ASBL renews attack over 'billion dollar contracting fraud'

News

ASBL renews attack over 'billion dollar contracting fraud'

By Staff
Procurement Leaders
March 16, 2010

A US pressure group has renewed allegations that the Obama administration is attempting to cover up "hundreds of billions of dollars in federal contracting fraud".

The American Small Business League (ASBL) claims that, since 2000, between $500 billion and $1 trillion in federal small business contracts have been diverted to Fortune 500 firms and other "clearly large" businesses.

"I want people to understand that this is the Obama Administration reducing transparency, and helping to cover-up hundreds of billions of dollars in federal contracting fraud," ASBL President Lloyd Chapman said.

The comments were made after United States District Judge William Alsup has denied the ASBL's request for a temporary restraining order, which the pressure group claims has cleared the way for the Obama Administration to destroy over ten years worth of federal contracting data.

ASBL stated that, on March 12, 2010, the Obama Administration intends to move forward with a plan that would "destroy years of incriminating contracting data" by eliminating the socio-economic field, "isSmallBusiness," found within the Federal Procurement Data System-Next Generation (FPDS-NG). It noted that, in the past, the Government Accountability Office (GAO), the Small Business Administration Office of Inspector General (SBA IG) and other agencies have used the small business flag to uncover evidence indicating that large businesses have fraudulently received billions of dollars in federal small business contracts.

"The ASBL believes the move by the Obama Administration to eliminate the embarrassing data is the result of its successful lawsuits against the government, which have increased transparency and opened the public's access to the data," the group stated.




Source:  http://www.procurementleaders.com/news/latestnews/1105-asbl-attack-contract-fraud/

Obama Administration Destroys Incriminating Contracting Data

Press Release

Obama Administration Destroys Incriminating Contracting Data

March 15, 2010

Petaluma, Calif. – In March of 2005, the Small Business Administration (SBA) Office of Inspector General found large businesses had fraudulently represented themselves as small businesses to illegally receive federal small business contracts. Report 5-16, stated large businesses had committed fraud by making "false certifications," and "improper certifications." (https://www.asbl.com/documents/05-16.pdf)  

On Friday, March 12, the General Services Administration (GSA) destroyed all of the information that had been used in that investigation. 

Since 2003, over a dozen federal investigations have found that Fortune 500 firms have received federal small business contracts.  In 2004, the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as "vendor deception."

As a result of the deletion of the data it will be significantly more difficult, if not impossible, for federal investigators to conduct investigations into fraud and abuse in federal small business contracting programs.  Despite public outcry over the proposed changes, the GSA has eliminated the data under the guise of upgrading the system and making it easier to search. 

The American Small Business League (ASBL) maintains that the GSA eliminated the data to destroy evidence, which clearly shows that some of the nation's largest contractors, primarily in the defense and aerospace industry, have committed felony federal contracting fraud.  Section 16(d) of the Small Business Act prescribes a penalty of up to 10 years in prison, a $500,000 fine per occurrence and debarment from federal contracting programs for such abuses.

In February of 2008, the ASBL sued the SBA for the release of the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts.  The SBA withheld the information until directed to release it by United States District Judge Marilyn H. Patel.  In the court's ruling 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." (www.asbl.com/documents/26-2.pdf)   

"At some point in the near future it is going to be clear that the GSA destroyed evidence of hundreds of billions of dollars in fraud," ASBL President Lloyd Chapman said. "I think Congress and the FBI need to investigate the GSA's role in this matter.  When it does come out that evidence of fraud was destroyed, the GSA officials responsible need to be prosecuted."

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Ask the Chamber of Commerce: Why Is Too Much Not Enough?

News

Ask the Chamber of Commerce: Why Is Too Much Not Enough?

By Bill Moyers and Michael Winship
Huffington Post
March 12, 2010

Living in these United States, there comes a point at which you throw your hands up in exasperation and despair and ask a fundamental question or two: how much excess profit does corporate America really need? How much bigger do executive salaries and bonuses have to be, how many houses or jets or artworks can be crammed into a life?

After all, as billionaire movie director Steven Spielberg is reported to have said, when all is said and done, "How much better can lunch get?"

But since greed is not self-governing, hardly anyone raking in the dough ever stops to say, "That's it. Enough's enough! How do we prevent it from sweeping up everything in its path, including us?"

Look at the health care industry saying to hell with consumers and then hiking premiums -- by as much as 39% in the case of Anthem Blue Cross in California. According to congressional investigators, over a two-year period Anthem's parent company WellPoint spent more than $27 million dollars for executive retreats at luxury resorts. And in 2008, WellPoint paid 39 of its executives more than a million dollars each. Profit before patients.

This week, America's Health Insurance Plans (AHIP), the health insurance industry's lobby, announced they'd be spending more than a million dollars on new television ads justifying their costs.

Speaking at their annual policy meeting in Washington -- and without a trace of irony -- AHIP's president and CEO Karen Ignagni declared, "The current debate about rising premiums has demonstrated that, in fact, we have a health care cost crisis in this country. Unfortunately, the path that has been followed is one of vilification rather than problem solving."

Beg pardon? You're lamenting a health care cost crisis and raising your premiums? Isn't that like the guy complaining there's an obesity epidemic in America while ordering a double Big Mac with extra fries?

Of course, a million is a mere bagatelle in the shadow of the $544 million that was spent on lobbying by the health sector last year, plus more than $200 million in advocacy ads. And a million's just the curtain raiser to what will be spent in these final weeks of health care reform debate.

Two weeks ago, The Washington Post reported, "Washington interest groups have burst back into action in hopes of bolstering or defeating a new Democratic push on health-care reform legislation, sparking another wave of rallies, lobbying efforts and costly advertising campaigns.'

This in spite of the projection that over ten years the Obama plan would plop an additional $336 billion into the insurance companies' pockets -- in the form of subsidies given to those who can't afford to buy health insurance on their own.

Okay, this is getting weird: We're going to help the poor by enriching their exploiters?

But apparently even that won't satisfy big business' voracious appetite for more. On Tuesday, Employers for a Healthy Economy, a coalition of 248 business groups, led by the U.S Chamber of Commerce, and including construction and manufacturing interests, as well as health insurance companies, said that over ten days they will spend up to $10 million on ads aimed at putting the screws on members of Congress to vote against health care reform.

Goodness knows, it isn't just because their profit margins may dwindle. No, according to Neil Trautwein, vice president of the National Retail Federation, one of the trade associations involved, "These bills are job killers. Retail simply cannot afford any higher benefit costs or burdensome mandates." (Never mind that extrapolating from baseline forecasts made by the U.S. Department of Labor's Employment Projections Program, the Center for American Progress, a liberal think tank, projects that health care reform possibly could create an average of as many as 400,000 new jobs a year.)

But beyond the health care fight, and perhaps far more significant in the long run, this effort is just one more example of life, Pandora-style. The Company has arrived, only it's called the U.S. Chamber of Commerce, and it's got its sights on anything that moves, damn the natives, full speed ahead.

During 2008, 86% of contributions from the chamber's political action committee went to GOP candidates. The conservatives have found their Avatar, AKA Frankenstein.

Of course there is not actually a Chamber of Commerce, at least the way we might imagine it. This is no confederation of congenial, small town business groups that pass out maps of Main Street and souvenir key rings. The chamber in question is a front group. Yes, yes, it reports a membership of three million businesses, but tax records indicate that in 2008 a third of its contributions came from 19 companies paying between $1 million and $15.3 million. Don't hold your breath: the chamber is not required to reveal who those 19 are.

The March 8 edition of the Los Angeles Times reports that "internal documents suggest the organization's treasury is filled in substantial part by contributions from a couple dozen major corporations most affected by Washington policymakers."

Got it? Predators who prey together stick together.

With all that cash, the Times notes, "The chamber spent more than $144 million on lobbying and grass-roots organizing last year, a 60% increase over 2008, and well beyond the spending of individual labor unions or the Democratic or Republican national committees. The chamber is expected to substantially exceed that spending level in 2010."

This elite organization of oligarchs has been emboldened by the Supreme Court decision in the Citizens United case, which now allows corporations to spend freely on political campaigns right up until Election Day, and by the chamber's recent success contributing a million dollars for ads supporting Republican Senator Scott Brown in Massachusetts.

What's more, writes the Los Angeles Times, "Using trade associations such as the chamber as the vehicle for spending corporate money on politics has an extra appeal: These groups can take large contributions from companies and wealthy individuals in ways that will probably avoid public disclosure requirements."

So with the spring comes anonymous greed run rampant. "In the past a lot of companies and wealthy individuals stood on the sidelines" of politics, a corporate lawyer at Washington's influential law firm Covington & Burling told the Times.

"That cloud has been lifted," he said.

As the sun sets on democracy.

No wonder demonstrators outside that health insurance meeting in Washington this week surrounded the hotel with yellow crime scene tape. The entire country is being mugged.


Source: http://www.huffingtonpost.com/bill-moyers/ask-the-chamber-of-commer_b_496140.html

Group seeks injunction to halt changes to procurement database

News

Group seeks injunction to halt changes to procurement database

By Tim Kauffman
Federal Times
March 12, 2010

A small-business advocacy group says it will request a preliminary injunction by tomorrow to stop the General Services Administration from removing two data fields from the federal contract award database it manages.

The American Small Business League contends that removing the two fields, which list contractor names and categorize companies as small businesses, would make it impossible for government watchdog agencies and groups to track whether large businesses are receiving contracts that should be going to small businesses.

GSA announced in October that it would be removing those two data fields from the Federal Procurement Data System when the system was updated March 12. Separate data fields that list the vendor's name and the agency contracting officer's determination of whether a company is a small business would not be affected.

The organization filed a request for a temporary restraining order against GSA March 8 in U.S. District Court for the Northern District of California. District Judge William Alsup denied the request the following day, saying that GSA had not been given an opportunity to file its response. The judge said he would entertain a motion for a preliminary injunction if it was properly filed by Friday.

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Source:  http://www.federaltimes.com/article/20100311/ACQUISITION03/3110303/

Federal Judge Clears the Way for Destruction of Incriminating Contracting Data

Press Release

Federal Judge Clears the Way for Destruction of Incriminating Contracting Data

March 10, 2010

Petaluma, Calif. – United States District Judge William Alsup has denied the American Small Business League's (ASBL) request for a temporary restraining order, and cleared the way for the Obama Administration to destroy over ten years worth of federal contracting data.

On March 12, 2010, the Obama Administration intends to move forward with a plan that would destroy years of incriminating contracting data by eliminating the socio-economic field, "isSmallBusiness," found within the Federal Procurement Data System-Next Generation (FPDS-NG). In the past, the Government Accountability Office (GAO), the Small Business Administration Office of Inspector General (SBA IG) and other agencies have used the small business flag to uncover evidence indicating that large businesses have fraudulently received billions of dollars in federal small business contracts. 

In Report 5-16, the SBA IG found large businesses had received federal small business contracts by making "false certifications" and "improper certifications." (https://www.asbl.com/documents/05-16.pdf)

The ASBL has estimated that since 2000, between $500 billion and $1 trillion in federal small business contracts have been diverted to Fortune 500 firms and other clearly large businesses.

"I want people to understand that this is the Obama Administration reducing transparency, and helping to cover-up hundreds of billions of dollars in federal contracting fraud," ASBL President Lloyd Chapman said.

In February of 2008, the ASBL sued the SBA for the release of the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts.  The SBA withheld the information until directed to release it by United States District Judge Marilyn H. Patel.  In the court's ruling 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." (www.asbl.com/documents/26-2.pdf)  

The ASBL believes the move by the Obama Administration to eliminate the embarrassing data is the result of its successful lawsuits against the government, which have increased transparency and opened the public's access to the data.

Congressman Joe Sestak (D-PA-7) has already sent a letter to GSA Administrator Martha Johnson and GSA Inspector General Brian Miller requesting that the GSA postpone the destruction of historical contracting data, and that the GSA IG conduct an investigation into the matter. The ASBL expects a dozen other members of Congress will follow suit. (https://www.asbl.com/documents/20100309_sestak_ltr.pdf)  

In response to the court's ruling, the ASBL will be filing a request for a preliminary injunction by the end of the week. 

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