Judge to hear dispute over small biz contract data

News

Judge to hear dispute over small biz contract data

By Gregg Carlstrom
Federal Times
April 6, 2010

A federal judge is expected to hear arguments later this month on whether the government should continue detailing which companies are receiving small business contract set-asides.

The American Small Business League last week filed a lawsuit to halt General Services Administration plans to remove such data from the government's central contracting database, called the Federal Procurement Data System.

GSA intends to remove a data field from system that denotes whether federal contract recipients are small businesses. The change will make it impossible for watchdog groups to ensure that companies receiving small-business set aside contracts are, in fact, small businesses, the league argues.

More than a dozen federal investigations over the last seven years have found that billions of dollars of contracts intended for small businesses have in fact gone to large corporations.

The League's lawsuit, filed in a California Northern District Court, asks a judge to order GSA to reinstate the small-business data field. The case will be heard this month, according to court documents, though an exact hearing date hasn't been scheduled; a ruling is expected shortly afterwards.

GSA did not respond to a request for comment.

Source: http://www.federaltimes.com/article/20100406/ACQUISITION03/4060307/

Advocacy group sues government over contract data

News

Advocacy group sues government over contract data

The small-business group is concerned the loss of historical contracting data could prevent future investigations

By Matthew Weigelt
Federal Computer Week
April 2, 2010

A small-business advocacy group has asked a federal court to force the General Services Administration to restore various types of contracting data that the public can no longer access, according to court documents.

The American Small Business League alleges the Obama administration's recent changes to the Federal Procurement Data System-Next Generation may have eliminated access to scores of contracting data that identify small-business contracts in the governmentwide database, according to court documents filed March 30 in U.S. District Court for the Northern District of California.

The group said officials eliminated from the searchable FPDS-NG fields that allow viewers to see what contracts are set aside for small businesses and which companies received federal contracts.

“The removal of the contractor identity and small business identifier fields represents a major move towards decreased transparency in federal contracting data,” the group wrote in the court documents.

Investigators and other groups have used this type of data to uncover fraud and abuses in small-business contracting, according to the filing. The league said watchdog groups like it may be prevented from further investigations into fraudulent behavior without access to the federal data, according to the filings.

Source: http://fcw.com/articles/2010/04/02/small-business-contract-data-case.aspx

Small-Business Group Objects to Federal Contract Database Change

News

Small-Business Group Objects to Federal Contract Database Change

By Andy Jones
The BLT
April 1, 2010

The American Small Business League filed a motion for a preliminary injunction on Wednesday against the U.S. General Services Administration to restore recently removed aspects of a database used to monitor federal contracts.

In the motion filed in the U.S. District Court for the Northern District of California, the league objected to the removal of two identifying fields from the searchable Federal Procurement Data System – Next Generation. One of the fields identified small businesses, and the other field identified the names of contract recipients.

The system, the government's electronic database for federal contracting data, is used by federal agencies, watchdogs and the general public to oversee the procurement process, according to the motion. Agencies are required to report all contracts worth more than $3,000, as well as subsequent modifications.

The General Services Administration ordered these two changes on March 12. The league originally filed its lawsuit, American Small Business League v. Martha N. Johnson, on March 8 in preparation for the changes. Johnson serves as administrator of the GSA.

The league argues that the data removal violates the transparency standards articulated in the Federal Procurement Policy Act of 1974. It argues that the information at issue must be immediately restored to the publicly accessible database because the lack of access creates an “irreplaceable harm,” adding that the information “has been used in the past to identity instances where contracts set aside for small businesses were awarded to Fortune 500 corporations.”

The league estimates that $1 trillion worth of contracts intended for small business have gone to big businesses in the past decade, according to a Wednesday news release.

A nonpartisan advocacy group formed in 2004, the league is represented by Robert Belshaw, of counsel to Gutierrez & Associates in San Francisco.

Source: http://legaltimes.typepad.com/blt/2010/04/smallbusiness-group-objects-to-federal-contract-database-change.html

Small business group sues Obama Administration

News

Small business group sues Obama Administration

By Staff
Central Valley Business Times
April 1, 2010

•  Wants to stop destruction of federal data

•  Seeks preliminary injunction

The American Small Business League, a Petaluma-based small business lobbying organization, is suing the Obama Administration over disposal of federal contracting data. The ASBL says the data will show the federal government has ignored its own laws by giving contracts meant for small businesses to some of the nation’s largest corporations.

The motion for a preliminary injunction has been filed in U.S. District Court in San Francisco against the General Services Administration (GSA). The purpose of the injunction is to force the GSA to restore more than a decade's worth of federal contracting data.

On March 12, the Obama Administration implemented changes to the Federal Procurement Data System-Next Generation that eliminated the socio-economic field, "isSmallBusiness." In past years, Congress, federal agencies, watchdog groups, and the general public used the field to identify large firms that “had fraudulently misrepresented themselves as small businesses to illegally receive billions of dollars in small business contracts,” ASBL says.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars in fraud and abuse in federal small business contracting programs.

The ASBL estimates that over the last decade nearly $1 trillion in contracts intended for small businesses have actually ended up in the hands of Fortune 500 corporations and other large businesses.

The ASBL's motion for a preliminary injunction will be heard on a 35-calendar day track, according to court documents.

Source: http://www.centralvalleybusinesstimes.com/stories/001/?ID=14775

Obama Administration Faces Court Battle Over Contracting Data

Press Release

Obama Administration Faces Court Battle Over Contracting Data

March 31, 2010

Petaluma, Calif. - On Tuesday, March 30, the American Small Business League (ASBL) filed a motion for a preliminary injunction in United States District Court, Northern District of California against the General Services Administration (GSA).  The purpose of the injunction is to force the GSA to restore more than a decade's worth of federal contracting data. (https://www.asbl.com/documents/ASBL_Prelim_Injunction.pdf)  

On March 12, 2010, the Obama Administration implemented changes to the Federal Procurement Data System-Next Generation (FPDS-NG), which eliminated the socio-economic field, "isSmallBusiness."  In past years, Congress, federal agencies, watchdog groups, and the general public used the field to identify large firms who had fraudulently misrepresented themselves as small businesses to illegally receive billions of dollars in small business contracts.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars in fraud and abuse in federal small business contracting programs.

In Report 5-16, the Small Business Administration Office of Inspector General (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)  

In Report 5-15, the SBA IG stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." 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." (https://www.asbl.com/documents/05-15.pdf, https://www.asbl.com/documents/eagkeeye_report%202002.pdf)     

The ASBL has estimated that over the last decade nearly $1 trillion in contracts intended for small businesses have actually ended up in the hands of Fortune 500 corporations and other clearly large businesses.

Current federal law prescribes stiff penalties for fraudulent misrepresentation of a business as a small business in order to compete for federal contracting opportunities.  Violators are subject to penalties of up to 10 years in prison, a fine of $500,000 per occurrence and debarment from federal contracting programs, according to the Small Business Act.

The ASBL is concerned that the destruction of ten-years worth of historical contracting data could prevent further investigations into fraudulent contracting activity, and prevent large firms from being prosecuted under section 16(D) of the Small Business Act.

The ASBL's motion for a preliminary injunction will be heard on a 35-calendar day track, according to court documents.

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