Petaluma, Calif. – Senator Barack Obama's new small business emergency rescue plan is being criticized for ignoring a series of federal investigations that found the government has diverted billions of dollars in federal small business contracts to many of the largest firms in the United States and Europe. (http://www.asbl.com/obamasmallbusinessrescueplan.pdf)
In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/IG/05-15.pdf)
Since 2003, more than a dozen federal investigations have found hundreds of billions of dollars in federal small business contracts have been diverted to some of the largest corporations in the world. (http://www.asbl.com/documentlibrary.html) During that time, CBS, ABC, Associated Press and CNN have aired investigative stories which found federal small business contracts actually went to firms such as: Lockheed Martin, Boeing, Raytheon, Rolls-Royce, General Dynamics, John Deere, Microsoft, Wal-Mart, Hewlett-Packard, Buhrmann NV a Dutch conglomerate and British Aerospace Engineering (BAE).
The American Small Business League (ASBL) projects that middle-class firms are losing over $100 billion a year in federal small business contracts to Fortune 500 firms and other large businesses. Estimates from federal officials have ranged from $65 billion to over $100 billion a year.
In February of this year, Senator Obama issued the following statement, "98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In stark contrast to this bold statement, which was issued in February of 2008, Senator Obama is now refusing to even mention the diversion of billions of dollars in federal small business contracts to Fortune 500 firms. He has declined to discuss it publicly, or to mention the issue on his web site.
Small business owners are concerned that pressure, and or political contributions from Fortune 500 firms, which are currently receiving a lion's share of federal small business contracts, may have contributed to Senator Obama's decision to distance himself from his pledge to end the diversion of small business contracts to corporate giants.
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Monday, October 13, 2008
Friday, October 10, 2008
Obama Middle Class Bailout Bill Passed 55-Years Ago
Middle Class Bailout Bill That Can Rescue The Economy Was Passed In 1953
Petaluma, Calif. - The following is a statement from ASBL President Lloyd Chapman:
In Tuesday's Presidential debate, Senator Barack Obama (D - IL) called for a bailout bill for the middle class. Yesterday, Senator Obama said he would also make sure that tax dollars are spent wisely. Today, there exists a great piece of legislation that would accomplish both of Senator Obama's goals. It would infuse billions of tax dollars back into the firms where most Americans work, create thousands of new jobs and help middle class families pay for their health care and mortgages.
It's called the Small Business Act, and it became law in 1953. Today, based on the original Small Business Act, the federal government is supposed to insure that a minimum of 23 percent of the total value of all federal contracts and subcontracts are awarded to small businesses. Twenty-three percent of the federal government's total acquisition budget amounts to roughly $150 billion a year in federal contracts and subcontracts that should by law go to the middle class small businesses where approximately 56 percent of our nation's population is employed.
What better place to spend tax dollars than with the 27 million small businesses where most Americans work, and where most of our nation's tax revenue is generated?
The Small Business Act is the perfect vehicle to rescue our nation's middle class economy, and boost the segments of the American economy that were completely ignored by the $700 billion Wall Street bailout bill.
There are a couple of hurdles that need to be addressed before the Small Business Act can help lead our nation out of one of the worst economic disasters in modern history. First, since 2003, 15 federal investigations have found that Fortune 500 firms are the actual recipients of most federal small business contracts. It has been estimated that large businesses receive over $100 billion a year in federal small business contracts. ABC, CBS and CNN have all aired investigative reports which have found firms like: Rolls Royce, Wal-Mart, Microsoft, Raytheon, IBM, Xerox, Dell, John Deere, General Dynamics, GTSI, Home Depot, Titan Industries, Hewlett Packard, Battelle and British Aerospace Engineering (BAE) have all received millions of dollars in federal small business contracts.
Second, the Bush Administration has systematically dismantled virtually every single federal program the Small Business Act established to help small businesses, woman-owned firms, minority-owned firms and veteran-owned firms. The Small Business Act established the Small Business Administration (SBA), and during the past eight years President Bush has cut that agency's budget more than any other agency. Today, the SBA budget is less than half of what it was when President Bush took office.
Neither Barack Obama, nor John McCain have even mentioned any aspect of the Small Business Act in their small business plans. Neither candidate has pledged to restore the SBA's budget and staffing. Most surprising is that neither Obama, nor McCain have proposed any specific solutions to the diversion of up to $100 billion a year in government contracts that by law should be going to our nation's middle class, but instead are being diverted to Fortune 500 firms. Senator Obama even seems to be trying to distance himself from a statement he made in February of 2008, "It is time to end the diversion of federal small business contracts to corporate giants." I would guess that he received a call from the "corporate giants" the following day regarding some new fund raising ideas.
Senator Obama was right though; we definitely need a bailout bill for the middle class. The good news is it was passed in 1953. If Senator Obama and Senator McCain are serious about helping middle class families pay their health care and their mortgages, it's going to take more than just campaign rhetoric and pandering.
America's middle class deserves some help from the government in these difficult economic times, and the Small Business Act is a free and easy solution. It's time to fully implement the Small Business Act and restore the budget and staffing of the only federal agency established to assist America's 27 million small businesses, the SBA. It's also time to stop the diversion of federal small business contracts to corporate giants and get that money back into the hands of the small businesses that are the heart and soul of this nation's economy.
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Petaluma, Calif. - The following is a statement from ASBL President Lloyd Chapman:
In Tuesday's Presidential debate, Senator Barack Obama (D - IL) called for a bailout bill for the middle class. Yesterday, Senator Obama said he would also make sure that tax dollars are spent wisely. Today, there exists a great piece of legislation that would accomplish both of Senator Obama's goals. It would infuse billions of tax dollars back into the firms where most Americans work, create thousands of new jobs and help middle class families pay for their health care and mortgages.
It's called the Small Business Act, and it became law in 1953. Today, based on the original Small Business Act, the federal government is supposed to insure that a minimum of 23 percent of the total value of all federal contracts and subcontracts are awarded to small businesses. Twenty-three percent of the federal government's total acquisition budget amounts to roughly $150 billion a year in federal contracts and subcontracts that should by law go to the middle class small businesses where approximately 56 percent of our nation's population is employed.
What better place to spend tax dollars than with the 27 million small businesses where most Americans work, and where most of our nation's tax revenue is generated?
The Small Business Act is the perfect vehicle to rescue our nation's middle class economy, and boost the segments of the American economy that were completely ignored by the $700 billion Wall Street bailout bill.
There are a couple of hurdles that need to be addressed before the Small Business Act can help lead our nation out of one of the worst economic disasters in modern history. First, since 2003, 15 federal investigations have found that Fortune 500 firms are the actual recipients of most federal small business contracts. It has been estimated that large businesses receive over $100 billion a year in federal small business contracts. ABC, CBS and CNN have all aired investigative reports which have found firms like: Rolls Royce, Wal-Mart, Microsoft, Raytheon, IBM, Xerox, Dell, John Deere, General Dynamics, GTSI, Home Depot, Titan Industries, Hewlett Packard, Battelle and British Aerospace Engineering (BAE) have all received millions of dollars in federal small business contracts.
Second, the Bush Administration has systematically dismantled virtually every single federal program the Small Business Act established to help small businesses, woman-owned firms, minority-owned firms and veteran-owned firms. The Small Business Act established the Small Business Administration (SBA), and during the past eight years President Bush has cut that agency's budget more than any other agency. Today, the SBA budget is less than half of what it was when President Bush took office.
Neither Barack Obama, nor John McCain have even mentioned any aspect of the Small Business Act in their small business plans. Neither candidate has pledged to restore the SBA's budget and staffing. Most surprising is that neither Obama, nor McCain have proposed any specific solutions to the diversion of up to $100 billion a year in government contracts that by law should be going to our nation's middle class, but instead are being diverted to Fortune 500 firms. Senator Obama even seems to be trying to distance himself from a statement he made in February of 2008, "It is time to end the diversion of federal small business contracts to corporate giants." I would guess that he received a call from the "corporate giants" the following day regarding some new fund raising ideas.
Senator Obama was right though; we definitely need a bailout bill for the middle class. The good news is it was passed in 1953. If Senator Obama and Senator McCain are serious about helping middle class families pay their health care and their mortgages, it's going to take more than just campaign rhetoric and pandering.
America's middle class deserves some help from the government in these difficult economic times, and the Small Business Act is a free and easy solution. It's time to fully implement the Small Business Act and restore the budget and staffing of the only federal agency established to assist America's 27 million small businesses, the SBA. It's also time to stop the diversion of federal small business contracts to corporate giants and get that money back into the hands of the small businesses that are the heart and soul of this nation's economy.
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Wednesday, October 8, 2008
Obama Flip-Flops on Pledge to 'End Diversion of Federal Small Business Contracts to Corporate Giants'
Petaluma, Calif. – On February 26, 2008, in the midst of his campaign to become the Democratic nominee for President of the United States, Senator Barack Obama (D - IL) issued the statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Senator Obama's statement was in response to 15 federal investigations that have been released since 2003, which have found the Bush Administration has diverted hundreds of billions of dollars in federal small business contracts to some of the largest corporations in the United States and Europe.
Federal investigators found hundreds of large businesses have received billions of dollars in government small business contracts. Large firms that received federal small business contracts included: Rolls Royce, Office Depot, Dell, Xerox, Hewlett-Packard, Raytheon, Oracle, Archer Daniels Midland, John Deere, General Dynamics, Titan Industries, L-3 Communications, Northrop Grumman and British Aerospace Engineering (BAE).
Now that Senator Obama has clinched the Democratic nomination, and is the most likely presidential candidate to win the election in November, he has backed away from his pledge to America's 27 million small businesses to stop the blatant and ongoing abuses in federal small business contracting programs. The Obama campaign went so far as to modify his original complete quote on the issue and to remove his original statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Despite the fact that over 99 percent of voters would obviously agree that Fortune 500 firms should not be able to receive federal small business contracts, Senator Obama has refused to mention the issue in public speeches and has declined to include any mention of the issue on his website or in his small business plan.
American Small Business League (ASBL) President Lloyd Chapman has encouraged the Obama Campaign to include the issue in its small business plan during a series of conference calls and e-mails. Thus far, they have consistently declined.
“I cannot imagine why Senator Obama has now decided to flip-flop on his pledge to end these blatant abuses against middle class firms. We are in a severe recession and American businesses need political leaders they can count on,” Chapman said. “I think Senator Obama's handling of this issue could be a real glimpse of his true character. We'll see if he can deliver on his promise of ‘change we can believe in’ or if he is just another overly ambitious politician that is willing to say or do anything to get elected.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Senator Obama's statement was in response to 15 federal investigations that have been released since 2003, which have found the Bush Administration has diverted hundreds of billions of dollars in federal small business contracts to some of the largest corporations in the United States and Europe.
Federal investigators found hundreds of large businesses have received billions of dollars in government small business contracts. Large firms that received federal small business contracts included: Rolls Royce, Office Depot, Dell, Xerox, Hewlett-Packard, Raytheon, Oracle, Archer Daniels Midland, John Deere, General Dynamics, Titan Industries, L-3 Communications, Northrop Grumman and British Aerospace Engineering (BAE).
Now that Senator Obama has clinched the Democratic nomination, and is the most likely presidential candidate to win the election in November, he has backed away from his pledge to America's 27 million small businesses to stop the blatant and ongoing abuses in federal small business contracting programs. The Obama campaign went so far as to modify his original complete quote on the issue and to remove his original statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
Despite the fact that over 99 percent of voters would obviously agree that Fortune 500 firms should not be able to receive federal small business contracts, Senator Obama has refused to mention the issue in public speeches and has declined to include any mention of the issue on his website or in his small business plan.
American Small Business League (ASBL) President Lloyd Chapman has encouraged the Obama Campaign to include the issue in its small business plan during a series of conference calls and e-mails. Thus far, they have consistently declined.
“I cannot imagine why Senator Obama has now decided to flip-flop on his pledge to end these blatant abuses against middle class firms. We are in a severe recession and American businesses need political leaders they can count on,” Chapman said. “I think Senator Obama's handling of this issue could be a real glimpse of his true character. We'll see if he can deliver on his promise of ‘change we can believe in’ or if he is just another overly ambitious politician that is willing to say or do anything to get elected.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, October 2, 2008
Bailout Bill Needs New Language to Stop Billions in Contracting Abuses
Bailout Bill Needs New Provisions to Redirect Billions To Middle Class Firms
Petaluma, Calif. - In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."
Since the purpose of the "bailout bill" is to bolster our nation's economy, wouldn't it make sense to include a simple and easy provision that would solve a major and longstanding problem within the federal contracting system and redirect up to $100 billion a year in federal small business contracts back into the hands of legitimate and hardworking middle class firms?
The Small Business Act defines a small business as a firm that is "independently owned." Legally, the term independently owned is defined as a firm that is not publicly owned or traded. The addition of a single sentence to the bailout bill could redirect billions of dollars in federal small business contracts back to the very middle class firms the bill is supposed to ultimately rescue. This single sentence would also finally bring an end to years of abuses in federal small business contracting programs.
The sentence should read, "As of January 1st, 2009, the federal government will no longer report awards to publicly traded firms as small business awards."
The addition of this sentence would be a simple and easy solution to the diversion of hundreds of billions of dollars in federal small business contracts to large corporations, and it would provide small businesses and the middle class economy with a much-needed boost.
Since 2003, 15 federal investigations have all found that billions of dollars in federal small business contracts have actually gone to hundreds of the largest corporations in the United States and Europe. In fact, some of the firms federal investigators identified as recipients of federal small business contracts were: Rolls-Royce, Lockheed Martin, Boeing, Raytheon, General Dynamics, Northrop Grumman, Xerox, Dell, John Deere, Microsoft, Titan Industries, British Aerospace Engineering (BAE) and Dutch conglomerate Buhrmann NV.
It is time for this problem to be solved and through the bailout bill a solution could be easily achieved. If government investigators are right, up to $100 billion a year is being pulled out of the middle class economy. It's time for Senator Barack Obama (D - IL), Senator John McCain (R - AZ) and members of Congress to give America's 27 million small businesses more than just lip service.
If Congress really wants to stabilize and bolster our nation's failing economy, let's put $100 billion a year in federal small business contracts back in the hands of the middle class firms where most American's work.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Petaluma, Calif. - In March of 2005, the Small Business Administration (SBA) Office of Inspector General issued Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."
Since the purpose of the "bailout bill" is to bolster our nation's economy, wouldn't it make sense to include a simple and easy provision that would solve a major and longstanding problem within the federal contracting system and redirect up to $100 billion a year in federal small business contracts back into the hands of legitimate and hardworking middle class firms?
The Small Business Act defines a small business as a firm that is "independently owned." Legally, the term independently owned is defined as a firm that is not publicly owned or traded. The addition of a single sentence to the bailout bill could redirect billions of dollars in federal small business contracts back to the very middle class firms the bill is supposed to ultimately rescue. This single sentence would also finally bring an end to years of abuses in federal small business contracting programs.
The sentence should read, "As of January 1st, 2009, the federal government will no longer report awards to publicly traded firms as small business awards."
The addition of this sentence would be a simple and easy solution to the diversion of hundreds of billions of dollars in federal small business contracts to large corporations, and it would provide small businesses and the middle class economy with a much-needed boost.
Since 2003, 15 federal investigations have all found that billions of dollars in federal small business contracts have actually gone to hundreds of the largest corporations in the United States and Europe. In fact, some of the firms federal investigators identified as recipients of federal small business contracts were: Rolls-Royce, Lockheed Martin, Boeing, Raytheon, General Dynamics, Northrop Grumman, Xerox, Dell, John Deere, Microsoft, Titan Industries, British Aerospace Engineering (BAE) and Dutch conglomerate Buhrmann NV.
It is time for this problem to be solved and through the bailout bill a solution could be easily achieved. If government investigators are right, up to $100 billion a year is being pulled out of the middle class economy. It's time for Senator Barack Obama (D - IL), Senator John McCain (R - AZ) and members of Congress to give America's 27 million small businesses more than just lip service.
If Congress really wants to stabilize and bolster our nation's failing economy, let's put $100 billion a year in federal small business contracts back in the hands of the middle class firms where most American's work.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, October 1, 2008
Lloyd Chapman: Bailout Bill Doesn't Need to Waive Federal Acquisition Law
Bailout Bill Could Create Billions in Abuses by Waving Federal Contracting Laws
Petaluma, Calif. - The following is a statement by American Small Business League President Lloyd Chapman:
In its present form, the bailout bill will give Bush Administration officials broad power to waive any provision of the Federal Acquisition Regulation (FAR) they choose for an indefinite period of time.
Section 107 of the bill could be a recipe for disaster at a time when the national economy has plummeted as the direct result of a blatant lack of proper government oversight. It would be foolhardy and irresponsible for Congress to grant the very individuals that are directly responsible for one of the worst economic disasters in United States history even more power to ignore federal procurement law for as long as they deem necessary.
The multitude of problems that could arise by allowing government officials to ignore even the most foundational principals of the FAR could be catastrophic. Staggering abuses in federal contracting are a common occurrence. Many of the nation's largest defense contractors are regularly found to be defrauding the federal government out of hundreds of millions and even billions in taxpayer dollars.
Treasury Secretary Henry Paulson was the Chairman and Chief Executive Officer of Goldman Sachs before he came to Washington and he will no doubt be back on Wall Street in an equally if not more powerful position in 90 days. Of all the Bush Administration officials that deserve their fair share of responsibility for our nation's financial disaster, Treasury Secretary Paulson's name should be close to the top of the list.
Treasury Secretary Paulson should not be trusted to waive provisions of the FAR, which could be beneficial to his past and future employers on Wall Street and detrimental to the primary goal of the bailout bill, which is to bolster the national economy. More fraud, abuse and loopholes for Wall Street and government officials will not make our nation's financial institutions more sound, create more jobs or help middle class Americans pay their bills.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Petaluma, Calif. - The following is a statement by American Small Business League President Lloyd Chapman:
In its present form, the bailout bill will give Bush Administration officials broad power to waive any provision of the Federal Acquisition Regulation (FAR) they choose for an indefinite period of time.
Section 107 of the bill could be a recipe for disaster at a time when the national economy has plummeted as the direct result of a blatant lack of proper government oversight. It would be foolhardy and irresponsible for Congress to grant the very individuals that are directly responsible for one of the worst economic disasters in United States history even more power to ignore federal procurement law for as long as they deem necessary.
The multitude of problems that could arise by allowing government officials to ignore even the most foundational principals of the FAR could be catastrophic. Staggering abuses in federal contracting are a common occurrence. Many of the nation's largest defense contractors are regularly found to be defrauding the federal government out of hundreds of millions and even billions in taxpayer dollars.
Waiving provisions of the FAR could result in billions of dollars in fraud and abuse at multiple levels of government. Government officials cannot be trusted with the power to waive any federal procurement law they deem unnecessary.
Treasury Secretary Henry Paulson was the Chairman and Chief Executive Officer of Goldman Sachs before he came to Washington and he will no doubt be back on Wall Street in an equally if not more powerful position in 90 days. Of all the Bush Administration officials that deserve their fair share of responsibility for our nation's financial disaster, Treasury Secretary Paulson's name should be close to the top of the list.
Treasury Secretary Paulson should not be trusted to waive provisions of the FAR, which could be beneficial to his past and future employers on Wall Street and detrimental to the primary goal of the bailout bill, which is to bolster the national economy. More fraud, abuse and loopholes for Wall Street and government officials will not make our nation's financial institutions more sound, create more jobs or help middle class Americans pay their bills.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Bailout Plan May Include Anti-Small Business Language
The following was release was distributed by the American Small Business League On October 1, 2008.
The Bush “bailout bill” includes some suspicious language that has small business advocates concerned. The Bush Administration has been persistent in its efforts to dismantle federal small business contracting programs and to divert those funds to big businesses. During his tenure, President Bush has cut the Small Business Administration’s (SBA) budget in half, and cut funding and oversight for every program assisting small businesses, including woman, minority and veteran-owned firms. (http://www.asbl.com/showmedia.php?id=1033)
The American Small Business League (ASBL) contends that language within the bailout bill seems out of place, extremely vague and overly broad. As a result, the legislation would give the Secretary of the Treasury a blank check to waive any section of the Federal Acquisition Regulations (FAR) he deems appropriate.
Section 107 of H.R. 3997, which addresses contracting procedures states, “For the purposes of this Act, the Secretary may waive specific provisions of the Federal Acquisition Regulation upon a determination that urgent and compelling circumstances make compliance with such provisions contrary to the public interest.” The House of Representatives defeated H.R. 3997 Monday with a 228-205 vote. However, the ASBL is concerned that as Congress moves to address the current financial crisis, a second incarnation of H.R. 3997 may be adopted with similar language.
During the last thirty days alone, Bush officials at the SBA have suspended taking applications for the Small Disadvantaged Business (SDB) contracting program, refused to release the government’s small business contracting statistics for fiscal year 2007, which ended a full year ago and appealed a Federal District Court ruling requiring them to release the names of firms that received federal small business contracts during FY 2005 and 2006. (http://www.asbl.com/documents/20080925courtordermod.pdf)
If the Bush bailout bill were to become law with the language of Section 107 in place, Bush officials would have the legal power to ignore the sections of the FAR that stipulate federal contracting opportunities for small businesses, woman-owned firms, minority-owned firms and veteran-owned firms. Federal agencies and prime contractors could be allowed to completely ignore the federal government’s small business contracting goals. Section 107 does not contain any stipulation on how long the “wavier of specific provisions” could last. The federal government’s ability to exclude small businesses could last years, and middle-class firms could continue to lose billions of dollars in government contracts and subcontracts.
The ASBL predicted the Bush Administration would try to intensify its efforts to dismantle and weaken federal small business contracting programs as the administration entered its final months. (http://www.asbl.com/showmedia.php?id=1068)
To date, 15 federal investigations have all found that during the Bush Administration, hundreds of billions of dollars in federal small business contracts have been diverted to some of the largest corporations in the World. (http://www.asbl.com/documentlibrary.html) In addition, CBS, ABC and CNN have all done investigative stories on the issue. (http://www.asbl.com/media2.php)
“Not only does this bill not contain any provisions that specifically help small business, it has provisions that could actually harm middle class firms. The language in Section 107 of the bill is totally inconsistent with the stated objectives of this legislation,” ASBL President Lloyd Chapman said. “It is clearly not necessary to suspend federal acquisition law to bail out Wall Street and the financial industry. I am very concerned the Bush Administration included that language to give them the authority to further dismantle federal programs designed to assist small businesses. We got into this situation because of a lack of proper regulation and now the same people that are responsible for these staggering economic problems want to be able to ignore any sections of federal contracting law they deem necessary. George Bush has proven time-after-time that he cannot be trusted especially when it comes to small business issues.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
The Bush “bailout bill” includes some suspicious language that has small business advocates concerned. The Bush Administration has been persistent in its efforts to dismantle federal small business contracting programs and to divert those funds to big businesses. During his tenure, President Bush has cut the Small Business Administration’s (SBA) budget in half, and cut funding and oversight for every program assisting small businesses, including woman, minority and veteran-owned firms. (http://www.asbl.com/showmedia.php?id=1033)
The American Small Business League (ASBL) contends that language within the bailout bill seems out of place, extremely vague and overly broad. As a result, the legislation would give the Secretary of the Treasury a blank check to waive any section of the Federal Acquisition Regulations (FAR) he deems appropriate.
Section 107 of H.R. 3997, which addresses contracting procedures states, “For the purposes of this Act, the Secretary may waive specific provisions of the Federal Acquisition Regulation upon a determination that urgent and compelling circumstances make compliance with such provisions contrary to the public interest.” The House of Representatives defeated H.R. 3997 Monday with a 228-205 vote. However, the ASBL is concerned that as Congress moves to address the current financial crisis, a second incarnation of H.R. 3997 may be adopted with similar language.
During the last thirty days alone, Bush officials at the SBA have suspended taking applications for the Small Disadvantaged Business (SDB) contracting program, refused to release the government’s small business contracting statistics for fiscal year 2007, which ended a full year ago and appealed a Federal District Court ruling requiring them to release the names of firms that received federal small business contracts during FY 2005 and 2006. (http://www.asbl.com/documents/20080925courtordermod.pdf)
If the Bush bailout bill were to become law with the language of Section 107 in place, Bush officials would have the legal power to ignore the sections of the FAR that stipulate federal contracting opportunities for small businesses, woman-owned firms, minority-owned firms and veteran-owned firms. Federal agencies and prime contractors could be allowed to completely ignore the federal government’s small business contracting goals. Section 107 does not contain any stipulation on how long the “wavier of specific provisions” could last. The federal government’s ability to exclude small businesses could last years, and middle-class firms could continue to lose billions of dollars in government contracts and subcontracts.
The ASBL predicted the Bush Administration would try to intensify its efforts to dismantle and weaken federal small business contracting programs as the administration entered its final months. (http://www.asbl.com/showmedia.php?id=1068)
To date, 15 federal investigations have all found that during the Bush Administration, hundreds of billions of dollars in federal small business contracts have been diverted to some of the largest corporations in the World. (http://www.asbl.com/documentlibrary.html) In addition, CBS, ABC and CNN have all done investigative stories on the issue. (http://www.asbl.com/media2.php)
“Not only does this bill not contain any provisions that specifically help small business, it has provisions that could actually harm middle class firms. The language in Section 107 of the bill is totally inconsistent with the stated objectives of this legislation,” ASBL President Lloyd Chapman said. “It is clearly not necessary to suspend federal acquisition law to bail out Wall Street and the financial industry. I am very concerned the Bush Administration included that language to give them the authority to further dismantle federal programs designed to assist small businesses. We got into this situation because of a lack of proper regulation and now the same people that are responsible for these staggering economic problems want to be able to ignore any sections of federal contracting law they deem necessary. George Bush has proven time-after-time that he cannot be trusted especially when it comes to small business issues.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, September 25, 2008
CVBT: "SBA appeals ruling to release contracting data"
The following story ran in the Central Valley Business Times (CVBT) this morning regarding the Small Business Administration's (SBA) decision to appeal its recent court loss to the American Small Business League (ASBL) to the 9th Circuit Court of Appeals. The ASBL was shocked by the SBA's decision to move towards decreasing transparency in federal small business contracting programs.
Regarding the SBA's move, attorney for ASBL Robert Belshaw said. "The Small Business Administration's willingness to take this matter to the 9th Circuit Court should be an indication to the media, public and Congress that transparency is not a priority for the SBA at this time. We can see no legal theory which would support an appeal of the district court's decision."
****************************
SBA appeals ruling to release contracting data
The U.S. Small Business Administration has decided to appeal a U.S. District Court ruling against them, directing the agency to release the specific names of all recipients of federal small business contracts during federal fiscal years 2005 and 2006.
The ruling came in a lawsuit filed by the American Small Business League of Petaluma under the Freedom of Information Act after the SBA refused to comply with the ASBL's request.
The ASBL requested the data to prove that during the Bush Administration most small business contracts were actually awarded to Fortune 500 firms.
The case now goes to the 9th Circuit Court of Appeals. Court documents indicating the SBA's justification for appealing the case have not been released
But the founder of ASBL thinks he knows why.
"It's obvious the Bush Administration has something to hide. Why else would they be willing to go to the 9th Circuit Court of Appeals over simple information that should be readily available to every citizen?” says ASBL President Lloyd Chapman.
“Since 2002, there have been 15 federal investigations that have found the Bush Administration has diverted billions of dollars in federal small business contracts to large corporations. That is the real reason the SBA is withholding this data, particularly this close to an election," Mr. Chapman says.
Please click here to view the source for the story: http://www.centralvalleybusinesstimes.com/stories/001/?ID=9915
Regarding the SBA's move, attorney for ASBL Robert Belshaw said. "The Small Business Administration's willingness to take this matter to the 9th Circuit Court should be an indication to the media, public and Congress that transparency is not a priority for the SBA at this time. We can see no legal theory which would support an appeal of the district court's decision."
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SBA appeals ruling to release contracting data
The U.S. Small Business Administration has decided to appeal a U.S. District Court ruling against them, directing the agency to release the specific names of all recipients of federal small business contracts during federal fiscal years 2005 and 2006.
The ruling came in a lawsuit filed by the American Small Business League of Petaluma under the Freedom of Information Act after the SBA refused to comply with the ASBL's request.
The ASBL requested the data to prove that during the Bush Administration most small business contracts were actually awarded to Fortune 500 firms.
The case now goes to the 9th Circuit Court of Appeals. Court documents indicating the SBA's justification for appealing the case have not been released
But the founder of ASBL thinks he knows why.
"It's obvious the Bush Administration has something to hide. Why else would they be willing to go to the 9th Circuit Court of Appeals over simple information that should be readily available to every citizen?” says ASBL President Lloyd Chapman.
“Since 2002, there have been 15 federal investigations that have found the Bush Administration has diverted billions of dollars in federal small business contracts to large corporations. That is the real reason the SBA is withholding this data, particularly this close to an election," Mr. Chapman says.
Please click here to view the source for the story: http://www.centralvalleybusinesstimes.com/stories/001/?ID=9915
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