Support H.R. 1622, the Fairness and Transparency in Contracting Act of 2013

Press Release

Support H.R. 1622, the Fairness and Transparency in Contracting Act of 2013

Reach out to your representatives and let them know you support H.R. 1622 and oppose the diversion of small business contracts to large corporations

February 21, 2014

Click here to view a copy of H.R. 1622, the Fairness and Transparency in Contracting Act: https://www.asbl.com/documents/hr1622.pdf

Below you will find:
1. How Can You Help?:  Details about getting involved with the process of lobbying for the passage of H.R. 1622
2. Letter template: A letter template that will help you to quickly and efficiently reach out to your congressional representatives.
3. Background: Information on the diversion of federal small business contracts to large corporations. 
4. Breakdown of H.R. 1622, the Fairness and Transparency in Contracting Act of 2013:  What will the bill do? And how will it affect you?


1.  How Can You Help?

As a small business owner, employee or just a concerned citizen, you can support the small business community by reaching out to your congressional representatives and letting them know that you support H.R. 1622, the Fairness and Transparency in Contracting Act of 2013. 

Our lawmakers’ votes are influenced by their party’s positions, the advice of staff and friends, and lobbyists. But the single most important influence is constituent opinion. Members of Congress rely on letters, and phone calls to let them know what their constituents are thinking. As one former Representative once said, “It’s a basic political rule: no Congressperson wants to write back thousands of constituents saying that he doesn’t agree with them.”

It is our goal to flood congress with support for this legislation in the form of letters and phone calls.  Please reach out to your congressional representatives, by looking them up in the congressional contact portal below, and please reach out directly to the following influential congressional offices:

Congressman Sam Graves (R – MO) – (202) 225-5821
Chair, House Committee on Small Business

Congresswoman Nydia Velázquez (D – NY) – (202) 225-4038
Ranking member, House Committee on Small Business

Senator Maria Cantwell (D – WA) – (202) 224-3441
Chair, Senate Committee on Small Business and Entrepreneurship

Senator James E. Risch (R – ID) – 202-224-2752     
Ranking member, Senate Committee on Small Business and Entrepreneurship

2.  Letter template:

For your convenience, please use the following letter and congressional contact portals to write to your representative --

Please note: Specific and personal correspondence from constituents makes a difference. It always helps to state your own views in your own words. Form letters, which appear generated by a mail campaign, receive less attention than a personal note.

Congressional Contact Portal:
https://forms.house.gov/wyr/welcome.shtml

Senate Contact Portal:
http://www.senate.gov/general/contact_information/senators_cfm.cfm

Dear _______,

I would like to express my support for H.R. 1622, the Fairness and Transparency in Contracting Act of 2013

Since 2003, more than 15 federal investigations have found that every year billions of dollars in federal small business contracts are diverted to Fortune 1000 corporations and even many of the largest firms in Europe. (https://www.asbl.com/documentlibrary.html)

Report 5-15, from the Small Business Administration (SBA) Office of Inspector General 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.” (http://www.sba.gov/IG/05-15.pdf)

It is not reasonable for small businesses to have to compete with the likes of Wal-Mart, Home Depot, Microsoft, Xerox, Dell Computer, John Deere, British Aerospace (BAE) and Rolls-Royce for small business contracts.  Additionally, I strongly believe this legislation could have a significant impact on our nation’s economy by providing our nation’s small businesses with billions of dollars in contracting opportunities every year.

I strongly urge you to support H.R. 1622, the Fairness and Transparency in Contracting Act of 2013. 

Thank you,

Name
Date

3.  Background:

Since 2003, more than 15 federal investigations found that every year billions of dollars in federal small business contracts are diverted to Fortune 1000 corporations and even many of the largest firms in Europe. (https://www.asbl.com/documentlibrary.html)

Report 5-15, from the Small Business Administration (SBA) Office of Inspector General 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.” (http://www.sba.gov/IG/05-15.pdf)

The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal small business contracts are diverted to firms such as Wal-Mart, Home Depot, Microsoft, Xerox, Dell Computer, John Deere, British Aerospace (BAE), Rolls-Royce and Dutch giant Buhrmann N.V.
 
Passage of H.R. 1622 could redirect the flow of more than $100 billion a year in small business contracts back into the hands of middle class firms.  The ASBL has predicted that the total impact of H.R. 1622 could exceed even the American Reinvestment and Recovery act.

Small Businesses are the backbone of our nation’s economy.  As President Barack Obama said in February of 2008, “It is time to end the diversion of federal small business contracts to corporate giants.” (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

4.  Breakdown of H.R. 1622, the Fairness and Transparency in Contracting Act of 2013:

The purpose of H.R. 1622 is to modify the definition of a small business as stated in the Small Business Act by including the additional requirement that no publicly traded business concern be qualified as a small business. This means that any publicly traded business concern, subsidiary of a publicly traded business concern, foreign owned business concern, or subsidiary of a foreign owned business concern can no longer be counted as a small business for the purpose of government contracting and subcontracting, including for procurement goals.

The bill also strengthens enforcement - requiring timely action on complaints and at least a five-year debarment for any firm that falsely claims to be a small business.  It also allows any person to file a complaint with the SBA and the affected Federal agency if the person feels a small business contract was improperly awarded and have that complaint acted upon in a timely manner. The bill requires the SBA to submit to Congress an annual report detailing the nature of the complaints and their resolution.
 
Notification and reporting requirements included in the legislation:
· Notification for government agencies and contractors of the changes in this bill
· Requires the SBA to make public which companies are receiving small business contracts
· Requires each Federal agency to report on their website a list of the companies receiving small business contracts from that agency; and
· Requires that the agency responsible for maintaining the database of all Federal contractors provide an adequate warning about the penalties for misrepresenting the status of a business concern or person in order to obtain certain contracts with the Federal government.


Lloyd Chapman, American Small Business Advocate, Part 1

Press Release

Lloyd Chapman, American Small Business Advocate, Part 1

By Lloyd Chapman
American Small Business League
January 30, 2014

I have been winning federal lawsuits on behalf of American small businesses for about 25 yeas now. My campaign to stop the federal government from diverting small business contracts to Fortune 500 firms and corporate giants around the world has been covered on every major television network, one international network, virtually every major newspaper in the country, over 200 radio shows and countless stories and blogs on the internet.

I am constantly bothered by the feeling I have never seen a story that tells the whole truth about how the federal government actually cheats small businesses. I also don’t believe any story has painted an accurate picture of my efforts to stop rampant fraud and abuse in federal small business programs and address a wide variety of other issues that have negatively affected American small businesses.

I have come to the conclusion the only way to get the whole truth out there is to begin to write a series of stories on what has actually happened to myself. I also intend to begin a campaign of unabashed self-promotion for the simple reason I’m tired of the unrelenting campaign by the federal government to portray me as a conspiracy nut.

In 2005, Entrepreneur Magazine published a story about me that stated, “Depending on whom you talk to, Texas born small business advocate Lloyd Chapman is either a modern day Cesar Chavez or a conspiracy theorist with a grudge.” It was a great story; I have a copy of it framed in my office. I was hoping someone would write a follow up story and clarify if I was a “modern day Cesar Chavez or a conspiracy theorist with a grudge.” Since no journalist has ever seen fit to answer that question, it looks like I’ll have to do it myself.

I like the quote from Yogi Berra that says, “It ain’t bragging if you can do it”. Well I can do it and I have done it and I intend to write about it in a series of blogs and stories that I will post in a variety of places on the internet to tell my story and tell the truth about the billions if not trillions of dollars in fraud and abuse against American small businesses and the individual people, politicians, bureaucrats and companies that have perpetrated these abuses against the middle class.

Some of the things I have experienced and done sound more like an episode from the X Files than anything you would expect to encounter simply trying to stop the federal government from cheating small businesses. Some people may find some of the things I have experience to be difficult to believe. Looking back on it now, I even find it hard to realize those things really happened. I will do my best to try and document everything I can with links to verifiable information.

I believe most people will find my exploits to be funny, sad, fascinating, shocking, infuriating, uplifting and inspirational. I will be writing about death threats, seeing government lawyers cry, government surveillance, duping politicians and federal agencies, landmark legal victories and the stunning level of corruption and fraud in the federal government at virtually every level.

My goal is to write something every week but I may write something monthly or even daily, I’m not sure. I might even try and put all my adventures as a small business advocate together and write a book.

I’m excited about this project because of the therapeutic affect it will have for me and I will get started immediately. Stay tuned.

Obama's State Of The Union Should Have Focused On Small Businesses



Press Release


Obama's State Of The Union Should Have Focused On Small Businesses


By Lloyd Chapman


American Small Business League




January 29, 2014


During his State of The Union address President Obama mentioned one word more than any other. That word was jobs. He mentioned the word “jobs” 17 times. I’m sure he has seen the polls that indicate the number one issue for American voters is the economy and jobs.


President Obama acknowledged that small businesses are responsible for the majority of new jobs in America. He is absolutely right. According to the latest data from the U.S. Census Bureau, small businesses are responsible for over 90% of the net new jobs in America. (Census Bureau data)


What President Obama doesn’t seem to understand is that the largest, most efficient and effective program in U.S history to create jobs is the Small Business Act of 1953. Today, based on the Small Business Act, federal law requires a minimum of 23% of the total value of all federal contracts and subcontracts be awarded to small businesses.


I have a belief that you can tell the difference between what a person says and how they really feel by watching what they do. When you watch what President Obama does, he does not seem to understand that small businesses are the solution to economic stimulus, slashing income inequality, reducing poverty and creating jobs.


Every year of the Obama Administration, President Obama’s appointed Inspector General for the Small Business Administration(SBA), Peg Gustafson, has named the diversion of federal small business contracts to large businesses as the number one problem at the SBA. (video)


Over a dozen federal investigations and investigative reports in the mainstream media have all found that billions of dollars in federal contracts, that by law should be going to America’s top job creators, have instead been knowingly diverted to many of the largest companies in the world. (video)


Last year, 235 Fortune 500 firms received federal small business contracts along with thousands of large businesses from around the world. (press release)


The simplest solution to creating jobs in America seems quite clear. Stop giving federal small business contracts to many of the largest corporations in the world.


President Obama has stated he is willing to use executive orders to solve America’s most pressing problems. Here is my suggestion for President Obama. Issue an executive order that simply stops the government policy of knowingly diverting federal small business contracts to corporate giants. It’s what I like to call a free and easy solution. No new taxes, no new spending, just end the rampant fraud and abuse at the SBA that has persisted for 15 years. (CBS news)


If President Obama did that, it would put more existing federal infrastructure spending into the middle class and create more jobs than any economic stimulus program he or former President Bush ever passed. Did I mention it was free and easy?!


Here is one more reason President Obama should issue an executive order to end the diversion of federal small business contracts to corporate giants: It was a campaign promise he made in February of 2008 when he released the following statement.


“It is time to end the diversion of federal small business contracts to corporate giants.” (link)


We should all expect President Obama to do what he said he would do especially when it’s so simple and would create millions of jobs.






Obama's State Of The Union Should Have Focused On Small Businesses

Press Release

Obama's State Of The Union Should Have Focused On Small Businesses

By Lloyd Chapman
American Small Business League
January 29, 2014

During his State of The Union address President Obama mentioned one word more than any other. That word was jobs. He mentioned the word “jobs” 17 times. I’m sure he has seen the polls that indicate the number one issue for American voters is the economy and jobs.

President Obama acknowledged that small businesses are responsible for the majority of new jobs in America. He is absolutely right. According to the latest data from the U.S. Census Bureau, small businesses are responsible for over 90% of the net new jobs in America. (Census Bureau data)

What President Obama doesn’t seem to understand is that the largest, most efficient and effective program in U.S history to create jobs is the Small Business Act of 1953. Today, based on the Small Business Act, federal law requires a minimum of 23% of the total value of all federal contracts and subcontracts be awarded to small businesses.

I have a belief that you can tell the difference between what a person says and how they really feel by watching what they do. When you watch what President Obama does, he does not seem to understand that small businesses are the solution to economic stimulus, slashing income inequality, reducing poverty and creating jobs.

Every year of the Obama Administration, President Obama’s appointed Inspector General for the Small Business Administration(SBA), Peg Gustafson, has named the diversion of federal small business contracts to large businesses as the number one problem at the SBA. (video)

Over a dozen federal investigations and investigative reports in the mainstream media have all found that billions of dollars in federal contracts, that by law should be going to America’s top job creators, have instead been knowingly diverted to many of the largest companies in the world. (video)

Last year, 235 Fortune 500 firms received federal small business contracts along with thousands of large businesses from around the world. (press release)

The simplest solution to creating jobs in America seems quite clear. Stop giving federal small business contracts to many of the largest corporations in the world.

President Obama has stated he is willing to use executive orders to solve America’s most pressing problems. Here is my suggestion for President Obama. Issue an executive order that simply stops the government policy of knowingly diverting federal small business contracts to corporate giants. It’s what I like to call a free and easy solution. No new taxes, no new spending, just end the rampant fraud and abuse at the SBA that has persisted for 15 years. (CBS news)

If President Obama did that, it would put more existing federal infrastructure spending into the middle class and create more jobs than any economic stimulus program he or former President Bush ever passed. Did I mention it was free and easy?!

Here is one more reason President Obama should issue an executive order to end the diversion of federal small business contracts to corporate giants: It was a campaign promise he made in February of 2008 when he released the following statement.

“It is time to end the diversion of federal small business contracts to corporate giants.” (link)

We should all expect President Obama to do what he said he would do especially when it’s so simple and would create millions of jobs.

Explaining the Senate Plan to Kill the Small Business Administration

News

Explaining the Senate Plan to Kill the Small Business Administration

By Patrick Clark
Bloomberg Businessweek
January 14, 2014

Last month, Senator Richard Burr, (R-N.C.) introduced a bill that would combine the U.S. Commerce and Labor departments and eliminate the Small Business Administration as a stand-alone agency. Under other circumstances, a proposal to pare government by a Republican lawmaker might seem like political grandstanding, at least while a Democrat sits in the White House. But Burr’s proposal has been getting good circulation in small business advocacy circles, perhaps because it bears similarities to a plan floated by President Obama in 2012 to combine overlapping agencies. Here’s what to know about the bill.

Why would anyone want to get rid of the Small Business Administration?

The bill appears to be driven by the goal of eliminating duplicate efforts by the Commerce and Labor departments. Burr isn’t proposing to kill the SBA but to transform it from a stand-alone agency into an arm of a newly created Department of Commerce and the Workforce. In that scenario, the head of the SBA would be an undersecretary, according to an organizational chart (PDF) on Burr’s website. Presumably, the SBA would continue to perform its core function of guaranteeing small business loans from within the Commerce-Labor hybrid. Streamlining programs in other areas—exporting, for instance—in which multiple agencies provide similar support could help small businesses by making government bureaucracy easier to navigate.

So they don’t want to kill the SBA. How is trading a cabinet level administrator for an undersecretary a good deal for small business?

Good point. National Small Business Association President Todd McCracken told Inc. that having an SBA chief who can speak on behalf of small business owners’ interests is a key benefit of having a stand-alone organization. A Burr spokesman told McClatchy that putting an undersecretary in charge would actually elevate the SBA within the executive branch. That makes the SBA’s current acting administrator, Jeanne Hulit, sound like a big fish in a small ocean.

So it might be better if the SBA boss were a smaller fish in a more powerful organization?

That’s the argument. By the way, did you know the Commerce Department housed the National Aquarium for decades?

How are other advocacy groups reacting?

Consolidation would create additional layers of red tape for the SBA’s loan programs, says Beth Solomon, chief executive officer of the National Association of Development Companies, an umbrella organization for SBA lenders. That could undo gains in small business lending made during the Obama administration.

The National Federation of Independent Business hasn’t taken a position on reorganization but would like to see the SBA’s Office of Advocacy preserved. That’s because Advocacy has the power to prevent new federal regulations that overburden small business under the Regulatory Flexibility Act, spokeswoman Jean Card says in an e-mail.

What do the politicians say?

Neither Senator Mary Landrieu (D-La.), who chairs the Senate Small Business and Entrepreneurship Committee, nor Sam Graves (R-Mo.), who heads the House Committee on Small Business, responded to requests for comment. The matter is complicated by speculation that Landrieu could soon be named chair of the Senate’s energy committee, creating a vacancy.

A more important question: Why would Obama let a Republican senator take credit for consolidation? Landrieu and fellow Democratic committee members Jeanne Shaheen (D-N.H.) and Mark Pryor (D-Ark.) are up for reelection, and folding the SBA is unlikely to help any of their campaigns. That’s to say nothing of the lesser political squabbles over just what inefficiencies would be streamlined.

You ’re not making it sound very likely to happen. Why are people talking about it?

Eliminating or deemphasizing the SBA can be a tough political sell, as President Ronald Reagan discovered from a failed attempt to shutter the agency. Burr’s plan is getting attention now for two big reasons: Obama proposed merging the SBA with the Commerce Department and several other agencies back in 2012. That gives Burr’s proposal a bipartisan feel, even though its cosponsors are all Republicans. Beyond that, it’s worth noting that Obama has yet to nominate a successor to Karen Mills, who announced her resignation last February and left the administration in August for a role at Harvard University. As long as the SBA is led by an acting chief, there will be speculation in some quarters that its days as a stand-alone agency are limited.

So if Obama were to nominate someone, talk about getting rid of the SBA would go away?

Probably. The White House hasn’t responded to a request for comment on the search for a new SBA chief.