Petaluma, Calif. - While Senators Barack Obama and John McCain are presenting dueling economic recovery bills for the middle class, a bill has been floating around Congress for more than a year that could immediately infuse more money into the middle class economy than anything that has been proposed so far.
Draft legislation that was written by Senator Barbara Boxer (D - CA) and American Small Business League (ASBL) President Lloyd Chapman, could infuse up to $10 billion a month in federal funds back into the hands of middle class firms that are struggling to cope with the current economic catastrophe.
The draft legislation is titled, "the Small Business Fairness and Transparency in Contracting Act," and is based on provisions of the original Small Business Act, which was passed in 1953. The Small Business Act defines a small business as "independently owned" and precludes firms that are publicly owned or publicly traded from being considered small businesses for the purposes of government contracting. Based on the original Small Business Act, today the federal government has a small business-contracting goal of 23 percent or about $135 billion a year.
The new legislation simply states that the federal government can no longer report awards to publicly traded companies as small business awards.
The legislation is in response to over a dozen federal investigations, which have found that the Bush Administration has diverted hundreds of billions of dollars in federal small business contracts to some of the largest corporations in the United States and Europe.
In March of 2005, the Small Business Administration Office of Inspector General (SBA OIG) issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/ig/05-15.pdf)
The General Accounting Office (GAO) first exposed the diversion of billions of dollars in federal small business contracts to corporate giants in 2002. (http://www.gao.gov/new.items/d03704t.pdf) So far, no member of Congress other than Senator Boxer has even proposed legislation to address this problem.
In February, Senator Obama acknowledged the need to address the problem and released this statement, "It is time to end the diversion of federal small business contracts to corporate giants."
This new legislation could solve the diversion of government small business contracts to Fortune 500 firms and return billions of dollars in federal small business contracts back to the middle class economy.
Recently, Congress passed a $700 billion emergency bailout bill for Wall Street, now it's time to pass an emergency bailout bill for the middle class economy. There is no need to reinvent the wheel. This legislation is a free, easy and simple solution to the diversion of over $100 billion a year in federal small business contracts to large corporations and is based on existing federal laws and programs.
If this legislation is passed, we could immediately see up to $10 billion a month in additional federal funds flowing back into the small businesses where most Americans work. This will have a more significant impact on our nation's middle class economy than anything that has been proposed by anyone in Congress including Senator Obama or Senator McCain.
This legislation would have an immediate and significant impact on our nation's middle class economy and there isn't one good reason why Congress shouldn't pass this legislation as soon as possible.
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Wednesday, October 15, 2008
Tuesday, October 14, 2008
McCain Would End Federal Programs For Middle Class Firms
Petaluma, Calif. - During the past eight years, the Bush Administration has dismantled virtually every economic program to assist small businesses along with all programs to assist firms owned by woman, minorities and veterans.
To date, Senator John McCain (R - AZ) has not voiced any opposition to the Bush Administration's anti-small business policies or discussed any plans to restore those programs in any of his speeches, press releases or on his website.
President Bush has slashed the Small Business Administration's (SBA) budget more than any other federal agency, down over 50 percent since he took office. (http://www.inc.com/news/articles/200511/sbabudget.html)
Since 2003, more than a dozen federal investigations have been released which have found the Bush Administration has diverted billons of dollars in federal small business contracts to Fortune 500 firms. (http://www.asbl.com/documentlibrary.html) CBS, ABC and CNN have all aired investigative reports that confirmed the findings of the federal investigations. (http://www.asbl.com/media2.php)
Bush officials responded to the investigations by establishing a policy that allows Fortune 500 firms to continue to receive federal small business contracts until the year 2012 and by removing information from the government's vendor database that could be used to determine if a large business is misrepresenting itself as a small business. (http://www.asbl.com/showmedia.php?id=596)
Bush officials have closed the office at the SBA specifically designed to assist veteran-owned firms, (http://www.targetgov.com/Content.asp?id=2313) dismantled the Small Disadvantaged Business contracting program for minority-owned firms (http://www.hispanicbusiness.com/politics/2008/10/3/more_groups_react_to_bailout_bill.htm) and refused to implement a federal law passed more than seven years ago establishing a 5 percent contracting goal for woman-owned firms. (http://kansascity.bizjournals.com/extraedge/washingtonbureau/archive/2008/10/06/bureau1.html?market=kansascity)
Bush officials also included language in the Wall Street bailout bill in Section 107 that allows the Secretary of the Treasury to waive any provisions of the Federal Acquisition Regulation (FAR) requiring contracting opportunities for woman-owned firms and minority-owned firms. (http://www.asbl.com/showmedia.php?id=1166)
Senator McCain regularly panders to middle class voters and gives lip service to the vital role small businesses play in our nation's economy. In reality, in over two years of campaigning, he has never once mentioned his plans to restore the budget and staffing of the only federal agency established with the sole purpose of assisting America's 27 million small businesses, the Small Business Administration (SBA).
Senator McCain's website doesn't contain a single word on restoring the SBA's budget and staffing or the economic programs administered by the agency to assist middle class small businesses and firms owned by women, minorities and veterans.
If elected, Senator McCain will almost certainly continue with Bush Administration and Republican Party plans to eliminate government economic programs to assist small business or try to close the SBA completely by combining it with the U.S. Department of Commerce.
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To date, Senator John McCain (R - AZ) has not voiced any opposition to the Bush Administration's anti-small business policies or discussed any plans to restore those programs in any of his speeches, press releases or on his website.
President Bush has slashed the Small Business Administration's (SBA) budget more than any other federal agency, down over 50 percent since he took office. (http://www.inc.com/news/articles/200511/sbabudget.html)
Since 2003, more than a dozen federal investigations have been released which have found the Bush Administration has diverted billons of dollars in federal small business contracts to Fortune 500 firms. (http://www.asbl.com/documentlibrary.html) CBS, ABC and CNN have all aired investigative reports that confirmed the findings of the federal investigations. (http://www.asbl.com/media2.php)
Bush officials responded to the investigations by establishing a policy that allows Fortune 500 firms to continue to receive federal small business contracts until the year 2012 and by removing information from the government's vendor database that could be used to determine if a large business is misrepresenting itself as a small business. (http://www.asbl.com/showmedia.php?id=596)
Bush officials have closed the office at the SBA specifically designed to assist veteran-owned firms, (http://www.targetgov.com/Content.asp?id=2313) dismantled the Small Disadvantaged Business contracting program for minority-owned firms (http://www.hispanicbusiness.com/politics/2008/10/3/more_groups_react_to_bailout_bill.htm) and refused to implement a federal law passed more than seven years ago establishing a 5 percent contracting goal for woman-owned firms. (http://kansascity.bizjournals.com/extraedge/washingtonbureau/archive/2008/10/06/bureau1.html?market=kansascity)
Bush officials also included language in the Wall Street bailout bill in Section 107 that allows the Secretary of the Treasury to waive any provisions of the Federal Acquisition Regulation (FAR) requiring contracting opportunities for woman-owned firms and minority-owned firms. (http://www.asbl.com/showmedia.php?id=1166)
Senator McCain regularly panders to middle class voters and gives lip service to the vital role small businesses play in our nation's economy. In reality, in over two years of campaigning, he has never once mentioned his plans to restore the budget and staffing of the only federal agency established with the sole purpose of assisting America's 27 million small businesses, the Small Business Administration (SBA).
Senator McCain's website doesn't contain a single word on restoring the SBA's budget and staffing or the economic programs administered by the agency to assist middle class small businesses and firms owned by women, minorities and veterans.
If elected, Senator McCain will almost certainly continue with Bush Administration and Republican Party plans to eliminate government economic programs to assist small business or try to close the SBA completely by combining it with the U.S. Department of Commerce.
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Monday, October 13, 2008
New Obama Small Business Rescue Plan Ignores Abuses In Government Contracting Programs
Petaluma, Calif. – Senator Barack Obama's new small business emergency rescue plan is being criticized for ignoring a series of federal investigations that found the government has diverted billions of dollars in federal small business contracts to many of the largest firms in the United States and Europe. (http://www.asbl.com/obamasmallbusinessrescueplan.pdf)
In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/IG/05-15.pdf)
Since 2003, more than a dozen federal investigations have found hundreds of billions of dollars in federal small business contracts have been diverted to some of the largest corporations in the world. (http://www.asbl.com/documentlibrary.html) During that time, CBS, ABC, Associated Press and CNN have aired investigative stories which found federal small business contracts actually went to firms such as: Lockheed Martin, Boeing, Raytheon, Rolls-Royce, General Dynamics, John Deere, Microsoft, Wal-Mart, Hewlett-Packard, Buhrmann NV a Dutch conglomerate and British Aerospace Engineering (BAE).
The American Small Business League (ASBL) projects that middle-class firms are losing over $100 billion a year in federal small business contracts to Fortune 500 firms and other large businesses. Estimates from federal officials have ranged from $65 billion to over $100 billion a year.
In February of this year, Senator Obama issued the following statement, "98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. 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)
In stark contrast to this bold statement, which was issued in February of 2008, Senator Obama is now refusing to even mention the diversion of billions of dollars in federal small business contracts to Fortune 500 firms. He has declined to discuss it publicly, or to mention the issue on his web site.
Small business owners are concerned that pressure, and or political contributions from Fortune 500 firms, which are currently receiving a lion's share of federal small business contracts, may have contributed to Senator Obama's decision to distance himself from his pledge to end the diversion of small business contracts to corporate giants.
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In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/IG/05-15.pdf)
Since 2003, more than a dozen federal investigations have found hundreds of billions of dollars in federal small business contracts have been diverted to some of the largest corporations in the world. (http://www.asbl.com/documentlibrary.html) During that time, CBS, ABC, Associated Press and CNN have aired investigative stories which found federal small business contracts actually went to firms such as: Lockheed Martin, Boeing, Raytheon, Rolls-Royce, General Dynamics, John Deere, Microsoft, Wal-Mart, Hewlett-Packard, Buhrmann NV a Dutch conglomerate and British Aerospace Engineering (BAE).
The American Small Business League (ASBL) projects that middle-class firms are losing over $100 billion a year in federal small business contracts to Fortune 500 firms and other large businesses. Estimates from federal officials have ranged from $65 billion to over $100 billion a year.
In February of this year, Senator Obama issued the following statement, "98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. 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)
In stark contrast to this bold statement, which was issued in February of 2008, Senator Obama is now refusing to even mention the diversion of billions of dollars in federal small business contracts to Fortune 500 firms. He has declined to discuss it publicly, or to mention the issue on his web site.
Small business owners are concerned that pressure, and or political contributions from Fortune 500 firms, which are currently receiving a lion's share of federal small business contracts, may have contributed to Senator Obama's decision to distance himself from his pledge to end the diversion of small business contracts to corporate giants.
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Friday, October 10, 2008
Obama Middle Class Bailout Bill Passed 55-Years Ago
Middle Class Bailout Bill That Can Rescue The Economy Was Passed In 1953
Petaluma, Calif. - The following is a statement from ASBL President Lloyd Chapman:
In Tuesday's Presidential debate, Senator Barack Obama (D - IL) called for a bailout bill for the middle class. Yesterday, Senator Obama said he would also make sure that tax dollars are spent wisely. Today, there exists a great piece of legislation that would accomplish both of Senator Obama's goals. It would infuse billions of tax dollars back into the firms where most Americans work, create thousands of new jobs and help middle class families pay for their health care and mortgages.
It's called the Small Business Act, and it became law in 1953. Today, based on the original Small Business Act, the federal government is supposed to insure that a minimum of 23 percent of the total value of all federal contracts and subcontracts are awarded to small businesses. Twenty-three percent of the federal government's total acquisition budget amounts to roughly $150 billion a year in federal contracts and subcontracts that should by law go to the middle class small businesses where approximately 56 percent of our nation's population is employed.
What better place to spend tax dollars than with the 27 million small businesses where most Americans work, and where most of our nation's tax revenue is generated?
The Small Business Act is the perfect vehicle to rescue our nation's middle class economy, and boost the segments of the American economy that were completely ignored by the $700 billion Wall Street bailout bill.
There are a couple of hurdles that need to be addressed before the Small Business Act can help lead our nation out of one of the worst economic disasters in modern history. First, since 2003, 15 federal investigations have found that Fortune 500 firms are the actual recipients of most federal small business contracts. It has been estimated that large businesses receive over $100 billion a year in federal small business contracts. ABC, CBS and CNN have all aired investigative reports which have found firms like: Rolls Royce, Wal-Mart, Microsoft, Raytheon, IBM, Xerox, Dell, John Deere, General Dynamics, GTSI, Home Depot, Titan Industries, Hewlett Packard, Battelle and British Aerospace Engineering (BAE) have all received millions of dollars in federal small business contracts.
Second, the Bush Administration has systematically dismantled virtually every single federal program the Small Business Act established to help small businesses, woman-owned firms, minority-owned firms and veteran-owned firms. The Small Business Act established the Small Business Administration (SBA), and during the past eight years President Bush has cut that agency's budget more than any other agency. Today, the SBA budget is less than half of what it was when President Bush took office.
Neither Barack Obama, nor John McCain have even mentioned any aspect of the Small Business Act in their small business plans. Neither candidate has pledged to restore the SBA's budget and staffing. Most surprising is that neither Obama, nor McCain have proposed any specific solutions to the diversion of up to $100 billion a year in government contracts that by law should be going to our nation's middle class, but instead are being diverted to Fortune 500 firms. Senator Obama even seems to be trying to distance himself from a statement he made in February of 2008, "It is time to end the diversion of federal small business contracts to corporate giants." I would guess that he received a call from the "corporate giants" the following day regarding some new fund raising ideas.
Senator Obama was right though; we definitely need a bailout bill for the middle class. The good news is it was passed in 1953. If Senator Obama and Senator McCain are serious about helping middle class families pay their health care and their mortgages, it's going to take more than just campaign rhetoric and pandering.
America's middle class deserves some help from the government in these difficult economic times, and the Small Business Act is a free and easy solution. It's time to fully implement the Small Business Act and restore the budget and staffing of the only federal agency established to assist America's 27 million small businesses, the SBA. It's also time to stop the diversion of federal small business contracts to corporate giants and get that money back into the hands of the small businesses that are the heart and soul of this nation's economy.
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Petaluma, Calif. - The following is a statement from ASBL President Lloyd Chapman:
In Tuesday's Presidential debate, Senator Barack Obama (D - IL) called for a bailout bill for the middle class. Yesterday, Senator Obama said he would also make sure that tax dollars are spent wisely. Today, there exists a great piece of legislation that would accomplish both of Senator Obama's goals. It would infuse billions of tax dollars back into the firms where most Americans work, create thousands of new jobs and help middle class families pay for their health care and mortgages.
It's called the Small Business Act, and it became law in 1953. Today, based on the original Small Business Act, the federal government is supposed to insure that a minimum of 23 percent of the total value of all federal contracts and subcontracts are awarded to small businesses. Twenty-three percent of the federal government's total acquisition budget amounts to roughly $150 billion a year in federal contracts and subcontracts that should by law go to the middle class small businesses where approximately 56 percent of our nation's population is employed.
What better place to spend tax dollars than with the 27 million small businesses where most Americans work, and where most of our nation's tax revenue is generated?
The Small Business Act is the perfect vehicle to rescue our nation's middle class economy, and boost the segments of the American economy that were completely ignored by the $700 billion Wall Street bailout bill.
There are a couple of hurdles that need to be addressed before the Small Business Act can help lead our nation out of one of the worst economic disasters in modern history. First, since 2003, 15 federal investigations have found that Fortune 500 firms are the actual recipients of most federal small business contracts. It has been estimated that large businesses receive over $100 billion a year in federal small business contracts. ABC, CBS and CNN have all aired investigative reports which have found firms like: Rolls Royce, Wal-Mart, Microsoft, Raytheon, IBM, Xerox, Dell, John Deere, General Dynamics, GTSI, Home Depot, Titan Industries, Hewlett Packard, Battelle and British Aerospace Engineering (BAE) have all received millions of dollars in federal small business contracts.
Second, the Bush Administration has systematically dismantled virtually every single federal program the Small Business Act established to help small businesses, woman-owned firms, minority-owned firms and veteran-owned firms. The Small Business Act established the Small Business Administration (SBA), and during the past eight years President Bush has cut that agency's budget more than any other agency. Today, the SBA budget is less than half of what it was when President Bush took office.
Neither Barack Obama, nor John McCain have even mentioned any aspect of the Small Business Act in their small business plans. Neither candidate has pledged to restore the SBA's budget and staffing. Most surprising is that neither Obama, nor McCain have proposed any specific solutions to the diversion of up to $100 billion a year in government contracts that by law should be going to our nation's middle class, but instead are being diverted to Fortune 500 firms. Senator Obama even seems to be trying to distance himself from a statement he made in February of 2008, "It is time to end the diversion of federal small business contracts to corporate giants." I would guess that he received a call from the "corporate giants" the following day regarding some new fund raising ideas.
Senator Obama was right though; we definitely need a bailout bill for the middle class. The good news is it was passed in 1953. If Senator Obama and Senator McCain are serious about helping middle class families pay their health care and their mortgages, it's going to take more than just campaign rhetoric and pandering.
America's middle class deserves some help from the government in these difficult economic times, and the Small Business Act is a free and easy solution. It's time to fully implement the Small Business Act and restore the budget and staffing of the only federal agency established to assist America's 27 million small businesses, the SBA. It's also time to stop the diversion of federal small business contracts to corporate giants and get that money back into the hands of the small businesses that are the heart and soul of this nation's economy.
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Wednesday, October 8, 2008
Obama Flip-Flops on Pledge to 'End Diversion of Federal Small Business Contracts to Corporate Giants'
Petaluma, Calif. – On February 26, 2008, in the midst of his campaign to become the Democratic nominee for President of the United States, Senator Barack Obama (D - IL) issued the statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Senator Obama's statement was in response to 15 federal investigations that have been released since 2003, which have found the Bush Administration has diverted hundreds of billions of dollars in federal small business contracts to some of the largest corporations in the United States and Europe.
Federal investigators found hundreds of large businesses have received billions of dollars in government small business contracts. Large firms that received federal small business contracts included: Rolls Royce, Office Depot, Dell, Xerox, Hewlett-Packard, Raytheon, Oracle, Archer Daniels Midland, John Deere, General Dynamics, Titan Industries, L-3 Communications, Northrop Grumman and British Aerospace Engineering (BAE).
Now that Senator Obama has clinched the Democratic nomination, and is the most likely presidential candidate to win the election in November, he has backed away from his pledge to America's 27 million small businesses to stop the blatant and ongoing abuses in federal small business contracting programs. The Obama campaign went so far as to modify his original complete quote on the issue and to remove his original statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Despite the fact that over 99 percent of voters would obviously agree that Fortune 500 firms should not be able to receive federal small business contracts, Senator Obama has refused to mention the issue in public speeches and has declined to include any mention of the issue on his website or in his small business plan.
American Small Business League (ASBL) President Lloyd Chapman has encouraged the Obama Campaign to include the issue in its small business plan during a series of conference calls and e-mails. Thus far, they have consistently declined.
“I cannot imagine why Senator Obama has now decided to flip-flop on his pledge to end these blatant abuses against middle class firms. We are in a severe recession and American businesses need political leaders they can count on,” Chapman said. “I think Senator Obama's handling of this issue could be a real glimpse of his true character. We'll see if he can deliver on his promise of ‘change we can believe in’ or if he is just another overly ambitious politician that is willing to say or do anything to get elected.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Senator Obama's statement was in response to 15 federal investigations that have been released since 2003, which have found the Bush Administration has diverted hundreds of billions of dollars in federal small business contracts to some of the largest corporations in the United States and Europe.
Federal investigators found hundreds of large businesses have received billions of dollars in government small business contracts. Large firms that received federal small business contracts included: Rolls Royce, Office Depot, Dell, Xerox, Hewlett-Packard, Raytheon, Oracle, Archer Daniels Midland, John Deere, General Dynamics, Titan Industries, L-3 Communications, Northrop Grumman and British Aerospace Engineering (BAE).
Now that Senator Obama has clinched the Democratic nomination, and is the most likely presidential candidate to win the election in November, he has backed away from his pledge to America's 27 million small businesses to stop the blatant and ongoing abuses in federal small business contracting programs. The Obama campaign went so far as to modify his original complete quote on the issue and to remove his original statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Despite the fact that over 99 percent of voters would obviously agree that Fortune 500 firms should not be able to receive federal small business contracts, Senator Obama has refused to mention the issue in public speeches and has declined to include any mention of the issue on his website or in his small business plan.
American Small Business League (ASBL) President Lloyd Chapman has encouraged the Obama Campaign to include the issue in its small business plan during a series of conference calls and e-mails. Thus far, they have consistently declined.
“I cannot imagine why Senator Obama has now decided to flip-flop on his pledge to end these blatant abuses against middle class firms. We are in a severe recession and American businesses need political leaders they can count on,” Chapman said. “I think Senator Obama's handling of this issue could be a real glimpse of his true character. We'll see if he can deliver on his promise of ‘change we can believe in’ or if he is just another overly ambitious politician that is willing to say or do anything to get elected.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, October 2, 2008
Bailout Bill Needs New Language to Stop Billions in Contracting Abuses
Bailout Bill Needs New Provisions to Redirect Billions To Middle Class Firms
Petaluma, Calif. - In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."
Since the purpose of the "bailout bill" is to bolster our nation's economy, wouldn't it make sense to include a simple and easy provision that would solve a major and longstanding problem within the federal contracting system and redirect up to $100 billion a year in federal small business contracts back into the hands of legitimate and hardworking middle class firms?
The Small Business Act defines a small business as a firm that is "independently owned." Legally, the term independently owned is defined as a firm that is not publicly owned or traded. The addition of a single sentence to the bailout bill could redirect billions of dollars in federal small business contracts back to the very middle class firms the bill is supposed to ultimately rescue. This single sentence would also finally bring an end to years of abuses in federal small business contracting programs.
The sentence should read, "As of January 1st, 2009, the federal government will no longer report awards to publicly traded firms as small business awards."
The addition of this sentence would be a simple and easy solution to the diversion of hundreds of billions of dollars in federal small business contracts to large corporations, and it would provide small businesses and the middle class economy with a much-needed boost.
Since 2003, 15 federal investigations have all found that billions of dollars in federal small business contracts have actually gone to hundreds of the largest corporations in the United States and Europe. In fact, some of the firms federal investigators identified as recipients of federal small business contracts were: Rolls-Royce, Lockheed Martin, Boeing, Raytheon, General Dynamics, Northrop Grumman, Xerox, Dell, John Deere, Microsoft, Titan Industries, British Aerospace Engineering (BAE) and Dutch conglomerate Buhrmann NV.
It is time for this problem to be solved and through the bailout bill a solution could be easily achieved. If government investigators are right, up to $100 billion a year is being pulled out of the middle class economy. It's time for Senator Barack Obama (D - IL), Senator John McCain (R - AZ) and members of Congress to give America's 27 million small businesses more than just lip service.
If Congress really wants to stabilize and bolster our nation's failing economy, let's put $100 billion a year in federal small business contracts back in the hands of the middle class firms where most American's work.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Petaluma, Calif. - In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."
Since the purpose of the "bailout bill" is to bolster our nation's economy, wouldn't it make sense to include a simple and easy provision that would solve a major and longstanding problem within the federal contracting system and redirect up to $100 billion a year in federal small business contracts back into the hands of legitimate and hardworking middle class firms?
The Small Business Act defines a small business as a firm that is "independently owned." Legally, the term independently owned is defined as a firm that is not publicly owned or traded. The addition of a single sentence to the bailout bill could redirect billions of dollars in federal small business contracts back to the very middle class firms the bill is supposed to ultimately rescue. This single sentence would also finally bring an end to years of abuses in federal small business contracting programs.
The sentence should read, "As of January 1st, 2009, the federal government will no longer report awards to publicly traded firms as small business awards."
The addition of this sentence would be a simple and easy solution to the diversion of hundreds of billions of dollars in federal small business contracts to large corporations, and it would provide small businesses and the middle class economy with a much-needed boost.
Since 2003, 15 federal investigations have all found that billions of dollars in federal small business contracts have actually gone to hundreds of the largest corporations in the United States and Europe. In fact, some of the firms federal investigators identified as recipients of federal small business contracts were: Rolls-Royce, Lockheed Martin, Boeing, Raytheon, General Dynamics, Northrop Grumman, Xerox, Dell, John Deere, Microsoft, Titan Industries, British Aerospace Engineering (BAE) and Dutch conglomerate Buhrmann NV.
It is time for this problem to be solved and through the bailout bill a solution could be easily achieved. If government investigators are right, up to $100 billion a year is being pulled out of the middle class economy. It's time for Senator Barack Obama (D - IL), Senator John McCain (R - AZ) and members of Congress to give America's 27 million small businesses more than just lip service.
If Congress really wants to stabilize and bolster our nation's failing economy, let's put $100 billion a year in federal small business contracts back in the hands of the middle class firms where most American's work.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, October 1, 2008
Lloyd Chapman: Bailout Bill Doesn't Need to Waive Federal Acquisition Law
Bailout Bill Could Create Billions in Abuses by Waving Federal Contracting Laws
Petaluma, Calif. - The following is a statement by American Small Business League President Lloyd Chapman:
In its present form, the bailout bill will give Bush Administration officials broad power to waive any provision of the Federal Acquisition Regulation (FAR) they choose for an indefinite period of time.
Section 107 of the bill could be a recipe for disaster at a time when the national economy has plummeted as the direct result of a blatant lack of proper government oversight. It would be foolhardy and irresponsible for Congress to grant the very individuals that are directly responsible for one of the worst economic disasters in United States history even more power to ignore federal procurement law for as long as they deem necessary.
The multitude of problems that could arise by allowing government officials to ignore even the most foundational principals of the FAR could be catastrophic. Staggering abuses in federal contracting are a common occurrence. Many of the nation's largest defense contractors are regularly found to be defrauding the federal government out of hundreds of millions and even billions in taxpayer dollars.
Treasury Secretary Henry Paulson was the Chairman and Chief Executive Officer of Goldman Sachs before he came to Washington and he will no doubt be back on Wall Street in an equally if not more powerful position in 90 days. Of all the Bush Administration officials that deserve their fair share of responsibility for our nation's financial disaster, Treasury Secretary Paulson's name should be close to the top of the list.
Treasury Secretary Paulson should not be trusted to waive provisions of the FAR, which could be beneficial to his past and future employers on Wall Street and detrimental to the primary goal of the bailout bill, which is to bolster the national economy. More fraud, abuse and loopholes for Wall Street and government officials will not make our nation's financial institutions more sound, create more jobs or help middle class Americans pay their bills.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Petaluma, Calif. - The following is a statement by American Small Business League President Lloyd Chapman:
In its present form, the bailout bill will give Bush Administration officials broad power to waive any provision of the Federal Acquisition Regulation (FAR) they choose for an indefinite period of time.
Section 107 of the bill could be a recipe for disaster at a time when the national economy has plummeted as the direct result of a blatant lack of proper government oversight. It would be foolhardy and irresponsible for Congress to grant the very individuals that are directly responsible for one of the worst economic disasters in United States history even more power to ignore federal procurement law for as long as they deem necessary.
The multitude of problems that could arise by allowing government officials to ignore even the most foundational principals of the FAR could be catastrophic. Staggering abuses in federal contracting are a common occurrence. Many of the nation's largest defense contractors are regularly found to be defrauding the federal government out of hundreds of millions and even billions in taxpayer dollars.
Waiving provisions of the FAR could result in billions of dollars in fraud and abuse at multiple levels of government. Government officials cannot be trusted with the power to waive any federal procurement law they deem unnecessary.
Treasury Secretary Henry Paulson was the Chairman and Chief Executive Officer of Goldman Sachs before he came to Washington and he will no doubt be back on Wall Street in an equally if not more powerful position in 90 days. Of all the Bush Administration officials that deserve their fair share of responsibility for our nation's financial disaster, Treasury Secretary Paulson's name should be close to the top of the list.
Treasury Secretary Paulson should not be trusted to waive provisions of the FAR, which could be beneficial to his past and future employers on Wall Street and detrimental to the primary goal of the bailout bill, which is to bolster the national economy. More fraud, abuse and loopholes for Wall Street and government officials will not make our nation's financial institutions more sound, create more jobs or help middle class Americans pay their bills.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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