FOR IMMEDIATE RELEASE
February 10, 2011
Petaluma, Calif. – In the face of sluggish job growth and a growing deficit, the Obama Administration and Congress are focusing on solutions that may hurt the nation’s chief job creators, while ignoring a simple, effective, and deficit neutral solution to job creation and economic stimulus. Every year, billions of dollars in federal contracts intended for small businesses, are diverted to Fortune 500 firms and other large businesses. Ending this abuse, would invigorate the nation’s 27 million small businesses, supercharge job creation, and slash America’s growing deficit.
Despite strong rhetoric, to date the Obama Administration’s economic policies have failed to substantially aid small businesses or cut unemployment.
In January, the national unemployment rate remained above 9 percent, according to the U.S. Department of Labor. (http://www.bls.gov/news.release/empsit.nr0.htm) Moreover, the Department of Labor’s 9 percent figure is exclusive of job seekers who have stopped looking, and workers who are underemployed. These groups are accounted for in the Department of Labor’s U-6 unemployment figures, which remained above 16 percent in January. (http://www.bls.gov/news.release/empsit.t15.htm)
According to the U.S. Census Bureau, small businesses create more than 90 percent of net new jobs, are responsible for 50 percent of the gross domestic product, 50.2 percent of the private sector workforce, and 90 percent of exports and innovations. It is unreasonable for the Obama Administration to spend more than $1.6 trillion on economic stimulus, while failing to make small businesses a priority. (http://www.sba.gov/advo/research/rs359.pdf)
Since 2003, a series of investigations have shown that the overwhelming majority of federal small business contracts actually go to Fortune 500 firms. The American Small Business League (ASBL) maintains ending the diversion of small business contracts to corporate giants would be the simplest, deficit neutral solution to America’s economic problems. The ASBL has estimated that ending this abuse would direct more than $200 billion a year to the nation’s middle class, save thousands of businesses every year and create more than 1.8 million jobs.
“You don’t have to be a Nobel Prize winning economist to figure this out. Small businesses are the nation’s chief job creators, and the most effective way to create jobs is to send federal spending their way,” ASBL President Lloyd Chapman said. “There is one major bill that would accomplish that goal, the Fairness and transparency in Contracting Act. It is time for President Obama to keep his promise to end the diversion of federal small business contracts to corporate giants by passing this legislation.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
info (at) asbl.com
(707) 789-9575
Thursday, February 10, 2011
Obama Administration Forced to Restore Incriminating Contracting Data
FOR IMMEDIATE RELEASE
February 10, 2011
Petaluma, Calif. – The American Small Business League (ASBL) has won a legal battle against the U.S. General Services Administration (GSA) forcing the agency to restore a decade’s worth of incriminating federal contracting data. The ASBL originally filed suit against the GSA in March of 2010 after the agency removed information from the federal government’s contracting database which indicated that Fortune 500 firms in the U.S. and some of the largest firms in Europe and Asia had received billions of dollars in federal small business contracts. The suit was filed in United States District Court, Northern District of California. (https://www.fpds.gov/fpdsng_cms/index.php/archives)
On March 12, 2010, the Obama Administration implemented changes to the Federal Procurement Data System-Next Generation (FPDS-NG), which eliminated the socio-economic field, "isSmallBusiness." In past years, Congress, federal agencies, watchdog groups, and the general public have used the field to identify large firms who fraudulently misrepresented themselves as small businesses to illegally receive billions of dollars in small business contracts.
Since 2003, a series of federal investigations have used the information stored in the field to uncover billions of dollars a month in federal small business contracts flowing into the hands of Fortune 500 firms, European conglomerates and other large businesses.
In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) described the abuses as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." 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." (http://www.asbl.com/documents/05-15.pdf, http://www.asbl.com/documents/eagkeeye_report%202002.pdf)
Despite continuing denials by the SBA and other senior Obama Administration officials, corporate giants in the U.S. and Europe continue to receive billions of dollars in federal small business contracts. The recipients of federal small business contracts include Lockheed Martin, Boeing, Raytheon, General Dynamics, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL plans to use the restored data to take legal action against fraudulent contractors and recover damages for small businesses.
“Prior to taking office President Obama promised the most transparent administration in history and an end to the diversion of federal small business contracts to corporate giants. To date he has destroyed contracting data, forced the ASBL into the federal courts to uncover incriminating documents, and failed to honor his promises to small businesses,” ASBL President Lloyd Chapman said. “This is another major legal victory for small businesses and transparency. This data will be instrumental in holding firms accountable for fraud and abuse.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
info (at) asbl.com
(707) 789-9575
February 10, 2011
Petaluma, Calif. – The American Small Business League (ASBL) has won a legal battle against the U.S. General Services Administration (GSA) forcing the agency to restore a decade’s worth of incriminating federal contracting data. The ASBL originally filed suit against the GSA in March of 2010 after the agency removed information from the federal government’s contracting database which indicated that Fortune 500 firms in the U.S. and some of the largest firms in Europe and Asia had received billions of dollars in federal small business contracts. The suit was filed in United States District Court, Northern District of California. (https://www.fpds.gov/fpdsng_cms/index.php/archives)
On March 12, 2010, the Obama Administration implemented changes to the Federal Procurement Data System-Next Generation (FPDS-NG), which eliminated the socio-economic field, "isSmallBusiness." In past years, Congress, federal agencies, watchdog groups, and the general public have used the field to identify large firms who fraudulently misrepresented themselves as small businesses to illegally receive billions of dollars in small business contracts.
Since 2003, a series of federal investigations have used the information stored in the field to uncover billions of dollars a month in federal small business contracts flowing into the hands of Fortune 500 firms, European conglomerates and other large businesses.
In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) described the abuses as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." 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." (http://www.asbl.com/documents/05-15.pdf, http://www.asbl.com/documents/eagkeeye_report%202002.pdf)
Despite continuing denials by the SBA and other senior Obama Administration officials, corporate giants in the U.S. and Europe continue to receive billions of dollars in federal small business contracts. The recipients of federal small business contracts include Lockheed Martin, Boeing, Raytheon, General Dynamics, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL plans to use the restored data to take legal action against fraudulent contractors and recover damages for small businesses.
“Prior to taking office President Obama promised the most transparent administration in history and an end to the diversion of federal small business contracts to corporate giants. To date he has destroyed contracting data, forced the ASBL into the federal courts to uncover incriminating documents, and failed to honor his promises to small businesses,” ASBL President Lloyd Chapman said. “This is another major legal victory for small businesses and transparency. This data will be instrumental in holding firms accountable for fraud and abuse.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
info (at) asbl.com
(707) 789-9575
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