Law360, New York (January 21, 2015, 7:46 PMET) -- The U.S.Department of Defense and Sikorsky Aircraft Corp. on Wednesday appealed aCalifornia federal judge's order to cough up Sikorsky's subcontracting data ina Freedom of Information Act fight with the American Small Business League.

The DOD and Sikorsky asked the Ninth Circuit to overturn U.S. District JudgeWilliam Alsup's Nov. 23 orderrequiring the agency to turn over Sikorsky's never-seen subcontracting plan,which ASBL alleged will reveal whether small businesses are receivingsubcontracts as required by law.

In his ruling, Judge Alsup rejected the DOD's claims that the data is exemptfrom FOIA disclosure because of privileged financial or business informationabout Sikorsky.

ASBL President Lloyd Chapman told Law360 that attempts to withhold theinformation suggest the DOD and Sikorsky think its release would bedamaging. 

"The information I'm requesting will probably show the Pentagon has cheatedsmall businesses out of $2.5 trillion [since 1990]," Chapman said, noting JudgeAlsup called the case a perfect example of David vs. Goliath. "They are tryingto stall. They think this information will be damaging."

Chapman said the information will show the extent to which large defensecontractors are complying with the Small Business Act's mandate that smallbusiness contractors owned by women, veterans and minorities receive a fairshare of the billions of federal funds annually allocated to defense spending.

In December, the judge delayed his order requiring the Pentagon to turn overthe information until Jan. 22 after the U.S. solicitor general intervened andasked for a 60-day stay to consider an appeal. Although the judge granted theagency's request for a stay, he said the DOD would have to ask the court ofappeals if it wanted an additional extension. The DOD has argued throughout thesuit that the data is exempt because of trade secrets and privileged orconfidential information.

On Tuesday, Judge Alsup granted Sikorsky's motion to intervene, but noted thatthe company "should not have sat on the sidelines and waited this long tointervene."

According to the ASBL, the Small Business Act of 1953 would normally requirelarge contractors to submit individual subcontracting reports and summarysubcontracting reports to show how government contracts and subcontracts arebeing awarded to small businesses.

But since 1990, when Congress passed the "test program" as part of a defenseappropriations bill, some large defense contractors have been able to do awaywith these reports and instead file comprehensive subcontracting plans, whichare meant to identify "all subcontract amounts awarded to small businesses onall government contracts the prime contractor fulfills," ASBL noted.

"We are pleased with the judge's ruling and look forward to participating inthe appeal," a representative for Sikorsky said.

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While government agencies snoop into the private lives of Americans,Congress maintains a stone wall around trillions of dollars in public contracts.

Just before their Christmas break, lawmakers quietly renewed theComprehensive Subcontracting Plan Test Program, a oxymorically titled law thatblocks disclosure of Pentagon spending.

The only thing "comprehensive" about the program is its blanket blockade ofsubcontractor data. With its latest renewal, the aging "test program" will turn27 years old in 2017.

"It eliminates transparency and eliminates penalties" for noncompliance,said Lloyd Chapman, president of the California-based American Small BusinessLeague.

Chapman, in an interview with Watchdog.org, estimated that "taxpayers werecheated out of $2.5 trillion over the last 25 years."

Chapman acknowledges that critics only have guesstimates because CSPTP is asdark as a black box.

"The public needs to know, but the government has not been forthcoming. Alot of money is not being reported," said Ashok Mehan, CEO of Fedmine, agovernment data collection company in Maryland.

In 2004, the U.S. Government Accountability Office zeroed in on foreignsubcontractors.

"Without accurate and complete information on subcontracts to firmsperforming outside the U.S., (the Department of Defense) cannot makeinformed decisions on industrial base issues," the GAO report said.

In 2011, U.S. Rep. Hank Johnson, D-Ga., introduced H.R.3184 to redistribute $200 billion a year from large corporations thatreceive federal small-business contracts to small businesses that Chapman saysare supposed to receive the money. The measure went nowhere.

Congress first approved CSPTP in 1990, ostensibly to relieve contractors ofburdensome government record-keeping rules.

"I don't know that it's overly cumbersome," Mehan said of the accountingrequirements.

Despite a 9th Circuit Court of Appeals ruling that small-businesscontractor data on taxpayer-funded projects cannot be kept secret,subcontractor information on helicopter maker SikorksyAircraft Corp. was delayed before Congress renewed CSPTP last month.

Sikorsky is scheduled to release a report Thursday, but Chapman isn'tcounting on it.

With the test program extended, he said, "Loopholes will continue to allowthe government and prime Pentagon contractors to cover up."

To view full article, click here: http://watchdog.org/194019/federal-contracts-pentagon/

While government agencies snoop into the private lives of Americans,

Congress maintains a stone wall around trillions of dollars in public contracts.

Just before their Christmas break, lawmakers quietly renewed the

Comprehensive Subcontracting Plan Test Program, a oxymorically titled law that

blocks disclosure of Pentagon spending.

The only thing "comprehensive" about the program is its blanket blockade of

subcontractor data. With its latest renewal, the aging "test program" will turn

27 years old in 2017.

"It eliminates transparency and eliminates penalties" for noncompliance,

said Lloyd Chapman, president of the California-based American Small Business

League.

Chapman, in an interview with Watchdog.org, estimated that "taxpayers were

cheated out of $2.5 trillion over the last 25 years."

Chapman acknowledges that critics only have guesstimates because CSPTP is as

dark as a black box.

"The public needs to know, but the government has not been forthcoming. A

lot of money is not being reported," said Ashok Mehan, CEO of Fedmine, a

government data collection company in Maryland.

In 2004, the U.S. Government Accountability Office zeroed in on foreign

subcontractors.

"Without accurate and complete information on subcontracts to firms

performing outside the U.S., (the Department of Defense) cannot make

informed decisions on industrial base issues," the GAO report said.

In 2011, U.S. Rep. Hank Johnson, D-Ga., introduced H.R.

3184 to redistribute $200 billion a year from large corporations that

receive federal small-business contracts to small businesses that Chapman says

are supposed to receive the money. The measure went nowhere.

Congress first approved CSPTP in 1990, ostensibly to relieve contractors of

burdensome government record-keeping rules.

"I don't know that it's overly cumbersome," Mehan said of the accounting

requirements.

Despite a 9th Circuit Court of Appeals ruling that small-business

contractor data on taxpayer-funded projects cannot be kept secret,

subcontractor information on helicopter maker Sikorksy

Aircraft Corp. was delayed before Congress renewed CSPTP last month.

Sikorsky is scheduled to release a report Thursday, but Chapman isn't

counting on it.

With the test program extended, he said, "Loopholes will continue to allow

the government and prime Pentagon contractors to cover up."

To view full article, click here: http://watchdog.org/194019/federal-contracts-pentagon/