of Kimon Andreos, Manager, Procurement and Materials Management, and Lisa Smith, Small Business Program Manager. The contract was awarded by DOE Contract Specialist Anthony DeNapoli.

Section 16(D) of the Small Business Act which states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)

The ASBL intends to uncover more evidence of contracting abuses in small business programs at NASA, the DOE and the U.S. Department of Defense (DoD). The organization has launched a campaign to review all of the DOE contracts awarded to Bechtel and all of the DOE contracts that have been awarded by Mr. DeNapoli.

"We will continue to use the Freedom of Information Act to prove that the diversion of federal small business contracts to Fortune 500 firms is not miscoding, computer glitches, or honest mistakes as the government has claimed. It is clearly premeditated and deliberate," ASBL President Lloyd Chapman said. "We will prove that the Obama Administration is diverting billions of dollars a month in federal small business funds to Fortune 500 firms. We'll prove that the DOE, NASA and the Pentagon are cheating American small businesses out of billions of dollars a month in federal contracts."

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Navy Sued For Refusing to Release ManTech Contracting Data

FOR IMMEDIATE RELEASE
May 19, 2010

Petaluma, Calif. – On Tuesday, May 18, the American Small Business League (ASBL) filed suit against the Navy in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after the Navy refused to release quarterly sub-contracting reports for contracts awarded to ManTech Systems Engineering. (http://www.asbl.com/documents/litigation/Case_12.pdf)

This is the 5th lawsuit filed by the ASBL under FOIA since the beginning of April, and the organization's 12 lawsuit against the government since 2004. Through its legal efforts, the ASBL has forced the release of thousands of pages of documents proving that large corporations have received billions of dollars a year in federal small business contracts.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts actually flowing into the hands of Fortune 500 corporations and even some of the largest firms in Europe. Report 5-15, from the Small Business Administration Office of Inspector General described this issue 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)

The Small Business Act requires that a minimum of 23 percent of the total value of all government contracts go to small businesses. The Obama administration has failed to meet that goal. The most recent information available indicates that the administration is diverting federal small business contracts to Fortune 500 firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

The ASBL plans to file a series of federal lawsuits against the Obama Administration for refusing to release documents under FOIA. The ASBL maintains that despite claims of increased transparency, the Obama Administration is refusing to release a wide range of data on small business contracting programs such as: prime contractor compliance with small business subcontracting goals, the actual names of the recipients of federal small business contracts, and the specific names of federal contracting officials that have awarded small business contracts to Fortune 500 firms.

"The information that the Obama Administration is refusing to release shows that they are diverting federal small business contracts to Fortune 500 firms. The fact that they are willing to go to federal court to withhold the data clearly shows that they have something damaging to hide. We will win like we always do," ASBL President Lloyd Chapman said.


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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575