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Tuesday, April 13, 2010
Monday, April 12, 2010
ASBL's Lloyd Chapman to Appear on CNBC April 13
Tomorrow morning the President of the American Small Business League, Lloyd Chapman, will be live on CNBC’s Squawk on the Street with Erin Burnett and Mark Haines at approximately 10:30 am EST / 7:30 PST. He will be on with Columbia University Business School Professor Clifford Schorer discussing the biggest issues facing small business and how to fix it.
Additionally, this morning the Washington Post ran a story titled, "Big businesses winning contracts meant for small ones, groups charge" by Dion Haynes. In the story, Haynes discusses the diversion of small business contracts to Fortune 500 firms, the American Small Business League’s lawsuit against the GSA, and the SBA’s response to allegations of fraud and abuse in its procurement programs. Please click here to access the article: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/11/AR2010041103341.html
Additionally, this morning the Washington Post ran a story titled, "Big businesses winning contracts meant for small ones, groups charge" by Dion Haynes. In the story, Haynes discusses the diversion of small business contracts to Fortune 500 firms, the American Small Business League’s lawsuit against the GSA, and the SBA’s response to allegations of fraud and abuse in its procurement programs. Please click here to access the article: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/11/AR2010041103341.html
Wednesday, April 7, 2010
SBA Sued for Refusing to Release Information on Public Relations Contracts
FOR IMMEDIATE RELEASE
April 7, 2010
Petaluma, Calif. - On Tuesday, April 6, the American Small Business League (ASBL) filed suit against the Small Business Administration (SBA) under the Freedom of Information Act (FOIA). The SBA is refusing to release detailed information on four public relations contracts.
(http://www.asbl.com/documents/20100406_FOIA4_complaint.pdf)
The ASBL suspects the SBA has spent American tax dollars to hire consultants to help them obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world.
In one case, the SBA paid $30,000 for a one-day meeting with APCO Worldwide Inc, a multinational communications firm specializing in crisis management. The SBA is refusing to release the complete details on that contract. In another example, the SBA paid $16,500 to the White House Writers Group. The SBA is refusing to release all of the details on that contract.
The SBA is also refusing to release any information whatsoever on two additional contracts for public relations consulting services.
The most recent information released by the Obama Administration found large recipients of federal small business contracts such as Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea and the Italian firm Finmeccanica SpA.
Since 2002, the SBA has claimed that the diversion of federal small business contracts to large corporations was the result of "miscoding." In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)
In SBA Report 5-15, the agency's Office of 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 and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf) Another report, from the SBA's own Office of Inspector General found that the SBA itself had reported contracts to large businesses as small business awards, including Dutch conglomerate Buhrmann NV with more than 26,000 employees worldwide. (http://www.asbl.com/documents/05-14.pdf)
On March 12, 2010, the Obama Administration removed 10 years of historical data from the Federal Procurement Data System - Next Generation (FPDS-NG), which has been used by the GAO and inspector generals from a variety of federal agencies to uncover fraud and abuse in federal small business contracting programs. The ASBL has filed for an injunction to force the Obama Administration to restore the data.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 7, 2010
Petaluma, Calif. - On Tuesday, April 6, the American Small Business League (ASBL) filed suit against the Small Business Administration (SBA) under the Freedom of Information Act (FOIA). The SBA is refusing to release detailed information on four public relations contracts.
(http://www.asbl.com/documents/20100406_FOIA4_complaint.pdf)
The ASBL suspects the SBA has spent American tax dollars to hire consultants to help them obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world.
In one case, the SBA paid $30,000 for a one-day meeting with APCO Worldwide Inc, a multinational communications firm specializing in crisis management. The SBA is refusing to release the complete details on that contract. In another example, the SBA paid $16,500 to the White House Writers Group. The SBA is refusing to release all of the details on that contract.
The SBA is also refusing to release any information whatsoever on two additional contracts for public relations consulting services.
The most recent information released by the Obama Administration found large recipients of federal small business contracts such as Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computers, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea and the Italian firm Finmeccanica SpA.
Since 2002, the SBA has claimed that the diversion of federal small business contracts to large corporations was the result of "miscoding." In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)
In SBA Report 5-15, the agency's Office of 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 and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf) Another report, from the SBA's own Office of Inspector General found that the SBA itself had reported contracts to large businesses as small business awards, including Dutch conglomerate Buhrmann NV with more than 26,000 employees worldwide. (http://www.asbl.com/documents/05-14.pdf)
On March 12, 2010, the Obama Administration removed 10 years of historical data from the Federal Procurement Data System - Next Generation (FPDS-NG), which has been used by the GAO and inspector generals from a variety of federal agencies to uncover fraud and abuse in federal small business contracting programs. The ASBL has filed for an injunction to force the Obama Administration to restore the data.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, March 31, 2010
Obama Administration Faces Court Battle Over Contracting Data
FOR IMMEDIATE RELEASE
March 31, 2010
Petaluma, Calif. - On Tuesday, March 30, the American Small Business League (ASBL) filed a motion for a preliminary injunction in United States District Court, Northern District of California against the General Services Administration (GSA). The purpose of the injunction is to force the GSA to restore more than a decade's worth of federal contracting data. (http://www.asbl.com/documents/ASBL_Prelim_Injunction.pdf)
On March 12, 2010, the Obama Administration implemented changes to the Federal Procurement Data System-Next Generation (FPDS-NG), which eliminated the socio-economic field, "isSmallBusiness." In past years, Congress, federal agencies, watchdog groups, and the general public used the field to identify large firms who had fraudulently misrepresented themselves as small businesses to illegally receive billions of dollars in small business contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars in fraud and abuse in federal small business contracting programs.
In Report 5-16, the Small Business Administration Office of Inspector General (SBA IG) found large businesses had received federal small business contracts by making "false certifications" and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
In Report 5-15, the SBA IG stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." Another investigation from the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception." (http://www.asbl.com/documents/05-15.pdf, http://www.asbl.com/documents/eagkeeye_report%202002.pdf)
The ASBL has estimated that over the last decade nearly $1 trillion in contracts intended for small businesses have actually ended up in the hands of Fortune 500 corporations and other clearly large businesses.
Current federal law prescribes stiff penalties for fraudulent misrepresentation of a business as a small business in order to compete for federal contracting opportunities. Violators are subject to penalties of up to 10 years in prison, a fine of $500,000 per occurrence and debarment from federal contracting programs, according to the Small Business Act.
The ASBL is concerned that the destruction of ten-years worth of historical contracting data could prevent further investigations into fraudulent contracting activity, and prevent large firms from being prosecuted under section 16(D) of the Small Business Act.
The ASBL's motion for a preliminary injunction will be heard on a 35-calendar day track, according to court documents.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
March 31, 2010
Petaluma, Calif. - On Tuesday, March 30, the American Small Business League (ASBL) filed a motion for a preliminary injunction in United States District Court, Northern District of California against the General Services Administration (GSA). The purpose of the injunction is to force the GSA to restore more than a decade's worth of federal contracting data. (http://www.asbl.com/documents/ASBL_Prelim_Injunction.pdf)
On March 12, 2010, the Obama Administration implemented changes to the Federal Procurement Data System-Next Generation (FPDS-NG), which eliminated the socio-economic field, "isSmallBusiness." In past years, Congress, federal agencies, watchdog groups, and the general public used the field to identify large firms who had fraudulently misrepresented themselves as small businesses to illegally receive billions of dollars in small business contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars in fraud and abuse in federal small business contracting programs.
In Report 5-16, the Small Business Administration Office of Inspector General (SBA IG) found large businesses had received federal small business contracts by making "false certifications" and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
In Report 5-15, the SBA IG stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." Another investigation from the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception." (http://www.asbl.com/documents/05-15.pdf, http://www.asbl.com/documents/eagkeeye_report%202002.pdf)
The ASBL has estimated that over the last decade nearly $1 trillion in contracts intended for small businesses have actually ended up in the hands of Fortune 500 corporations and other clearly large businesses.
Current federal law prescribes stiff penalties for fraudulent misrepresentation of a business as a small business in order to compete for federal contracting opportunities. Violators are subject to penalties of up to 10 years in prison, a fine of $500,000 per occurrence and debarment from federal contracting programs, according to the Small Business Act.
The ASBL is concerned that the destruction of ten-years worth of historical contracting data could prevent further investigations into fraudulent contracting activity, and prevent large firms from being prosecuted under section 16(D) of the Small Business Act.
The ASBL's motion for a preliminary injunction will be heard on a 35-calendar day track, according to court documents.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, March 25, 2010
Federal Investigation Finds Corporate Giants Received Billions in Small Business Funds
FOR IMMEDIATE RELEASE
March 25, 2010
Petaluma, Calif. – The Small Business Administration Office of Inspector General (SBA IG) has released the latest in a series of investigations, which found billions in federal small business contracts have been diverted to corporate giants. The SBA IG investigation found that the SBA itself awarded federal small business contracts to large businesses. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_report_10-08.pdf)
Report 10-08 uncovered that during fiscal year (FY) 2008 the SBA awarded more than 30 percent of its contracts to large businesses, and 92 percent of the contract actions contained blatant errors. Additionally, the report found that during FY 2009 the percentage of misleading data jumped to a record 97 percent.
Since 2003, more than a dozen federal investigations have found the SBA played a key role in the diversion of billions of dollars a month in federal small business contracts to large businesses around the world.
- In Report 5-14, the SBA IG found that the SBA itself awarded small business contracts to large corporations. The report stated, "The SBA awarded four of the six high dollar procurements, reported as small business procurements, to large companies at the time of the procurements." (http://www.asbl.com/documents/05-14.pdf)
- In Report 5-16, the SBA IG found that federal agencies had allowed large businesses to illegally receive federal small business contracts by making "false certifications," and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
- In Report 5-15, the SBA IG 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)
President Barack Obama recognized the magnitude of the problem and promised to stop it during the 2008 presidential campaign. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
Despite this series of federal investigations, the SBA has simultaneously claimed that the diversion of federal small business contracts to large corporations was a "myth" and the result of "miscoding." (http://www.asbl.com/documents/sbamythvfact.pdf) The SBA has never been able to explain why, for over a decade, 100 percent of the time the "miscoding" always reports awards to large businesses as small business awards.
"There have now been over two dozen investigations, over the last eight years, which have found a clear pattern of blatant fraud and abuse in SBA managed programs," American Small Business League President Lloyd Chapman said. "It is time for the FBI to step in and get to the bottom of this. To date, the Obama Administration has done nothing to halt these abuses."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575
March 25, 2010
Petaluma, Calif. – The Small Business Administration Office of Inspector General (SBA IG) has released the latest in a series of investigations, which found billions in federal small business contracts have been diverted to corporate giants. The SBA IG investigation found that the SBA itself awarded federal small business contracts to large businesses. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_report_10-08.pdf)
Report 10-08 uncovered that during fiscal year (FY) 2008 the SBA awarded more than 30 percent of its contracts to large businesses, and 92 percent of the contract actions contained blatant errors. Additionally, the report found that during FY 2009 the percentage of misleading data jumped to a record 97 percent.
Since 2003, more than a dozen federal investigations have found the SBA played a key role in the diversion of billions of dollars a month in federal small business contracts to large businesses around the world.
- In Report 5-14, the SBA IG found that the SBA itself awarded small business contracts to large corporations. The report stated, "The SBA awarded four of the six high dollar procurements, reported as small business procurements, to large companies at the time of the procurements." (http://www.asbl.com/documents/05-14.pdf)
- In Report 5-16, the SBA IG found that federal agencies had allowed large businesses to illegally receive federal small business contracts by making "false certifications," and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
- In Report 5-15, the SBA IG 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)
President Barack Obama recognized the magnitude of the problem and promised to stop it during the 2008 presidential campaign. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
Despite this series of federal investigations, the SBA has simultaneously claimed that the diversion of federal small business contracts to large corporations was a "myth" and the result of "miscoding." (http://www.asbl.com/documents/sbamythvfact.pdf) The SBA has never been able to explain why, for over a decade, 100 percent of the time the "miscoding" always reports awards to large businesses as small business awards.
"There have now been over two dozen investigations, over the last eight years, which have found a clear pattern of blatant fraud and abuse in SBA managed programs," American Small Business League President Lloyd Chapman said. "It is time for the FBI to step in and get to the bottom of this. To date, the Obama Administration has done nothing to halt these abuses."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575
Thursday, March 18, 2010
Jobs Bill Will Allow the Diversion of Federal Small Business Funds to Corporate Giants to Continue
FOR IMMEDIATE RELEASE
March 18, 2010
Petaluma, Calif. – President Barack Obama signed the new jobs bill today. Both the House of Representatives and the Senate failed to include provisions in the bill that would halt the diversion of up to $120 billion a year in federal small business contracts to Fortune 500 firms and other large businesses.
Small business advocates had hoped that President Obama would include a provision in the bill to make good on his February 2008 campaign promise to, "end the diversion of federal small business contracts to corporate giants." http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
Since 2003, over a dozen federal investigations have found that every month billions of dollars in federal small business contracts are diverted to large businesses around the world. For five consecutive years, the Small Business Administration Office of Inspector General (SBA IG) has referred to the diversion of federal small business contracts to large businesses as the #1 management challenge facing the agency. (http://www.asbl.com/documentlibrary.html ; http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf)
The American Small Business League (ASBL) estimates that over $10 billion a month in federal small business funds are diverted to large corporations.
"I don't think this jobs bill is going to work. It's too little, too late. I think it's important to realize that while President Obama signed the jobs bill this morning, he'll allow over $400 million in federal small business funds to be diverted to large businesses today alone. This diversion has gone on every day that he has been in office, and apparently it's going to continue throughout the remainder of his presidency," ASBL President Lloyd Chapman said. "Ending the diversion of federal small business contracts to large businesses would put more money into the middle class and create more jobs than anything President Obama or Congress have ever proposed."
The ASBL does not believe this jobs bill is going to work long term. The provisions of this bill will be a temporary boost at best, while at the same time increasing the national deficit.
In May of 2009, Congressman Hank Johnson (D-4-GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act. If passed, the bill would create millions of jobs by halting the flow of federal small business contracts to large businesses and redirecting more than $120 billion a year in federal infrastructure spending to legitimate small businesses. Although the bill has bipartisan support with 23 co-sponsors, to date President Obama has refused to endorse the legislation. (http://www.asbl.com/documents/hr2568.pdf)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
March 18, 2010
Petaluma, Calif. – President Barack Obama signed the new jobs bill today. Both the House of Representatives and the Senate failed to include provisions in the bill that would halt the diversion of up to $120 billion a year in federal small business contracts to Fortune 500 firms and other large businesses.
Small business advocates had hoped that President Obama would include a provision in the bill to make good on his February 2008 campaign promise to, "end the diversion of federal small business contracts to corporate giants." http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
Since 2003, over a dozen federal investigations have found that every month billions of dollars in federal small business contracts are diverted to large businesses around the world. For five consecutive years, the Small Business Administration Office of Inspector General (SBA IG) has referred to the diversion of federal small business contracts to large businesses as the #1 management challenge facing the agency. (http://www.asbl.com/documentlibrary.html ; http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf)
The American Small Business League (ASBL) estimates that over $10 billion a month in federal small business funds are diverted to large corporations.
"I don't think this jobs bill is going to work. It's too little, too late. I think it's important to realize that while President Obama signed the jobs bill this morning, he'll allow over $400 million in federal small business funds to be diverted to large businesses today alone. This diversion has gone on every day that he has been in office, and apparently it's going to continue throughout the remainder of his presidency," ASBL President Lloyd Chapman said. "Ending the diversion of federal small business contracts to large businesses would put more money into the middle class and create more jobs than anything President Obama or Congress have ever proposed."
The ASBL does not believe this jobs bill is going to work long term. The provisions of this bill will be a temporary boost at best, while at the same time increasing the national deficit.
In May of 2009, Congressman Hank Johnson (D-4-GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act. If passed, the bill would create millions of jobs by halting the flow of federal small business contracts to large businesses and redirecting more than $120 billion a year in federal infrastructure spending to legitimate small businesses. Although the bill has bipartisan support with 23 co-sponsors, to date President Obama has refused to endorse the legislation. (http://www.asbl.com/documents/hr2568.pdf)
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, March 15, 2010
Obama Administration Destroys Incriminating Contracting Data
FOR IMMEDIATE RELEASE
March 15, 2010
Petaluma, Calif. – In March of 2005, the Small Business Administration (SBA) Office of Inspector General found large businesses had fraudulently represented themselves as small businesses to illegally receive federal small business contracts. Report 5-16, stated large businesses had committed fraud by making "false certifications," and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
On Friday, March 12, the General Services Administration (GSA) destroyed all of the information that had been used in that investigation.
Since 2003, over a dozen federal investigations have found that Fortune 500 firms have received federal small business contracts. In 2004, the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception."
As a result of the deletion of the data it will be significantly more difficult, if not impossible, for federal investigators to conduct investigations into fraud and abuse in federal small business contracting programs. Despite public outcry over the proposed changes, the GSA has eliminated the data under the guise of upgrading the system and making it easier to search.
The American Small Business League (ASBL) maintains that the GSA eliminated the data to destroy evidence, which clearly shows that some of the nation's largest contractors, primarily in the defense and aerospace industry, have committed felony federal contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to 10 years in prison, a $500,000 fine per occurrence and debarment from federal contracting programs for such abuses.
In February of 2008, the ASBL sued the SBA for the release of the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts. The SBA withheld the information until directed to release it by United States District Judge Marilyn H. Patel. In the court's ruling Patel stated, "The court finds it curious the SBA's argument that it does not 'control' the very information it needs to carry out its duties and functions." (www.asbl.com/documents/26-2.pdf)
"At some point in the near future it is going to be clear that the GSA destroyed evidence of hundreds of billions of dollars in fraud," ASBL President Lloyd Chapman said. "I think Congress and the FBI need to investigate the GSA's role in this matter. When it does come out that evidence of fraud was destroyed, the GSA officials responsible need to be prosecuted."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
March 15, 2010
Petaluma, Calif. – In March of 2005, the Small Business Administration (SBA) Office of Inspector General found large businesses had fraudulently represented themselves as small businesses to illegally receive federal small business contracts. Report 5-16, stated large businesses had committed fraud by making "false certifications," and "improper certifications." (http://www.asbl.com/documents/05-16.pdf)
On Friday, March 12, the General Services Administration (GSA) destroyed all of the information that had been used in that investigation.
Since 2003, over a dozen federal investigations have found that Fortune 500 firms have received federal small business contracts. In 2004, the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception."
As a result of the deletion of the data it will be significantly more difficult, if not impossible, for federal investigators to conduct investigations into fraud and abuse in federal small business contracting programs. Despite public outcry over the proposed changes, the GSA has eliminated the data under the guise of upgrading the system and making it easier to search.
The American Small Business League (ASBL) maintains that the GSA eliminated the data to destroy evidence, which clearly shows that some of the nation's largest contractors, primarily in the defense and aerospace industry, have committed felony federal contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to 10 years in prison, a $500,000 fine per occurrence and debarment from federal contracting programs for such abuses.
In February of 2008, the ASBL sued the SBA for the release of the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts. The SBA withheld the information until directed to release it by United States District Judge Marilyn H. Patel. In the court's ruling Patel stated, "The court finds it curious the SBA's argument that it does not 'control' the very information it needs to carry out its duties and functions." (www.asbl.com/documents/26-2.pdf)
"At some point in the near future it is going to be clear that the GSA destroyed evidence of hundreds of billions of dollars in fraud," ASBL President Lloyd Chapman said. "I think Congress and the FBI need to investigate the GSA's role in this matter. When it does come out that evidence of fraud was destroyed, the GSA officials responsible need to be prosecuted."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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