FOR IMMEDIATE RELEASE
August 30, 2010
Petaluma, Calif. – The Obama Administration has released its fiscal year (FY) 2009 Small Business Procurement Scorecard, reporting that the government missed its 23 percent small business contracting goal. In its scorecard, the government claimed to have awarded a mere 21.89 percent to small businesses, while also failing to meet congressionally mandated contracting goals for women, Service Disabled Veteran Owned Small Businesses and HUBZone firms. The Obama Administration missed 4 of its 5 contracting goals. (http://www.businesswire.com/news/home/20100827005701/en)
The American Small Business League (ASBL) maintains that based on a recent evaluation of FY 2009 small business contracting data, the actual percentage of contracts awarded to small businesses is closer to 5 percent. In June, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
The ASBL also identified a series of Fortune 500 corporations and other large firms in the government’s 2009 contracting data. Recipients of small business contracts included: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, General Electric, Booz Allen Hamilton, Thales Communications, General Dynamics, and Dell Computer.
Since 2003, more than a dozen federal investigations have found billions of dollars a month in federal small business contracts flowing into the hands of corporate giants. (http://www.asbl.com/documentlibrary.html)
The ASBL believes the Obama Administration has dramatically inflated the percentage of contracts awarded to small businesses by under-reporting the actual federal acquisition budget and by including billions of dollars in contracts awarded to large businesses. The actual federal acquisition budget for foreign, domestic, classified and unclassified projects is roughly $1 trillion. The Obama Administration’s goaling achievement is based on a number that is less than half of the actual federal acquisition budget.
As the American Small Business League predicted, the Obama Administration released its FY 2009 small business contracting numbers near the close of business on Friday afternoon. The late release of data is a clear indication the Obama Administration was trying to avoid scrutiny form the mainstream media. (http://www.huffingtonpost.com/lloyd-chapman/obama-administration-fabr_b_693359.html, http://www.huffingtonpost.com/lloyd-chapman/obama-administration-will_b_674073.html)
“President Obama is not fooling anyone. These 5 o’clock Friday afternoon press releases are like sending up a signal flare that the data is fabricated,” ASBL President Lloyd Chapman said. “Every year billions of dollars in federal contracts are diverted to Fortune 500 corporations and other large businesses, and every year the government fabricates its numbers. It is time for Congress and the Obama Administration to pass H.R. 2568, the Fairness and Transparency in Contracting Act, and end this abuse once and for all.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575
Monday, August 30, 2010
Tuesday, August 24, 2010
Obama Refusing to Back Private Sector Jobs Bill
FOR IMMEDIATE RELEASE
August 24, 2010
Petaluma, Calif. – President Barack Obama is refusing to back a bill that could create millions of jobs in the private sector. The bill, the Fairness and Transparency in Contracting Act, H.R.2568, was introduced by Georgia Congressman Hank Johnson last May. The American Small Business League (ASBL) wrote the original draft of H.R. 2568. The bill is designed to stop the federal government from diverting over $100 billion a year in federal small business contracts to Fortune 500 firms and many of the largest businesses in Europe.
Since 2003, a series of federal investigations have found billions of dollars a month in federal small business contracts have been diverted to firms like Lockheed Martin, Boeing, Northrop Grumman, Raytheon, General Dynamics, Bechtel, Dell Computer and Xerox. Corporate giants from around the world that have received U.S. government small business contracts include Rolls-Royce, British Aerospace (BAE), French giant Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy and has 73,000 employees. A recent investigation by Stars and Stripes Magazine found the federal government had awarded over $41.6 billion in small business contracts to “miscellaneous foreign contractors.” (http://www.stripes.com/blogs/ombudsman/ombudsman-1.8931/behind-the-media-contractors-veil-1.110840)
H.R. 2568 would stop the federal government from reporting contract awards to publicly traded firms and foreign owned companies as small business awards. The bill is based on language in the Small Business Act, which states that a small business must be “independently owned” in order to receive federal small business contracts.
If President Obama were to sign H.R. 2568 into law, or pass by executive order, over $100 billion in existing federal infrastructure spending would be redirected to legitimate small businesses in the private sector. Since the bill requires no new spending or tax increases, it is deficit neutral. The Obama Administration had estimated that for every billion dollars in infrastructure spending, 40,000 new jobs would be created. Based on those projections, if H.R. 2568 were to become law, over four million new jobs could be created. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html?hp)
The ASBL points to H.R. 2568 as being far superior to the Obama Administration’s $30 billion small business lending bill. As opposed to a one-time infusion of $30 billion in loans, H.R. 2568 would inject over $100 billion a year in federal contracts into the small business economy for decades to come.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 24, 2010
Petaluma, Calif. – President Barack Obama is refusing to back a bill that could create millions of jobs in the private sector. The bill, the Fairness and Transparency in Contracting Act, H.R.2568, was introduced by Georgia Congressman Hank Johnson last May. The American Small Business League (ASBL) wrote the original draft of H.R. 2568. The bill is designed to stop the federal government from diverting over $100 billion a year in federal small business contracts to Fortune 500 firms and many of the largest businesses in Europe.
Since 2003, a series of federal investigations have found billions of dollars a month in federal small business contracts have been diverted to firms like Lockheed Martin, Boeing, Northrop Grumman, Raytheon, General Dynamics, Bechtel, Dell Computer and Xerox. Corporate giants from around the world that have received U.S. government small business contracts include Rolls-Royce, British Aerospace (BAE), French giant Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy and has 73,000 employees. A recent investigation by Stars and Stripes Magazine found the federal government had awarded over $41.6 billion in small business contracts to “miscellaneous foreign contractors.” (http://www.stripes.com/blogs/ombudsman/ombudsman-1.8931/behind-the-media-contractors-veil-1.110840)
H.R. 2568 would stop the federal government from reporting contract awards to publicly traded firms and foreign owned companies as small business awards. The bill is based on language in the Small Business Act, which states that a small business must be “independently owned” in order to receive federal small business contracts.
If President Obama were to sign H.R. 2568 into law, or pass by executive order, over $100 billion in existing federal infrastructure spending would be redirected to legitimate small businesses in the private sector. Since the bill requires no new spending or tax increases, it is deficit neutral. The Obama Administration had estimated that for every billion dollars in infrastructure spending, 40,000 new jobs would be created. Based on those projections, if H.R. 2568 were to become law, over four million new jobs could be created. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html?hp)
The ASBL points to H.R. 2568 as being far superior to the Obama Administration’s $30 billion small business lending bill. As opposed to a one-time infusion of $30 billion in loans, H.R. 2568 would inject over $100 billion a year in federal contracts into the small business economy for decades to come.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, August 4, 2010
Wednesday, July 28, 2010
Contracting Reform Bill Will Trump Obama Jobs Bill
This week the United States Senate is slated to vote on another round of lending focused “jobs legislation,” which may do little to stimulate the nation’s economy or create jobs. H.R. 5297, the Small Business Jobs and Credit Act of 2010 would direct $30 billion in federal assistance to community banks as a means of bolstering lending. (http://www.opencongress.org/bill/111-h5297/show)
The American Small Business League (ASBL) is concerned that Congress and the Obama Administration are focusing attention on tired solutions that have not worked, while ignoring solutions that would directly funnel billions of dollars a year in federal spending to America’s 27 million small business owners.
Small businesses are the backbone of the American economy. According to the U.S. Census Bureau small businesses are responsible for more than 50 percent of the nation’s non-farm private sector workforce, 90 percent of innovations, 90 percent of exports and nearly 100 percent of net new jobs. A recent study from the Kauffman Foundation found that companies less than 5 years old create nearly all-net new jobs. (http://www.inc.com/news/articles/200708/data.html)
The ASBL strongly believes the best way to stimulate the nation’s economy is to direct federal infrastructure spending to the middle class.
Since 2003, more than a dozen federal investigations have uncovered the diversion of more than $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe. H.R. 2568, the Fairness and Transparency in Contracting Act would stop the diversion of government small business contracts to corporate giants, and redirect those funds to small businesses in the middle class. The ASBL believes that if passed, H.R. 2568 would do more to stimulate the nation’s economy than anything proposed by the Obama Administration or Congress to date. (http://www.opencongress.org/bill/111-h2568/show)
Recently, the Congressional Oversight Panel, and the National Federation of Independent Businesses (NFIB) released highly critical reports regarding the Obama Administration’s efforts to further bolster community bank lending to small businesses. Both reports indicated that small businesses across the country are in need of business opportunities and increased demand for their products and services as opposed to increased access to capital. (http://www.nfib.com/Portals/0/PDF/sbet/SBET201006.pdf ; http://www.huffingtonpost.com/2010/05/13/federal-oversight-panel-s_n_574781.html)
“It does not make sense to continue giving billions of dollars a year in federal small business contracts to corporate giants, and then turn around and try lending billions of dollars to small businesses who are floundering in a dire economic environment,” ASBL President Lloyd Chapman said.
The American Small Business League (ASBL) is concerned that Congress and the Obama Administration are focusing attention on tired solutions that have not worked, while ignoring solutions that would directly funnel billions of dollars a year in federal spending to America’s 27 million small business owners.
Small businesses are the backbone of the American economy. According to the U.S. Census Bureau small businesses are responsible for more than 50 percent of the nation’s non-farm private sector workforce, 90 percent of innovations, 90 percent of exports and nearly 100 percent of net new jobs. A recent study from the Kauffman Foundation found that companies less than 5 years old create nearly all-net new jobs. (http://www.inc.com/news/articles/200708/data.html)
The ASBL strongly believes the best way to stimulate the nation’s economy is to direct federal infrastructure spending to the middle class.
Since 2003, more than a dozen federal investigations have uncovered the diversion of more than $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe. H.R. 2568, the Fairness and Transparency in Contracting Act would stop the diversion of government small business contracts to corporate giants, and redirect those funds to small businesses in the middle class. The ASBL believes that if passed, H.R. 2568 would do more to stimulate the nation’s economy than anything proposed by the Obama Administration or Congress to date. (http://www.opencongress.org/bill/111-h2568/show)
Recently, the Congressional Oversight Panel, and the National Federation of Independent Businesses (NFIB) released highly critical reports regarding the Obama Administration’s efforts to further bolster community bank lending to small businesses. Both reports indicated that small businesses across the country are in need of business opportunities and increased demand for their products and services as opposed to increased access to capital. (http://www.nfib.com/Portals/0/PDF/sbet/SBET201006.pdf ; http://www.huffingtonpost.com/2010/05/13/federal-oversight-panel-s_n_574781.html)
“It does not make sense to continue giving billions of dollars a year in federal small business contracts to corporate giants, and then turn around and try lending billions of dollars to small businesses who are floundering in a dire economic environment,” ASBL President Lloyd Chapman said.
Tuesday, July 20, 2010
Georgia Congressman Hank Johnson Champions Small Business Legislation
American Small Business League Endorses Congressman Hank Johnson
PETALUMA, Calif.- Based on his strong track record for small businesses, the American Small Business League (ASBL) has endorsed Congressman Hank Johnson (D – GA) for re-election. The ASBL is the only national small business advocate committed to stopping widespread fraud and abuse in federal small business contracting programs.
“As far as I am concerned, every small business in America owes Congressman Hank Johnson a debt of gratitude. He is leading the charge against the diversion of federal small business contracts to large corporations, and taking on big businesses that are hijacking billions of dollars a month in federal small business contracts,” ASBL President Lloyd Chapman said. “Hank Johnson is a hero to me, and I think he is a hero to every small business in the country.”
During the 111th Congress, Congressman Johnson introduced H.R. 2568, the Fairness and Transparency in Contracting Act. The bill would stop the diversion of billions of dollars a month in federal small business contracts to corporate giants. If signed into law, H.R. 2568 would direct more federal funds into the hands of Georgia’s small businesses than anything proposed by the Obama Administration or any other member of Congress to date. http://www.asbl.com/documents/hr2568.pdf
Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal contracts intended for small businesses actually flowing into the hands of large businesses. H.R. 2568, would put a halt to this ten-year contracting scandal, and redirect billions of dollars in federal infrastructure funds to the middle class economy. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
During FY 2009, Georgia small businesses received $2.15 billion in contracts from the federal government. The ASBL has estimated that the passage of H.R. 2568 could more than double the volume of federal contracts awarded to small businesses in Georgia.
PETALUMA, Calif.- Based on his strong track record for small businesses, the American Small Business League (ASBL) has endorsed Congressman Hank Johnson (D – GA) for re-election. The ASBL is the only national small business advocate committed to stopping widespread fraud and abuse in federal small business contracting programs.
“As far as I am concerned, every small business in America owes Congressman Hank Johnson a debt of gratitude. He is leading the charge against the diversion of federal small business contracts to large corporations, and taking on big businesses that are hijacking billions of dollars a month in federal small business contracts,” ASBL President Lloyd Chapman said. “Hank Johnson is a hero to me, and I think he is a hero to every small business in the country.”
During the 111th Congress, Congressman Johnson introduced H.R. 2568, the Fairness and Transparency in Contracting Act. The bill would stop the diversion of billions of dollars a month in federal small business contracts to corporate giants. If signed into law, H.R. 2568 would direct more federal funds into the hands of Georgia’s small businesses than anything proposed by the Obama Administration or any other member of Congress to date. http://www.asbl.com/documents/hr2568.pdf
Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal contracts intended for small businesses actually flowing into the hands of large businesses. H.R. 2568, would put a halt to this ten-year contracting scandal, and redirect billions of dollars in federal infrastructure funds to the middle class economy. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
During FY 2009, Georgia small businesses received $2.15 billion in contracts from the federal government. The ASBL has estimated that the passage of H.R. 2568 could more than double the volume of federal contracts awarded to small businesses in Georgia.
Thursday, July 15, 2010
Department of Defense: The Black Hole of Small Business Contracts
By: Kevin Baron, ASBL
The federal government has a congressionally mandated goal when it comes to giving contracts to small businesses. The Small Business Act states,
The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year.” So the government must spend a minimum of 23 percent of all prime contract dollars with small businesses every year.
Each fiscal year, the Department of Defense (DoD) consistently accounts for between two-thirds to three-quarters of our entire governments procurement budget. For example, in fiscal year 2008, it is reported that the government spent a total of approximately $536 billion on prime contracts (not including black-op and intelligence spending, but that is for another post), of which DoD accounted for approximately $392 billion, or 73 percent.
There are several programs that have been set-up through DoD that are supposed to be beneficial for small businesses, but end up doing the complete opposite. One program in particular is the Comprehensive Subcontracting Plan Test Program (CSPTP). The CSPTP was passed by Congress in 1989 and went into effect on October 1, 1990, and is currently set to expire on September 30, 2010 unless reauthorized.
The program was established based on two concepts. The first was to make contracting easier for large prime contractors by reducing their paperwork and reporting requirements on their contracts. The second was to increase the opportunities for small businesses to work with the participating large prime contractors. I am not sure how decreasing transparency on contracts awarded to the biggest defense contractors in the country will increase opportunities for small businesses, but apparently enough members of Congress at the time thought it would work.
About six months ago, I filed a Freedom of Information Act (FOIA) request to DoD asking for the most recent audit, review or evaluation of the program in order to determine if the CSPTP was meeting its stated goals of increasing subcontracts for small businesses, especially Small Disadvantaged Businesses (SDBs), veteran and service disabled veteran owned businesses, woman owned businesses and HUBZones.
I got a phone call a few days later from the Acting Director of the Office of Small Business Programs at DoD, who told me she had received my request and was sending a non-response response, but she wanted to explain. She told me that they had no documents for what I was requesting because the program had never been evaluated. Now, take that in for a moment- a program has been in place for 20 years and has never been evaluated to see if it is working. Essentially, DOD has to conduct an evaluation on the program once it expires, but the program has been reauthorized three times since its inception, and every time it is reauthorized, it kicks back the date of the evaluation.
There are currently 14 participants in the CSPTP, consisting of companies like Boeing, Lockheed Martin, L-3 Communications, Northrop Grumman, and General Dynamics. One of the main problems with the CSPTP is that there is no penalty for non-compliance with the small business subcontracting goals. That means that when a high-dollar contract is awarded to one of these firms, if the small business subcontracting goals that are automatically attached to the contract are not met, or the company fails to meet the small business subcontracting goals as established in their own small business subcontracting plan, there is no punishment or penalties. So where is the incentive for these firms to subcontract with small businesses?
I have filed numerous FOIA requests asking for information on this program and DoD has turned me down on every one to date, although we plan on pursuing legal action if necessary. What we have seen in looking at subcontracting reports on these same firms through other agencies is that often, they are not meeting their small business subcontracting goals. It appears that the CSPTP is nothing more than a loophole to get large defense contractors out of having to meet government mandated small business goals.
The CSPTP needs to be eliminated. DoD accounts for almost three-quarters of the government’s entire procurement budget, and in fiscal year 2009, the 14 firms participating in the program received approximately 18 percent of DoD’s contract dollars. In fiscal year 2009, one out of every six dollars that DoD spent was going to one of the companies that participated in the program. This means that small businesses were losing out on literally billions of dollars in subcontracts every year for the past 20 years.
Now for the kicker, CSPTP reauthorization was not included in the House’s Defense Authorization bill that passed a few weeks ago, however, it is included the in Senate’s version. In S. 3280, a four-year reauthorization of the program is included in Title VIII, subtitle A, section 805.
I have spoken to numerous members of Congress about this program and have not found one yet who was familiar with the CSPTP. Why would this program continue to be reauthorized when no one, including DoD and members of Congress, has any idea as to whether it is working?
http://seminal.firedoglake.com/diary/60091
The federal government has a congressionally mandated goal when it comes to giving contracts to small businesses. The Small Business Act states,
The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year.” So the government must spend a minimum of 23 percent of all prime contract dollars with small businesses every year.
Each fiscal year, the Department of Defense (DoD) consistently accounts for between two-thirds to three-quarters of our entire governments procurement budget. For example, in fiscal year 2008, it is reported that the government spent a total of approximately $536 billion on prime contracts (not including black-op and intelligence spending, but that is for another post), of which DoD accounted for approximately $392 billion, or 73 percent.
There are several programs that have been set-up through DoD that are supposed to be beneficial for small businesses, but end up doing the complete opposite. One program in particular is the Comprehensive Subcontracting Plan Test Program (CSPTP). The CSPTP was passed by Congress in 1989 and went into effect on October 1, 1990, and is currently set to expire on September 30, 2010 unless reauthorized.
The program was established based on two concepts. The first was to make contracting easier for large prime contractors by reducing their paperwork and reporting requirements on their contracts. The second was to increase the opportunities for small businesses to work with the participating large prime contractors. I am not sure how decreasing transparency on contracts awarded to the biggest defense contractors in the country will increase opportunities for small businesses, but apparently enough members of Congress at the time thought it would work.
About six months ago, I filed a Freedom of Information Act (FOIA) request to DoD asking for the most recent audit, review or evaluation of the program in order to determine if the CSPTP was meeting its stated goals of increasing subcontracts for small businesses, especially Small Disadvantaged Businesses (SDBs), veteran and service disabled veteran owned businesses, woman owned businesses and HUBZones.
I got a phone call a few days later from the Acting Director of the Office of Small Business Programs at DoD, who told me she had received my request and was sending a non-response response, but she wanted to explain. She told me that they had no documents for what I was requesting because the program had never been evaluated. Now, take that in for a moment- a program has been in place for 20 years and has never been evaluated to see if it is working. Essentially, DOD has to conduct an evaluation on the program once it expires, but the program has been reauthorized three times since its inception, and every time it is reauthorized, it kicks back the date of the evaluation.
There are currently 14 participants in the CSPTP, consisting of companies like Boeing, Lockheed Martin, L-3 Communications, Northrop Grumman, and General Dynamics. One of the main problems with the CSPTP is that there is no penalty for non-compliance with the small business subcontracting goals. That means that when a high-dollar contract is awarded to one of these firms, if the small business subcontracting goals that are automatically attached to the contract are not met, or the company fails to meet the small business subcontracting goals as established in their own small business subcontracting plan, there is no punishment or penalties. So where is the incentive for these firms to subcontract with small businesses?
I have filed numerous FOIA requests asking for information on this program and DoD has turned me down on every one to date, although we plan on pursuing legal action if necessary. What we have seen in looking at subcontracting reports on these same firms through other agencies is that often, they are not meeting their small business subcontracting goals. It appears that the CSPTP is nothing more than a loophole to get large defense contractors out of having to meet government mandated small business goals.
The CSPTP needs to be eliminated. DoD accounts for almost three-quarters of the government’s entire procurement budget, and in fiscal year 2009, the 14 firms participating in the program received approximately 18 percent of DoD’s contract dollars. In fiscal year 2009, one out of every six dollars that DoD spent was going to one of the companies that participated in the program. This means that small businesses were losing out on literally billions of dollars in subcontracts every year for the past 20 years.
Now for the kicker, CSPTP reauthorization was not included in the House’s Defense Authorization bill that passed a few weeks ago, however, it is included the in Senate’s version. In S. 3280, a four-year reauthorization of the program is included in Title VIII, subtitle A, section 805.
I have spoken to numerous members of Congress about this program and have not found one yet who was familiar with the CSPTP. Why would this program continue to be reauthorized when no one, including DoD and members of Congress, has any idea as to whether it is working?
http://seminal.firedoglake.com/diary/60091
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