Congress Renews 25-Year-Old Test Program Pentagon Wants to Expire

Press Release

Congress Renews 25-Year-Old Test Program Pentagon Wants to Expire

ASBL Lawsuit Tries to Halt Renewal of 25-Year-Old Test Program

By Lloyd Chapman
American Small Business League
December 9, 2014

PETALUMA, CA--(Marketwired - Dec 9, 2014) -The House of Representatives has voted to renew the Pentagon's 25-year-oldComprehensive Subcontracting Plan Test program into its 28th year of testingafter Pentagon spokeswoman MaureenSchumann stated that the Pentagon wanted the Test Program to expire.

The Senate is expected to renew the TestProgram by the end of the week as part of the 2015 National DefenseAuthorization Act (NDAA).

In 2010, the American Small Business League(ASBL) launched a national campaign to block the renewal of the Test Program.In September, Professor Charles Tiefer, one of the nation's leading experts infederal contracting law, released a legal opinion thatdescribed the program as a "sham". His legal opinion states,"The program is a sham and its extension will be seriously harmful tovital opportunities for small business to get government contracting work...Let it expire."

Professor Tiefer's legal opinion promptedseveral journalists to published stories that were very critical of the TestProgram. As a result, the House Armed Services Committee held a hearing todiscuss the future of the Test Program.

The Washington Post, The Blaze and GovExec all publishedstories critical of the 25-year old Test Program.

The Hill published a blog written by ASBLPresident Lloyd Chapman titled, "Pull the plug on Pentagon's25-year-old test program."

The Pentagon adopted the ComprehensiveSubcontracting Plan Test Program in 1990 under the pretense of "increasing subcontractingopportunities for small businesses." In reality the TestProgram eliminated all transparency and penalties for small businesssubcontracting programs for the Pentagon's larges prime contractors. ThePentagon has consistently refused to release any data on the Test Program formore than twenty-five years.

As a test case the ASBL requested the mostrecent subcontracting report submitted by Sikorsky Aviation Corporation underthe Test Program using the Freedom of Information Act. The ASBL filed suit in Federal DistrictCourt in San Francisco after the Pentagon refused to release thedata.

On Nov. 23, Federal Judge William Alsup ruled in favor of the ASBLand ordered the Sikorsky data to bereleased by December 3, 2014. On Dec. 2, the Office of Solicitor General intervened on behalf of thePentagon and asked the court for a 60-day stay on the release of thedata.

The ASBL believes the request for a 60 daystay was designed to prevent the release of very damaging information on theTest Program that could have jeopardized the renewal of the program byCongress. The House voted to renew the TestProgram into its 28th year of testing on Dec. 2.

The Senate is also expected to vote to renewthe Test Program this week as part of the 2015 National Defense AuthorizationAct (NDAA) in spite of the Pentagon's position to let the program expire.

"It's astounding no one has ever seenany data on this blatant anti-small business scam and yet Congress will vote torenew it into its 28th year," said ASBL President Lloyd Chapman.

Watch ASBL documentary trailer

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House Votes To Renew "Sham" Pentagon Test Program Into 28th Year

Press Release

House Votes To Renew "Sham" Pentagon Test Program Into 28th Year

ASBL Opposes Renewal of 25-year-old "Sham"

By Lloyd Chapman
American Small Business League
December 9, 2014

PETALUMA, Calif., Dec. 9, 2014 /PRNewswire-USNewswire/-- The House of Representatives has voted to renew the embattled PentagonComprehensive Subcontracting Plan Test Program (CSPTP) into its 28th year oftesting. The renewal of the CSPTP into 2017 was included in the House version of the 2015 National Defense AuthorizationAct.

The American Small Business League (ASBL) launched anational campaign to halt the renewal of the 25-year-old "TestProgram" in 2010.

As a test case the ASBL requested the most recent data submittedunder the CSPTP by Sikorsky Aviation Corporation under the Freedom ofInformation Act (FOIA). The ASBL wanted to challenge the Pentagon's refusal to release any data on the"TestProgram" for more than a quarter of a century. The ASBL filed suit inFederal District Court in San Franciscoafter the Pentagon refused to release the data.

On Nov. 23, Federal District Court Judge William Alsup ruled in favor of the ASBL and ordered the Pentagon to release the Sikorsky data by December 3, 2014.

On Dec. 2, the Office of Solicitor General intervened onbehalf of the Pentagon and asked the court for a 60-day stay of the release of theinformation.

The release of the potentially damaging information on the 25-year-old"Test Program" on Dec. 3 would jeopardizethe renewal of the CSPTP by both the House and Senate before the Dec. 11 recess.

The ASBL believes the request for the 60 day stay was alsodesigned to halt the release of data that would prove the CSPTP had allowed thePentagon to falsify small business subcontracting data and defraud smallbusinesses out of hundreds of billions of dollars in subcontracts over the last25 years.

The negative publicity on the CSPTP has been so damagingPentagon spokeswoman Maureen Schumann admitted the Pentagon didnot want the program renewed, "Although well-intended, the program has not producedquantifiable results. The Department of Defense position is to not havecongress extend the CSP," she commented.

The Pentagon adopted the CSPTP in 1990 under the pretense of"increasing subcontracting opportunities for small businesses." Inreality the CSPTP did just the opposite by eliminating allinformation that had previously been publicly available that could be used to confirma prime contractor's compliance with their small business subcontracting goals.The CSPTPalso eliminated all penalties prime contractors had previously faced such as"liquidated damages" for failing to comply with theirsmall business subcontracting goals.

Professor Charles Tiefer,one of the nation's leading experts on federal contracting law released a legalopinion of the CSPTP that stated, "The program is a sham and its extension will be seriouslyharmful to vital opportunities for small business to get government contractingwork... Let it expire."

The Pentagon now has until January 22, 2015to release the Sikorsky data to the ASBL. By that time President Obama willhave signed the 2015 National Defense Authorization Act (NDAA) into lawrenewing the CSPTP into its 28th year of testing.

"I predict the Senate will also vote to renew the 'TestProgram' this week," said ASBL President LloydChapman. "This is an unprecedented example of fraud,corruption and broken government."

ASBL documentary trailer

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Pentagon May Be Forced to Release Aircraft Manufacturer's Contract Data

News

Pentagon May Be Forced to Release Aircraft Manufacturer's Contract Data

By PilieroMazza PLLC
JD Supra Business Advisor
December 8, 2014

Pentagon May Be Forced to ReleaseAircraft Manufacturer's Contract Data

The Petaluma, a California based American SmallBusiness League announced, on November 26, 2014, a northern California districtjudge agreed that the Pentagon should honor the league's request under theFreedom of Information Act for data submitted to the ComprehensiveSubcontracting Plan Test Program.  A program that has authorizednegotiation, administration and reporting of subcontracting plans on a plant,division or company-wide basis to determine whether comprehensivesubcontracting plans will result in increased subcontracting opportunities forsmall business while reducing the administrative burden on contractors, since1990.  The league has long challenged the program as a nonproductive,secretive way of steering toward large corporations defense subcontracts forwhich small businesses are most eligible.  The league expects the rulingto lead to the eventual release of data on all firms participating in theprogram that will prove the Pentagon has cheated American small businesses outof well over a trillion dollars in subcontracts. PentagonMay Be Forced to Release Aircraft Manufacturer's Contract Data.

To view full article, click here: http://www.jdsupra.com/legalnews/weekly-update-newsletter-december-2014-34732/


Pentagon and Solicitor General Halt Release of Questionable Subcontracting Data

Press Release

Pentagon and Solicitor General Halt Release of Questionable Subcontracting Data

Solicitor General Helps Pentagon Stall Release of Damaging Data to ASBL

By Lloyd Chapman
American Small Business League
December 4, 2014

PETALUMA, Calif., Dec. 4, 2014 /PRNewswire-USNewswire/-- The Office of the Solicitor General has stepped in to help the Pentagonstall the release of what could be some very damaging information from theembattled 25-year-old Comprehensive Subcontracting Plan Test Program(CSPTP).

Federal District Court Judge William Alsup ruled in favor of the American SmallBusiness League (ASBL) in a Freedom ofInformation Act (FOIA) case after the Pentagon refused to releasesubcontracting data Sikorsky Aviation Corporations submitted under the CSPTP.

On Nov. 23, Judge Alsup ordered the Pentagon to release the Sikorsky subcontracting data to the ASBL by December 3, 2014.

On Dec. 3, the Office of theSolicitor General intervened and assisted the Pentagon to stall the release ofthe data. Judge Alsup then granted the Pentagon a 60-day stay on the release of thecontroversial data.

Now the Office of the Solicitor General and the Pentagon have 60days to decide of they will appeal Judge Alsup's ruling to the 9th Circuit Court of Appeals.  

The ASBL requestedthe Sikorsky data as a test case to challenge the Pentagon's refusal torelease any data on the "Test Program" in over 25 years. Prior to theimplementation of the "Test Program" all subcontracting data on all Pentagonprime contractors was publicly available. Before the "Test Program"was adopted the Pentagon's compliance with federal law that mandates a minimumof 23 percent of all federal contracts be awarded to small businesses wascontinuously challenged. Publicly available subcontracting reports on Pentagonprime contractors reflected small business subcontracting goals that wereroutinely less than one percent.  

The CSPTP was adopted under the pretense of  "increasing subcontracting opportunities for small businesses."Once the Pentagon adopted the CSPTP, all publicly available data onsubcontracting goals was eliminated along with any penalties such as "liquidated damages" prime contractors had faced forfailing to comply with their subcontracting goals.

Professor Charles Tiefer,one of the nation's leading experts on federal contracting law released a legal opinion that was very critical of the CSPTP."The program is a sham and its extension will be seriously harmful tovital opportunities for small business to get government contracting work...Let it expire," stated Professor Tiefer in his legal opinion.

"The information we are seeking is simply the percentage ofsubcontracts Sikorsky has awarded to small businesses. The Pentagon is fightingthe release of this data so aggressively because they know as I do that it willprove they have violated federal contracting law for twenty-five years andcheated American small businesses out of hundreds of billions insubcontracts," said ASBL President Lloyd Chapman.

The 2015 National Defense Authorization Act (NDAA) includeslanguage renewing the Comprehensive Subcontracting Plan Test Program into its28th year of testing, until 2017. Congresswill likely vote on the bill before the December 11recess.

The release of the Sikorsky data on December 3 could havejeopardized the renewal of the CSPTP.

ASBL documentary trailer

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Solicitor General Helps Pentagon Stall Release of Damaging Subcontracting Data

Press Release

Solicitor General Helps Pentagon Stall Release of Damaging Subcontracting Data

ASBL's court ordered information is being refused by Pentagon

By Lloyd Chapman
American Small Business League
December 4, 2014

PETALUMA, Calif., Dec. 4, 2014/PRNewswire-USNewswire/ -- The Office of the Solicitor General has intervenedin a Freedomof Information Act (FOIA) case between American Small Business League (ASBL) President Lloyd Chapmanand the Pentagon.

Federal District Court Judge William Alsupordered the Pentagon to release data submitted by Sikorsky Aviation Corporation under the Pentagon's25-year-old Comprehensive Subcontracting Plan Test Program to the ASBL by December 3.

Judge Alsup has now granted a 60-day stay of the release of the data to give the Officeof the Solicitor General time to decide if they want to appeal Judge Alsup'sruling.

"The Solicitor General and the Pentagon know they have nochance of winning an appeal in this case. The 9th Circuit Court of Appeals ruled in 1994 that small business subcontracting datacannot be withheld under the Freedom of Information Act," said Chapman."The Pentagon is simply stalling the release of what they know will bevery damaging information and probably clear evidence of fraud by the Pentagon until Congress approves the renewal of the Comprehensive SubcontractingPlan Test Program before the December 11th recess."

The ASBL selected Sikorsky at random as a test case to challengethe Pentagon's refusal to release any data on the CSPTP since it began in1990.

The CSPTP was adopted by the Pentagon under the pretense of"increasing subcontracting opportunities for small businesses."All available information indicates the program did just the opposite. Fortwenty-five years the CSPTP has eliminated all data that had been previouslyavailable to the general public that could be used to track a primecontractors' compliance with federally mandated small business subcontractinggoals. The CSPTP also eliminated all penalties prime contractors had previouslyfaced, such as liquidated damages, for failing to comply with their smallbusiness subcontracting goals.

A 2004 GAO investigation and language in the Chairman'sMark of the 2015 National Defense Authorization Act (NDAA) acknowledgedthere is no evidence in the program's twenty-five year history that it has everbenefited small businesses.

In September, Professor Charles Tiefer,one of America's leading experts on federal contracting law released a legal opinion of the CSPTP that stated, "The programis a sham and its extension will be seriously harmful to vital opportunitiesfor small business to get government contracting work... Let it expire"

A victory for the ASBL in the Sikorsky case will lead to the release ofall the data submitted to the CSPTP. Chapman believes the data will provethe Pentagon has falsified the agencies compliance with federal law thatmandates a minimum of 23 percent of all federal contracts be awarded to smallbusinesses. Current participants in the CSPTP include: Boeing, BAESystems, GE Aviation, General Dynamics, Hamilton Sundstrand Corporation, HarrisCorporation, L3 Communications, Lockheed Martin, Northrop Grumman, Pratt &Whitney, Raytheon and Sikorsky.

The Pentagon now has until January 22, 2015to turn over the Sikorsky data to the ASBL.

ASBL documentary trailer

To view full press release, click here: http://www.prnewswire.com/news-releases/solicitor-general-helps-pentagon-stall-release-of-damaging-subcontracting-data-300004653.html