Thursday, December 2, 2010
Monday, November 29, 2010
SBA Loses Legal Battle Over Crisis Management PR Contract
FOR IMMEDIATE RELEASE
November 29, 2010
Petaluma, Calif. – The Small Business Administration (SBA) has lost another Freedom of Information Act lawsuit filed by the American Small Business League (ASBL). The ASBL filed suit after the SBA refused to turn over information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., an international public relations firm specializing in crisis management.
The ASBL suspects the SBA has spent American tax dollars to hire consultants to help 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. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.
In one case, the SBA paid $30,000 for a one-day meeting with APCO executives. In winning the lawsuit, the ASBL has now forced the SBA to turn over complete copies of those contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts are going to corporate giants. In Report 5-15, the SBA’s own Office of Inspector General (IG) referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today” (http://www.asbl.com/documents/05-15.pdf)
In Report 5-16 from March of 2005, the SBA IG reported that large businesses had committed fraud by misrepresenting themselves as small businesses through “false certifications,” and “improper certifications.” 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.”
In recent years, the SBA has claimed the diversion of federal small business contracts to large corporations has been the result of harmless "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)
“We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud,” ASBL President Lloyd Chapman said. “The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs.”
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 29, 2010
Petaluma, Calif. – The Small Business Administration (SBA) has lost another Freedom of Information Act lawsuit filed by the American Small Business League (ASBL). The ASBL filed suit after the SBA refused to turn over information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., an international public relations firm specializing in crisis management.
The ASBL suspects the SBA has spent American tax dollars to hire consultants to help 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. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.
In one case, the SBA paid $30,000 for a one-day meeting with APCO executives. In winning the lawsuit, the ASBL has now forced the SBA to turn over complete copies of those contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts are going to corporate giants. In Report 5-15, the SBA’s own Office of Inspector General (IG) referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today” (http://www.asbl.com/documents/05-15.pdf)
In Report 5-16 from March of 2005, the SBA IG reported that large businesses had committed fraud by misrepresenting themselves as small businesses through “false certifications,” and “improper certifications.” 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.”
In recent years, the SBA has claimed the diversion of federal small business contracts to large corporations has been the result of harmless "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)
“We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud,” ASBL President Lloyd Chapman said. “The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, November 16, 2010
Commerce Department & SBA Merger Could Cost Small Business Billions
Petaluma, Calif. – On November 10, the Obama Administration’s National Commission on Fiscal Responsibility and Reform shocked the small business community with the preliminary recommendation that the Small Business Administration (SBA) be absorbed by the U.S. Department of Commerce. The recommendation came as part of a plan that would cut federal spending by $200 billion through 2015.
The Small Business Administration (SBA) is the only federal agency to assist America’s chief job creators, its 27 million small businesses. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations.
As early as November 2008, American Small Business League (ASBL) President Lloyd Chapman predicted that the Obama Administration would attempt to close the SBA by merging it with the Commerce Department. “Based upon the extremely low priority that Obama has placed upon small business issues, it would not surprise me if he tried to completely close the Small Business Administration by combining it with the United States Department of Commerce," Chapman stated.
According to the commission chairs, combining the SBA with the Commerce Department, and shaving its combined budget by 10 percent would save a paltry $1 billion by 2015. However, the ASBL maintains that any savings resulting from a merger would be minuscule and fiscally insignificant in comparison to the staggering damage it would do to the middle class. The savings are especially insignificant when compared to $23 billion in Iraq contracts reported as, “Lost, Stolen, or unaccounted for,” by the BBC in 2008.
“Trying to save money by combining the SBA with the U.S. Department of Commerce is laughable. Not only would combining the SBA with the Department of Commerce save a minuscule amount of money, but it would also do irreparable damage to the nation’s middle class economy. I have been predicting that the Obama Administration would try to do this for a long time. This is not a move to save money. This is a move to try to allow large corporations to keep billions in federal small business contracts,” Chapman said. “Here we are in the worst economic downturn in 80 years. We should be doing everything we can to help small businesses, not destroy the one federal agency designed to help them.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
The Small Business Administration (SBA) is the only federal agency to assist America’s chief job creators, its 27 million small businesses. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations.
As early as November 2008, American Small Business League (ASBL) President Lloyd Chapman predicted that the Obama Administration would attempt to close the SBA by merging it with the Commerce Department. “Based upon the extremely low priority that Obama has placed upon small business issues, it would not surprise me if he tried to completely close the Small Business Administration by combining it with the United States Department of Commerce," Chapman stated.
According to the commission chairs, combining the SBA with the Commerce Department, and shaving its combined budget by 10 percent would save a paltry $1 billion by 2015. However, the ASBL maintains that any savings resulting from a merger would be minuscule and fiscally insignificant in comparison to the staggering damage it would do to the middle class. The savings are especially insignificant when compared to $23 billion in Iraq contracts reported as, “Lost, Stolen, or unaccounted for,” by the BBC in 2008.
“Trying to save money by combining the SBA with the U.S. Department of Commerce is laughable. Not only would combining the SBA with the Department of Commerce save a minuscule amount of money, but it would also do irreparable damage to the nation’s middle class economy. I have been predicting that the Obama Administration would try to do this for a long time. This is not a move to save money. This is a move to try to allow large corporations to keep billions in federal small business contracts,” Chapman said. “Here we are in the worst economic downturn in 80 years. We should be doing everything we can to help small businesses, not destroy the one federal agency designed to help them.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, November 8, 2010
New York Congresswoman Backs Bill to Bring Billions in Contracts to State
FOR IMMEDIATE RELEASE
November 8, 2010
Petaluma, Calif. – New York Congresswoman Carolyn Maloney (D – 14) has offered her support for legislation that would infuse the state’s business community with billions of dollars in existing government infrastructure spending, save thousands of small businesses and create countless jobs.
H.R. 2568, the Fairness and Transparency in Contracting Act would end widespread fraud and abuse in federal small business contracting programs, while ensuring that the federal government is meeting its 23 percent small business contracting goal. The federal government has a congressionally mandated goal of awarding 23 percent of the total value of all prime contracts to small businesses.
“I admire the American Small Business League’s efforts to make sure that small businesses get their fair share of federal contracts. Since small firms are the engine of our economy, this mission could not be more timely or more necessary,” Representative Maloney said. “I look forward to working with the American Small Business League and my friend and colleague Congressman Johnson to make sure that the Fairness and Transparency in Contracting Act becomes law.”
Since 2003, over a dozen federal investigations have shown that billions of dollars in federal small business contracts have been diverted to corporate giants. In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) referred to the problem as, "One of the most important challenges facing the SBA and the entire Federal government today." (http://www.sba.gov/IG/05-15.pdf)
H.R. 2568 will stop large businesses from taking federal small business contracts by perfecting the Small Business Act's definition of a small business as "independently owned." The bill would prevent the federal government from awarding small business contracts to publicly traded firms, because they are publicly owned and would not qualify as "independently owned."
The American Small Business League has estimated that if passed H.R. 2568 would redirect more than $100 billion a year in federal spending to the nation’s 27 million small businesses. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations. (http://www.sba.gov/advo/research/rs359.pdf)
New York's more than 2 million small businesses are receiving a fraction of the dollars they should be receiving. If signed into law, small businesses in the State of New York could see their volume of federal contracts increase by several billion dollars a year.
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November 8, 2010
Petaluma, Calif. – New York Congresswoman Carolyn Maloney (D – 14) has offered her support for legislation that would infuse the state’s business community with billions of dollars in existing government infrastructure spending, save thousands of small businesses and create countless jobs.
H.R. 2568, the Fairness and Transparency in Contracting Act would end widespread fraud and abuse in federal small business contracting programs, while ensuring that the federal government is meeting its 23 percent small business contracting goal. The federal government has a congressionally mandated goal of awarding 23 percent of the total value of all prime contracts to small businesses.
“I admire the American Small Business League’s efforts to make sure that small businesses get their fair share of federal contracts. Since small firms are the engine of our economy, this mission could not be more timely or more necessary,” Representative Maloney said. “I look forward to working with the American Small Business League and my friend and colleague Congressman Johnson to make sure that the Fairness and Transparency in Contracting Act becomes law.”
Since 2003, over a dozen federal investigations have shown that billions of dollars in federal small business contracts have been diverted to corporate giants. In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) referred to the problem as, "One of the most important challenges facing the SBA and the entire Federal government today." (http://www.sba.gov/IG/05-15.pdf)
H.R. 2568 will stop large businesses from taking federal small business contracts by perfecting the Small Business Act's definition of a small business as "independently owned." The bill would prevent the federal government from awarding small business contracts to publicly traded firms, because they are publicly owned and would not qualify as "independently owned."
The American Small Business League has estimated that if passed H.R. 2568 would redirect more than $100 billion a year in federal spending to the nation’s 27 million small businesses. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations. (http://www.sba.gov/advo/research/rs359.pdf)
New York's more than 2 million small businesses are receiving a fraction of the dollars they should be receiving. If signed into law, small businesses in the State of New York could see their volume of federal contracts increase by several billion dollars a year.
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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.
-###-
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.
-###-
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.”
-###-
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
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