FOR IMMEDIATE RELEASE
May 5, 2010
Petaluma, Calif. – Governor Arnold Schwarzenegger has refused to back H.R. 2568, the Fairness and Transparency in Contracting Act, which would bring billions of dollars in additional federal contracts and thousands of jobs to the State of California. The Governor's office originally pledged to back the bill once it was introduced into Congress, but has since broken its promise.
The bill was originally drafted by the Petaluma, California based American Small Business League (ASBL) to stop the diversion of federal small business contracts to Fortune 500 firms and other large businesses. H.R. 2568 was introduced into the U.S. House of Representatives in May of 2009. It currently has 24 co-sponsors, including 5 members of the California delegation, as well as the support of major chambers of commerce and business organizations across the state and nation.
Since 2003, over a dozen federal investigations have found billions of dollars a month in federal contracts earmarked for small businesses have actually been diverted to Fortune 500 firms and even some of the largest firms in Europe and Asia. Large recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
In March of 2005, the Small Business Administration (SBA) Office of Inspector General 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)
H.R. 2568 would prevent federal agencies from continuing to divert small business contracts to Fortune 500 firms. The ASBL estimates that the bill's passage could create between 400,000 and 500,000 new jobs and provide California's small businesses with over $50 billion in additional contracts over the next 5 years.
"I am really disappointed in Governor Schwarzenegger's refusal to back this bill. This legislation would do more to direct federal infrastructure spending to small businesses in California than any other legislation proposed to date," ASBL President Lloyd Chapman said. "I would be willing to bet that 99.99% of Californians would agree that Fortune 500 firms should not be allowed to hijack federal contracts intended for small businesses. California is having serious financial problems and this is a great solution that would bring money and jobs to the state. "
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, May 5, 2010
Friday, April 30, 2010
Exxon Profits Soar, Still No Windfall Profits Tax from Obama
FOR IMMEDIATE RELEASE
April 30, 2010
Petaluma, Calif. – Exxon Mobil Corporation announced that its first quarter profit earnings were up 38 percent, totaling $6.3 billion in profits due mainly to the high price of oil, which is now over $85 per barrel. To date, President Obama has still not fulfilled his campaign promise of enacting a windfall profits tax on the oil and gas industry. (http://bit.ly/9CrGHf)
In the run-up to the 2008 presidential election, President Obama routinely promised to enact a windfall profits tax on the oil and gas industry to fund a $1000 per household energy rebate. Within 48 hours of being elected, President Obama dropped the promise from his agenda. An “unnamed transition team staffer” tried to justify the decision by stating, “President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel. They are currently below that now and expected to stay below that.” (http://www.reuters.com/article/idUSTRE4B206W20081203)
“I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills,” President Obama said in a statement released in June of 2008. (http://www.reuters.com/article/idUSWAT00963020080609)
(http://www.youtube.com/watch?v=QJPo5IGTd0A)
Prior to the 2008 presidential election, President Obama's promise to implement the tax was displayed prominently at the top of the “Economy” section of the Obama-Biden campaign website. On November 6, President-elect Obama rolled out his transition website, Change.gov, which also displayed the promise, before it disappeared two days later. (Pre-change, http://www.asbl.com/documents/Economy_Change.pdf ; Post-change, http://change.gov/agenda/economy_agenda/)
The Obama administration has not made good on its campaign promise to enact a windfall oil profits tax, even with the price of oil consistently staying above $80 per barrel, couple that with the fact that Exxon Mobil paid zero dollars in federal income tax for 2009. (http://www.oil-price.net/) (http://www.oil-price.net/en/articles/How-Exxon-paid-zero-tazes-in-2009.php)
Proponents of the tax maintain that the oil and gas industry has gouged the public at the pump to reap excessive profits for nearly a decade, even with barrel prices in the $20 range. In January of 2004 the Associated Press (AP) reported that Exxon-Mobil earned $21.51 billion in profits during fiscal year (FY) 2003. Nearly doubling the company’s profit from the previous fiscal year. (http://www.washingtonpost.com/wp-dyn/articles/A60862-2004Jan29_2.html)
“A windfall profits tax on the oil and gas industry would help keep the prices at the pump low, help reduce the deficit and most Americans would much rather see that than a value-added Tax.” ASBL President Lloyd Chapman said.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 30, 2010
Petaluma, Calif. – Exxon Mobil Corporation announced that its first quarter profit earnings were up 38 percent, totaling $6.3 billion in profits due mainly to the high price of oil, which is now over $85 per barrel. To date, President Obama has still not fulfilled his campaign promise of enacting a windfall profits tax on the oil and gas industry. (http://bit.ly/9CrGHf)
In the run-up to the 2008 presidential election, President Obama routinely promised to enact a windfall profits tax on the oil and gas industry to fund a $1000 per household energy rebate. Within 48 hours of being elected, President Obama dropped the promise from his agenda. An “unnamed transition team staffer” tried to justify the decision by stating, “President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel. They are currently below that now and expected to stay below that.” (http://www.reuters.com/article/idUSTRE4B206W20081203)
“I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills,” President Obama said in a statement released in June of 2008. (http://www.reuters.com/article/idUSWAT00963020080609)
(http://www.youtube.com/watch?v=QJPo5IGTd0A)
Prior to the 2008 presidential election, President Obama's promise to implement the tax was displayed prominently at the top of the “Economy” section of the Obama-Biden campaign website. On November 6, President-elect Obama rolled out his transition website, Change.gov, which also displayed the promise, before it disappeared two days later. (Pre-change, http://www.asbl.com/documents/Economy_Change.pdf ; Post-change, http://change.gov/agenda/economy_agenda/)
The Obama administration has not made good on its campaign promise to enact a windfall oil profits tax, even with the price of oil consistently staying above $80 per barrel, couple that with the fact that Exxon Mobil paid zero dollars in federal income tax for 2009. (http://www.oil-price.net/) (http://www.oil-price.net/en/articles/How-Exxon-paid-zero-tazes-in-2009.php)
Proponents of the tax maintain that the oil and gas industry has gouged the public at the pump to reap excessive profits for nearly a decade, even with barrel prices in the $20 range. In January of 2004 the Associated Press (AP) reported that Exxon-Mobil earned $21.51 billion in profits during fiscal year (FY) 2003. Nearly doubling the company’s profit from the previous fiscal year. (http://www.washingtonpost.com/wp-dyn/articles/A60862-2004Jan29_2.html)
“A windfall profits tax on the oil and gas industry would help keep the prices at the pump low, help reduce the deficit and most Americans would much rather see that than a value-added Tax.” ASBL President Lloyd Chapman said.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, April 29, 2010
NASA Sued for Refusing to Release Contracting Data
FOR IMMEDIATE RELEASE
April 29, 2010
Petaluma, Calif. – On Wednesday, April 28, the American Small Business League (ASBL) filed suit against NASA in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after NASA refused to release subcontracting reports for contracts awarded to General Dynamics C4 Systems Incorporated. (http://www.asbl.com/documents/complaint_GD_NASA.pdf)
The ASBL requested information from NASA on a contract awarded to General Dynamics after discovering that a contracting officer reported the award as a small business contract.
Wednesday's suit is the second lawsuit filed by the ASBL against NASA. In February of 2007, the ASBL prevailed in its first suit against NASA, forcing the agency to provide detailed information proving the agency falsified its small business contracting statistics by including contracts to a variety of Fortune 500 firms and other large businesses.
Since 2003, over a dozen federal investigations have found billions of dollars a month in federal contracts earmarked for small businesses have been diverted to Fortune 500 firms and some of the largest companies in the world. The large recipients of federal small business contracts include: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL plans to file a series of FOIA requests to NASA as a means of uncovering more federal small business contracts that were diverted to Fortune 500 firms. Specifically, the ASBL intends to uncover contracts awarded to large corporations that were coded as small business contracts by contracting officers.
Section 16(d) of the Small Business Act states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)
Attorneys for the ASBL believe federal contracting officials, and possibly even employees of prime contractors, could be held liable for penalties prescribed under section 16(d) of the Small Business Act for fraudulently misrepresenting large firms as small businesses.
"This issue has gone on unabated for over decade. I don't think these abuses are going to stop until people start going to prison," ASBL President Lloyd Chapman said.
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Please click here to watch a clip about the ASBL's suit: http://www.youtube.com/watch?v=Yx-SyChw06I
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 29, 2010
Petaluma, Calif. – On Wednesday, April 28, the American Small Business League (ASBL) filed suit against NASA in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after NASA refused to release subcontracting reports for contracts awarded to General Dynamics C4 Systems Incorporated. (http://www.asbl.com/documents/complaint_GD_NASA.pdf)
The ASBL requested information from NASA on a contract awarded to General Dynamics after discovering that a contracting officer reported the award as a small business contract.
Wednesday's suit is the second lawsuit filed by the ASBL against NASA. In February of 2007, the ASBL prevailed in its first suit against NASA, forcing the agency to provide detailed information proving the agency falsified its small business contracting statistics by including contracts to a variety of Fortune 500 firms and other large businesses.
Since 2003, over a dozen federal investigations have found billions of dollars a month in federal contracts earmarked for small businesses have been diverted to Fortune 500 firms and some of the largest companies in the world. The large recipients of federal small business contracts include: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL plans to file a series of FOIA requests to NASA as a means of uncovering more federal small business contracts that were diverted to Fortune 500 firms. Specifically, the ASBL intends to uncover contracts awarded to large corporations that were coded as small business contracts by contracting officers.
Section 16(d) of the Small Business Act states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)
Attorneys for the ASBL believe federal contracting officials, and possibly even employees of prime contractors, could be held liable for penalties prescribed under section 16(d) of the Small Business Act for fraudulently misrepresenting large firms as small businesses.
"This issue has gone on unabated for over decade. I don't think these abuses are going to stop until people start going to prison," ASBL President Lloyd Chapman said.
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Please click here to watch a clip about the ASBL's suit: http://www.youtube.com/watch?v=Yx-SyChw06I
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, April 27, 2010
Obama Small Business Task Force May Ignore #1 Problem
FOR IMMEDIATE RELEASE
April 27, 2010
Petaluma, Calif. – On Monday, March 26, President Barack Obama announced the establishment of two task forces charged with removing barriers to access, and monitoring goals, for federal contracting with small businesses. Based on President Obama's track record for small businesses to date, the American Small Business League (ASBL) is concerned that the task forces will ignore the #1 challenge facing small businesses competing in the federal marketplace, which is the diversion of federal small business contracts to large corporations.
To date, President Barack Obama has:
- Refused to end the diversion of billions of dollars a month in federal small business contracts to corporate giants, and consistently misled Congress and the media by claiming that the diversion of federal small business contracts to large corporations is the result of "miscoding," and "data entry errors."
- Failed to restore the Small Business Administration's (SBA) staffing to pre-Bush Administration levels.
- Distributed less than 2 percent of funds allocated under the American Recovery and Reinvestment Act (ARRA) directly to small businesses.
- Allowed for the dismantling of small disadvantaged business and minority owned business contracting programs. (http://www.acq.osd.mil/osbp/policy/USA001376-09%20Signed.pdf)
- Destroyed a decade's worth of federal contracting data that has been used to prove that Fortune 500 firms have illegally received billions of dollars in federal small business contracts.
- Refused to release a wide range of information including the names of recipients of small business contracts, and documents showing prime contractor compliance with small business subcontracting goals.
The ASBL is concerned that one of the top recommendations issued by the Obama Administration's two small business task forces will be a change to the 57 year-old federal definition of a small business, as being independently owned, to include firms owned and controlled by venture capitalists. The ASBL believes the change will be made under the guise of increasing access to capital for small businesses, while actually hurting small businesses by diverting small business contracts to some of President Obama's wealthiest venture capitalist donors.
In order to provide the small business community with greater contracting opportunities and stimulate our nation's economy, the ASBL recommends the Obama Administration take the following actions:
1. Maintain the current definition of a small business as being independently owned, and prevent the diversion of federal small business contracts to firms owned and controlled by wealthy venture capitalists.
2. End the Comprehensive Subcontracting Plan Test Program, which currently allows large prime contractors to ignore their small business subcontracting goals.
3. Issue an executive order that would stop the diversion of billions of dollars a year in federal small business contracts to Fortune 500 corporations and other clearly large businesses.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 27, 2010
Petaluma, Calif. – On Monday, March 26, President Barack Obama announced the establishment of two task forces charged with removing barriers to access, and monitoring goals, for federal contracting with small businesses. Based on President Obama's track record for small businesses to date, the American Small Business League (ASBL) is concerned that the task forces will ignore the #1 challenge facing small businesses competing in the federal marketplace, which is the diversion of federal small business contracts to large corporations.
To date, President Barack Obama has:
- Refused to end the diversion of billions of dollars a month in federal small business contracts to corporate giants, and consistently misled Congress and the media by claiming that the diversion of federal small business contracts to large corporations is the result of "miscoding," and "data entry errors."
- Failed to restore the Small Business Administration's (SBA) staffing to pre-Bush Administration levels.
- Distributed less than 2 percent of funds allocated under the American Recovery and Reinvestment Act (ARRA) directly to small businesses.
- Allowed for the dismantling of small disadvantaged business and minority owned business contracting programs. (http://www.acq.osd.mil/osbp/policy/USA001376-09%20Signed.pdf)
- Destroyed a decade's worth of federal contracting data that has been used to prove that Fortune 500 firms have illegally received billions of dollars in federal small business contracts.
- Refused to release a wide range of information including the names of recipients of small business contracts, and documents showing prime contractor compliance with small business subcontracting goals.
The ASBL is concerned that one of the top recommendations issued by the Obama Administration's two small business task forces will be a change to the 57 year-old federal definition of a small business, as being independently owned, to include firms owned and controlled by venture capitalists. The ASBL believes the change will be made under the guise of increasing access to capital for small businesses, while actually hurting small businesses by diverting small business contracts to some of President Obama's wealthiest venture capitalist donors.
In order to provide the small business community with greater contracting opportunities and stimulate our nation's economy, the ASBL recommends the Obama Administration take the following actions:
1. Maintain the current definition of a small business as being independently owned, and prevent the diversion of federal small business contracts to firms owned and controlled by wealthy venture capitalists.
2. End the Comprehensive Subcontracting Plan Test Program, which currently allows large prime contractors to ignore their small business subcontracting goals.
3. Issue an executive order that would stop the diversion of billions of dollars a year in federal small business contracts to Fortune 500 corporations and other clearly large businesses.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, April 21, 2010
Department of Energy Sued Over Bechtel Contract Data
FOR IMMEDIATE RELEASE
April 21, 2010
Petaluma, Calif. - On Tuesday, April 20, the American Small Business League (ASBL) filed suit against the U.S. Department of Energy (DOE) in U.S. District Court, Northern District of California. The suit was filed under the Freedom of Information Act (FOIA). The DOE is refusing to release information about a $3.6 billion contract that was awarded to Bechtel, which listed the giant contractor as a small business under the socio-economic field. (http://www.asbl.com/documents/20100420_doe_bechtel.pdf)
Since 2003, over a dozen federal investigations have found fraud and abuse leading to the diversion of billions of dollars a month in federal small business contracts to corporate giants. The ASBL is attempting to gather information in accordance with these federal investigations that would once again provide evidence of fraud; and refute government claims that the problem is the result of miscoding, computer glitches, and honest mistakes. (http://www.asbl.com/documentlibrary.html)
Attorneys from the ASBL believe federal contracting officials, and possibly even employees of prime contractors could be sentenced to 10 years in prison for violating section 16(D) of the Small Business Act.
Section 16(D) states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)
Despite campaign promises of increased transparency, and an end to the diversion of federal small business contracts to corporate giants, the Obama Administration is refusing to release a wide range of information to the general public. The administration has refused to release information such as: the names of recipients of small business contracts, the names of federal contracting officials who awarded contracts to large corporations, the specific names of individuals responsible for misrepresenting large corporations as small businesses, and prime contractor compliance with small business subcontracting goals.
"We expect that by the end of 2010, through our freedom of information requests and lawsuits, that we will prove once and for all that the diversion of billions of dollars a month in federal small business contracts to corporate giants is not honest mistakes, miscoding, or computer glitches. Our efforts will prove that the government has adopted specific policies that divert small business contracts to large corporations, and in many cases the government has allowed federal contracting officials and prime contractors to get away with blatant contracting fraud," ASBL President Lloyd Chapman said.
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Please click here to watch a clip about the ASBL's suit against the Department of Energy: http://www.youtube.com/watch?v=pFYZ5BMpdyM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 21, 2010
Petaluma, Calif. - On Tuesday, April 20, the American Small Business League (ASBL) filed suit against the U.S. Department of Energy (DOE) in U.S. District Court, Northern District of California. The suit was filed under the Freedom of Information Act (FOIA). The DOE is refusing to release information about a $3.6 billion contract that was awarded to Bechtel, which listed the giant contractor as a small business under the socio-economic field. (http://www.asbl.com/documents/20100420_doe_bechtel.pdf)
Since 2003, over a dozen federal investigations have found fraud and abuse leading to the diversion of billions of dollars a month in federal small business contracts to corporate giants. The ASBL is attempting to gather information in accordance with these federal investigations that would once again provide evidence of fraud; and refute government claims that the problem is the result of miscoding, computer glitches, and honest mistakes. (http://www.asbl.com/documentlibrary.html)
Attorneys from the ASBL believe federal contracting officials, and possibly even employees of prime contractors could be sentenced to 10 years in prison for violating section 16(D) of the Small Business Act.
Section 16(D) states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)
Despite campaign promises of increased transparency, and an end to the diversion of federal small business contracts to corporate giants, the Obama Administration is refusing to release a wide range of information to the general public. The administration has refused to release information such as: the names of recipients of small business contracts, the names of federal contracting officials who awarded contracts to large corporations, the specific names of individuals responsible for misrepresenting large corporations as small businesses, and prime contractor compliance with small business subcontracting goals.
"We expect that by the end of 2010, through our freedom of information requests and lawsuits, that we will prove once and for all that the diversion of billions of dollars a month in federal small business contracts to corporate giants is not honest mistakes, miscoding, or computer glitches. Our efforts will prove that the government has adopted specific policies that divert small business contracts to large corporations, and in many cases the government has allowed federal contracting officials and prime contractors to get away with blatant contracting fraud," ASBL President Lloyd Chapman said.
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Please click here to watch a clip about the ASBL's suit against the Department of Energy: http://www.youtube.com/watch?v=pFYZ5BMpdyM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, April 15, 2010
Army Sued For Refusing to Release Contracting Data
FOR IMMEDIATE RELEASE
April 15, 2010
Petaluma, Calif. - On Wednesday, April 14, the American Small Business League (ASBL) filed suit against the U.S. Department of the Army under the Freedom of Information Act (FOIA). The suit was filed in U.S. District Court, Northern District of California. The Army is refusing to release information regarding the compliance of its prime contractors with small business subcontracting goals. (http://www.asbl.com/documents/20100414_complaint_mantech.pdf)
The ASBL originally requested the most recent quarterly subcontracting reports for contracts awarded by the Army to ManTech Telecommunications. Prime contractors are required to produce subcontracting reports for each contract awarded by the federal government.
The ASBL maintains that the Pentagon's refusal to release information regarding prime contractor compliance with small business subcontracting goals is a further indication that the Pentagon is falsifying compliance with its small business contracting goals.
The Small Business Act requires that a minimum of 23 percent of the total value of all government contracts go to small businesses. The most recent information available indicates that the Obama Administration is diverting billions of dollars a month in government small business contracts to Fortune 500 firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL maintains that the Pentagon's refusal to release this information is a clear indication that it has something to hide.
"The Obama Administration is withholding these subcontracting reports because it knows that these reports will show the federal government and prime contractors are falsifying their small business contracting numbers," ASBL President Lloyd Chapman said.
Despite promises of increased transparency, the Obama Administration is refusing to release a wide range of data on small business contracting programs such as: agency phone records, the actual names of the recipients of federal small business contracts, the specific names of federal contracting officials that have awarded small business contracts to Fortune 500 firms, the names of specific individuals at Fortune 500 firms that have misrepresented their firms status as a small business, and SBA bonus recipients.
Wednesday's action is the third lawsuit filed by the ASBL since late March. The ASBL's efforts to expose fraud and abuse in federal small business contracting programs have recently been chronicled by articles in the Washington Post, HispanicBusiness Magazine and Andrew Beitbart's BigGovernment.com. (http://www.washingtonpost.com/wp-dyn/content/article/2010/04/11/AR2010041103341.html; http://63.149.249.152/news/newsbyid.asp?idx=187049&page=1&cat=&more#; http://biggovernment.com/ldoan/2010/04/14/small-businesses-sue-government-goliath/)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
April 15, 2010
Petaluma, Calif. - On Wednesday, April 14, the American Small Business League (ASBL) filed suit against the U.S. Department of the Army under the Freedom of Information Act (FOIA). The suit was filed in U.S. District Court, Northern District of California. The Army is refusing to release information regarding the compliance of its prime contractors with small business subcontracting goals. (http://www.asbl.com/documents/20100414_complaint_mantech.pdf)
The ASBL originally requested the most recent quarterly subcontracting reports for contracts awarded by the Army to ManTech Telecommunications. Prime contractors are required to produce subcontracting reports for each contract awarded by the federal government.
The ASBL maintains that the Pentagon's refusal to release information regarding prime contractor compliance with small business subcontracting goals is a further indication that the Pentagon is falsifying compliance with its small business contracting goals.
The Small Business Act requires that a minimum of 23 percent of the total value of all government contracts go to small businesses. The most recent information available indicates that the Obama Administration is diverting billions of dollars a month in government small business contracts to Fortune 500 firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL maintains that the Pentagon's refusal to release this information is a clear indication that it has something to hide.
"The Obama Administration is withholding these subcontracting reports because it knows that these reports will show the federal government and prime contractors are falsifying their small business contracting numbers," ASBL President Lloyd Chapman said.
Despite promises of increased transparency, the Obama Administration is refusing to release a wide range of data on small business contracting programs such as: agency phone records, the actual names of the recipients of federal small business contracts, the specific names of federal contracting officials that have awarded small business contracts to Fortune 500 firms, the names of specific individuals at Fortune 500 firms that have misrepresented their firms status as a small business, and SBA bonus recipients.
Wednesday's action is the third lawsuit filed by the ASBL since late March. The ASBL's efforts to expose fraud and abuse in federal small business contracting programs have recently been chronicled by articles in the Washington Post, HispanicBusiness Magazine and Andrew Beitbart's BigGovernment.com. (http://www.washingtonpost.com/wp-dyn/content/article/2010/04/11/AR2010041103341.html; http://63.149.249.152/news/newsbyid.asp?idx=187049&page=1&cat=&more#; http://biggovernment.com/ldoan/2010/04/14/small-businesses-sue-government-goliath/)
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, April 14, 2010
Small Businesses Sue Government Goliath
by Lurita Doan
A small business association called the American Small Business League (ASBL) did something unexpected this week. ASBL President, Lloyd Chapman, decided to take the Obama Administration to court and expose the growing divergence between the Administration’s stated goals to meet the federal statutes for small business participation versus the Obama Administration’s total failure on federal, small business contracting.
By any measure, Obama’s record on federal, small business contracting has been abysmal. The recent, National Federation of Independent Businesses (NFIB) Small Business Economic Trends Report confirms that “for small business owners, 2009 ended with a thud.”
Many factors have contributed to the disaster in small business contracting. A rush to push the $787 billion Stimulus funding quickly gave federal contracting officers no real options other than to dump the additional federal money onto existing federal contracts that are held by the largest companies. There just was not enough time to conduct procurements to encourage the participation of small businesses. So, small businesses received very little of any of the new federal business or the loans anticipated from the $787 billion Stimulus spending, even though President Obama and Democrats in Congress stated that awards to small businesses were the primary goal.
Worse yet, Obama decided to delay the long-overdue need to increase the number of federal contracting officers that are in critical short supply. Ten years ago, each federal contracting officer was responsible for an average of $300 thousand dollars of federal contracts. Today, each federal contracting officer is responsible for $50 million dollars in federal contracts. Put bluntly, contracting officers have been stretched thinly and no longer have the time needed to open procurements to small businesses.
Many contend that it is simpler and faster to add funding to an existing federal contract or to bundle many disparate governmental needs into huge omnibus contracts that often top $1 billion in size. This may be a bad policy and a poor return for taxpayer dollars, but it is the most expedient process for a federal procurement officer that is required by Congress to get the billions of dollars of new federal money committed quickly.
The Obama Administration has further rigged the deck, for construction contracts, by forcing small businesses to seek Union participation prior to bidding on federal construction and infrastructure jobs. This move, might be great for the Unions, but it destroys innovation and further burdens small businesses with foolhardy regulatory burdens.
The American Small Business League’s decision to bring suit against the government represents one of the few times that a trade organization has mustered the courage to tell the truth about what’s really happening in federal procurements. The fact is, the government has been doing a poor job in contracting for years, but under the Obama Administration, small businesses have been hit especially hard.
To read the rest of this article please click here: http://biggovernment.com/ldoan/2010/04/14/small-businesses-sue-government-goliath/
A small business association called the American Small Business League (ASBL) did something unexpected this week. ASBL President, Lloyd Chapman, decided to take the Obama Administration to court and expose the growing divergence between the Administration’s stated goals to meet the federal statutes for small business participation versus the Obama Administration’s total failure on federal, small business contracting.
By any measure, Obama’s record on federal, small business contracting has been abysmal. The recent, National Federation of Independent Businesses (NFIB) Small Business Economic Trends Report confirms that “for small business owners, 2009 ended with a thud.”
Many factors have contributed to the disaster in small business contracting. A rush to push the $787 billion Stimulus funding quickly gave federal contracting officers no real options other than to dump the additional federal money onto existing federal contracts that are held by the largest companies. There just was not enough time to conduct procurements to encourage the participation of small businesses. So, small businesses received very little of any of the new federal business or the loans anticipated from the $787 billion Stimulus spending, even though President Obama and Democrats in Congress stated that awards to small businesses were the primary goal.
Worse yet, Obama decided to delay the long-overdue need to increase the number of federal contracting officers that are in critical short supply. Ten years ago, each federal contracting officer was responsible for an average of $300 thousand dollars of federal contracts. Today, each federal contracting officer is responsible for $50 million dollars in federal contracts. Put bluntly, contracting officers have been stretched thinly and no longer have the time needed to open procurements to small businesses.
Many contend that it is simpler and faster to add funding to an existing federal contract or to bundle many disparate governmental needs into huge omnibus contracts that often top $1 billion in size. This may be a bad policy and a poor return for taxpayer dollars, but it is the most expedient process for a federal procurement officer that is required by Congress to get the billions of dollars of new federal money committed quickly.
The Obama Administration has further rigged the deck, for construction contracts, by forcing small businesses to seek Union participation prior to bidding on federal construction and infrastructure jobs. This move, might be great for the Unions, but it destroys innovation and further burdens small businesses with foolhardy regulatory burdens.
The American Small Business League’s decision to bring suit against the government represents one of the few times that a trade organization has mustered the courage to tell the truth about what’s really happening in federal procurements. The fact is, the government has been doing a poor job in contracting for years, but under the Obama Administration, small businesses have been hit especially hard.
To read the rest of this article please click here: http://biggovernment.com/ldoan/2010/04/14/small-businesses-sue-government-goliath/
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