Thursday, November 4, 2010
Monday, November 1, 2010
Department of Homeland Security Sued Over Boeing Contract
FOR IMMEDIATE RELEASE
November 1, 2010
Petaluma, Calif. – The Department of Homeland Security (DHS) is being sued by the American Small Business League (ASBL) for refusing to release subcontracting reports on contracts awarded to defense giant Boeing. (http://www.asbl.com/documents/Complaint_47KB_Boeing.pdf)
The ASBL filed suit in United States District Court, Northern District of California on Tuesday, October 26. The case was filed after DHS repeatedly refused to respond to a Freedom of Information Act (FOIA) request for Individual Subcontracting Reports (ISR) and Summary Subcontracting Reports (SSR) on a prime contract awarded to Boeing.
The ASBL believes the information contained in the reports may show that Boeing and the DHS cooperated in an effort to circumvent federal law, which requires 23 percent of all federal contracts to be awarded to small businesses. The ASBL is gathering information on several major government prime contractors in preparation for litigation that may include cases filed under the False Claims Act, and Section 16(d) of the Small Business Act.
In 1992, the 9th Circuit Court of Appeals ruled that subcontracting reports are releasable to the public, and do not contain trade secret or proprietary information.
“It is really kind of silly that we are having to file this suit because the 9th Circuit ruled over 20 years ago that this information is releasable. The fact that DHS is willing to get involved with a lawsuit they have no hope of winning, really speaks to the damaging nature of this information,” ASBL President Lloyd Chapman said.
The ASBL has won a series of Freedom of Information Act (FOIA) cases against the federal government. Some of the information obtained by the ASBL indicates the federal government diverted small business contracts to Boeing and hundreds of other Fortune 1000 firms. The Obama Administration is currently awarding small business contracts to firms such as Lockheed Martin, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, and Dell Computer. (http://www.asbl.com/documentlibrary.html)
To date, the ASBL has six outstanding lawsuits in the federal court system and plans to file a series of additional lawsuits before the end of the year.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 1, 2010
Petaluma, Calif. – The Department of Homeland Security (DHS) is being sued by the American Small Business League (ASBL) for refusing to release subcontracting reports on contracts awarded to defense giant Boeing. (http://www.asbl.com/documents/Complaint_47KB_Boeing.pdf)
The ASBL filed suit in United States District Court, Northern District of California on Tuesday, October 26. The case was filed after DHS repeatedly refused to respond to a Freedom of Information Act (FOIA) request for Individual Subcontracting Reports (ISR) and Summary Subcontracting Reports (SSR) on a prime contract awarded to Boeing.
The ASBL believes the information contained in the reports may show that Boeing and the DHS cooperated in an effort to circumvent federal law, which requires 23 percent of all federal contracts to be awarded to small businesses. The ASBL is gathering information on several major government prime contractors in preparation for litigation that may include cases filed under the False Claims Act, and Section 16(d) of the Small Business Act.
In 1992, the 9th Circuit Court of Appeals ruled that subcontracting reports are releasable to the public, and do not contain trade secret or proprietary information.
“It is really kind of silly that we are having to file this suit because the 9th Circuit ruled over 20 years ago that this information is releasable. The fact that DHS is willing to get involved with a lawsuit they have no hope of winning, really speaks to the damaging nature of this information,” ASBL President Lloyd Chapman said.
The ASBL has won a series of Freedom of Information Act (FOIA) cases against the federal government. Some of the information obtained by the ASBL indicates the federal government diverted small business contracts to Boeing and hundreds of other Fortune 1000 firms. The Obama Administration is currently awarding small business contracts to firms such as Lockheed Martin, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, and Dell Computer. (http://www.asbl.com/documentlibrary.html)
To date, the ASBL has six outstanding lawsuits in the federal court system and plans to file a series of additional lawsuits before the end of the year.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, October 26, 2010
Congress to Investigate Pentagon Comprehensive Test Program
FOR IMMEDIATE RELEASE
October 26, 2010
Petaluma, Calif. – On Thursday, October 21, five members of the House of Representatives, lead by Congresswoman Yvette Clarke (D-NY) asked the U.S. Government Accountability Office (U.S. GAO) to investigate a Department of Defense (DoD) subcontracting program that appears to have slashed subcontracting opportunities for small businesses. In addition to Congresswoman Clarke, the request was backed by Representatives Bennie Thompson (D-MS), Carolyn Maloney (D-NY), Lynn Woolsey (D-CA), and Chellie Pingree (D - ME).
While the stated mission of the Comprehensive Subcontracting Plan Test Program (CSPTP) is to increase contracts to small businesses, the American Small Business League (ASBL) has long maintained that the program actually allows large government prime contractors to circumvent small business subcontracting goals. As established, the program eliminated subcontracting reports available to the public, and penalties for non-compliance with subcontracting goals.
“Federal contracting data calls into question whether the 14 large prime contractors who are participants in the CSPTP are actually meeting their small business subcontracting goals,” the letter states.
The CSPTP was established in 1990. To date the Program has never been evaluated.
“Clearly this program wasn’t designed to help small businesses, it was designed to help prime contractors avoid paying liquidated damages for non-compliance with their small business subcontracting goals,” ASBL President Lloyd Chapman said. “The elimination of this program would force prime contractors to award billions more in subcontracts to small businesses and create jobs across the country.”
Participants of the program include BAE Systems, GE Aviation, Lockheed Martin, Raytheon, and Harris Corporation and seven other prime contractors. According to federal data, participants of the CSPTP received $55.24 billion in contracts from DoD during fiscal year (FY) 2009. 1 out of every 6 dollars spent by DoD during FY 2009 were awarded to participants of the program.
“As a Member of the House Small Business Committee, I know the importance of the federal government meeting goals that it has put in place to create business opportunities for small businesses. Evaluating the Comprehensive Subcontracting Plan Test Program (CSPTP) is imperative so that we fully understand if this program has created the subcontracting opportunities for small and disadvantaged businesses that it was designed to do. For 20 years this program has been in place, and now is the time we fully examine its progress,” stated Rep. Clarke. “Small businesses are the economic engine for our country. Know that I will continue to hold a high level of accountability for our federal government on behalf of our small businesses nationwide.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 26, 2010
Petaluma, Calif. – On Thursday, October 21, five members of the House of Representatives, lead by Congresswoman Yvette Clarke (D-NY) asked the U.S. Government Accountability Office (U.S. GAO) to investigate a Department of Defense (DoD) subcontracting program that appears to have slashed subcontracting opportunities for small businesses. In addition to Congresswoman Clarke, the request was backed by Representatives Bennie Thompson (D-MS), Carolyn Maloney (D-NY), Lynn Woolsey (D-CA), and Chellie Pingree (D - ME).
While the stated mission of the Comprehensive Subcontracting Plan Test Program (CSPTP) is to increase contracts to small businesses, the American Small Business League (ASBL) has long maintained that the program actually allows large government prime contractors to circumvent small business subcontracting goals. As established, the program eliminated subcontracting reports available to the public, and penalties for non-compliance with subcontracting goals.
“Federal contracting data calls into question whether the 14 large prime contractors who are participants in the CSPTP are actually meeting their small business subcontracting goals,” the letter states.
The CSPTP was established in 1990. To date the Program has never been evaluated.
“Clearly this program wasn’t designed to help small businesses, it was designed to help prime contractors avoid paying liquidated damages for non-compliance with their small business subcontracting goals,” ASBL President Lloyd Chapman said. “The elimination of this program would force prime contractors to award billions more in subcontracts to small businesses and create jobs across the country.”
Participants of the program include BAE Systems, GE Aviation, Lockheed Martin, Raytheon, and Harris Corporation and seven other prime contractors. According to federal data, participants of the CSPTP received $55.24 billion in contracts from DoD during fiscal year (FY) 2009. 1 out of every 6 dollars spent by DoD during FY 2009 were awarded to participants of the program.
“As a Member of the House Small Business Committee, I know the importance of the federal government meeting goals that it has put in place to create business opportunities for small businesses. Evaluating the Comprehensive Subcontracting Plan Test Program (CSPTP) is imperative so that we fully understand if this program has created the subcontracting opportunities for small and disadvantaged businesses that it was designed to do. For 20 years this program has been in place, and now is the time we fully examine its progress,” stated Rep. Clarke. “Small businesses are the economic engine for our country. Know that I will continue to hold a high level of accountability for our federal government on behalf of our small businesses nationwide.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, October 25, 2010
Tuesday, October 19, 2010
9th Circuit Rules SBA Does Not have to Release Agency Phone Records
FOR IMMEDIATE RELEASE
October 19, 2010
Petaluma, Calif. – On Friday, the 9th Circuit Court of Appeals released its ruling in a lawsuit filed by the American Small Business League (ASBL) against the Small Business Administration (SBA) regarding the agency’s phone records. The case was filed under the Freedom of Information Act (FOIA).
The ASBL originally requested phone records for SBA Press Office Chief Mike Stamler. The ASBL believes that Stamler and the SBA Press Office have engaged in a campaign to discourage the media from reporting on the diversion of federal small business contracts to Fortune 500 firms and corporate giants around the world.
Through the course of litigation, the SBA has claimed that it does not have access to its own phone records. On Friday, the appellate court ruled that the agency is not required to retrieve records from a third party if the government has not specifically contracted for the storage of those records.
Over the last several years, the ASBL has won a series of lawsuits against the SBA, which have shown that the SBA has lied to Congress, the public and the media about the diversion of more than $100 billion a year in federal small business contracts to corporate giants.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in small business contracts awarded to large businesses. In Report 5-14, the SBA Office of Inspector General found the SBA itself had awarded small business contracts to large businesses. The most recent data released by the government shows large recipients of small business contracts like: Lockheed Martin, Boeing, L-3 Communications, Raytheon, British Aerospace (BAE), General Dynamics, Rolls-Royce and Dell Computer.
Despite these findings, the SBA issued a press release claiming that it was a myth that large businesses received federal small business contracts.
During 2010, the ASBL issued similar FOIA requests to several other federal agencies. In each case, the records were released. The SBA is the only agency that has been unwilling to provide its phone records.
“I am disappointed in the 9th Circuit Court’s ruling, but I am gratified that we have been able to show how desperate the SBA Press Office is to withhold potentially damaging phone records. Clearly they have something to hide,” ASBL President Lloyd Chapman said. “I want to promise the SBA, and its Administrator Karen Mills, that the ASBL will continue its legal campaign to expose the fact that the SBA has lied about the diversion of small business contracts to large businesses.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 19, 2010
Petaluma, Calif. – On Friday, the 9th Circuit Court of Appeals released its ruling in a lawsuit filed by the American Small Business League (ASBL) against the Small Business Administration (SBA) regarding the agency’s phone records. The case was filed under the Freedom of Information Act (FOIA).
The ASBL originally requested phone records for SBA Press Office Chief Mike Stamler. The ASBL believes that Stamler and the SBA Press Office have engaged in a campaign to discourage the media from reporting on the diversion of federal small business contracts to Fortune 500 firms and corporate giants around the world.
Through the course of litigation, the SBA has claimed that it does not have access to its own phone records. On Friday, the appellate court ruled that the agency is not required to retrieve records from a third party if the government has not specifically contracted for the storage of those records.
Over the last several years, the ASBL has won a series of lawsuits against the SBA, which have shown that the SBA has lied to Congress, the public and the media about the diversion of more than $100 billion a year in federal small business contracts to corporate giants.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in small business contracts awarded to large businesses. In Report 5-14, the SBA Office of Inspector General found the SBA itself had awarded small business contracts to large businesses. The most recent data released by the government shows large recipients of small business contracts like: Lockheed Martin, Boeing, L-3 Communications, Raytheon, British Aerospace (BAE), General Dynamics, Rolls-Royce and Dell Computer.
Despite these findings, the SBA issued a press release claiming that it was a myth that large businesses received federal small business contracts.
During 2010, the ASBL issued similar FOIA requests to several other federal agencies. In each case, the records were released. The SBA is the only agency that has been unwilling to provide its phone records.
“I am disappointed in the 9th Circuit Court’s ruling, but I am gratified that we have been able to show how desperate the SBA Press Office is to withhold potentially damaging phone records. Clearly they have something to hide,” ASBL President Lloyd Chapman said. “I want to promise the SBA, and its Administrator Karen Mills, that the ASBL will continue its legal campaign to expose the fact that the SBA has lied about the diversion of small business contracts to large businesses.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, October 12, 2010
Obama Rhetoric on Infrastructure Spending Doesn’t Match Administration Actions
FOR IMMEDIATE RELEASE
October 12, 2010
Petaluma, Calif. – On Monday, President Barack Obama emphasized the importance of putting Americans back to work using federal infrastructure projects. Yet, despite strong rhetoric on jobs, President Obama has failed to stop the purge of jobs caused by the diversion of billions of dollars a month in federal small business contracts to corporate giants.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts, actually flowing into the hands of Fortune 500 corporations and other clearly large businesses. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” (http://www.asbl.com/documentlibrary.html)
The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. Some of the firms the Obama Administration has allowed to be included as small businesses are: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, Dell Computer, French firm Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
Textron Inc., a Fortune 500 firm with 43,000 employees and annual sales over $14 billion, received approximately $775 million in federal small business contracts in a single year. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf
In February of 2008, presidential candidate Barack Obama recognized the magnitude of the problem when he promised to, “End the diversion of federal small business contracts to corporate giants." To date, President Obama has failed to honor that promise. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In May, the ASBL conducted an examination of the Obama Administration’s track record for small businesses and uncovered a dramatic disparity between President Obama’s rhetoric and his actions. In addition to failing to stop the diversion of federal small business contracts to corporate giants, the Obama Administration has:
1. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag."
2. Failed to allocate more than 3 percent of stimulus funds to small businesses.
3. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.
(www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 12, 2010
Petaluma, Calif. – On Monday, President Barack Obama emphasized the importance of putting Americans back to work using federal infrastructure projects. Yet, despite strong rhetoric on jobs, President Obama has failed to stop the purge of jobs caused by the diversion of billions of dollars a month in federal small business contracts to corporate giants.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts, actually flowing into the hands of Fortune 500 corporations and other clearly large businesses. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” (http://www.asbl.com/documentlibrary.html)
The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. Some of the firms the Obama Administration has allowed to be included as small businesses are: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, Dell Computer, French firm Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
Textron Inc., a Fortune 500 firm with 43,000 employees and annual sales over $14 billion, received approximately $775 million in federal small business contracts in a single year. http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf
In February of 2008, presidential candidate Barack Obama recognized the magnitude of the problem when he promised to, “End the diversion of federal small business contracts to corporate giants." To date, President Obama has failed to honor that promise. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In May, the ASBL conducted an examination of the Obama Administration’s track record for small businesses and uncovered a dramatic disparity between President Obama’s rhetoric and his actions. In addition to failing to stop the diversion of federal small business contracts to corporate giants, the Obama Administration has:
1. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag."
2. Failed to allocate more than 3 percent of stimulus funds to small businesses.
3. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.
(www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, October 7, 2010
GTSI Admitted They Were Not a Small Business on 1999 SEC Documents
FOR IMMEDIATE RELEASE
October 7, 2010
Petaluma, Calif. – In 1999, GTSI, a Top 50 government contractor reported that it was no longer a small business for the purposes of government contracting. Yet from fiscal year (FY) 2004 to FY 2010, GTSI received more than $1.18 billion in federal small business contracts. Data from the Federal Procurement Data System – Next Generation (FPDS-NG) indicates that GTSI received as much as $268 million a year in small business contracts over the 7-year period. (http://www.asbl.com/documents/GTSI_FY1999.pdf; http://www.asbl.com/documents/GTSI_FY2000.pdf)
The company’s 1999 annual report to the Securities and Exchange Commission (SEC) stated, “As a result of the acquisition of the BTG Division in February 1998, GTSI no longer qualifies as a small business for contract awards after February, 1998.” The company reiterated that statement in its 2000 report.
On October 1, the Small Business Administration (SBA) suspended GTSI from federal contracting programs. The suspension came as the result of government allegations that the company inappropriately gained access to contracts set aside for small businesses.
Section 16(d) of the Small Business Act, prescribes penalties of up to $500,000 and up to 10 years in prison for firms that misrepresent themselves as small businesses in order to illegally receive federal small business contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a year in federal small business contracts flowing into the hands of corporate giants around the world. The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
Large businesses included in the Obama Administration’s small business data include: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, and General Electric. (http://www.asbl.com/documentlibrary.html#5-15)
In Report 5-15, the SBA’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.”
“This is a serious federal crime that carries a penalty of up to 10 years in prison. The fact that the SBA waited almost 12 years to suspend GTSI after they admitted that they were not a small business, is proof they are assisting these large firms in high-jacking small business contracts. It is time for the Justice Department to step in and take over the investigation from the SBA,” ASBL President Lloyd Chapman said.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 7, 2010
Petaluma, Calif. – In 1999, GTSI, a Top 50 government contractor reported that it was no longer a small business for the purposes of government contracting. Yet from fiscal year (FY) 2004 to FY 2010, GTSI received more than $1.18 billion in federal small business contracts. Data from the Federal Procurement Data System – Next Generation (FPDS-NG) indicates that GTSI received as much as $268 million a year in small business contracts over the 7-year period. (http://www.asbl.com/documents/GTSI_FY1999.pdf; http://www.asbl.com/documents/GTSI_FY2000.pdf)
The company’s 1999 annual report to the Securities and Exchange Commission (SEC) stated, “As a result of the acquisition of the BTG Division in February 1998, GTSI no longer qualifies as a small business for contract awards after February, 1998.” The company reiterated that statement in its 2000 report.
On October 1, the Small Business Administration (SBA) suspended GTSI from federal contracting programs. The suspension came as the result of government allegations that the company inappropriately gained access to contracts set aside for small businesses.
Section 16(d) of the Small Business Act, prescribes penalties of up to $500,000 and up to 10 years in prison for firms that misrepresent themselves as small businesses in order to illegally receive federal small business contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a year in federal small business contracts flowing into the hands of corporate giants around the world. The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
Large businesses included in the Obama Administration’s small business data include: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, and General Electric. (http://www.asbl.com/documentlibrary.html#5-15)
In Report 5-15, the SBA’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.”
“This is a serious federal crime that carries a penalty of up to 10 years in prison. The fact that the SBA waited almost 12 years to suspend GTSI after they admitted that they were not a small business, is proof they are assisting these large firms in high-jacking small business contracts. It is time for the Justice Department to step in and take over the investigation from the SBA,” ASBL President Lloyd Chapman said.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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