FOR IMMEDIATE RELEASE
January 20, 2010
Petaluma, Calif. - On December 17, 2009, the American Small Business League (ASBL) issued a press release reporting that Bechtel Corporation had received a $128 million federal contract, which had been coded as a small business contract in the government's socio-economic field in the Federal Procurement Data System - Next Generation (FPDS-NG). http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf
In response, Bechtel Corporation prompted a January 7, 2010 story on ProcurementLeaders.com titled, "Bechtel hits back at ASBL over $128m federal contract win." In the article, Bechtel Bettis spokesman Francis Canavan denied the fact that Bechtel has received hundreds of millions of dollars in federal contracts coded as small business. Additionally, Canavan attempted to explain that Fedmine had erroneously tagged the socio status as small business. ASBL points to the fact that Fedmine obtains all of its information directly from FPDS-NG and does not modify the data. Fedmine.us is a database driven web application that aggregates data from FPDS-NG. http://www.fedmine.us/fedmine/Home.html
The ASBL has uncovered data in FPDS-NG that indicates that dozens of contracts awarded to Bechtel were coded as a small business in the socio-economic field. The largest of which is a $230 million contract awarded to Bechtel Bettis during FY 2008 by the Department of Energy (DOE). http://www.asbl.com/documents/20100119BechtelSB_DOE2.pdf
A series of federal investigations have found that billions of dollars a month in federal small business contracts have been diverted to Fortune 500 firms. Investigative stories by ABC, CBS and CNN have found billions of dollars in federal small business contracts have been diverted to firms such as General Dynamics, Xerox, Boeing, Lockheed Martin, British Aerospace (BAE), Dell Computer and French giant Thales Communications.
(ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)
"This situation with Bechtel is really just the tip of the iceberg. It is time for President Obama to make good on his campaign promise to end the diversion of federal small business contracts to corporate giants. http://bit.ly/4fRrGq The best way to do that is with H.R. 2568, the Fairness and Transparency in Contracting Act." ASBL President Lloyd Chapman said. "That bill will redirect more money into the hands of the middle class than anything President Obama has proposed to date." http://www.asbl.com/documents/hr2568.pdf
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, January 20, 2010
Thursday, January 14, 2010
Wednesday, January 6, 2010
Still No Windfall Profits Tax From Obama After Oil Tops $80 Per Barrel
FOR IMMEDIATE RELEASE
January 6, 2010
Petaluma, Calif. – In the two years running up to the 2008 presidential election, President Barack Obama routinely promised to enact a windfall profits tax on the oil and gas industry to fund a $1000 per household energy rebate. Shortly after being elected, President Obama quietly dropped the promise from his agenda. An anonymous transition team staffer tried to justify the decision by stating, "President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel. They are currently below that now and expected to stay below that." http://www.reuters.com/article/idUSTRE4B206W20081203
On Monday, the price of crude oil topped $80 per barrel, reaching $81.39, according to a Bloomberg energy report. Many experts are predicting that oil could top more than $100 per barrel in the first half of 2010. http://www.bloomberg.com/energy/
"I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills," President Obama said in a statement released in June of 2008. http://www.reuters.com/article/idUSWAT00963020080609
http://www.youtube.com/watch?v=QJPo5IGTd0A
Prior to the 2008 presidential election, President Obama's promise to implement the tax was displayed prominently at the top of the "Economy" section of the Obama-Biden campaign website. On November 6, President-elect Obama rolled out his transition website, Change.gov, which also displayed the promise. However, within 48 hours of being elected the campaign promise was quietly removed without explanation. (Pre-change, http://www.asbl.com/documents/Economy_Change.pdf ; Post-change, http://change.gov/agenda/economy_agenda/)
Proponents of the tax maintain that the oil and gas industry has gouged the public at the pump to reap excessive profits for nearly a decade, even with barrel prices in the $20 range. In 2003, when the average price of a barrel of oil was $30.06, big oil companies reaped record profits. http://www.eia.doe.gov/emeu/international/crude2.html In January of 2004 the Associated Press (AP) reported that Exxon-Mobil earned $21.51 billion in profits during fiscal year (FY) 2003. At the time the mark nearly doubled the company's profit during FY 2002. http://www.washingtonpost.com/wp-dyn/articles/A60862-2004Jan29_2.html
Responding to the abrupt and unexplained disappearance of President Obama's campaign promise, in a December 2008 blog, columnist David Sirota wrote, "If oil prices are down and oil industry profits are truly down, what's the harm in passing a windfall profits tax?" http://www.ourfuture.org/blog-entry/2008124903/mandate-watch-obama-backs-promise-pass-windfall-profits-tax-big-oil
"Implementing a windfall profits tax on the oil and gas industry is a reasonable, efficient and effective means of keeping energy costs down and helping American businesses and families," American Small Business League (ASBL) President Lloyd Chapman said. "Now that oil has topped $80 per barrel, it will be interesting to see what President Obama's new excuse is going to be for not honoring his campaign promise."
-###-
January 6, 2010
Petaluma, Calif. – In the two years running up to the 2008 presidential election, President Barack Obama routinely promised to enact a windfall profits tax on the oil and gas industry to fund a $1000 per household energy rebate. Shortly after being elected, President Obama quietly dropped the promise from his agenda. An anonymous transition team staffer tried to justify the decision by stating, "President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel. They are currently below that now and expected to stay below that." http://www.reuters.com/article/idUSTRE4B206W20081203
On Monday, the price of crude oil topped $80 per barrel, reaching $81.39, according to a Bloomberg energy report. Many experts are predicting that oil could top more than $100 per barrel in the first half of 2010. http://www.bloomberg.com/energy/
"I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills," President Obama said in a statement released in June of 2008. http://www.reuters.com/article/idUSWAT00963020080609
http://www.youtube.com/watch?v=QJPo5IGTd0A
Prior to the 2008 presidential election, President Obama's promise to implement the tax was displayed prominently at the top of the "Economy" section of the Obama-Biden campaign website. On November 6, President-elect Obama rolled out his transition website, Change.gov, which also displayed the promise. However, within 48 hours of being elected the campaign promise was quietly removed without explanation. (Pre-change, http://www.asbl.com/documents/Economy_Change.pdf ; Post-change, http://change.gov/agenda/economy_agenda/)
Proponents of the tax maintain that the oil and gas industry has gouged the public at the pump to reap excessive profits for nearly a decade, even with barrel prices in the $20 range. In 2003, when the average price of a barrel of oil was $30.06, big oil companies reaped record profits. http://www.eia.doe.gov/emeu/international/crude2.html In January of 2004 the Associated Press (AP) reported that Exxon-Mobil earned $21.51 billion in profits during fiscal year (FY) 2003. At the time the mark nearly doubled the company's profit during FY 2002. http://www.washingtonpost.com/wp-dyn/articles/A60862-2004Jan29_2.html
Responding to the abrupt and unexplained disappearance of President Obama's campaign promise, in a December 2008 blog, columnist David Sirota wrote, "If oil prices are down and oil industry profits are truly down, what's the harm in passing a windfall profits tax?" http://www.ourfuture.org/blog-entry/2008124903/mandate-watch-obama-backs-promise-pass-windfall-profits-tax-big-oil
"Implementing a windfall profits tax on the oil and gas industry is a reasonable, efficient and effective means of keeping energy costs down and helping American businesses and families," American Small Business League (ASBL) President Lloyd Chapman said. "Now that oil has topped $80 per barrel, it will be interesting to see what President Obama's new excuse is going to be for not honoring his campaign promise."
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Monday, December 21, 2009
House Jobs Bill Falls Short of Real Solutions
House Stimulus Bill Criticized for Being a Sham
FOR IMMEDIATE RELEASE
December 21, 2009
Petaluma, Calif. - Leaders from the U.S. House of Representatives have narrowly passed a, "Jobs for Main Street Bill," and once again failed to heed strong recommendations from America's 27 million small businesses. The bill has drawn strong criticism from both Republicans and Democrats:
"As the old axiom goes, the definition of insanity is doing the same thing twice and expecting different results. With that in mind, it's astounding Speaker Pelosi would repeat the same mistakes with her second stimulus as she did with her first."
- Congressman Aaron Schock (R-IL), December 16, 2009
"I believe Congress must continue taking strong action to create jobs, but any jobs package should have significant support for small businesses. I have been arguing for months that expanding small business lending is critical to getting our economy moving again, and this bill should have had far more small business support."
- Congressman Gary Peters (D-MI), December 16, 2009
Congress' jobs bill, H.R. 2847, allocates $75 billion in redirected TARP funds for "targeted investments." However, the bill fails to address the diversion of more than $100 billion a year in government small business contracts away from legitimate small businesses and into the hands of corporate giants. The American Small Business League (ASBL) maintains that the House's bill does little to address widespread fraud, abuse and loopholes in small business contracting programs, which continue at the cost of countless jobs every year.
According to the U.S. Census Bureau, small businesses are responsible for more than 50 percent of America's Gross Domestic Product (GDP), 50.2 percent of the non-farm private sector work force and more than 97 percent of all net new jobs. A recent study from the Kauffman Foundation found that firms less than five-years-old are responsible for nearly all net new jobs. http://www.kauffman.org/research-and-policy/where-will-the-jobs-come-from.aspx
"If Congress wanted to pass a jobs bill, it would pass H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. That bill would redirect more than $100 billion a year in federal infrastructure dollars to small businesses directly," ASBL President Lloyd Chapman said. "Congress' latest blunder is a one time hit, and a repeat of an already failed attempt to stimulate the economy. The Fairness and Transparency in Contracting Act is the simplest and most effective stimulus proposed to date and would continue to help small businesses year-after-year." http://www.asbl.com/documents/hr2568.pdf
The House's, "Jobs for Main Street Bill," allocates less than 2.5 percent of the total volume of stimulus dollars invested by the government to small businesses which create virtually 100 percent all net new jobs.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
FOR IMMEDIATE RELEASE
December 21, 2009
Petaluma, Calif. - Leaders from the U.S. House of Representatives have narrowly passed a, "Jobs for Main Street Bill," and once again failed to heed strong recommendations from America's 27 million small businesses. The bill has drawn strong criticism from both Republicans and Democrats:
"As the old axiom goes, the definition of insanity is doing the same thing twice and expecting different results. With that in mind, it's astounding Speaker Pelosi would repeat the same mistakes with her second stimulus as she did with her first."
- Congressman Aaron Schock (R-IL), December 16, 2009
"I believe Congress must continue taking strong action to create jobs, but any jobs package should have significant support for small businesses. I have been arguing for months that expanding small business lending is critical to getting our economy moving again, and this bill should have had far more small business support."
- Congressman Gary Peters (D-MI), December 16, 2009
Congress' jobs bill, H.R. 2847, allocates $75 billion in redirected TARP funds for "targeted investments." However, the bill fails to address the diversion of more than $100 billion a year in government small business contracts away from legitimate small businesses and into the hands of corporate giants. The American Small Business League (ASBL) maintains that the House's bill does little to address widespread fraud, abuse and loopholes in small business contracting programs, which continue at the cost of countless jobs every year.
According to the U.S. Census Bureau, small businesses are responsible for more than 50 percent of America's Gross Domestic Product (GDP), 50.2 percent of the non-farm private sector work force and more than 97 percent of all net new jobs. A recent study from the Kauffman Foundation found that firms less than five-years-old are responsible for nearly all net new jobs. http://www.kauffman.org/research-and-policy/where-will-the-jobs-come-from.aspx
"If Congress wanted to pass a jobs bill, it would pass H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. That bill would redirect more than $100 billion a year in federal infrastructure dollars to small businesses directly," ASBL President Lloyd Chapman said. "Congress' latest blunder is a one time hit, and a repeat of an already failed attempt to stimulate the economy. The Fairness and Transparency in Contracting Act is the simplest and most effective stimulus proposed to date and would continue to help small businesses year-after-year." http://www.asbl.com/documents/hr2568.pdf
The House's, "Jobs for Main Street Bill," allocates less than 2.5 percent of the total volume of stimulus dollars invested by the government to small businesses which create virtually 100 percent all net new jobs.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, December 17, 2009
Obama Administration Gives Bechtel Bettis $128 Million Small Business Contract
FOR IMMEDIATE RELEASE
December 17, 2009
Petaluma, Calif. - The American Small Business League (ASBL) has uncovered a $128 million small business contract awarded to Bechtel Bettis by Obama officials. Bechtel, a Fortune 500 corporation, did $31.4 billion in sales during fiscal year (FY) 2008 and maintains more than 44,000 employees. In the government's database under the category "socio status," the contract was reported as, "small business."
http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf
During the 2008 presidential election cycle, President Barack Obama promised to, "end the diversion of federal small business contracts to corporate giants." Yet to date, the Obama Administration has refused to adopt any policy or legislation to honor that campaign promise. As a result, every month the Obama Administration diverts billions of dollars in federal small business contracts away from legitimate small businesses where most Americans work and into the hands of corporate giants.
http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
Since 2003, twenty-five federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to some of the largest corporations in the world. The ASBL estimates that every year this issue diverts more than $100 billion in federal small business contracts away from legitimate small businesses and into the hands of multinational corporations. http://www.asbl.com/documentlibrary.html
The most recent data available from the Federal Procurement Data System - Next Generation (FPDS-NG) indicates that a majority of small business contracts awarded by the Obama Administration have gone to Fortune 500 firms and thousands of large businesses in the United States and Europe. In addition to Bechtel, Obama officials have awarded small business contracts to: General Dynamics, Xerox, Boeing, Lockheed Martin, British Aerospace (BAE), Dell Computer and French giant Thales Communications. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf
In May of 2009, Congressman Hank Johnson (D-4-GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. To date the bill has bipartisan support from 19 co-sponsors. The ASBL maintains that H.R. 2568 is the simplest and most efficient way to stimulate the American economy by redirecting more than $100 billion a year in federal infrastructure spending to America's chief job creators, its small businesses. Firms with 20 or fewer employees are responsible for over 97 percent of all net new jobs, according to recent U.S. Census Bureau data. http://www.inc.com/news/articles/200708/data.html
"This issue is going to continue until journalists from the mainstream media begin to ask President Obama to explain why he is allowing billions of dollars a month in federal small business contracts to be intentionally and in many cases, illegally diverted to Fortune 500 firms and large businesses worldwide," ASBL President Lloyd Chapman said. "If you want to know who the real President Obama is, take a look at this issue."
-###-
December 17, 2009
Petaluma, Calif. - The American Small Business League (ASBL) has uncovered a $128 million small business contract awarded to Bechtel Bettis by Obama officials. Bechtel, a Fortune 500 corporation, did $31.4 billion in sales during fiscal year (FY) 2008 and maintains more than 44,000 employees. In the government's database under the category "socio status," the contract was reported as, "small business."
http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf
During the 2008 presidential election cycle, President Barack Obama promised to, "end the diversion of federal small business contracts to corporate giants." Yet to date, the Obama Administration has refused to adopt any policy or legislation to honor that campaign promise. As a result, every month the Obama Administration diverts billions of dollars in federal small business contracts away from legitimate small businesses where most Americans work and into the hands of corporate giants.
http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
Since 2003, twenty-five federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to some of the largest corporations in the world. The ASBL estimates that every year this issue diverts more than $100 billion in federal small business contracts away from legitimate small businesses and into the hands of multinational corporations. http://www.asbl.com/documentlibrary.html
The most recent data available from the Federal Procurement Data System - Next Generation (FPDS-NG) indicates that a majority of small business contracts awarded by the Obama Administration have gone to Fortune 500 firms and thousands of large businesses in the United States and Europe. In addition to Bechtel, Obama officials have awarded small business contracts to: General Dynamics, Xerox, Boeing, Lockheed Martin, British Aerospace (BAE), Dell Computer and French giant Thales Communications. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf
In May of 2009, Congressman Hank Johnson (D-4-GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. To date the bill has bipartisan support from 19 co-sponsors. The ASBL maintains that H.R. 2568 is the simplest and most efficient way to stimulate the American economy by redirecting more than $100 billion a year in federal infrastructure spending to America's chief job creators, its small businesses. Firms with 20 or fewer employees are responsible for over 97 percent of all net new jobs, according to recent U.S. Census Bureau data. http://www.inc.com/news/articles/200708/data.html
"This issue is going to continue until journalists from the mainstream media begin to ask President Obama to explain why he is allowing billions of dollars a month in federal small business contracts to be intentionally and in many cases, illegally diverted to Fortune 500 firms and large businesses worldwide," ASBL President Lloyd Chapman said. "If you want to know who the real President Obama is, take a look at this issue."
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Monday, December 14, 2009
Small Business Group Wants President Obama to Answer Questions
FOR IMMEDIATE RELEASE
December 14, 2009
Petaluma, Calif. - In a recent speech, President Barack Obama said, "What I'm interested in is taking action right now to help businesses create jobs right now, in the near term." http://abcnews.go.com/Politics/white-house-jobs-summit-real-progress-pr-stunt/story?id=9232219
Since president Obama has voiced his concern about stimulating the economy and creating new jobs, the American Small Business League (ASBL) would like a member of the mainstream media to ask President Obama any of the following questions:
1. In February of 2008, you released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." Why is your administration continuing to give federal small business contracts to Fortune 500 firms?
2. During the campaign you promised to implement the 5 percent set-aside goal for women owned firms. Why hasn't that program been implemented?
3. Since 2003, twenty-five federal investigations have found widespread fraud and abuse in virtually every program administered by the Small Business Administration (SBA). What does your administration intend to do to stop the abuses in those programs?
4. Recently, you have talked about allocating TARP funds to help small businesses. Does it make sense to come up with new programs while billions of dollars a month in federal small business contracts are being diverted to corporate giants?
5. H.R. 2568, the Fairness and Transparency in Contracting Act of 2009 is designed to end the diversion of federal small business contracts to corporate giants and redirect billions of dollars in current federal infrastructure spending to the middle class. Will you be backing H.R. 2568?
6. You said you were going to exempt investment in small businesses from capital gains tax. Wouldn't that just be a loophole for venture capitalists to avoid paying taxes?
7. Will you oppose any legislation or policy that would divert federal small business contracts to firms owned or controlled by venture capitalists?
8. Since you have taken office, federal contracting programs for minorities have largely been dismantled. Do you intend to restore those programs?
9. Since U.S. Census Bureau data shows that small businesses create a vast majority of all net new jobs, why has your administration allocated such a small portion of stimulus funds to those firms?
10. The staffing at the SBA is at a 30 year low. Why haven't you restored that agency's staff?
11. In February of 2008, you released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." Recent shows that your administration is still giving small business contracts to Fortune 500 firms. Why have you failed to make good on that campaign promise?
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
December 14, 2009
Petaluma, Calif. - In a recent speech, President Barack Obama said, "What I'm interested in is taking action right now to help businesses create jobs right now, in the near term." http://abcnews.go.com/Politics/white-house-jobs-summit-real-progress-pr-stunt/story?id=9232219
Since president Obama has voiced his concern about stimulating the economy and creating new jobs, the American Small Business League (ASBL) would like a member of the mainstream media to ask President Obama any of the following questions:
1. In February of 2008, you released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." Why is your administration continuing to give federal small business contracts to Fortune 500 firms?
2. During the campaign you promised to implement the 5 percent set-aside goal for women owned firms. Why hasn't that program been implemented?
3. Since 2003, twenty-five federal investigations have found widespread fraud and abuse in virtually every program administered by the Small Business Administration (SBA). What does your administration intend to do to stop the abuses in those programs?
4. Recently, you have talked about allocating TARP funds to help small businesses. Does it make sense to come up with new programs while billions of dollars a month in federal small business contracts are being diverted to corporate giants?
5. H.R. 2568, the Fairness and Transparency in Contracting Act of 2009 is designed to end the diversion of federal small business contracts to corporate giants and redirect billions of dollars in current federal infrastructure spending to the middle class. Will you be backing H.R. 2568?
6. You said you were going to exempt investment in small businesses from capital gains tax. Wouldn't that just be a loophole for venture capitalists to avoid paying taxes?
7. Will you oppose any legislation or policy that would divert federal small business contracts to firms owned or controlled by venture capitalists?
8. Since you have taken office, federal contracting programs for minorities have largely been dismantled. Do you intend to restore those programs?
9. Since U.S. Census Bureau data shows that small businesses create a vast majority of all net new jobs, why has your administration allocated such a small portion of stimulus funds to those firms?
10. The staffing at the SBA is at a 30 year low. Why haven't you restored that agency's staff?
11. In February of 2008, you released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." Recent shows that your administration is still giving small business contracts to Fortune 500 firms. Why have you failed to make good on that campaign promise?
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, December 9, 2009
Obama Administration Diverts Small Business Funds to General Dynamics
Obama Administration Diverts $28.5 Million in Small Business Dollars to General Dynamics
FOR IMMEDIATE RELEASE
December 9, 2009
Petaluma, Calif. – The Obama Administration has awarded a $28.5 million small business contract to Fortune 500 firm General Dynamics. As America's fourth largest prime contractor, General Dynamics did more than $29.3 billion in sales during fiscal year (FY) 2008 and maintains more than 92,000 employees. http://www.asbl.com/documents/20091202GeneralDynamics_Created_20091027.pdf
According to the most recent data from the Federal Procurement Data System - Next Generation (FPDS-NG), General Dynamics is just one of hundreds of corporate giants that are currently receiving federal small business contracts from the Obama Administration.
Since 2003, twenty-five federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to corporate giants. http://www.asbl.com/documentlibrary.html In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the issue 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 As recently as October 16, the SBA OIG listed the issue as the SBA's top management challenge for the fifth consecutive year.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf
The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal small business contracts are diverted away from legitimate small businesses and into the hands of some of the largest corporations in the world. The most recent data released by the Obama Administration indicates that firms counted as small businesses included: Xerox, Bechtel, Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees.
http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf
http://www.asbl.com/documents/20091202Xerox_Created_20091002.pdf
During the 2008 presidential election cycle, President Barack Obama promised to address these abuses when he stated, "Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants." Yet to date, President Obama has failed to adopt any policy or legislation to honor that promise. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
The ASBL maintains that stopping the diversion of federal small business contracts to large corporations alone would serve as a greater economic stimulus than anything proposed to date.
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 halt the flow of federal small business contracts to large businesses and redirect more than $100 billion a year in federal infrastructure spending to legitimate small businesses. Although the bill has bipartisan support with 19 co-sponsors, to date President Obama has refused to endorse the legislation.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
FOR IMMEDIATE RELEASE
December 9, 2009
Petaluma, Calif. – The Obama Administration has awarded a $28.5 million small business contract to Fortune 500 firm General Dynamics. As America's fourth largest prime contractor, General Dynamics did more than $29.3 billion in sales during fiscal year (FY) 2008 and maintains more than 92,000 employees. http://www.asbl.com/documents/20091202GeneralDynamics_Created_20091027.pdf
According to the most recent data from the Federal Procurement Data System - Next Generation (FPDS-NG), General Dynamics is just one of hundreds of corporate giants that are currently receiving federal small business contracts from the Obama Administration.
Since 2003, twenty-five federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to corporate giants. http://www.asbl.com/documentlibrary.html In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the issue 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 As recently as October 16, the SBA OIG listed the issue as the SBA's top management challenge for the fifth consecutive year.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf
The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal small business contracts are diverted away from legitimate small businesses and into the hands of some of the largest corporations in the world. The most recent data released by the Obama Administration indicates that firms counted as small businesses included: Xerox, Bechtel, Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees.
http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf
http://www.asbl.com/documents/20091202Xerox_Created_20091002.pdf
During the 2008 presidential election cycle, President Barack Obama promised to address these abuses when he stated, "Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants." Yet to date, President Obama has failed to adopt any policy or legislation to honor that promise. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
The ASBL maintains that stopping the diversion of federal small business contracts to large corporations alone would serve as a greater economic stimulus than anything proposed to date.
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 halt the flow of federal small business contracts to large businesses and redirect more than $100 billion a year in federal infrastructure spending to legitimate small businesses. Although the bill has bipartisan support with 19 co-sponsors, to date President Obama has refused to endorse the legislation.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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