FOR IMMEDIATE RELEASE
March 18, 2010
Petaluma, Calif. – President Barack Obama signed the new jobs bill today. Both the House of Representatives and the Senate failed to include provisions in the bill that would halt the diversion of up to $120 billion a year in federal small business contracts to Fortune 500 firms and other large businesses.
Small business advocates had hoped that President Obama would include a provision in the bill to make good on his February 2008 campaign promise 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
Since 2003, over a dozen federal investigations have found that every month billions of dollars in federal small business contracts are diverted to large businesses around the world. For five consecutive years, the Small Business Administration Office of Inspector General (SBA IG) has referred to the diversion of federal small business contracts to large businesses as the #1 management challenge facing the agency. (http://www.asbl.com/documentlibrary.html ; http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf)
The American Small Business League (ASBL) estimates that over $10 billion a month in federal small business funds are diverted to large corporations.
"I don't think this jobs bill is going to work. It's too little, too late. I think it's important to realize that while President Obama signed the jobs bill this morning, he'll allow over $400 million in federal small business funds to be diverted to large businesses today alone. This diversion has gone on every day that he has been in office, and apparently it's going to continue throughout the remainder of his presidency," ASBL President Lloyd Chapman said. "Ending the diversion of federal small business contracts to large businesses would put more money into the middle class and create more jobs than anything President Obama or Congress have ever proposed."
The ASBL does not believe this jobs bill is going to work long term. The provisions of this bill will be a temporary boost at best, while at the same time increasing the national deficit.
In May of 2009, Congressman Hank Johnson (D-4-GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act. If passed, the bill would create millions of jobs by halting the flow of federal small business contracts to large businesses and redirecting more than $120 billion a year in federal infrastructure spending to legitimate small businesses. Although the bill has bipartisan support with 23 co-sponsors, to date President Obama has refused to endorse the legislation. (http://www.asbl.com/documents/hr2568.pdf)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, March 18, 2010
Monday, March 15, 2010
Obama Administration Destroys Incriminating Contracting Data
FOR IMMEDIATE RELEASE
March 15, 2010
Petaluma, Calif. – In March of 2005, the Small Business Administration (SBA) Office of Inspector General found large businesses had fraudulently represented themselves as small businesses to illegally receive federal small business contracts. Report 5-16, stated large businesses had committed fraud by making "false certifications," and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
On Friday, March 12, the General Services Administration (GSA) destroyed all of the information that had been used in that investigation.
Since 2003, over a dozen federal investigations have found that Fortune 500 firms have received federal small business contracts. In 2004, the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception."
As a result of the deletion of the data it will be significantly more difficult, if not impossible, for federal investigators to conduct investigations into fraud and abuse in federal small business contracting programs. Despite public outcry over the proposed changes, the GSA has eliminated the data under the guise of upgrading the system and making it easier to search.
The American Small Business League (ASBL) maintains that the GSA eliminated the data to destroy evidence, which clearly shows that some of the nation's largest contractors, primarily in the defense and aerospace industry, have committed felony federal contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to 10 years in prison, a $500,000 fine per occurrence and debarment from federal contracting programs for such abuses.
In February of 2008, the ASBL sued the SBA for the release of the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts. The SBA withheld the information until directed to release it by United States District Judge Marilyn H. Patel. In the court's ruling Patel stated, "The court finds it curious the SBA's argument that it does not 'control' the very information it needs to carry out its duties and functions." (www.asbl.com/documents/26-2.pdf)
"At some point in the near future it is going to be clear that the GSA destroyed evidence of hundreds of billions of dollars in fraud," ASBL President Lloyd Chapman said. "I think Congress and the FBI need to investigate the GSA's role in this matter. When it does come out that evidence of fraud was destroyed, the GSA officials responsible need to be prosecuted."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
March 15, 2010
Petaluma, Calif. – In March of 2005, the Small Business Administration (SBA) Office of Inspector General found large businesses had fraudulently represented themselves as small businesses to illegally receive federal small business contracts. Report 5-16, stated large businesses had committed fraud by making "false certifications," and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
On Friday, March 12, the General Services Administration (GSA) destroyed all of the information that had been used in that investigation.
Since 2003, over a dozen federal investigations have found that Fortune 500 firms have received federal small business contracts. In 2004, the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception."
As a result of the deletion of the data it will be significantly more difficult, if not impossible, for federal investigators to conduct investigations into fraud and abuse in federal small business contracting programs. Despite public outcry over the proposed changes, the GSA has eliminated the data under the guise of upgrading the system and making it easier to search.
The American Small Business League (ASBL) maintains that the GSA eliminated the data to destroy evidence, which clearly shows that some of the nation's largest contractors, primarily in the defense and aerospace industry, have committed felony federal contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to 10 years in prison, a $500,000 fine per occurrence and debarment from federal contracting programs for such abuses.
In February of 2008, the ASBL sued the SBA for the release of the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts. The SBA withheld the information until directed to release it by United States District Judge Marilyn H. Patel. In the court's ruling Patel stated, "The court finds it curious the SBA's argument that it does not 'control' the very information it needs to carry out its duties and functions." (www.asbl.com/documents/26-2.pdf)
"At some point in the near future it is going to be clear that the GSA destroyed evidence of hundreds of billions of dollars in fraud," ASBL President Lloyd Chapman said. "I think Congress and the FBI need to investigate the GSA's role in this matter. When it does come out that evidence of fraud was destroyed, the GSA officials responsible need to be prosecuted."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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