SBA Loses Legal Battle Over Crisis Management PR Contract

Press Release

SBA Loses Legal Battle Over Crisis Management PR Contract

November 29, 2010

The Small Business Administration (SBA) has lost another Freedom of Information Act lawsuit filed by the American Small Business League (ASBL). The ASBL filed suit after the SBA refused to turn over information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., an international public relations firm specializing in crisis management.

The ASBL suspects the SBA has spent American tax dollars to hire consultants to help 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. In winning the lawsuit, the ASBL has now forced the SBA to turn over complete copies of those contracts.

Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts are going to corporate giants.  In Report 5-15, the SBA’s own Office of Inspector General (IG) 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 has been 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)

“We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud,” ASBL President Lloyd Chapman said. “The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs.”

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SBA spending on PR being revealed

News

SBA spending on PR being revealed

By Staff
Central Valley Business Times
November 29, 2010

•  Freedom of Information suit prompts some disclosure

•  ‘They have encouraged and protected firms that have committed felony contracting fraud’

How much would you pay to have someone write a speech for you if you didn’t want your staff to do it? How about $5,500 -- or $16,500 for three?

Actually, you did pay for it, through your taxes.

That’s the amount of money the Small Business Administration, which has its own staff of public relations writers, paid the White House Writers Group Inc. in 2006 to write three speeches for then-SBA Administrator Steve Preston.

The White House Writers Group is a private firm led by former members of various Republican administrations.

“We had a period in the fall of 2006 when our previous speechwriter, a political appointee, left to go to another agency, and we were left without one for a time when Mr. Preston had several speeches to make, so they hired the [White House] Writer’s Group, until another political appointee who could write speeches joined the agency,” explains Michael Stamler, a spokesman for the SBA, in an e-mail to CVBT.

The deal was one of two documents pried out of the SBA by its nemesis, the American Small Business League of Petaluma.

The ASBL sued the SBA after the agency refused to turn over information on public relations contracts it gave to Apco Worldwide Inc., a Washington, D.C.-based international public relations firm specializing in crisis management.

ASBL says it thinks the SBA has spent American tax dollars to hire consultants to help 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.

Part of a $30,000 deal with Apco includes the one-day work of two “trainers” to coach SBA officials in how to deal with the media.

Another $7,500 paid for “message development” by Apco for the SBA, while the remainder went to a “strategy session” that lasted for a day.

The documents do not offer details of the content of the “message development” or the speeches, but at the time the SBA was under fire for how it was handling help to small businesses damaged or wiped out by Hurricane Katrina.

The ASBL has contended that the Small Business Administration is allowing some of the world’s largest companies to take federal contract money meant for small businesses. It says it believes that the SBA may have launched a campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.

"We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud," says ASBL President Lloyd Chapman. "The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs."

Source: http://www.centralvalleybusinesstimes.com/stories/001/?ID=16963


Small Business Organization Wins FOIA Lawsuit

News

Small Business Organization Wins FOIA Lawsuit

By Small Business Organization Wins FOIA Lawsuit
PRNewser
November 29, 2010

The American Small Business League (ASBL) has won its Freedom of Information Act lawsuit against the Small Business Administration (SBA) seeking details about the SBA’s contract with APCO Worldwide.

According to the ASBL press release announcing the outcome, the group “suspects the SBA has spent American tax dollars to hire consultants to help 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.” In one 2005 instance, the SBA paid $30,000 for a one-day meeting with APCO.

APCO had no comment on the matter. An SBA spokesperson said the following via e-mail:

SBA hired APCO for media training for senior executives and consultations on dealing with negative public perceptions of the agency’s response to Hurricanes Katrina, Rita and Wilma.

SBA had already provided copies of the two contracts in response to the FOIA request, but had redacted the company’s employer identification number and the unit pricing.  In response to a ruling against SBA’s motion to dismiss the case, SBA voluntarily provided copies of the contracts without redactions.

Under a different contract that was also part of the FOIA request, the SBA worked with the White House Writer’s Group for speechwriting services.

Update: In a statement sent to PRNewser via e-mail, Lloyd Chapman, ASBL president, reiterated the organization’s belief that the SBA was diverting small business contracts to large companies and said it will continue with its investigation of the SBA’s PR partnerships.

We’re going to study the additional information we have uncovered on the SBA’s public relations contracts, and will be issuing more FOIA requests in the coming months to shine a light on the SBA’s hiring of public relations firms,” Chapman’s statement reads.

We intend to prove that the SBA has launched a campaign to impugn our credibility on this issue as a means of sabotaging our campaign to expose these abuses in the media.”

Source: http://www.mediabistro.com/prnewser/small-business-organization-wins-foia-lawsuit_b10001?c=rss

SBA Loses Legal Battle Over PR Contract

News

SBA Loses Legal Battle Over PR Contract

By Staff
HispanicBusiness.com
November 29, 2010

The Small Business Administration (SBA) has lost a Freedom of information Act lawsuit, the American Small Business League (ASBL) reported Monday in a news release.

The suit was filed by the ASBL after the SBA did not turn over informantion on public relations contracts awarded by the the agency to APCO Worldwide Inc. In once case, ASBL said, the SBA paid $30,000 for a one-day meeting with APCO executives.

The ASBL alleges that the SBA hires consultants to help obscure the diversion of billions of dollars in federal small-business contracts to Fortune 500 firms and other large businesses in the world.

In winning the lawsuit, the ASBL said, the SBA must turn over complete copies of the public relations contracts.




Source: http://www.hispanicbusiness.com/newswire/2010/11/29/sba_loses_legal_battle_over_pr.htm  

Small businesses shortchanged

News

Small businesses shortchanged

By Erik Engquist and Jeremy Smerd
Crain's New York Business
November 21, 2010

The American Small Business League says New York's more than 2 million small businesses receive a fraction of the dollars they should be getting under a law requiring the federal government to award 23% of the value of prime contracts to small businesses. “Government dollars are going to large corporations masquerading as small businesses,” a spokesman for the league complains. A bill that Rep. Carolyn Maloney, D-Manhattan, co-sponsored this month could bring several billion more dollars a year to small businesses here, the league says. H.R. 2568 has just two Republican sponsors, but more are being sought.

Source: http://www.crainsnewyork.com/article/20101121/SUB/101129994