Monday, June 20, 2011
Monday, June 13, 2011
Senate to Hold Hearing on SBA Fraud and Abuse
FOR IMMEDIATE RELEASE
June 13, 2011
Petaluma, Calif. – On Thursday, June 16th, the Senate Committee on Small Business and Entrepreneurship will hold a hearing titled, “An Examination of SBA Programs: Eliminating Inefficiencies, Duplications, Fraud and Abuse.” Kevin Baron, Director of Government Affairs for the American Small Business League (ASBL), will testify before the committee regarding the continued diversion of federal small business contracts to corporate giants.
Since 2003, a series of federal investigations have uncovered the diversion of billions of dollars a year in small business contracts to large corporations. (http://www.asbl.com/documentlibrary.html)
In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” The SBA IG has named the diversion of federal small business contracts to corporate giants as one of the most important challenges facing the agency for six consecutive years. (http://www.asbl.com/documents/05-15.pdf)
Government data shows that this trend continues. A recent ASBL analysis of the government’s contracting data found 61 large firms in the top 100 recipients of small business contracts. These large firms received $10.7 billion, or a staggering 64.5 percent of dollars intended for legitimate small businesses. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
The federal government has a congressionally mandated goal of awarding 23 percent of all government contracts to small businesses. The ASBL has estimated the diversion of small business contracts to corporate giants has lead to the government awarding no more than 5 percent of government contracts to small businesses; an 18 percent shortfall.
In April 2010, Senator Mary Landrieu (D-LA), the Chair of the Committee on Small Business and Entrepreneurship estimated that, “increasing contracts to small businesses by just 1 percent,” would create more than 100,000 new jobs. Based on an ASBL examination of government contracting data, and Chairwoman Landrieu’s estimation, ending this abuse would create upwards of 1.8 million jobs.
(http://sbc.senate.gov/public/index.cfm?a=Files.Serve&File_id=bc065833-dafc-46c5-9e6f-21209a532de2)
“Since President Obama was elected, unemployment has jumped from 7.6 to 9.1 percent. Ending the diversion of federal small business contracts to corporate giants would put more existing federal spending into the hands of our nation’s chief job creators than anything proposed by the Obama Administration to date,” ASBL President Lloyd Chapman said. “In February of 2008, President Obama promised to end this abuse. President Obama can honor that promise by passing the Fairness and Transparency in Contracting Act.” (http://www.asbl.com/documents/20081007_Obama_Promise_Website.pdf)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575
June 13, 2011
Petaluma, Calif. – On Thursday, June 16th, the Senate Committee on Small Business and Entrepreneurship will hold a hearing titled, “An Examination of SBA Programs: Eliminating Inefficiencies, Duplications, Fraud and Abuse.” Kevin Baron, Director of Government Affairs for the American Small Business League (ASBL), will testify before the committee regarding the continued diversion of federal small business contracts to corporate giants.
Since 2003, a series of federal investigations have uncovered the diversion of billions of dollars a year in small business contracts to large corporations. (http://www.asbl.com/documentlibrary.html)
In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” The SBA IG has named the diversion of federal small business contracts to corporate giants as one of the most important challenges facing the agency for six consecutive years. (http://www.asbl.com/documents/05-15.pdf)
Government data shows that this trend continues. A recent ASBL analysis of the government’s contracting data found 61 large firms in the top 100 recipients of small business contracts. These large firms received $10.7 billion, or a staggering 64.5 percent of dollars intended for legitimate small businesses. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
The federal government has a congressionally mandated goal of awarding 23 percent of all government contracts to small businesses. The ASBL has estimated the diversion of small business contracts to corporate giants has lead to the government awarding no more than 5 percent of government contracts to small businesses; an 18 percent shortfall.
In April 2010, Senator Mary Landrieu (D-LA), the Chair of the Committee on Small Business and Entrepreneurship estimated that, “increasing contracts to small businesses by just 1 percent,” would create more than 100,000 new jobs. Based on an ASBL examination of government contracting data, and Chairwoman Landrieu’s estimation, ending this abuse would create upwards of 1.8 million jobs.
(http://sbc.senate.gov/public/index.cfm?a=Files.Serve&File_id=bc065833-dafc-46c5-9e6f-21209a532de2)
“Since President Obama was elected, unemployment has jumped from 7.6 to 9.1 percent. Ending the diversion of federal small business contracts to corporate giants would put more existing federal spending into the hands of our nation’s chief job creators than anything proposed by the Obama Administration to date,” ASBL President Lloyd Chapman said. “In February of 2008, President Obama promised to end this abuse. President Obama can honor that promise by passing the Fairness and Transparency in Contracting Act.” (http://www.asbl.com/documents/20081007_Obama_Promise_Website.pdf)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn (at) asbl.com
(707) 789-9575
Thursday, May 19, 2011
Obama Small Business Agenda Contains Major Hole
FOR IMMEDIATE RELEASE
May 19, 2011
Petaluma, Calif. – On Monday, May 13, the Obama Administration released what President Obama called “The Small Business Agenda: Growing America’s Small Businesses to Win the Future.” After carefully evaluating President Obama’s small business agenda, the American Small Business League (ASBL) was surprised to find that the plan ignores the diversion of billions of dollars a year in federal small business contracts to large corporations. (http://www.whitehouse.gov/the-press-office/2011/05/16/white-house-releases-small-business-agenda-growing-americas-small-busine)
Since 2003, a series of federal investigations have found that most small business contracts actually go to Fortune 500 firms in the U.S. and other large businesses around the world. (http://www.asbl.com/documentlibrary.html)
- In Report 5-14, the Small Business Administration Office of Inspector General (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) The SBA IG’s office has continued to report the diversion of federal small business contracts to large businesses as the #1 challenge at the agency for six consecutive years.
The most recent data released by the Obama Administration shows recipients of federal small business contracts including: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (http://www.asbl.com/documents/05-15.pdf; www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
President Obama acknowledged the magnitude of the problem during his 2008 presidential campaign when he released the statement, “It is time to end the diversion of federal small business contracts to corporate giants.” http://www.asbl.com/documents/20081007_Obama_Promise_Website.pdf
“The Obama Administration’s small business agenda is all smoke and mirrors. When you look at what he does, it is completely different from what he says. If you want to know what the truth is look at what the SBA Inspector General has said for six consecutive years; most small business contracts actually go to large businesses,” ASBL President Lloyd Chapman said. “If President Obama wants to help small businesses and stimulate the economy, all he has to do is keep his campaign promise to end the diversion of federal small business contracts to corporate giants.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
May 19, 2011
Petaluma, Calif. – On Monday, May 13, the Obama Administration released what President Obama called “The Small Business Agenda: Growing America’s Small Businesses to Win the Future.” After carefully evaluating President Obama’s small business agenda, the American Small Business League (ASBL) was surprised to find that the plan ignores the diversion of billions of dollars a year in federal small business contracts to large corporations. (http://www.whitehouse.gov/the-press-office/2011/05/16/white-house-releases-small-business-agenda-growing-americas-small-busine)
Since 2003, a series of federal investigations have found that most small business contracts actually go to Fortune 500 firms in the U.S. and other large businesses around the world. (http://www.asbl.com/documentlibrary.html)
- In Report 5-14, the Small Business Administration Office of Inspector General (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) The SBA IG’s office has continued to report the diversion of federal small business contracts to large businesses as the #1 challenge at the agency for six consecutive years.
The most recent data released by the Obama Administration shows recipients of federal small business contracts including: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (http://www.asbl.com/documents/05-15.pdf; www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
President Obama acknowledged the magnitude of the problem during his 2008 presidential campaign when he released the statement, “It is time to end the diversion of federal small business contracts to corporate giants.” http://www.asbl.com/documents/20081007_Obama_Promise_Website.pdf
“The Obama Administration’s small business agenda is all smoke and mirrors. When you look at what he does, it is completely different from what he says. If you want to know what the truth is look at what the SBA Inspector General has said for six consecutive years; most small business contracts actually go to large businesses,” ASBL President Lloyd Chapman said. “If President Obama wants to help small businesses and stimulate the economy, all he has to do is keep his campaign promise to end the diversion of federal small business contracts to corporate giants.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, May 18, 2011
Supreme Court Won’t Hear Small Business Administration Phone Records Case
FOR IMMEDIATE RELEASE
May 17, 2011
Petaluma, Calif. – The Supreme Court of the United States has announced it will not review an American Small Business League (ASBL) case against the U.S. Small Business Administration (SBA) over the agency’s refusal to release its phone records. The ASBL’s lawsuit was filed under the Freedom of Information Act (FOIA).
The ASBL filed a petition to the high court in January after the Ninth Circuit Court of Appeals found the SBA was not required to disclose phone records held by a third party. The small business advocate originally filed suit against the SBA after the agency refused to provide several years of telephone records for the agency’s press office director, Mike Stamler. (http://www.asbl.com/documents/20090312complaint.pdf)
The ASBL requested Stamler's phone records after a series of media professionals complained that Stamler attempted to defame ASBL President Lloyd Chapman, and deny the diversion of small business contracts to corporate giants.
Since 2003, a series of federal investigations have uncovered the diversion of billions of dollars a year in federal small business contracts to corporate giants. (http://www.asbl.com/documentlibrary.html) In Report 5-15, the SBA Office of Inspector General (SBA IG) described 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)
Throughout the course of litigation, the SBA has claimed that it does not have access to its own phone records, and is not required to supply that information under FOIA. Yet during 2010, the ASBL requested and received full and comprehensive telephone records from federal agencies like the U.S. Department of Interior (DOI) and the Social Security Administration (SSA).
The SBA has a track record of withholding documents that highlight its efforts to cover-up the division of billions of dollars in federal small business contracts to corporate giants. In February 2008, the SBA refused to release documents regarding the large recipients of small business contracts. In the court’s ruling against the agency, United States District Judge Marilyn H. 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.”
"The fact that the SBA was willing to go to the Supreme Court to withhold Mike Stamler's phone records shows just how damaging that information must be," Chapman said. "The SBA has played a pivotal role in allowing billions of dollars in fraud. We’ll continue to pursue this information until it is public and transparent."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
May 17, 2011
Petaluma, Calif. – The Supreme Court of the United States has announced it will not review an American Small Business League (ASBL) case against the U.S. Small Business Administration (SBA) over the agency’s refusal to release its phone records. The ASBL’s lawsuit was filed under the Freedom of Information Act (FOIA).
The ASBL filed a petition to the high court in January after the Ninth Circuit Court of Appeals found the SBA was not required to disclose phone records held by a third party. The small business advocate originally filed suit against the SBA after the agency refused to provide several years of telephone records for the agency’s press office director, Mike Stamler. (http://www.asbl.com/documents/20090312complaint.pdf)
The ASBL requested Stamler's phone records after a series of media professionals complained that Stamler attempted to defame ASBL President Lloyd Chapman, and deny the diversion of small business contracts to corporate giants.
Since 2003, a series of federal investigations have uncovered the diversion of billions of dollars a year in federal small business contracts to corporate giants. (http://www.asbl.com/documentlibrary.html) In Report 5-15, the SBA Office of Inspector General (SBA IG) described 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)
Throughout the course of litigation, the SBA has claimed that it does not have access to its own phone records, and is not required to supply that information under FOIA. Yet during 2010, the ASBL requested and received full and comprehensive telephone records from federal agencies like the U.S. Department of Interior (DOI) and the Social Security Administration (SSA).
The SBA has a track record of withholding documents that highlight its efforts to cover-up the division of billions of dollars in federal small business contracts to corporate giants. In February 2008, the SBA refused to release documents regarding the large recipients of small business contracts. In the court’s ruling against the agency, United States District Judge Marilyn H. 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.”
"The fact that the SBA was willing to go to the Supreme Court to withhold Mike Stamler's phone records shows just how damaging that information must be," Chapman said. "The SBA has played a pivotal role in allowing billions of dollars in fraud. We’ll continue to pursue this information until it is public and transparent."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Friday, April 29, 2011
Thursday, April 7, 2011
Department of Defense Sued for Refusing to Release Raytheon Contracting Data
FOR IMMEDIATE RELEASE
April 7, 2011
Petaluma, Calif. – On Wednesday, April 6, the American Small Business League (ASBL) filed suit against the U.S. Department of Defense (DoD) after the agency refused to release subcontracting reports on contracts awarded to Fortune 500 defense giant Raytheon. The ASBL filed suit in United States District Court, Northern District of California. (http://www.asbl.com/documents/complaint_raytheon_sub_report_dod.pdf)
The case was filed after DoD repeatedly refused to respond to a Freedom of Information Act (FOIA) request for documents related to Raytheon’s compliance with small business subcontracting goals.
The ASBL believes the information contained in Raytheon’s subcontracting reports may show that the contractor is not complying with its congressionally mandated small business goals. Additionally, the ASBL is concerned the reports may indicate that Raytheon and DoD cooperated in an effort to circumvent federal law, which requires 23 percent of all federal contracts to be awarded to small businesses.
The ASBL’s most recent suit was filed in a continuing effort to gather information on a series of major government prime contractors, which may lead to litigation filed under the False Claims Act, and Section 16(d) of the Small Business Act.
Including Wednesday’s lawsuit, the Obama Administration has forced the ASBL to file 13 lawsuits in pursuit of publicly releasable documents regarding government contracting programs. In 1994, the 9th Circuit Court of Appeals ruled that subcontracting reports are releasable to the public, and do not contain trade secret or proprietary information.
Despite continually promising the most transparent administration in history, the Obama Administration has actually been amongst the least transparent. In early 2010, the Associated Press conducted a review of FOIA reports filed by 17 major agencies, and found across the board increases in the number of rejections. While the federal government as a whole received fewer FOIA requests during the first year of the Obama Administration, agencies increasingly said “no” to requesters looking for public documents. (http://www.breitbart.com/article.php?id=D9EFRPJG0)
“People in the main stream media seem to think stories about small business issues are not interesting to the public, but this is not just a small business story. This is a story about trillions of dollars in contracting fraud, bribery, and corruption in government. This is a story about how lobbying dollars dictate economic policy in America,” ASBL President Lloyd Chapman said. “Our government is broken. How else could you explain $100 million an hour in small business contracts going to large businesses for over a decade?”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 7, 2011
Petaluma, Calif. – On Wednesday, April 6, the American Small Business League (ASBL) filed suit against the U.S. Department of Defense (DoD) after the agency refused to release subcontracting reports on contracts awarded to Fortune 500 defense giant Raytheon. The ASBL filed suit in United States District Court, Northern District of California. (http://www.asbl.com/documents/complaint_raytheon_sub_report_dod.pdf)
The case was filed after DoD repeatedly refused to respond to a Freedom of Information Act (FOIA) request for documents related to Raytheon’s compliance with small business subcontracting goals.
The ASBL believes the information contained in Raytheon’s subcontracting reports may show that the contractor is not complying with its congressionally mandated small business goals. Additionally, the ASBL is concerned the reports may indicate that Raytheon and DoD cooperated in an effort to circumvent federal law, which requires 23 percent of all federal contracts to be awarded to small businesses.
The ASBL’s most recent suit was filed in a continuing effort to gather information on a series of major government prime contractors, which may lead to litigation filed under the False Claims Act, and Section 16(d) of the Small Business Act.
Including Wednesday’s lawsuit, the Obama Administration has forced the ASBL to file 13 lawsuits in pursuit of publicly releasable documents regarding government contracting programs. In 1994, the 9th Circuit Court of Appeals ruled that subcontracting reports are releasable to the public, and do not contain trade secret or proprietary information.
Despite continually promising the most transparent administration in history, the Obama Administration has actually been amongst the least transparent. In early 2010, the Associated Press conducted a review of FOIA reports filed by 17 major agencies, and found across the board increases in the number of rejections. While the federal government as a whole received fewer FOIA requests during the first year of the Obama Administration, agencies increasingly said “no” to requesters looking for public documents. (http://www.breitbart.com/article.php?id=D9EFRPJG0)
“People in the main stream media seem to think stories about small business issues are not interesting to the public, but this is not just a small business story. This is a story about trillions of dollars in contracting fraud, bribery, and corruption in government. This is a story about how lobbying dollars dictate economic policy in America,” ASBL President Lloyd Chapman said. “Our government is broken. How else could you explain $100 million an hour in small business contracts going to large businesses for over a decade?”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, April 4, 2011
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