US Federal Contractor Registration: Small Business Set-Asides Discontinued After 30 Days of Large Business Acquisition

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US Federal Contractor Registration: Small Business Set-Asides Discontinued After 30 Days of Large Business Acquisition

By Max Timko
US Federal Contractor Registration
May 30, 2015

ORLANDO, FL--(Marketwired - May 30, 2015) - US Federal Contractor Registrationassists small businesses with their government registration and comprehensivefederal marketing campaigns. Their successful track record with helpingthousands of businesses win millions in government contracts has given theircompany a creditable authority in the federal community. However, one of thebiggest issues they encounter with new small businesses emerging in the federalmarketplace is making sure they are actually a small business.

The Small Business Administration (SBA)states that 23% of all government contracting dollars must be devoted toregistered small business set-asides holders. These set-asides include: Woman Owned, VetBiz,HUBZone, 8a, Economically Disadvantaged, and total small business. However,organizations like the American Small Business League and Public Citizen reportthat a great deal of these small business contracts are being illegally awardedto large businesses. Generally this dilemma steams from small businesses thatqualify for small business federal set-asides and then are merged with a largerbusiness. Businesses are confused if small businesses still retain theirset-aside credentials after they have been bought out by a larger business.

In a recent interview with GovernmentExecutive an SBA spokesperson stated in an email response, "When a firm growsorganically, the agency can continue receiving small business credit for up tofive years. … [But] in the case of a merger or acquisition, the agency (SBA)should be notified within 30 days and the small business credit should bediscontinued." This has been a looming issue that has been apparent ingovernment contracting for over a decade.

Lylod Chapman in an interview with GovernmentContractingTips.comcommented about these figures stating, "Federal law states that 23% of allgovernment contracting dollars must be given to registered small businessgovernment contractors according to the Small Business Act. The most recentdata from the Federal Procurement Data System (FPDS) show that the federalgovernment spent around $1.1 trillion on unclassified contracts. That meansthat small businesses should be receiving around $253 billion. The SBA statedthat $89.9 billion went to small businesses in 2012, which is 22.25 percent.Well, that is just not true. When you look at FPDS, not what Lloyd Chapman(referring to oneself) says, it shows that some of the companies that receivedsmall business contracts were Fortune 500 companies. Sears, Honeywell, IBM, HP,General Dynamics and Coke to name a few directly out of FPDS. So when you lookat the SBA's $89.8, of the top 100 recipients of small business governmentcontracts today 72% are currently large businesses. So in my viewpoint, peoplethink that the SBA is there to help small businesses but is actually the mostanti-small business organization out there."

To view full press release, click here: http://www.marketwired.com/press-release/us-federal-contractor-registration-small-business-set-asides-discontinued-after-30-days-2024822.htm

 


Pentagon and Sikorsky Battle to Withhold Data in 9th Circuit Case

Press Release

Pentagon and Sikorsky Battle to Withhold Data in 9th Circuit Case

Ninth Circuit of Appeals Court to Hear ASBL case Against Pentagon

By Lloyd Chapman
American Small Business League
May 28, 2015

PETALUMA, Calif., May 28, 2015/PRNewswire-USNewswire/ -- The Pentagon has filed their appellant briefwith the 9th Circuit Court of Appeals in a Freedomof information Act case filed by the American Small Business League (ASBL).

The ASBL originally won their Freedom of Information Act caseagainst the Pentagon in November of 2014. The ASBL had requested the most recentsubcontracting plan submitted by Sikorsky Aviation Corporation to thePentagon's Comprehensive Subcontracting Plan Test Program (CSPTP).

The ASBL believed the CSPTP was created to allow the Pentagon'slargest prime contractors to cheat small businesses by eliminating alltransparency and penalties for non-compliance with small businesssubcontracting goals. In September, Professor CharlesTiefer, a leading expert on federal contracting law,agreed and wrote a legal opinion calling the CSPTP a "sham" and "seriously harmful" to smallbusinesses.

Federal District Court Judge William Alsupin San Francisco ordered thePentagon to release the Sikorsky data to the ASBL after reviewing theinformation and determining nothing in thereport constituted as trade secret, proprietary or confidential financialinformation.

In his ruling, Judge Alsup described the ASBL as being an underdog in a David and Goliath battle against the"big company" and against the "big government." He alsoaccused the Pentagon of "covering it up" in reference to the information theASBL requested. In a subsequent hearing, Judge Alsup accused the Pentagon andSikorsky of trying to "suppress the evidence."

During the District Court case, Judge Alsup instructed thePentagon and Sikorsky on two separate occasions to "tab and highlight every part of the requested document"that they believed was proprietary and explain why they believed the informationshould be exempt. The Pentagon declined to comply with Judge Alsup's request.

The Pentagon and Sikorsky have now filed two separate appellant briefs. Theyare objecting to the release of the phone numbers and email addresses ofSikorsky's employees along with the names of Sikorsky's small business subcontractors. 

"I believe the reason that the Pentagon and Sikorsky arefighting so hard to withhold this information is because it could beincriminating and will expose the fact the Pentagon has knowingly allowed primecontractors to cheat American small businesses out of hundreds of billions, ifnot trillions, of dollars since the Comprehensive Subcontracting Plan TestProgram began in 1989," stated ASBL PresidentLloyd Chapman.

The ASBL has begun filming a documentaryon their campaign to end fraud in federal small business contracting programs.

To view full press release, click here: http://www.prnewswire.com/news-releases/pentagon-and-sikorsky-battle-to-withhold-data-in-9th-circuit-case-300090057.html?tc=eml_cleartime

 


Senator bashes SBA and challenges its small business contract numbers

News

Senator bashes SBA and challenges its small business contract numbers

By Dena Levitz
Federal News Radio
May 21, 2015

The nation's smallbusinesses are being "cheated" because of serious flaws within thefederal procurement process, Sen. David Vitter (R-La.) said this week.

In a letter that Vitter wroteto Maria Contreras-Sweet, administrator of the Small Business Administration,he slammed her agency for discrepancies within the recent annual procurementscorecard, which outlines the proportion of federal contracts going towardsmall businesses.

The Small Business Actrequires that, of the federal government contracts awarded each year, 23 percentmust go to small businesses. But, in Vitter's estimation, a number ofineligible firms are being factored in to hit the requirement. He also accusesthe SBA of skirting any explanation of the figures and putting off an event torelease the latest scorecard.

"Serious flawsundoubtedly exist in calculating and accurately reporting the number ofgovernment contracts annually awarded to small businesses," writes Vitter,who is also chairman of the Small Business & Entrepreneurship Committee. "Simplyignoring the problem does nothing to help small businesses. Withouttransparency and accountability in the process, the numbers aremeaningless."

His letter recounts that in2013, the Obama administration reportedly met the 23 percent benchmark, thefirst time that goal was reached in eight years. Yet later it was discoveredthat $400 million in federal contracts were awarded to firms that are noteligible to be considered small businesses under the law.

For the fiscal year 2014numbers, the federal government's "Small Business Dashboard"indicates that a whopping 25 percent of government-wide contracts went to smallbusinesses. That percent would be a record amount…

To view full article, clickhere:  http://www.federalnewsradio.com/741/3861862/Senator-bashes-SBA-and-challenges-its-small-business-contract-numbers

 


Louisiana Senator David Vitter Questions Accuracy of SBA Data

Press Release

Louisiana Senator David Vitter Questions Accuracy of SBA Data

ASBL research exposes inflated SBA statistics

By Lloyd Chapman
American Small Business League
May 21, 2015

PETALUMA, Calif., May 21, 2015/PRNewswire-USNewswire/ -- In response to a damaging investigative reportreleased on May 6 by Public Citizen, Louisiana Senator andChairman of the Senate Small Business and Entrepreneurship Committee, David Vitter, has sent a letter to SBA Administrator MariaContreras-Sweet concerning the accuracy of the SBA'scontracting data. Specifically, Vitter requested the list of every contractorthat was counted towards the government's small business procurement goal forFY2014. Vitter also requested the size of the contractor and the amount ofcontracts awarded to that contractor.

The investigative report titled "Slighted" was based on research from the AmericanSmall Business League (ASBL)and interviews from its President Lloyd Chapman.Public Citizen found a wide variety of what they described as accounting tricks that the SBA has used to fabricate and inflate both the volume and percentage offederal contracts that were awarded to legitimate small businesses.

In the letter to Contreras-Sweet, Senator Vitter wrote,"Serious flaws undoubtedly exist in calculating and accurately reportingthe number of government contracts annually awarded to small business,"referring to over a hundred billion a year in contracts excluded from the SBA'scalculations.

An article from the Washington Business Journals by Kent Hoover quoted SBA spokesman John Shoraka admitting that the SBA had nojustifications for excluding overseas contracts from their small businesscalculations.

Also this past March, the House SmallBusiness Committee unanimously adopted an amendment to request a new Government Accountability Office investigation into fraudin federal small business contracting programs and why every year smallbusiness contracts are given to large companies, base on research done byChapman's ASBL.

Every year for the last decade, the SBA Inspector General hasnamed the diversion of federal small business contracts to large businesses as thenumber one problem at the agency. A long series of federalinvestigations have also uncovered widespread fraud and abuses in federalsmall business contracting programs, particularly focused at the Pentagon.

A number of investigative reports from the mainstreammedia have also uncovered firms like Hewlett-Packard, IBM, Rolls-Royce,Lockheed Martin and Chevron have all received federal small business contracts.

The SBA was scheduled to release their Small Business ProcurementScorecard for fiscal year 2014 at the White House on FridayMay 8, but the meeting was abruptlycancelled after stories began to surface regarding the Public Citizenreport that found the SBA numbers were inflated. Even Senator Vitteracknowledged this when he implied the SBA "cancelled at the last minute after learning that questionswould be asked about how that number was achieved."

The SBA has yet to reschedule the release of the data.