9th Circuit Decides Pentagon Sikorsky Case Not Going To Mediation

Press Release

9th Circuit Decides Pentagon Sikorsky Case Not Going To Mediation

ASBL vs. Pentagon Case Not Going To Mediation in 9th Circuit Appeals Court

By Lloyd Chapman
American Small Business League
March 18, 2015

PETALUMA, Calif., March 18, 2015 /PRNewswire-USNewswire/-- The 9th Circuit Court of Appeals has decidedthe case between the Pentagon and the American Small Business League (ASBL)over Sikorsky Aircraft Corporation's subcontracting reports is not appropriatefor mediation. In February, the 9th Circuit originally requested to see if the parties wanted toenter into mediation to resolve the case. The ASBL opposed mediation. On Mar. 9, the 9th Circuit issued their decision the case was not appropriate formediation.

Under the Freedom of Information Act, the ASBL originallyrequested the most recent report Sikorsky had submitted to the Pentagon's25-year old ComprehensiveSubcontracting Plan Test Program (CSPTP). The ASBL selected Sikorsky atrandom as a test case to challenge the Pentagon's refusal to release any dataon the CSPTP for over 25 years.

The ASBL also intended to use the Sikorsky data to try and block the renewal of the CSPTP in the 2015 National DefenseAuthorization Act (NDAA).

In November of 2014, Federal District Court Judge William Alsup ruled in favor of the ASBL and ordered the Pentagon torelease the Sikorsky data by December 3, 2014. On Dec. 2, the Office of Solicitor General intervened in the case and thePentagon was granted a 60-day extension on the release of the data.

Judge Alsup accused the Pentagon of trying to "cover up" the data. In a subsequent hearing inJanuary, Judge Alsup described the ASBL as being in a "David andGoliath" battle with the Pentagon and Sikorsky and stated the Pentagon wastrying to "suppress the evidence" in the case.

The Pentagon adopted the CSPTP in 1989 under the pretense of"increasing subcontracting opportunities for small businesses."In reality the program eliminated all transparency and penalties on small businesssubcontracting programs for prime contractors.

The Pentagon recently admitted the CSPTP had actually reduced opportunities for small businesses.

One of the nation's leading experts on federal contracting law,Professor Charles Tiefer, issued a legal opinion on the program that stated, "The programis a sham and its extension will be seriously harmful to vitalopportunities for small business... It should not have gotten its 25 years ofextension as a never-tested 'Test Program.' Let it expire."

The Pentagon is expected to file their appellant opening briefwith the 9th Circuit Court of Appeals by May 1, 2015.

To view full press release, click here:  http://www.prnewswire.com/news-releases/9th-circuit-decides-pentagon-sikorsky-case-not-going-to-mediation-300052128.html

 


SBA To Host Meeting Critical Of Small Business Programs

Press Release

SBA To Host Meeting Critical Of Small Business Programs

ASBL opposes Obama plan to close SBA

By Lloyd Chapman
American Small Business League
March 10, 2015

PETALUMA, Calif., March 10, 2015/PRNewswire-USNewswire/ -- The Small Business Administration (SBA) hasannounced they will be releasing the results of a study by the University of Maryland, on March 12, 2015,titled "Unintended Outcomes of Small Business Legislation and Policy."

The American Small Business League (ASBL) predicts the results ofthe study will certainly justify PresidentObama's intention to resurrect RonaldReagan's plan to permanently end all federal small business programs bycombining the SBA and the Department of Commerce.

ASBL President Lloyd ChapmanpredictedPresident Obama would try to close the SBA to cover-up widelyreported fraud at the agency in 2008.

Every year of the Obama Administration the SBA Office ofInspector General has named the diversion of federal small businesscontracts to large businesses as the number oneproblem at the agency.

ABC, CBS, NBC, CNN, Fox News, MSNBC, CNBC and RTTV haveall reported on the diversion of billions of dollars in federal small businesscontracts to Fortune 500 firms.

In 2009, the Government Accountability Office essentiallyaccused the SBA of encouraging fraud in Report 10-108 when they stated, "By failing to hold firms accountable, SBA and contractingagencies have sent a message to the contracting community that there is nopunishment or consequences for committing fraud."

In February the SBA finalized the "safe harbor from fraud penalties" policy that will essentially protect fraudulent firms from all prosecutionand penalties.

On Feb. 5, the SBA proposed another policy that will further dismantle smallbusiness subcontracting programs and divert billions in federal small businessdollars to Fortune 500 firms. This policy would allow Fortune 500 firms to ownup to 49% of a small business and perform up to 60% of the work of those firms. Contracts preformed by these entities would be reported as contracts to asmall business.

The SBA is also attempting to re-launch a policy they proposed in2014 that if adopted could force over 12,000 small business in the Information Technology (IT) industry out of the federalmarketplace.

Under this policy, small IT firms with annual sales in excess of$27.5 million would no longer qualify assmall businesses while billions in federal contracts to Fortune 500 firms wouldcontinue to be reported as small businesses contracts.

In December 2014, President Obamaalso renewed the Pentagon's ComprehensiveSubcontracting Plan Test Program into its 28th year oftesting. Professor Charles Tiefer's legal opinion described the program as a "sham" and that "its extension will be seriouslyharmful to vital opportunities for small business… It should not have gottenits 25 years of extension as a never-tested 'Test Program.' Let itexpire."

A Pentagon spokeswoman acknowledged the program had harmed small businesses.

"Despite President Obama's glowing rhetoric about middleclass economics, the truth is he's determined to dismantle all federal programsto assist middle class small business," said ASBL PresidentLloyd Chapman.

To view full press release, click here: http://www.prnewswire.com/news-releases/sba-to-host-meeting-critical-of-small-business-programs-300048323.html