A bigger Voice for Small Business

9th Circuit Rules SBA Does Not have to Release Agency Phone Records

by | Oct 19, 2010 | Press Releases

Press Release

9th Circuit Rules SBA Does Not have to Release Agency Phone Records

October 19, 2010

Petaluma, Calif. – On Friday, the 9th Circuit Court of Appeals released its ruling in a lawsuit filed by the American Small Business League (ASBL) against the Small Business Administration (SBA) regarding the agency’s phone records.  The case was filed under the Freedom of Information Act (FOIA). (https://www.asbl.com/documents/9thCircuitOpinion.pdf)  

The ASBL originally requested phone records for SBA Press Office Chief Mike Stamler.  The ASBL believes that Stamler and the SBA Press Office have engaged in a campaign to discourage the media from reporting on the diversion of federal small business contracts to Fortune 500 firms and corporate giants around the world. 

Through the course of litigation, the SBA has claimed that it does not have access to its own phone records. On Friday, the appellate court ruled that the agency is not required to retrieve records from a third party if the government has not specifically contracted for the storage of those records.

Over the last several years, the ASBL has won a series of lawsuits against the SBA, which have shown that the SBA has lied to Congress, the public and the media about the diversion of more than $100 billion a year in federal small business contracts to corporate giants. 

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in small business contracts awarded to large businesses. In Report 5-14, the SBA Office of Inspector General found the SBA itself had awarded small business contracts to large businesses. The most recent data released by the government shows large recipients of small business contracts like: Lockheed Martin, Boeing, L-3 Communications, Raytheon, British Aerospace (BAE), General Dynamics, Rolls-Royce and Dell Computer. (https://www.asbl.com/documentlibrary.html)   

Despite these findings,  the SBA issued a press release claiming that it was a myth that large businesses received federal small business contracts. (https://www.asbl.com/documents/sbamythvfact.pdf)

During 2010, the ASBL issued similar FOIA requests to several other federal agencies.  In each case, the records were released.  The SBA is the only agency that has been unwilling to provide its phone records.

“I am disappointed in the 9th Circuit Court’s ruling, but I am gratified that we have been able to show how desperate the SBA Press Office is to withhold potentially damaging phone records.  Clearly they have something to hide,” ASBL President Lloyd Chapman said. “I want to promise the SBA, and its Administrator Karen Mills, that the ASBL will continue its legal campaign to expose the fact that the SBA has lied about the diversion of small business contracts to large businesses.”

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SBA vs American Small Business League in Lawsuit

by | Oct 15, 2010 | ASBL News

News

SBA vs American Small Business League in Lawsuit

By Steve Viuker
Biz Box Slate
October 15, 2010

A nasty legal battle is being fought on the small business front. The following is a statement by the American Small Business League:

The ASBL suspects the SBA has spent American tax dollars to hire consultants to help them obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.
https://www.asbl.com/showmedia.php?id=1748

An SBA spokesperson told PRNewser in an e-mail,”SBA hired APCO for speechwriting, media training for executives, and consultations on dealing with negative public perceptions of the agency’s response to Hurricanes Katrina, Rita, and Wilma. The contracts have been concluded, and APCO is no longer an SBA contractor.”

 

 Source:  http://bizbox.slate.com/blog/2010/10/sba_vs_american_small_business.php

SBA vs American Small Business League in Lawsuit (update)

by | Oct 15, 2010 | ASBL News

News

SBA vs American Small Business League in Lawsuit (update)

By Steve Viuker
Biz Box Slate
October 15, 2010

It's the SBA vs the ASBL and it's not baseball but it is hardball.

United States District Judge Saundra Brown Armstrong has denied a motion put forth by the Small Business Administration (SBA) to dismiss a lawsuit filed against the agency by the American Small Business League (ASBL). The ASBL is pursuing information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., a large public relations firm specializing in crisis management.

The ASBL suspects the SBA has spent American tax dollars to hire consultants to help them obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.

An SBA spokesperson told PRNewser in an e-mail,”SBA hired APCO for speechwriting, media training for executives, and consultations on dealing with negative public perceptions of the agency’s response to Hurricanes Katrina, Rita, and Wilma. The contracts have been concluded, and APCO is no longer an SBA contractor.”

“I think it is very telling that the SBA has a PR contract with an international public relations firm that specializes in crisis management. The fact that they are withholding information on that contract is even more suspicious,” ASBL President Lloyd Chapman said.

Source:  http://bizbox.slate.com/blog/2010/10/sba_vs_american_small_business_1.php

Federal Judge Denies SBA Move To Drop Case on PR Contract

by | Oct 14, 2010 | Press Releases

Press Release

Federal Judge Denies SBA Move To Drop Case on PR Contract

October 14, 2010

United States District Judge Saundra Brown Armstrong has denied a motion put forth by the Small Business Administration (SBA) to dismiss a lawsuit filed against the agency by the American Small Business League (ASBL). The ASBL is pursuing information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., a large public relations firm specializing in crisis management.

The ASBL suspects the SBA has spent American tax dollars to hire consultants to help them obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.

In one case, the SBA paid $30,000 for a one-day meeting with APCO executives. The SBA is refusing to release the complete details of the contract.  (https://www.asbl.com/documents/APCO_SBA_Contract.pdf)  

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts to corporate giants.  In Report 5-15, the SBA’s own office of inspector general referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today” (https://www.asbl.com/documents/05-15.pdf)  

In Report 5-16 from March of 2005, the SBA IG reported that large businesses had committed fraud by misrepresenting themselves as small businesses through “false certifications,” and “improper certifications.”  Another investigation from the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as “vendor deception.”

In recent years, the SBA has claimed the diversion of federal small business contracts to large corporations is the result of harmless "miscoding."  In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (https://www.asbl.com/documents/sbamythvfact.pdf)   

“I think it is very telling that the SBA has a PR contract with an international public relations firm that specializes in crisis management.  The fact that they are withholding information on that contract is even more suspicious,” ASBL President Lloyd Chapman said.

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Obama Rhetoric on Infrastructure Spending Doesn't Match Administration Actions

by | Oct 12, 2010 | ASBL News, Press Releases

Press Release

Obama Rhetoric on Infrastructure Spending Doesn't Match Administration Actions

October 12, 2010

Petaluma, Calif. – On Monday, President Barack Obama emphasized the importance of putting Americans back to work using federal infrastructure projects.  Yet, despite strong rhetoric on jobs, President Obama has failed to stop the purge of jobs caused by the diversion of billions of dollars a month in federal small business contracts to corporate giants. 

Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts, actually flowing into the hands of Fortune 500 corporations and other clearly large businesses.  In Report 5-15, the Small Business Administration (SBA) Office of Inspector General referred to the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” (https://www.asbl.com/documentlibrary.html)  

The most recent information released by the Obama Administration indicates that of the top 100 recipients of federal small business contracts, 65 percent of the dollars actually went to large businesses. Some of the firms the Obama Administration has allowed to be included as small businesses are: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, Dell Computer, French firm Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees. (https://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)  

Textron Inc., a Fortune 500 firm with 43,000 employees and annual sales over $14 billion, received approximately $775 million in federal small business contracts in a single year. https://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf  

In February of 2008, presidential candidate Barack Obama recognized the magnitude of the problem when he promised to, “End the diversion of federal small business contracts to corporate giants." To date, President Obama has failed to honor that promise. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)  

In May, the ASBL conducted an examination of the Obama Administration’s track record for small businesses and uncovered a dramatic disparity between President Obama’s rhetoric and his actions.  In addition to failing to stop the diversion of federal small business contracts to corporate giants, the Obama Administration has:

1. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag."
2. Failed to allocate more than 3 percent of stimulus funds to small businesses.
3. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.
(www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)  


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