Federal procurement data show that large companies, including leadingdefense contractors, last year received millions of dollars in contractsintended for small and disadvantaged businesses. The data was obtained lastweek by the American Small Business League, which fought a multi-year court battle toobtain the information from the Small Business Administration.   

The group, based in Petaluma, Calif., and run by software entrepreneur LloydChapman, has been a thorn in the side of SBA for years. It accuses the agencyof catering to large companies that misrepresent themselves as small businessesto win government contracts.

Last week the league obtained from SBA an Excel file containingnearly 107,000 entries of vendors that received $83 billion in small businesscontracts in fiscal 2013. While SBA annually releases analytical informationabout small business contracting, it took a lawsuit from the league to forcethe agency to release its list of vendors who receive small businesscontracts.

The agency sought to protect its list from disclosure on the grounds that itis compiled from data it culls from a General Services Administration database.U.S. District Judge Marilyn Hall Patel found that reasoning flawed and in a 2008 ruling ordered theinformation released. This is the first year SBA has provided theinformation without a court battle, Chapman said.  

Prepared by SBA's Office of Government Contracting and Business Development,thelist is drawn from the fiscal 2013 Federal Procurement Data System. Thelist does not include any information about the contracts themselves, only thenames of vendors who received small business contracts and the amounts theywere awarded. It includes entries for such contractors as Chevron U.S.A. Inc.($8.5 million); Lockheed Martin Management Systems Designers, Inc. ($47million); Northrop Grumman Systems Corp. ($455,636); Raytheon BBN TechnologyCorp. ($5 million); Raytheon Company ($418,766); and General Dynamics C4 Systems($947,203).

"This list of companies is the biggest piece of evidence the American SmallBusiness League has ever received from the SBA through a FOIA request," saidChapman. In the past, attorneys for the SBA claimed the agency had noknowledge or information on the actual recipients of federal small businesscontracts, he said.

Chapman believes the administration is trying to dismantle the SBA"through policies that dramatically increase the federal definition of asmall business, and we can't let him do that," he said.

The SBA inspector general last month substantiated the notion that theagency mischaracterizes companies in a damningreport that found many agencies—while striving to reach the governmentwidegoal of awarding 23 percent of contract collars to small businesses—were"overstating" the eligible firms. The watchdog identified more than $400million in contract dollars that went to firms too large to qualify for theSection 8(a) set-asides for small businesses and those in poor communities.

The IG recommended that the SBA's associate administrator for governmentcontracting and business development strengthen controls between SBA databaseson certification data of 8(a) and HUBZone firms to improve the accuracy ofinformation reported to the Federal Procurement Data System. The SBA largelyagreed.

A previous league study concluded that 75percent of such awards were given to large firms.  

On Wednesday, the small business league said the administration "has adopteda new strategy to close the agency with a series of policies that appear to bedesigned to dilute and dismantle federal small business programs," a referenceto a seriesof proposed rules SBA began releasing in that the league says "dramaticallyincreased the federal definition of a small business in hundreds ofcategories."

One proposedrule out in August would remove the Information Technology Value AddedResellers exception under North American Industry Classification System 541519.It also "proposes to increase employee-based small business size standards for30 industries and three sub-industries."

The league says that would mean that a small information technology firm"with annual sales in excess of $27.5 million will be considered a largebusiness while contractsto firms like Lockheed Martin, Northrop Grumman and Raytheon will continue to be counted assmall business contracts."

To view full article, click here: http://www.govexec.com/contracting/2014/10/sba-data-show-large-firms-are-nabbing-contracts-reserved-small-businesses/95699/

Newinvestigations by the Small Business Administration (SBA) Office of InspectorGeneral have found SBAAdministrator Maria Contreras-Sweet's announcement that small businessesreceived 23.39% of all federal contracts was greatly exaggerated.As WaPoreports, Federal agencies overstated their success last year in contractingwith small businesses that face socio-economic disadvantages finding $400million worth of contracts that agencies gave to ineligible firms but stillcounted toward their targets. Rather stunningly, the report found of the top 100 recipients of thehighest dollar amount of federal small business contracts, over 75% wereactually current large businesses. Trust...

AsThe Washington Post reports,

Federal agencies overstatedtheir success last year in contracting with small businesses that facesocio-economic disadvantages, accordingto a watchdog report released Wednesday.

The Small Business Administration'sinspector general's office said it identified $400 million worth of contractsthat agencies gave to ineligible firms but still counted toward their targets.

Thefindings are significant because 2013 was the first year that the Obamaadministration claimed to have met the federal government's small-businesscontracting goals. The flawed numbers led to inaccurate reports to Congress andthe American people, according to the report.

Andas MarketWatch adds,

The most recent data from the FederalProcurement Data System indicates of the top 100 recipients of the highestdollar amount of federal small business contracts, over 75% were actuallycurrent large businesses.

...

The first SBA Inspector Generalinvestigation that uncovered fraud in federal small business contracting wasreleased in 1995. In 2003 an investigation by the Government AccountabilityOffice found over 5,000 large businesses were receiving federal small businesscontracts.

TheAmerican Small Business League (ASBL) has launched a national campaign tosecure a Government Accountability Office (GAO) and FBI investigation touncover the specific individuals that were responsible for the two decades offraud that have been uncovered at the SBA.

To viewfull article, click here: http://www.zerohedge.com/news/2014-09-30/more-lies-watchdog-finds-government-greatly-exaggerated-success-funding-small-busine

Earlier this year, the Small Business Administration announced that the

federal government had reached its goal of awarding at least 23 percent of its

total contracts to small businesses—the highest percentage in nearly eight

years.

This was a big deal for the federal

government—as Washington is always happy to tout its support for small firms.

Related: Small Business Contracts Flow to

Mega Corporations

But a scathing new report

from the SBA's inspector general casts doubts on the government's commitment to

small businesses—and claims that the agency's numbers were significantly

inflated—by as much as $2 billion.

The IG reviewed federal contracts

intended for companies eligible for the HubZone program, which benefits

companies in low-income communities, as well as the 8(a) program, which

benefits minority-owned firms.

Auditors concluded that inaccurate

reporting practices and lax oversight resulted in some $428 million intended

for disenfranchised groups going to ineligible firms. They added that another

$1.5 billion went to business that used to be eligible for the programs—but are

no longer qualified.

"In addition to overstating the small

business "goal" dollars, this may have also prevented other eligible firms from

being awarded these contract actions," the report says.

Related: The 10 Hottest Spots to Start a

Small Business

The auditors said information for the

HubZone and 8(a) programs wasn't consistently transmitted to the System for

Award Management, "As a result the affected small businesses—especially HubZone

firms—are not getting the visibility" in the system, which "may impact federal

agencies in meeting their procurement goals."

The auditors only reviewed contracts

worth more than $3 million, so it's likely that even more money was awarded to

ineligible companies.

The IG recommended that SBA create a

streamlined process to more accurately award contracts. Agency officials agreed

with the recommendations.

This isn't the first time federal

grants for small businesses have gotten in the wrong hands. Earlier this year, an investigation by

the American Small Business League revealed that only 16 of 100 companies

receiving small business grants were actually small firms. The rest of the

money was going to behemoth corporations like Apple, Bank of America and

General Electric.

To view full article, click here: http://www.thefiscaltimes.com/Articles/2014/09/30/Agency-Lies-About-How-Much-It-s-Helping-Small-Businesses#sthash.8pPVKJQU.dpuf#ixzz3F672C6r7