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."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, March 9, 2010
Federal Judge Clears the Way for Destruction of Incriminating Contracting Data
FOR IMMEDIATE RELEASE
March 10, 2010
United States District Judge William Alsup has denied the American Small Business League's (ASBL) request for a temporary restraining order, and cleared the way for the Obama Administration to destroy over ten years worth of federal contracting data.
On March 12, 2010, the Obama Administration intends to move forward with a plan that would destroy years of incriminating contracting data by eliminating the socio-economic field, "isSmallBusiness," found within the Federal Procurement Data System-Next Generation (FPDS-NG). In the past, the Government Accountability Office (GAO), the Small Business Administration Office of Inspector General (SBA IG) and other agencies have used the small business flag to uncover evidence indicating that large businesses have fraudulently received billions of dollars in federal small business contracts.
In Report 5-16, the SBA IG found large businesses had received federal small business contracts by making "false certifications" and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
The ASBL has estimated that since 2000, between $500 billion and $1 trillion in federal small business contracts have been diverted to Fortune 500 firms and other clearly large businesses.
"I want people to understand that this is the Obama Administration reducing transparency, and helping to cover-up hundreds of billions of dollars in federal contracting fraud," ASBL President Lloyd Chapman said.
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)
The ASBL believes the move by the Obama Administration to eliminate the embarrassing data is the result of its successful lawsuits against the government, which have increased transparency and opened the public's access to the data.
Congressman Joe Sestak (D-PA-7) has already sent a letter to GSA Administrator Martha Johnson and GSA Inspector General Brian Miller requesting that the GSA postpone the destruction of historical contracting data, and that the GSA IG conduct an investigation into the matter. The ASBL expects a dozen other members of Congress will follow suit. (http://www.asbl.com/documents/20100309_sestak_ltr.pdf)
In response to the court's ruling, the ASBL will be filing a request for a preliminary injunction by the end of the week.
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March 10, 2010
United States District Judge William Alsup has denied the American Small Business League's (ASBL) request for a temporary restraining order, and cleared the way for the Obama Administration to destroy over ten years worth of federal contracting data.
On March 12, 2010, the Obama Administration intends to move forward with a plan that would destroy years of incriminating contracting data by eliminating the socio-economic field, "isSmallBusiness," found within the Federal Procurement Data System-Next Generation (FPDS-NG). In the past, the Government Accountability Office (GAO), the Small Business Administration Office of Inspector General (SBA IG) and other agencies have used the small business flag to uncover evidence indicating that large businesses have fraudulently received billions of dollars in federal small business contracts.
In Report 5-16, the SBA IG found large businesses had received federal small business contracts by making "false certifications" and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
The ASBL has estimated that since 2000, between $500 billion and $1 trillion in federal small business contracts have been diverted to Fortune 500 firms and other clearly large businesses.
"I want people to understand that this is the Obama Administration reducing transparency, and helping to cover-up hundreds of billions of dollars in federal contracting fraud," ASBL President Lloyd Chapman said.
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)
The ASBL believes the move by the Obama Administration to eliminate the embarrassing data is the result of its successful lawsuits against the government, which have increased transparency and opened the public's access to the data.
Congressman Joe Sestak (D-PA-7) has already sent a letter to GSA Administrator Martha Johnson and GSA Inspector General Brian Miller requesting that the GSA postpone the destruction of historical contracting data, and that the GSA IG conduct an investigation into the matter. The ASBL expects a dozen other members of Congress will follow suit. (http://www.asbl.com/documents/20100309_sestak_ltr.pdf)
In response to the court's ruling, the ASBL will be filing a request for a preliminary injunction by the end of the week.
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Friday, February 12, 2010
Obama's Exemption from Capital Gains Tax Will Benefit Investors More than Small Businesses
President Barack Obama has stated he will back an exemption from capital gains tax for small businesses. He has also stated he will support an exemption from capital gains tax on investments in small business.
You can be sure any exemption from capital gains tax for small businesses or for investments in small businesses will be written to benefit the wealthy venture capitalists that backed his campaign, as opposed to struggling small businesses.
Currently, the average small business owner only needs to pay capital gains tax when they sell their business. That said, how is an exemption from capital gains tax going to create jobs? The answer is, it won't.
An exemption from capital gains tax on, "investments in small businesses," would be a huge benefit for the venture capitalists that have contributed millions of dollars to President Obama's campaign. That is why he has appointed several prominent venture capitalists, like Small Business Administration (SBA) Administrator Karen Mills, to key government positions.
The National Venture Capital Association (NVCA) and its members have been lobbying for an exemption from capital gains tax for years.
The NVCA and its members have contributed millions of dollars to President Obama and key leaders in Congress. They have consistently lobbied for a two-phase change in federal law that will allow them to participate, and conceivably dominate, the government's $150 billion a year small business contracting programs.
Phase one for venture capitalists is to push legislation that will change the 57-year-old definition of a small business in the Small Business Act as being "independently owned." Venture capitalists want the definition changed to include firms that are majority owned or controlled by investors. They have been successful in having bills introduced into to Congress, H.R. 3567 and H.R. 2965, with that goal in mind.
Phase two is the exemption from capital gains tax "ON INVESTMENTS IN SMALL BUSINESS." With the capital gains tax exemption in place, wealthy investors will be able to start or inexpensively acquire small businesses. Their well-financed pseudo-small businesses will be able to easily take on legitimate small businesses competing for federal small business contracts.
When the profits are withdrawn from a successful enterprise, it will be in the form of tax-free capital gains.
Billions of dollars a year in federal contracts earmarked for small businesses will be diverted to firms owned or controlled by some of the nation's wealthiest investors. Thousands of legitimate small business will be forced to close their doors and countless jobs will be lost.
I don't think President Obama gives a damn about small businesses. If you look at what he actually does about issues facing small businesses, he appears to be anti-small business. Small businesses create over 97 percent of all net new jobs in America, and yet the Obama Administration allocated only 2 percent of the American Recovery and Reinvestment Act (ARRA) funds to small businesses.
Need more proof that Obama is anti-small business?
Since 2003, twenty-five federal investigations have found billions of dollars a month in federal small business contracts are diverted to Fortune 500 firms. During his campaign, President Obama promised to end these rampant abuses. In February of 2008, he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
To date, President Obama has failed to honor his promise. The most recent government contracting data shows the Obama Administration itself has diverted billions of dollars in federal small business contracts to Fortune 500 firms. I would imagine 100 percent of middle class Americans would agree that firms like Lockheed Martin, Boeing, Bechtel, Northrop Grumman and General Dynamics should not be receiving federal small business contracts.
If President Obama were sincerely interested in helping small businesses, he would back legislation or issue an executive order halting the diversion of over $100 billion a year in federal small business contracts to corporate giants.
Look at the facts.
President Obama has allocated only 2 percent of his administration's stimulus funds to small businesses. Every day of the Obama Administration hundreds of millions of dollars in federal small business contracts have been diverted to corporate giants. Does that sound like a pro-small business President to you?
My predictions.
President Obama will continue to read speeches about helping small businesses while continuing to divert over $400 million a day in federal small business funds to some of the largest companies in the world. He will back an exemption form capital gains tax on "investments" in small businesses, which will be written to benefit his billionaire venture capitalist buddies. The scariest prediction is that President Obama will bankrupt thousands of legitimate American small businesses by backing a change in the federal definition of a small business as being "independently owned" to include firms that are actually owned or controlled by some of the wealthiest investors in the country.
Finally, the most frightening thing about all of this is that President Obama will get away with everything because the mainstream media has refused to cover it.
You can be sure any exemption from capital gains tax for small businesses or for investments in small businesses will be written to benefit the wealthy venture capitalists that backed his campaign, as opposed to struggling small businesses.
Currently, the average small business owner only needs to pay capital gains tax when they sell their business. That said, how is an exemption from capital gains tax going to create jobs? The answer is, it won't.
An exemption from capital gains tax on, "investments in small businesses," would be a huge benefit for the venture capitalists that have contributed millions of dollars to President Obama's campaign. That is why he has appointed several prominent venture capitalists, like Small Business Administration (SBA) Administrator Karen Mills, to key government positions.
The National Venture Capital Association (NVCA) and its members have been lobbying for an exemption from capital gains tax for years.
The NVCA and its members have contributed millions of dollars to President Obama and key leaders in Congress. They have consistently lobbied for a two-phase change in federal law that will allow them to participate, and conceivably dominate, the government's $150 billion a year small business contracting programs.
Phase one for venture capitalists is to push legislation that will change the 57-year-old definition of a small business in the Small Business Act as being "independently owned." Venture capitalists want the definition changed to include firms that are majority owned or controlled by investors. They have been successful in having bills introduced into to Congress, H.R. 3567 and H.R. 2965, with that goal in mind.
Phase two is the exemption from capital gains tax "ON INVESTMENTS IN SMALL BUSINESS." With the capital gains tax exemption in place, wealthy investors will be able to start or inexpensively acquire small businesses. Their well-financed pseudo-small businesses will be able to easily take on legitimate small businesses competing for federal small business contracts.
When the profits are withdrawn from a successful enterprise, it will be in the form of tax-free capital gains.
Billions of dollars a year in federal contracts earmarked for small businesses will be diverted to firms owned or controlled by some of the nation's wealthiest investors. Thousands of legitimate small business will be forced to close their doors and countless jobs will be lost.
I don't think President Obama gives a damn about small businesses. If you look at what he actually does about issues facing small businesses, he appears to be anti-small business. Small businesses create over 97 percent of all net new jobs in America, and yet the Obama Administration allocated only 2 percent of the American Recovery and Reinvestment Act (ARRA) funds to small businesses.
Need more proof that Obama is anti-small business?
Since 2003, twenty-five federal investigations have found billions of dollars a month in federal small business contracts are diverted to Fortune 500 firms. During his campaign, President Obama promised to end these rampant abuses. In February of 2008, he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
To date, President Obama has failed to honor his promise. The most recent government contracting data shows the Obama Administration itself has diverted billions of dollars in federal small business contracts to Fortune 500 firms. I would imagine 100 percent of middle class Americans would agree that firms like Lockheed Martin, Boeing, Bechtel, Northrop Grumman and General Dynamics should not be receiving federal small business contracts.
If President Obama were sincerely interested in helping small businesses, he would back legislation or issue an executive order halting the diversion of over $100 billion a year in federal small business contracts to corporate giants.
Look at the facts.
President Obama has allocated only 2 percent of his administration's stimulus funds to small businesses. Every day of the Obama Administration hundreds of millions of dollars in federal small business contracts have been diverted to corporate giants. Does that sound like a pro-small business President to you?
My predictions.
President Obama will continue to read speeches about helping small businesses while continuing to divert over $400 million a day in federal small business funds to some of the largest companies in the world. He will back an exemption form capital gains tax on "investments" in small businesses, which will be written to benefit his billionaire venture capitalist buddies. The scariest prediction is that President Obama will bankrupt thousands of legitimate American small businesses by backing a change in the federal definition of a small business as being "independently owned" to include firms that are actually owned or controlled by some of the wealthiest investors in the country.
Finally, the most frightening thing about all of this is that President Obama will get away with everything because the mainstream media has refused to cover it.
Tuesday, February 9, 2010
Justice Department Pays Legal Fees To American Small Business League
FOR IMMEDIATE RELEASE
February 9, 2010
Petaluma, Calif. – The U.S. Department of Justice has been forced to pay the legal fees incurred by the American Small Business League (ASBL), after the ASBL substantially prevailed in a recent court case under the Freedom of Information Act (FOIA). The ASBL sued the Small Business Administration (SBA) after the agency refused to release the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts.
During the course of litigation, the SBA tried to claim that it had no information regarding the specific names of firms that had received federal small business contracts.
In the court's ruling, United States District Judge Marilyn H. Patel ruled in favor of the ASBL and 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)
The information the ASBL obtained through the litigation supported its assertion that billions of dollars a month in federal contracts earmarked for small businesses had been diverted to Fortune 500 firms such as: General Dynamics, Xerox, Boeing, Lockheed Martin, British Aerospace (BAE), Dell Computer and French giant Thales Communications. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf
Previously, the SBA claimed that it was a “myth” that large firms received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)
This spring, the 9th Circuit Court of Appeals will hear another case between the SBA and the ASBL in which the SBA is claiming that it does not have access to its own phone records. The ASBL requested the information under FOIA after several journalists complained that the SBA was aggressively contacting the media in an attempt to erode the credibility of the ASBL and its president, Lloyd Chapman.
The ASBL is preparing to file up to 10 federal lawsuits against the Obama Administration within the next 60 days. The Obama Administration is refusing to release a wide variety of data related to small business contracting issues such as: contracting officer information, phone records, the specific names of individuals within Fortune 500 firms that have claimed small business status, and the names of domestic and foreign owned companies that received federal small business contracts.
"I think it is time for someone in the media to ask President Obama why his administration is giving small business contracts to Fortune 500 firms and then refusing to release the data that proves it,” Chapman said.
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Please click here to watch a short message from ASBL President Lloyd Chapman regarding the ASBL's legal victory: http://www.youtube.com/watch?v=eAyBEddowdE
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
February 9, 2010
Petaluma, Calif. – The U.S. Department of Justice has been forced to pay the legal fees incurred by the American Small Business League (ASBL), after the ASBL substantially prevailed in a recent court case under the Freedom of Information Act (FOIA). The ASBL sued the Small Business Administration (SBA) after the agency refused to release the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts.
During the course of litigation, the SBA tried to claim that it had no information regarding the specific names of firms that had received federal small business contracts.
In the court's ruling, United States District Judge Marilyn H. Patel ruled in favor of the ASBL and 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)
The information the ASBL obtained through the litigation supported its assertion that billions of dollars a month in federal contracts earmarked for small businesses had been diverted to Fortune 500 firms such as: General Dynamics, Xerox, Boeing, Lockheed Martin, British Aerospace (BAE), Dell Computer and French giant Thales Communications. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf
Previously, the SBA claimed that it was a “myth” that large firms received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)
This spring, the 9th Circuit Court of Appeals will hear another case between the SBA and the ASBL in which the SBA is claiming that it does not have access to its own phone records. The ASBL requested the information under FOIA after several journalists complained that the SBA was aggressively contacting the media in an attempt to erode the credibility of the ASBL and its president, Lloyd Chapman.
The ASBL is preparing to file up to 10 federal lawsuits against the Obama Administration within the next 60 days. The Obama Administration is refusing to release a wide variety of data related to small business contracting issues such as: contracting officer information, phone records, the specific names of individuals within Fortune 500 firms that have claimed small business status, and the names of domestic and foreign owned companies that received federal small business contracts.
"I think it is time for someone in the media to ask President Obama why his administration is giving small business contracts to Fortune 500 firms and then refusing to release the data that proves it,” Chapman said.
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Please click here to watch a short message from ASBL President Lloyd Chapman regarding the ASBL's legal victory: http://www.youtube.com/watch?v=eAyBEddowdE
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Friday, February 5, 2010
Obama Continues to Ignore Small Business Contracting Abuses
FOR IMMEDIATE RELEASE
February 5, 2010
Petaluma, Calif. - In February of 2008, then Senator and Presidential candidate Barack Obama promised to, "end the diversion of federal small business contracts to corporate giants." Yet to date President Obama has failed to honor that promise in the face of double-digit unemployment and current legislation in Congress that would solve the problem.
http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
President Obama's statement was in response to a series of federal investigations which found rampant abuses in federal small business contracting programs.
Since 2003, twenty-five federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to Fortune 500 corporations and other clearly large firms. Since taking office, Obama officials have given small business contracts to firms like Xerox, General Dynamics, Boeing, Lockheed Martin, Raytheon, and Northrop Grumman.
http://www.asbl.com/documents/20091202Xerox_Created_20091002.pdf
http://www.asbl.com/documents/20091202GeneralDynamics_Created_20091027.pdf
To date, President Obama has refused to propose any legislation or policy to honor that promise. As a result, the diversion of federal small business contracts to large corporations has continued.
The only legislation that has been introduced into Congress that would address the abuses is H.R. 2568, the Fairness and Transparency in Contracting Act. H.R. 2568 would immediately stop the diversion of federal small business contracts to corporate giants, and redirect billions of dollars in federal infrastructure funds to small businesses in the middle class economy. Congressman Hank Johnson (D-4-GA) introduced the bill in May of 2009. To date the bill has 20 co-sponsors.
In a statement released Thursday, U.S. Senate Committee on Small Business and Entrepreneurship Chair, Mary L. Landrieu, (D-LA) said, "Government contracts are perhaps one of the easiest and most inexpensive ways the government can help immediately increase sales for America's entrepreneurs, giving them the tools they need to keep our economy strong and create jobs. By increasing contracts to small businesses by just 1 percent, we can create more than 100,000 new jobs - and today, we need those jobs more than ever."
http://sbc.senate.gov/public/index.cfm?a=Files.Serve&File_id=bc065833-dafc-46c5-9e6f-21209a532de2
The ASBL estimates that if President Obama issued an executive order directing federal agencies and prime contractors to halt the diversion of federal small business contracts to Fortune 500 firms and other large businesses, or pass H.R. 2568, it would increase the annual volume of contracts flowing to small businesses by well over 50 percent.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
February 5, 2010
Petaluma, Calif. - In February of 2008, then Senator and Presidential candidate Barack Obama promised to, "end the diversion of federal small business contracts to corporate giants." Yet to date President Obama has failed to honor that promise in the face of double-digit unemployment and current legislation in Congress that would solve the problem.
http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
President Obama's statement was in response to a series of federal investigations which found rampant abuses in federal small business contracting programs.
Since 2003, twenty-five federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to Fortune 500 corporations and other clearly large firms. Since taking office, Obama officials have given small business contracts to firms like Xerox, General Dynamics, Boeing, Lockheed Martin, Raytheon, and Northrop Grumman.
http://www.asbl.com/documents/20091202Xerox_Created_20091002.pdf
http://www.asbl.com/documents/20091202GeneralDynamics_Created_20091027.pdf
To date, President Obama has refused to propose any legislation or policy to honor that promise. As a result, the diversion of federal small business contracts to large corporations has continued.
The only legislation that has been introduced into Congress that would address the abuses is H.R. 2568, the Fairness and Transparency in Contracting Act. H.R. 2568 would immediately stop the diversion of federal small business contracts to corporate giants, and redirect billions of dollars in federal infrastructure funds to small businesses in the middle class economy. Congressman Hank Johnson (D-4-GA) introduced the bill in May of 2009. To date the bill has 20 co-sponsors.
In a statement released Thursday, U.S. Senate Committee on Small Business and Entrepreneurship Chair, Mary L. Landrieu, (D-LA) said, "Government contracts are perhaps one of the easiest and most inexpensive ways the government can help immediately increase sales for America's entrepreneurs, giving them the tools they need to keep our economy strong and create jobs. By increasing contracts to small businesses by just 1 percent, we can create more than 100,000 new jobs - and today, we need those jobs more than ever."
http://sbc.senate.gov/public/index.cfm?a=Files.Serve&File_id=bc065833-dafc-46c5-9e6f-21209a532de2
The ASBL estimates that if President Obama issued an executive order directing federal agencies and prime contractors to halt the diversion of federal small business contracts to Fortune 500 firms and other large businesses, or pass H.R. 2568, it would increase the annual volume of contracts flowing to small businesses by well over 50 percent.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, February 3, 2010
Obama Small Business Plan Criticized for Hypocrisy
FOR IMMEDIATE RELEASE
February 3, 2010
Petaluma, Calif. - The American Small Business League (ASBL) criticizes President Barack Obama's latest plan to stimulate small businesses and the middle class economy for being hypocritical. Following last week's State of the Union address, President Obama proposed a series of initiatives for small businesses including a $5,000 per new employee tax credit, and the establishment of a $30 billion small business lending fund created from leftover TARP money. While President Obama's recent rhetoric has been focused on small businesses and job creation, over its first year his administration has continued to allow the diversion of billions of dollars in federal small business contracts to Fortune 500 firms. As a result, thousands of businesses have failed and countless jobs have been lost. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The Small Business Act directs that the federal government award small businesses, "not less than 23 percent of the total value of all prime contract awards for each fiscal year." Since 2003, over two dozen federal investigations have found that the federal government is not hitting that goal, and that a majority of federal small business contracts have been diverted to Fortune 500 firms. (http://www.smallbusinessnotes.com/fedgovernment/sba/sbact.html)
In Report 5-15, the Small Business Administration (SBA) Office of Inspector General (IG) referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today."(http://www.asbl.com/documents/05-15.pdf) In October of 2009, the SBA IG referenced this issue as the #1 management challenge facing the agency for the fifth consecutive year. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf)
In February of 2008, President Obama recognized the magnitude of the problem when he stated, "It is time to end the diversion of federal small business contracts to corporate giants." Two years later, the latest government data clearly shows the Obama Administration is continuing to award billions of dollars a month in federal small business contracts to large businesses. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The American Small Business League believes if President Obama really wanted to create jobs he would do the following:
1. Issue an executive order to end the diversion of federal small business contracts to corporate giants or push for the passage of H.R. 2568, the Fairness and Transparency in Contracting Act. (http://www.asbl.com/documents/hr2568.pdf)
2. Institute the 5 percent set-aside goal for women-owned firms.
3. Restore the SBA's budget and staffing, and open all of the small business offices closed during the Bush Administration.
4. End the comprehensive test program, which allows government prime contractors to circumvent their small business contracting goals. (http://www.asbl.com/showmedia.php?id=1000)
February 3, 2010
Petaluma, Calif. - The American Small Business League (ASBL) criticizes President Barack Obama's latest plan to stimulate small businesses and the middle class economy for being hypocritical. Following last week's State of the Union address, President Obama proposed a series of initiatives for small businesses including a $5,000 per new employee tax credit, and the establishment of a $30 billion small business lending fund created from leftover TARP money. While President Obama's recent rhetoric has been focused on small businesses and job creation, over its first year his administration has continued to allow the diversion of billions of dollars in federal small business contracts to Fortune 500 firms. As a result, thousands of businesses have failed and countless jobs have been lost. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The Small Business Act directs that the federal government award small businesses, "not less than 23 percent of the total value of all prime contract awards for each fiscal year." Since 2003, over two dozen federal investigations have found that the federal government is not hitting that goal, and that a majority of federal small business contracts have been diverted to Fortune 500 firms. (http://www.smallbusinessnotes.com/fedgovernment/sba/sbact.html)
In Report 5-15, the Small Business Administration (SBA) Office of Inspector General (IG) referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today."(http://www.asbl.com/documents/05-15.pdf) In October of 2009, the SBA IG referenced this issue as the #1 management challenge facing the agency for the fifth consecutive year. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf)
In February of 2008, President Obama recognized the magnitude of the problem when he stated, "It is time to end the diversion of federal small business contracts to corporate giants." Two years later, the latest government data clearly shows the Obama Administration is continuing to award billions of dollars a month in federal small business contracts to large businesses. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The American Small Business League believes if President Obama really wanted to create jobs he would do the following:
1. Issue an executive order to end the diversion of federal small business contracts to corporate giants or push for the passage of H.R. 2568, the Fairness and Transparency in Contracting Act. (http://www.asbl.com/documents/hr2568.pdf)
2. Institute the 5 percent set-aside goal for women-owned firms.
3. Restore the SBA's budget and staffing, and open all of the small business offices closed during the Bush Administration.
4. End the comprehensive test program, which allows government prime contractors to circumvent their small business contracting goals. (http://www.asbl.com/showmedia.php?id=1000)
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