FOR IMMEDIATE RELEASE
September 24, 2009
Petaluma, Calif. - Huntsville Alabama Congressman Parker Griffith (D - AL5) has introduced a new bill in the House of Representatives that will allow divisions of Fortune 500 firms and thousands of other large businesses to receive billions of dollars in federal contracts earmarked for small businesses.
Several Fortune 500 firms in Congressman Griffith's district such as Boeing, Northrop Grumman and British Aerospace (BAE) are currently receiving millions of dollars in federal small business contracts through loopholes in federal contracting law.
If H.R. 3558 becomes law, Boeing, Northrop Grumman, BAE and their subsidiaries could continue to receive federal small business contracts indefinitely. Boeing and Northrop Grumman are amongst Congressman Griffith's largest campaign contributors. (http://tiny.cc/JWuUg)
Currently, there are 5,126 small businesses registered to do business with the federal government in the State of Alabama, according to the Central Contractor Registration database. If H.R. 3558 is passed and signed into law, more than 99 percent of the small businesses in Alabama would be put at a significant competitive disadvantage.
In 2005, the Small Business Administration Office of Inspector General (SBA 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 and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
Since 2003, over a dozen federal investigations have found that Fortune 500 firms in the United States and some of the largest firms in Korea, Italy, Holland, France and England have received billions of dollars in federal small business contracts.
Another bill that has been introduced in the House of Representatives, "the Fairness and Transparency in Contracting Act of 2009," or H.R. 2568, is designed to close all of the loopholes, and halt the flow of federal small business contracts to large businesses.
H.R. 2568 was introduced by Congressman Hank Johnson (D - GA) and has 15 co-sponsors. Congressman Johnson's bill is backed by small business groups and chambers of commerce across the country.
Research by the American Small Business League (ASBL) estimates that legitimate small businesses are losing over $100 billion a year in federal small business contracts through various loopholes in federal contracting law and policy.
ASBL estimates that if H.R. 2568 becomes law, over $100 billion a year in federal small business contracts will be redirected to middle class firms nationwide. If Congressman Griffith's bill, H.R. 3558, becomes law billions of dollars in federal small business contracts will continue to be diverted to corporate giants.
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Please click here to watch a short clip about the ASBL's concerns regarding H.R. 3558: http://www.youtube.com/watch?v=KbGwwEaEGSM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, September 24, 2009
Monday, September 21, 2009
Senate Committee Snubs Small Business Champions
FOR IMMEDIATE RELEASE
September 21, 2009
Petaluma, Calif. - On Tuesday, September 22, 2009, the Senate Committee on Small Business and Entrepreneurship will hold a roundtable discussion regarding contracting reform for small businesses, yet no individual with any track record of successfully campaigning for small businesses has been invited to testify.
The American Small Business League (ASBL) is raising concerns regarding the lack of small business voices that will be present at the committee-run roundtable event. The roundtable is tentatively scheduled to include: Joseph Jordan from the U.S. Small Business Administration (SBA), and representatives from the U.S. Department of Transportation, and the Department of Defense, according to a committee staffer.
The ASBL points to the fact that it is the only organization that has written a bill to address long standing abuses in federal small business contracting programs. Since 2002, the ASBL has waged a seven-year battle to end the diversion of federal small business contracts to large corporations. Despite the ASBL's documentable track record of advocacy, the committee has snubbed them repeatedly.
"We don't expect to be invited to these types of meetings because the Senate Committee on Small Business has no interest in contracting reform," ASBL President Lloyd Chapman said. "Since 2003, over a dozen federal investigations have found that billions of dollars in contracts earmarked for small businesses have been diverted to Fortune 500 firms. This issue has been featured on every major television network and in every major newspaper in the country, yet the committee has failed to lift a finger to stop it for seven years. 2009 represents the tenth anniversary of the diversion of federal small business contracts to large corporations."
Information in the Federal Procurement Data System-Next Generation (FPDS - NG) indicates that the Obama Administration included billions of dollars in contracts awarded to Fortune 500 firms and even some of the largest corporations in the world towards its fiscal year (FY) 2008 small business goals. Firms such as: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in South Korea and the Italian Finmeccanica SpA, received billions of dollars in federal small business contracts during FY 2008.
In the last decade, no member of the Senate Small Business Committee has proposed legislation to stem the flow of federal small business contracts to corporate giants. ASBL points to the fact that in 2009, the Senate Small Business Committee unanimously passed a bill that would allow companies owned by some of the nation's wealthiest investors to receive federal small business contracts.
"Small business owners around the country refer to that committee as the Senate Anti-Small Business Committee," Chapman said.
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September 21, 2009
Petaluma, Calif. - On Tuesday, September 22, 2009, the Senate Committee on Small Business and Entrepreneurship will hold a roundtable discussion regarding contracting reform for small businesses, yet no individual with any track record of successfully campaigning for small businesses has been invited to testify.
The American Small Business League (ASBL) is raising concerns regarding the lack of small business voices that will be present at the committee-run roundtable event. The roundtable is tentatively scheduled to include: Joseph Jordan from the U.S. Small Business Administration (SBA), and representatives from the U.S. Department of Transportation, and the Department of Defense, according to a committee staffer.
The ASBL points to the fact that it is the only organization that has written a bill to address long standing abuses in federal small business contracting programs. Since 2002, the ASBL has waged a seven-year battle to end the diversion of federal small business contracts to large corporations. Despite the ASBL's documentable track record of advocacy, the committee has snubbed them repeatedly.
"We don't expect to be invited to these types of meetings because the Senate Committee on Small Business has no interest in contracting reform," ASBL President Lloyd Chapman said. "Since 2003, over a dozen federal investigations have found that billions of dollars in contracts earmarked for small businesses have been diverted to Fortune 500 firms. This issue has been featured on every major television network and in every major newspaper in the country, yet the committee has failed to lift a finger to stop it for seven years. 2009 represents the tenth anniversary of the diversion of federal small business contracts to large corporations."
Information in the Federal Procurement Data System-Next Generation (FPDS - NG) indicates that the Obama Administration included billions of dollars in contracts awarded to Fortune 500 firms and even some of the largest corporations in the world towards its fiscal year (FY) 2008 small business goals. Firms such as: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in South Korea and the Italian Finmeccanica SpA, received billions of dollars in federal small business contracts during FY 2008.
In the last decade, no member of the Senate Small Business Committee has proposed legislation to stem the flow of federal small business contracts to corporate giants. ASBL points to the fact that in 2009, the Senate Small Business Committee unanimously passed a bill that would allow companies owned by some of the nation's wealthiest investors to receive federal small business contracts.
"Small business owners around the country refer to that committee as the Senate Anti-Small Business Committee," Chapman said.
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Wednesday, September 16, 2009
New Bill Will Create More Loopholes in Federal Contracting Programs
FOR IMMEDIATE RELEASE
September 16, 2009
Petaluma, Calif. – A new bill introduced into the House of Representatives could create yet another loophole in federal small business contracting programs, which would divert more federal small business contracts to corporate giants.
The Small Business Fair Competition Act (H.R. 3558), was introduced by Congressman Parker Griffith (D – AL) on September 14, and would allow firms that have outgrown the federal government’s small business size standards, because of a government contract, to compete and be counted as a small business once that contract is competed again.
Since 2003, more than 15 federal investigations have found that billions of dollars in federal contracts intended for small businesses have been awarded to Fortune 500 corporations and other clearly large firms around the world. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General referred to the diversion of federal small business contracts to large corporations 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)
During fiscal year (FY) 2008, 60 of the Top 100 recipients of federal small business contracts were large businesses, according to an analysis by the American Small Business League (ASBL). (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
To date, Congress has not passed legislation to stop the diversion of federal small business contracts to large corporations, and now H.R. 3558 has the potential to create yet another loophole allowing small business contracts to go to some of the largest corporations in the world. During FY 2008, corporate giants Boeing, Northrop Grumman, General Dynamics and British Aerospace (BAE) received federal small business contracts. All four firms maintain campuses located in Congressman Griffith’s district.
“With H.R. 3558, Congressman Griffith has created a colossal, anti-small business loophole to divert federal small business funds to some of his largest campaign contributors,” ASBL President Lloyd Chapman said. “This is one of the most egregious examples I have ever seen of a member of Congress selling legislation to the highest bidder.”
The ASBL has launched a campaign in opposition to H.R. 3558 and is encouraging members of Congress to support H.R. 2568, the Fairness and Transparency in Contracting Act of 2009.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
September 16, 2009
Petaluma, Calif. – A new bill introduced into the House of Representatives could create yet another loophole in federal small business contracting programs, which would divert more federal small business contracts to corporate giants.
The Small Business Fair Competition Act (H.R. 3558), was introduced by Congressman Parker Griffith (D – AL) on September 14, and would allow firms that have outgrown the federal government’s small business size standards, because of a government contract, to compete and be counted as a small business once that contract is competed again.
Since 2003, more than 15 federal investigations have found that billions of dollars in federal contracts intended for small businesses have been awarded to Fortune 500 corporations and other clearly large firms around the world. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General referred to the diversion of federal small business contracts to large corporations 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)
During fiscal year (FY) 2008, 60 of the Top 100 recipients of federal small business contracts were large businesses, according to an analysis by the American Small Business League (ASBL). (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
To date, Congress has not passed legislation to stop the diversion of federal small business contracts to large corporations, and now H.R. 3558 has the potential to create yet another loophole allowing small business contracts to go to some of the largest corporations in the world. During FY 2008, corporate giants Boeing, Northrop Grumman, General Dynamics and British Aerospace (BAE) received federal small business contracts. All four firms maintain campuses located in Congressman Griffith’s district.
“With H.R. 3558, Congressman Griffith has created a colossal, anti-small business loophole to divert federal small business funds to some of his largest campaign contributors,” ASBL President Lloyd Chapman said. “This is one of the most egregious examples I have ever seen of a member of Congress selling legislation to the highest bidder.”
The ASBL has launched a campaign in opposition to H.R. 3558 and is encouraging members of Congress to support H.R. 2568, the Fairness and Transparency in Contracting Act of 2009.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, August 27, 2009
Wednesday, August 26, 2009
Government Loophole Will Slow Economic Recovery for Middle Class America
FOR IMMEDIATE RELEASE
August 26, 2009
Petaluma, Calif. - A loophole created by the federal government is having a significant negative impact on the economic recovery of middle class America. The latest U.S. Census Bureau data shows that 98 percent of all U.S. firms have less than 100 employees. These firms employ over 50.2 percent of the private sector work force, create over 97 percent of all net new jobs and generate over 50 percent of the Gross Domestic Product (GDP).
Federal law stipulates that 23 percent of the total value of all federal contracts awarded each year shall go to small businesses.
With the annual federal acquisition budget hovering around $700 billion, the nation's 27 million small businesses should be able to count on approximately $161 billion a year in federal contracts being channeled into the middle class economy.
Unfortunately, the federal government has created colossal loopholes that have diverted the vast majority of federal small business contracts away from middle class America and into the hands of many of the largest firms in the world.
The federal government adopted a policy, which allowed large businesses to acquire a small business and retain that firm's small business status for 20 years. A reporter from CBS forced this out of an SBA official in a 2004 interview. In July of 2007, the Small Business Administration (SBA) implemented a rule change requiring 5-year recertification of small business status. This rule change "grandfathered" large businesses currently receiving federal small business contracts into the government's contracting data. As a result, the overwhelming majority of federal contracts intended for American small businesses will be diverted to Fortune 500 firms and thousands of large businesses around the world until the year 2012.
Last week, the Obama Administration released the latest data on federal contracts awarded to small businesses. The top recipient of federal small business contracts was Textron. Textron is a Fortune 500 firm with 43,000 employees and over $14 billion in annual sales. Their AAI division received $775,773,505 in small business contracts during fiscal year (FY) 2008. (http://www.asbl.com/documents/20090821Top100SBContracting%20Numbers2008.pdf)
Other firms receiving federal small business contracts included, British Aerospace (BAE), Lockheed Martin, Boeing, Raytheon, GTSI, L-3 Communications, Northrop Grumman, Booz Allen Hamilton, General Dynamics, 3M Company, Hewlett-Packard, AT&T, Dell Computer, Staples, Office Depot, Xerox, General Electric, Rolls-Royce and French firm Thales Communications. Finmeccanica SpA in Italy with more than 73,000 employees received $273,872,995 in small business contracts; Ssangyong Corporation in Seoul, South Korea received $254,149,950 in federal small business contracts. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) estimates that over $100 billion a year in federal contracts that by law should go to middle class firms are diverted to worldwide corporate giants. (www.asbl.com)
-###-
Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 26, 2009
Petaluma, Calif. - A loophole created by the federal government is having a significant negative impact on the economic recovery of middle class America. The latest U.S. Census Bureau data shows that 98 percent of all U.S. firms have less than 100 employees. These firms employ over 50.2 percent of the private sector work force, create over 97 percent of all net new jobs and generate over 50 percent of the Gross Domestic Product (GDP).
Federal law stipulates that 23 percent of the total value of all federal contracts awarded each year shall go to small businesses.
With the annual federal acquisition budget hovering around $700 billion, the nation's 27 million small businesses should be able to count on approximately $161 billion a year in federal contracts being channeled into the middle class economy.
Unfortunately, the federal government has created colossal loopholes that have diverted the vast majority of federal small business contracts away from middle class America and into the hands of many of the largest firms in the world.
The federal government adopted a policy, which allowed large businesses to acquire a small business and retain that firm's small business status for 20 years. A reporter from CBS forced this out of an SBA official in a 2004 interview. In July of 2007, the Small Business Administration (SBA) implemented a rule change requiring 5-year recertification of small business status. This rule change "grandfathered" large businesses currently receiving federal small business contracts into the government's contracting data. As a result, the overwhelming majority of federal contracts intended for American small businesses will be diverted to Fortune 500 firms and thousands of large businesses around the world until the year 2012.
Last week, the Obama Administration released the latest data on federal contracts awarded to small businesses. The top recipient of federal small business contracts was Textron. Textron is a Fortune 500 firm with 43,000 employees and over $14 billion in annual sales. Their AAI division received $775,773,505 in small business contracts during fiscal year (FY) 2008. (http://www.asbl.com/documents/20090821Top100SBContracting%20Numbers2008.pdf)
Other firms receiving federal small business contracts included, British Aerospace (BAE), Lockheed Martin, Boeing, Raytheon, GTSI, L-3 Communications, Northrop Grumman, Booz Allen Hamilton, General Dynamics, 3M Company, Hewlett-Packard, AT&T, Dell Computer, Staples, Office Depot, Xerox, General Electric, Rolls-Royce and French firm Thales Communications. Finmeccanica SpA in Italy with more than 73,000 employees received $273,872,995 in small business contracts; Ssangyong Corporation in Seoul, South Korea received $254,149,950 in federal small business contracts. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) estimates that over $100 billion a year in federal contracts that by law should go to middle class firms are diverted to worldwide corporate giants. (www.asbl.com)
-###-
Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, August 25, 2009
Obama Administration Juggles the Books to Shortchange Small Businesses Out of Billions
FOR IMMEDIATE RELEASE
August 25, 2009
Petaluma, Calif. – The Obama Administration released its latest small business contracting statistics on August 21, claiming that the federal government awarded 21.5 percent of federal contracts to small businesses. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) has uncovered information within the Federal Procurement Data System - Next Generation (FPDS-NG), which indicates that the government actually did closer to 7 percent with small businesses.
Since 2003, over a dozen federal investigations have found that federal officials consistently inflated the government's actual small business contracting data, and allowed billions of dollars in federal contracts intended for small businesses to be diverted to corporate giants.
One technique used by the government to misrepresent compliance with the congressionally mandated 23 percent small business contracting goal was to create the term, "small business eligible." Using this technique, government officials subtract larger federal prime contracts from the overall federal acquisition budget. Reducing the actual federal acquisition budget significantly inflates the percentage of all federal contracts awarded to small businesses.
The ASBL points out that excluding large contracts as not being "small business eligible" is not supported by any statute of the law, and is contrary to the actual language of the Small Business Act which states, "The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year." (http://www.sba.gov/regulations/sbaact/sbaact.html) The ASBL estimates that the actual federal acquisition budget for 2008 was approximately $700 billion. The SBA used a figure of $434 billion to arrive at the 21.5 percent number. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/fy2008official_goaling_report.html)
Another technique, uncovered in federal investigations and used by government officials to misrepresent the actual percentage of federal contracts awarded to small businesses, is to include billions of dollars in contracts to Fortune 500 firms and hundreds of other large businesses as small business awards.
Some of the firms Obama officials used to reach the government’s 21.5 percent figure included Lockheed Martin, Textron, Boeing, Raytheon, L-3 Communications, Northrop Grumman, Dell Computer, General Dynamics, Office Depot, Xerox, 3M, Staples, GTSI, General Electric, AT&T, Hewlett-Packard, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA which is located in Italy with 73,000 employees.
In response to the SBA's release of its 2008 small business goaling report, the ASBL conducted a detailed analysis of small business contracting data obtained from FPDS-NG. By excluding the large recipients of federal small business contracts and using the actual federal budget from fiscal year 2000 forward, the ASBL has estimated that legitimate American small businesses have lost an average of approximately $100 billion a year in government small business contracts.
A new bill titled the "Fairness and Transparency in Contracting Act," or H.R. 2568 has been introduced into the House of Representatives would redirect billions of dollars in federal small business contracts back to legitimate American owned small businesses.
-###-
Please click here to watch our response to the Obama Administration’s small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 25, 2009
Petaluma, Calif. – The Obama Administration released its latest small business contracting statistics on August 21, claiming that the federal government awarded 21.5 percent of federal contracts to small businesses. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) has uncovered information within the Federal Procurement Data System - Next Generation (FPDS-NG), which indicates that the government actually did closer to 7 percent with small businesses.
Since 2003, over a dozen federal investigations have found that federal officials consistently inflated the government's actual small business contracting data, and allowed billions of dollars in federal contracts intended for small businesses to be diverted to corporate giants.
One technique used by the government to misrepresent compliance with the congressionally mandated 23 percent small business contracting goal was to create the term, "small business eligible." Using this technique, government officials subtract larger federal prime contracts from the overall federal acquisition budget. Reducing the actual federal acquisition budget significantly inflates the percentage of all federal contracts awarded to small businesses.
The ASBL points out that excluding large contracts as not being "small business eligible" is not supported by any statute of the law, and is contrary to the actual language of the Small Business Act which states, "The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year." (http://www.sba.gov/regulations/sbaact/sbaact.html) The ASBL estimates that the actual federal acquisition budget for 2008 was approximately $700 billion. The SBA used a figure of $434 billion to arrive at the 21.5 percent number. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/fy2008official_goaling_report.html)
Another technique, uncovered in federal investigations and used by government officials to misrepresent the actual percentage of federal contracts awarded to small businesses, is to include billions of dollars in contracts to Fortune 500 firms and hundreds of other large businesses as small business awards.
Some of the firms Obama officials used to reach the government’s 21.5 percent figure included Lockheed Martin, Textron, Boeing, Raytheon, L-3 Communications, Northrop Grumman, Dell Computer, General Dynamics, Office Depot, Xerox, 3M, Staples, GTSI, General Electric, AT&T, Hewlett-Packard, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA which is located in Italy with 73,000 employees.
In response to the SBA's release of its 2008 small business goaling report, the ASBL conducted a detailed analysis of small business contracting data obtained from FPDS-NG. By excluding the large recipients of federal small business contracts and using the actual federal budget from fiscal year 2000 forward, the ASBL has estimated that legitimate American small businesses have lost an average of approximately $100 billion a year in government small business contracts.
A new bill titled the "Fairness and Transparency in Contracting Act," or H.R. 2568 has been introduced into the House of Representatives would redirect billions of dollars in federal small business contracts back to legitimate American owned small businesses.
-###-
Please click here to watch our response to the Obama Administration’s small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, August 24, 2009
Obama Administration Small Business Data Includes Billions to Corporate Giants
FOR IMMEDIATE RELEASE
August 24, 2009
Petaluma, Calif. - On August 21st, the Obama Administration released its latest statistics on the volume of federal contracts awarded to small businesses. Federal law requires a minimum of 23 percent of the total value of all federal contracts to be awarded to small businesses. Federal statute defines a small business as being "independently owned," which excludes publicly traded firms.
The Obama Administration is claiming the government awarded $93.3 billion in contracts to small businesses or 21.5 percent during fiscal year (FY) 2008.
According to information from the Federal Procurement Data System - Next Generation (FPDS-NG), of the ten largest recipients of federal small business contracts, 85.4 percent of the contracts went to large businesses. Eight of the top ten recipients of small business contracts were large businesses.
The top recipient of government small business contracts was Textron, which received $775.7 million. Textron is a Fortune 500 firm with 83,000 employees and over $25 billion in annual revenue.
Two other top ten recipients of federal small business contracts were Ssangyong Corporation, which is headquartered in Seoul, Korea and received over $254 million and Finmeccanica SpA, which is headquartered in Italy with 73,000 employees and received over $283 million in contracts.
The 14th largest recipient of federal small business contracts is listed as "Miscellaneous Foreign Contractors" with $210 million in government small business contracts.
Other firms included in the Obama Administration's small business data were Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales.
Since 2003, over a dozen federal investigations have found that legitimate small businesses have lost billions of dollars in federal small business contracts, which have been diverted to many of the largest firms around the world. In 2005, the SBA Inspector General 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 February of 2008, President Obama promised to halt the rampant abuses when 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 taken no actions to honor his campaign promise, and corporate giants continue to dominate government small business contracting programs.
The American Small Business League (ASBL) estimates that during the first six months of the Obama Administration, legitimate small businesses have lost over $50 billion in federal small business contracts to corporate giants. (www.asbl.com)
-###-
Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 24, 2009
Petaluma, Calif. - On August 21st, the Obama Administration released its latest statistics on the volume of federal contracts awarded to small businesses. Federal law requires a minimum of 23 percent of the total value of all federal contracts to be awarded to small businesses. Federal statute defines a small business as being "independently owned," which excludes publicly traded firms.
The Obama Administration is claiming the government awarded $93.3 billion in contracts to small businesses or 21.5 percent during fiscal year (FY) 2008.
According to information from the Federal Procurement Data System - Next Generation (FPDS-NG), of the ten largest recipients of federal small business contracts, 85.4 percent of the contracts went to large businesses. Eight of the top ten recipients of small business contracts were large businesses.
The top recipient of government small business contracts was Textron, which received $775.7 million. Textron is a Fortune 500 firm with 83,000 employees and over $25 billion in annual revenue.
Two other top ten recipients of federal small business contracts were Ssangyong Corporation, which is headquartered in Seoul, Korea and received over $254 million and Finmeccanica SpA, which is headquartered in Italy with 73,000 employees and received over $283 million in contracts.
The 14th largest recipient of federal small business contracts is listed as "Miscellaneous Foreign Contractors" with $210 million in government small business contracts.
Other firms included in the Obama Administration's small business data were Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales.
Since 2003, over a dozen federal investigations have found that legitimate small businesses have lost billions of dollars in federal small business contracts, which have been diverted to many of the largest firms around the world. In 2005, the SBA Inspector General 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 February of 2008, President Obama promised to halt the rampant abuses when 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 taken no actions to honor his campaign promise, and corporate giants continue to dominate government small business contracting programs.
The American Small Business League (ASBL) estimates that during the first six months of the Obama Administration, legitimate small businesses have lost over $50 billion in federal small business contracts to corporate giants. (www.asbl.com)
-###-
Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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