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Please e-mail the American Small Business League (ASBL) at brianreeder@asbl.com. Thank you.

Wednesday, March 2, 2011

Army Sued for Refusing to Release Bechtel Contracting Data

FOR IMMEDIATE RELEASE
March 2, 2011

Petaluma, Calif. –The U.S. Department of the Army is being sued by the American Small Business League (ASBL) for refusing to release subcontracting reports on contracts awarded to multinational defense giant Bechtel. (http://www.asbl.com/documents/Complaint_SBA_FOIA_ArmyBechtel.pdf)

The ASBL filed suit in United States District Court, Northern District of California on Tuesday, March 1. The case was filed after the Army repeatedly refused to respond to a Freedom of Information Act (FOIA) request for Individual Subcontracting Reports (ISR) and Summary Subcontracting Reports (SSR) on a prime contract awarded to Bechtel.

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

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

The ASBL has won a series of lawsuits against the federal government under FOIA. Some of the information obtained by the ASBL indicates the federal government may have diverted small business contracts to Bechtel and some of the largest corporations on earth. The Obama Administration is currently awarding small business contracts to firms such as Lockheed Martin, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, and Dell Computer. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

To date, the ASBL has five outstanding lawsuits in the federal court system. (http://www.asbl.com/documentlibrary.html)

“President Obama promised to have the most transparent administration in history, yet his administration continues to withhold even the simplest information on federal small business contracting programs. As I have said many times before, there is a big difference between what President Obama says and what President Obama does,” ASBL President Lloyd Chapman said. “Any time the Obama Administration withholds information that has always been released to the public, it shows us that we have found evidence of contracting fraud and abuse. I am confident that’s what we will find with this information.”

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

Thursday, February 24, 2011

Obama Ignores Simple Solution to Supercharge Job Creation

FOR IMMEDIATE RELEASE
February 24, 2011

Petaluma, Calif. –Despite national unemployment above 9 percent, and a continued jobless recovery, the Obama Administration has refused to make good on a campaign promise to end the diversion of billions of dollars a month in federal small business contracts to corporate giants. As a result, the nation’s chief job creators, small businesses, are forced to compete head-to-head against Fortune 500 firms and other large businesses for even the smallest orders for goods and services.

Federal law requires the U.S. government to direct 23 percent of its purchases to small businesses. Yet every year, a vast majority of federal small business contracts go to some of the biggest companies around the world.

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. Given the clear impact of small businesses on the nation’s economy, the American Small Business League (ASBL) maintains that it is unreasonable for the Obama Administration to continue ignoring this damaging widespread abuse. (http://www.sba.gov/advo/research/re359.pdf)

Since 2003, a series of federal investigations have shown that an overwhelming majority of federal small business contracts actually go to Fortune 500 firms and even some of the largest corporations on earth. The most recent data released by the Obama Administration shows recipients of federal small business contracts including: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (http://www.asbl.com/documents/05-15.pdf ; www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

The ASBL maintains that the most effective way to supercharge job creation and stimulate the economy is to pass the Fairness and Transparency in Contracting Act. If passed, the bill would end widespread abuse in small business programs and direct billions of dollars in existing federal spending to the nation’s 27 million small businesses. The ASBL expects the bill to be reintroduced into the U.S. House of Representatives by Congressman Hank Johnson (D-GA) shortly. (http://www.opencongress.org/bill/111-h2568/show)

“Passing the Fairness and Transparency in Contracting Act would create more jobs than anything proposed by the Obama Administration to date. It’s simple, easy, deficit neutral and would provide the nation’s chief job creators with significantly increased access to federal contracting opportunities,” ASBL President Lloyd Chapman said. “It is time for President Obama to keep his promise and ‘end the diversion of federal small business contracts to corporate giants.’ ”

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

Thursday, February 10, 2011

Obama Administration Ignores Common Sense Jobs Plan

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

ASBL Weekly Update, February 4, 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.”

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

Tuesday, January 25, 2011

Obama State of the Union Speech will be Predictable for the Middle Class

FOR IMMEDIATE RELEASE
January 25, 2011

Petaluma, Calif. – Tonight, President Barack Obama will deliver his second State of the Union address to the American people. The American Small Business League (ASBL) is predicting that President Obama will rely on the same tired rhetoric regarding economic stimulus, while continuing to ignore the diversion of federal small business contracts to corporate giants.

Since 2003, more than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to some of the largest businesses in the world. In Report 5-15, the Small Business Administration Office of Inspector General referred to the abuse as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” (http://www.asbl.com/documents/05-15.pdf)

Recently, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. According to government data, recipients of federal small business contracts included: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

Based on its research and the federal government’s own small business contracting data, the ASBL has estimated that every year more than $100 billion in federal small business contracts are diverted to Fortune 500 firms and other large businesses. As a result of these abuses, the ASBL maintains that the federal government is achieving less than 5 percent of its congressionally mandated 23 percent small business-contracting goal.

In April of 2010, Senate Small Business Committee Chair Mary Landrieu (D – LA) estimated that increasing federal contracts to small businesses by just 1 percent would create more than 100,000 new jobs. Based on this estimate, ending the flow of federal small business contracts to corporate giants could create more than 1.8 million new jobs. (www.smallbusinessmajority.org/_docs/resources/SBC_Jobs_Package.pdf)

“The American people need to quit buying into President Obama’s well written speeches, and start paying attention to his actions,” ASBL President Lloyd Chapman said. “Our economy is being threatened, and yet President Obama has repeatedly refused to address this job killing contracting scandal. You cannot create jobs with rhetoric, but you can supercharge job creation by ending the diversion of federal small business contracts to corporate giants.”

In addition to failing to stop the diversion of federal small business contracts to corporate giants, President Obama has ignored a series of campaign promises including: full restoration the SBA’s budget and staffing to pre-Bush Administration levels, and restoration of cabinet-level status of the SBA Administrator.


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