On May 22, Rep. Hank Johnson, D-Ga., introduced a bill that would make sure federal small business contracts are awarded to independently owned companies instead of corporations.

The Fairness and Transparency in Contracting Act (HR 2568), will keep the federal government and prime contractors from reporting that contracts given to publicly traded corporations were given to small businesses. The resolution is based on a provision of the Small Business Act that defines a small business as a firm that is "independently owned," which publicly traded firms cannot claim to be.

Several federal investigations have found Fortune 500 companies have received billions of dollars in small business contracts since 2003. A report issued by the SBA called the awarding of small business contracts to corporate firms as "one of the most important challenges facing the Small Business Administration and the entire federal government today."

The resolution will also require the federal government to report the parent company name on all contracts. Current contracts can be issued in the name of corporate subsidiaries.

According to a press release, the act will also improve access to data on recipients of small business contracts.

Lloyd Chapman, president of the American Small Business League, was the original author of the Fairness and Transparency in Contracting Act, and estimated it could redirect over $100 billion a year in contracts back to small businesses.

Chapman estimates H.R. 2568 could redirect over $100 billion a year in federal small business contracts back to middle class firms.

“Small businesses create over 97 percent of all net new jobs, and this bill will do more to help those firms than any stimulus plan proposed so far," Chapman said. "It will create millions of new jobs and provide a dramatic boost to the middle class economy.”

Source:  http://www.thebusinessjournal.com/index.php?option=com_content&view=article&id=536:act-seeks-to-end-diversion-of-small-business-contracts&catid=13:national&Itemid=220

Rep. Hank Johnson, D-Ga., has introduced a bill that would ensure that small business government contracts go only to small businesses instead of the subsidiaries of large companies.

Small businesses are especially keen to get their share of federal contracts now that the stimulus package has begun to take effect. H.R. 2568, “The Fairness and Transparency in Contracting Act of 2009,” is the result of more than 15 investigations that have exposed widespread abuses in a system that is supposed to direct a proportion of federal contracts toward small businesses.

The Small Business Administration Inspector General found in 2002, for example, that at least 4.4 percent of 1,000 contractors awarded federal funds designated for small businesses did not meet basic requirements to receive those contracts. Large companies such as Bechtel and HP were awarded small business contracts by government agencies, and those funds counted toward the agencies’ small business contracting goals.

“It’s unconscionable that some large corporations are the beneficiaries of small business contracts, especially given how many small businesses are struggling in this recession,” said Johnson (pictured) in a statement. “H.R. 2568 will go a long way in helping correct this egregious error.”

If passed, the bill would require the SBA to submit to Congress an annual report detailing the nature of the complaints and the resolution.

American Small Business League President Lloyd Chapman lauded Johnson’s efforts.

“Every small business in America owes Congressman Johnson a debt of gratitude for introducing this bill,” said Chapman. “Small businesses create more than 97 percent of all net new jobs, and this bill will do more to help those firms than any stimulus plan proposed so far. It will create millions of new jobs and provide a dramatic boost to the middle class economy.”

Notification and reporting requirements in the bill include notification for government agencies and contractors of changes in the bill. The bill also requires the SBA to make public which companies are receiving small business contracts, and requires each federal agency to report on their Web site a list of companies receiving small business contracts from that agency. In addition, the bill requires that the agency responsible for maintaining the database of all federal contractors provide an adequate warning about the penalties for misrepresenting the status of a business concern or person in order to obtain certain federal contracts.

Source:  http://www.webcpa.com/news/Bill-Introduced-Restrict-Small-Business-Contracting-50599-1.html

Central Valley Business Times

May 23, 2009

The issue of whether the federal government ignores the law by giving government deals to major corporations that were meant for small businesses could be put to rest by a bill introduced this week.

Rep. Hank Johnson, D-Ga., is carrying the legislation written by American Small Business League President Lloyd Chapman and dubbed the “Fairness and Transparency in Contracting Act of 2009.”

Mr. Chapman contends it will increase the flow of federal infrastructure spending to small businesses nationwide by as much at $100 billion a year.

He says the act has the potential to create 4 million new jobs using existing programs designed to assist small businesses.

“In this time of economic hardship, H.R. 2568 offers the possibility of a major economic stimulus for our nation's middle class economy,” he says.

Source:  http://www.centralvalleybusinesstimes.com/stories/001/?ID=12052

The issue of whether the federal government ignores the law by giving government deals to major corporations that were meant for small businesses could be put to rest by a bill introduced this week.

Rep. Hank Johnson, D-Ga., is carrying the legislation written by American Small Business League President Lloyd Chapman and dubbed the “Fairness and Transparency in Contracting Act of 2009.”

Mr. Chapman contends it will increase the flow of federal infrastructure spending to small businesses nationwide by as much at $100 billion a year.

He says the act has the potential to create 4 million new jobs using existing programs designed to assist small businesses.

“In this time of economic hardship, H.R. 2568 offers the possibility of a major economic stimulus for our nation's middle class economy,” he says.

Source:  http://www.centralvalleybusinesstimes.com/stories/001/?ID=12052