Petaluma, Calif. - After being criticized by the American Small business League (ASBL) for refusing to support legislation to stop widespread fraud and abuse in federal small business contracting programs, on July 1, the U.S. Hispanic Chamber of Commerce (USHCC) issued an abrasive and grossly misleading press release attempting to reaffirm its commitment to "comprehensive and substantive federal contracting reform."

The USHCC's commitment to contracting reform was called into question by the ASBL after the chamber refused to offer its support to H.R. 2568, the Fairness and Transparency in Contracting Act of 2009.  H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 corporations and foreign-owned firms. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)

Since 2003, more than a dozen federal investigations have reported that every year billions of dollars in government small business contracts are awarded to Fortune 500 corporations and thousands of other clearly large firms around the world.  The ASBL estimates that the diversion of federal small business contracts to large corporations could exceed $100 billion a year. (https://www.asbl.com/documentlibrary.html)  

In its press release the USHCC and its Chairman David C. Lizárraga touted Chairwoman of the House Committee on Small Business Nydia Velázquez as the "principle champion" of reform on small business contracting issues. The USHCC has never supported any policies, or pushed for the removal of corporate giants from federal small business contracting programs, and Chairwoman Velázquez has never proposed legislation or policy that would end the abuses.  Since 2002, ASBL President Lloyd Chapman and the ASBL have been the primary advocates of federal small business contracting reform. http://www.ushcc.com/index.cfm?fuseaction=Feature.showFeature&CategoryID=2&FeatureID=109)  

The ASBL challenges the USHCC to put-up or shut-up. Chapman challenges the USHCC to produce any press releases, media appearances, legislation or lawsuits filed by the chamber that would indicate the chamber has ever supported or worked towards the removal of large firms from federal small business contracting programs.

"The U.S. Hispanic Chamber of Commerce has shown no commitment to removing corporate giants from small business contracting programs.  To see that, all you have to do is look at their track record on this issue," ASBL President Lloyd Chapman said. "I seriously doubt that they will be able to produce any evidence of any kind to prove that they have done anything to stem the flow of federal small business contracts to Fortune 500 corporations."

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Petaluma, Calif. - The U.S. Chamber of Commerce's executive director for the small and mid-market business councils, Giovanni Coratolo, twice failed to acknowledge whether the U.S. Chamber would support H.R. 2568, The Fairness and Transparency in Contracting Act, during a recent widely publicized debate on CNBC with American Small Business League (ASBL) President Lloyd Chapman. (http://www.youtube.com/watch?v=ZWtLshGVEss)  

H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 companies and foreign-owned firms. The bill is co-authored by Mr. Chapman in collaboration with Senator Barbara Boxer (D-CA), Congressman Hank Johnson (D-GA), and Professor Charles Tiefer, America's foremost legal scholar on federal contracting and procurement issues. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)   

In a June 18 blog on the U.S. Chamber's website, Coratolo stated, "We find it more beneficial for our members to actually work for good policies, not merely rail into the ether on the injustices of the world. As an example we worked with the [Small Business Administration] SBA on a regulation that became final last year that has had a major impact on large business government contracts being classified as small. The Chamber supported this regulation. Oddly enough, Mr. Chapman's organization did not." (http://www.chamberpost.com/2009/06/business-united-or-business-divided-whats-at-stake.html)  

The Small Business Administration (SBA) regulation Coratolo referred to in his blog post actually allows large firms who are receiving federal small business contracts to be grandfathered into government small business contracting programs, and continue to receive small business contracts through the year 2012.  As a result more than $100 billion a year in federal contracts will continue to flow into the hands of Fortune 500 corporations and other clearly large corporations around the world. (https://www.asbl.com/showmedia.php?id=539)  

"It's a mistake to believe the U.S. Chamber of Commerce represents the interests of small businesses. My goal is to expose the fact that the U.S. Chamber actually supports the interests of the Fortune 500 corporations who are currently abusing federal small business programs," Chapman said. "It is important to realize that 15 companies currently listed on the U.S. Chamber's board of directors are Fortune 500 corporations that have received billions of dollars in small business contracts every year. That's the real reason they refuse to back H.R. 2568."

Coratolo referred to the diversion of small business contracts to large corporations as an issue that affects, "only a small sliver of the business community." The U.S. Chamber has over 140,000 members that are affected by this issue. (http://www.youtube.com/watch?v=ZWtLshGVEss)  

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PETALUMA, Calif. - The California Chamber of Commerce has expressed opposition to legislation recently introduced in the House of Representatives, H.R. 2568, the Fairness and Transparency in Contracting Act. H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 companies and foreign-owned firms. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)

When asked for an explanation of its opposition, the California Chamber could not cite any specific reason as to why it would not support H.R. 2568, which would greatly help California's 3.5 million small businesses.

Since 2003, over a dozen federal investigations have shown rampant fraud and abuse in federal small business contracting programs, which have allowed over $100 billion a year in small business contracts to go to some of the largest firms in the United States and Europe. Based on those investigations and independent research, the American Small Business League (ASBL) estimates that H.R. 2568 will create an estimated 400,000 new jobs and bring an additional $10 billion a year in federal small business contracts into California.

The Fairness and Transparency in Contracting Act was originally drafted by Lloyd Chapman, President of the California-based ASBL, in collaboration with Senator Barbara Boxer (D-CA), Congressman Hank Johnson (D-GA), and Professor Charles Tiefer, America's foremost legal scholar on federal contracting and procurement issues.

The California Chamber's close ties to Fortune 500 companies and the U.S. Chamber of Commerce may have influenced its decision to oppose H.R. 2568. Research conducted by the ASBL shows that 10 members of the California Chamber's Board of Directors are Fortune 500 companies, which have received billions of dollars in federal small business contracts. Those firms include such corporate giants as SAIC, Microsoft, Siemens, Northrop-Grumman, KPMG, and Lockheed Martin. (http://www.calchamber.com/AboutUs/Pages/BoardofDirectors.aspx)

The California Chamber seems to be following the lead of the U.S. Chamber of Commerce, which indicated it would also oppose the Fairness and Transparency in Contracting Act. Additional research also shows that 15 members of U.S. Chamber's Board of Directors are Fortune 500 companies that have received billions of dollars in federal small business contracts. (http://www.uschamber.com/about/board/all.htm)