PETALUMA, CA--(Marketwired - Jul 31,2014) - In a statement released on July 30, theSmall Business Administration (SBA) has announced they are finally going torelease their fiscal year 2013 Small Business Federal Procurement Scorecard, asconfirmed by the American Small Business League. The Scorecard will report onthe specific dollar volume and the percentage of federal contracts awarded tosmall businesses.

New SBA Administrator MariaContreras-Sweet will release the data in a press conference at NASA GoddardSpace Flight Center with NASA Administrator Charles Bolden and Senator BenCardin, D-Md.

A series of federal investigations and investigative reports have found the SBAcontinues to include billions of dollars in federalcontracts to Fortune 500 firms and thousands of other largebusinesses in their small business contracting statistics.

Federal law requires that a minimum of23% of the total value of all federal contracts be awarded to small businesses.In calculating the percentage of federal contracts to small businesses, forover 12 years, the SBA has significantly inflated thatpercentage by using a federal acquisition budget number that is muchsmaller than the actual federal acquisition budget required by law.

The American Small Business League(ASBL) estimates that if the SBA did not include billions of dollars in federal contracts toFortune 500 firms and thousands of large businesses and used the actual total federal acquisition budgetrequired by law, the percentage of federal contracts awarded to smallbusinesses would be closer to five percent than the 22% to 23% number that willbe reported in their Scorecard.

A legal opinion issued byProfessor Charles Tiefer, one of the nation's leading experts on federalcontracting law, agrees with the findings of the ASBL that the SBA's numbersare dramatically inflated. Professor Tiefer found no legal justification forthe SBA's inclusion of contracts to large businesses in their small businesscontracting data. He also found that the actual total federal acquisitionbudget is closer to one trillion dollars versus the much smaller number used bythe SBA.

According to the latest data from theFederal Procurement Data System, 175 Fortune 500 firms andtheir subsidiaries received federal small business contracts in fiscal year2013.

Beginning in 2005 the SBA Inspector General referred to thediversion of federal small business contracts to corporate giants as, "One of the most importantchallenges facing the Small Business Administration (SBA) and the entireFederal Government today..."

Every year since 2003 the SBA hasclaimed that the inclusion of billions of dollars in federal contracts toFortune 500 firms and thousands of large businesses in their small businesscontracting data is the result of miscoding, computer glitches, anomalies and simple humanerror.

This consistent claim by the SBA seemsimprobable since fiscal year 2013 ended last September and the SBA has had 10months to review the data to remove any anomalies or miscoding.

To view full press release, clickhere: http://www.marketwired.com/press-release/Small-Business-Administration-Finally-Releases-2013-Contracting-Data-1934620.htm

PETALUMA, CA--(Marketwired - Jul 24,2014) - According to the American Small Business League, the Pentagon isrefusing to comply with a Freedom of Information Act request from theAmerican Small Business League (ASBL) for contractingdata on British Aerospace and Engineering (BAE).

The ASBL specifically requested themost recent subcontracting data submitted by British Aerospace under theComprehensive Subcontracting Plan Test Program (CSPTP). The Pentagon has alsorefused to release any data Lockheed Martin or Sikorsky have submitted asparticipants of the CSPTP.

The Pentagon adopted the CSPTP back in1990 as a test program. According to the website for the CSPTP, "The purpose of the test is todetermine whether comprehensive subcontracting plans will result in increasedsubcontracting opportunities for small businesses while reducing theadministrative burden on contractors."

The CSPTP has just two provisions.First, participating contractors are no longer required to submit publiclyavailable subcontracting reports that could be used to verify a firm's compliance with federal small businesscontracting goals. Second, contractors are exempt from any penalties such as "liquidated damages"for non-compliance with their small business contracting goals.

In essence, under the guise ofincreasing subcontracting opportunities for small businesses, the CSPTPeliminated all transparency and penalties for many of the Pentagon's largestprime contractors.

After nearly a quarter of a century,the Pentagon has never released any reports or analysis of the CSPTP. Both theHouse and Senate versions of the FY2015 National Defense Authorization Bill propose extending the CSPTP into its28^th year of testing.

Section 811 of the Chairman's Mark ofthe 2015 National Defense Authorization bill states, "However, after nearly 24 years since the originalauthorization of the program, the test program has yet to provide evidence thatit meets the original stated goals of the program..."

A 2004 Government Accountability Office investigationof the CSPTP also found no evidence the test program had ever increasedsubcontracting opportunities for small businesses. A story in Gov. Exec questioned thefuture of the program.

The ASBL has already filed suit in FederalDistrict Court in San Francisco against the Pentagon for their refusal torelease CSPTP data on Sikorsky.They will be filing two new cases against the Pentagon for refusing to complywith their Freedom of Information Act requests for data on Lockheed Martin andBritish Aerospace and Engineering.

ASBL President Lloyd Chapman stated,"Think of the magnitude of the scam the Pentagon has pulled off for 25years by removing all transparency and penalties on small business contractinggoals as a test to increase opportunities for small businesses. This is one ofthe most blatant cases of fraud and corruption Ihave ever seen in government."

To view full press release, clickhere:  http://www.marketwired.com/press-release/pentagon-refusing-to-release-contracting-data-on-british-aerospace-engineering-1932347.htm

PETALUMA, CA--(Marketwired - Jul 10,2014) - According to the American Small Business League (ASBL),the Small Business Administration (SBA) has finally acknowledged the existenceof fraud in federal small business contractingprograms. Based on the SBA's new policy that wouldcreate a "safe harbor"from penalties for firms that have committed fraud, it would appear the levelof fraud is much more pervasive than the SBA has ever acknowledged.

For over 20 years a series of federal investigations have uncovered wide spread fraud in federal small businesscontracting programs. As early as 1995 the SBA Inspector General reported onwhat they called, "a particular fraudulentpractice."

In 2004 the SBA Office of Advocacyreleased the Eagle Eye report thatfound large businesses were guilty of "vendor deception" to illegallyreceive federal small business contracts.

In 2005 the SBA Inspector Generalreleased report 5-15 that referred to the diversion of federal small businesscontracts to big businesses as, "One of the most importantchallenges facing the Small Business Administration (SBA) and the entireFederal Government today..."

In Report 5-16 the SBA InspectorGeneral found large businesses had committed fraud by making "false certifications" and"improper certifications" to illegally land federal smallbusiness contracts.

SBA Inspector General Report 5-14 discoveredthe SBA was diverting small business contracts to large businesses includingsuch firms as Buhrmann NV in Holland with 28,000 employees worldwide in 26countries. 

Every year since 2005 the SBAInspector General has named the diversion of federal small business contracts to largebusinesses as the number one problem at the agency.

In 2009 after investigating the SBA,the Government Accountability Office released Report 10-108 that stated, "By failing to hold firmsaccountable, SBA and contracting agencies have sent a message to thecontracting community that there is no punishment or consequences forcommitting fraud."

In 2012 NBC found 24 large businessesin northern California that had received 299 small business contracts worthover $77 million. The SBA responded with the statement, "SBA has no tolerance for fraud, waste and abuse andtakes corrective steps when actionable information comes to light."

Section 16 (d) of theSmall Business Act mandates a penalty of up to10 years in prison, a $500,000fine, or both, for firms that misrepresent their status to illegally receivefederal small business contracts.

Under the new SBA "safeharbor" policy, firms that are found to be fraudulently misrepresentingtheir status as a small business can avoid all penalties by simply claimingthey "acted in good faith."

The SBA will be taking public comment on theproposed policy until August 15^th.

To view full press release, clickhere:  http://www.marketwired.com/press-release/SBA-Acknowledges-Fraud-in-Contracting-With-New-Safe-Harbor-Policy-1928476.htm

PETALUMA, CA--(Marketwired - Jul 8,2014) - According to the American Small Business League, the Small BusinessAdministration (SBA) has proposed a new policythat would create a "safe harbor" from penalties for large businessesthat have fraudulently misrepresented themselves to receive federal smallbusiness contracts.

Current federal lawmandates a penalty of up to 10 years in prison, a fine of up to $500,000 peroccurrence, or both, for firms that misrepresent themselves to receive federalsmall business contracts.

Under the new policy, large businessesthat were discovered committing contracting fraud could avoid any jail time orfines by simply claiming they "acted in good faith."

Although a series of federal investigations and investigative reports in the media have allfound rampant fraud in SBAmanaged programs, the SBA has consistently denied there was any fraud intheir programs. The new "safe harbor" policy is significant since itsignals the SBA's acknowledgement that a large number of firms currentlyclaiming to be small businesses to receive federal contracts may be doing so fraudulently.

Some law firms have alreadybegun issuing instructions to their clients on how to use the "safe harbor"loophole to avoid facing severe penalties for contracting fraud.

Every year since 2005 the SBA Inspector General has reportedthe diversion of federal small business contracts to large businesses as the number one problem at the agency. The SBA hasrefused to adopt policies to halt the fraud. In addition to attempting toprotect fraudulent firms that SBA has continued to increase size standards toallow larger and larger firms to quality as smallbusinesses.

The Government Accountability Office(GAO) investigated the SBA and released Report 10-108 that essentially accusedthe SBA of encouraging fraud among government contractors.

Report 10-108 stated, "By failing to hold firmsaccountable, SBA and contracting agencies have sent a message to thecontracting community that there is no punishment or consequences forcommitting fraud."

Critics of the "safe harbor"policy believe the GAO was correct and the SBA is attempting to create a majorloophole in federal law that will ultimately encourage fraud. In doing so theSBA can continue to misrepresent the percentage of federal contracts awarded tosmall businesses by continuing to include thousands of large businesses intheir small business contracting statistics.

The American Small Business League (ASBL)has launched a national campaign to block the new "safe harbor" policy from takingeffect and has pledged to seek an injunction in Federal District Court in SanFrancisco if the SBA does adopt the policy protecting fraudulent firms.

To view full press release, clickhere: http://www.marketwired.com/press-release/New-SBA-Policy-Would-Create-Safe-Harbor-for-Contracting-Fraud-1927411.htm