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.

 


Skeptical Senate chairman asks SBA for list of every contractor it counted as a small business

News

Skeptical Senate chairman asks SBA for list of every contractor it counted as a small business

By Kent Hoover
Washington Business Journals
May 19, 2015

A Senatechairman has asked the Small Business Administration to provide him with a listof every company that was counted toward the federal government's smallbusiness contracting goal in 2014.

Last year,the SBA reported the government had met its goal of awarding small businesses23 percent of all federal contracting dollars for the first time in eightyears.

"We'reexpecting even better results when we release the 2014 scorecard in the coming weeks,"SBA Administrator MariaContreras-Sweet said May 8, during a White House event honoringNational Small Business Week award winners.

But areport by Public Citizen questioned the accuracy of the SBA's procurementreport for 2013. It found that contracts awarded to giant federal contractorssuch as Lockheed Martin were counted as small businesses in the SBA's numbers.This is just the latest example of flawsin the SBA's contracting data though the years.

When itbecame clear that the SBA was planning to announce that the government exceededits goal in 2014, I asked the SBA to provide a list of all the federalcontractors that it counted as small businesses, so people could judge forthemselves whether its report is accurate.

Now Sen. DavidVitter, the Louisiana Republican who chairs the Senate SmallBusiness and Entrepreneurship Committee, has asked for that information aswell.

"The SBAhas not done enough to show how it reaches its procurement figures," Vitterasked Tuesday in a letterto Contreras-Sweet. "Accordingly, I ask that you produce a clearlist of the names of every contractor that counted towards the small businessprocurement goal for FY 2014, the size of the contractor, and the amount of thecontract(s) awarded to that contractor."

Vitter,like many other small business advocates, is skeptical about the accuracy ofSBA's contracting goal reports.

"Serious flaws undoubtedly exist in calculating and accuratelyreporting the number of government contracts annually awarded to smallbusiness," he wrote Contreras-Sweet. "Simply ignoring the problem does nothingto help small business. Without transparency and accountability in the process,the numbers are meaningless. Drawing attention to them only hides thesignificant problems small businesses face in obtaining government contracts,and stifles efforts to reform the system."

To viewfull article, click here: http://www.bizjournals.com/bizjournals/washingtonbureau/2015/05/skeptical-senate-chairman-asks-sba-for-list-of.html