White House Canceled Small Business Event to Avoid Tough Questions

Press Release

White House Canceled Small Business Event to Avoid Tough Questions

ASBL Research Prompts Public Citizen Investigative Report "Slighted"

By Lloyd Chapman
American Small Business League
May 19, 2015

PETALUMA, Calif., May 19, 2015/PRNewswire-USNewswire/ -- It appears the White House may have canceled a majorevent to avoid tough questions for SBA Administrator Maria Contreras-Sweetafter government watchdog group, Public Citizen, released a damming reporttitled "Slighted."

The subtitle of the 20 page investigative report was "AccountingTricks Create False Impression That Small Businesses Are Getting Their Share ofFederal Procurement Money, and the Political Factors That Might Be at Play."

The report found the small business contracting data, that theObama Administration had planned to release at the White House event on Friday May 8, had been grossly inflated.

It was anticipated the event was to be held at the White House, for the first time in recenthistory, to announce a record level of federal contracts that had beenawarded to small businesses in fiscal year 2014. It was announced the event wasto be lead by SBA Administrator Maria Contreras-Sweetand was to be attended by several members of the President's cabinet and othersenior Obama Administration officials.

The decision to cancel the event came late Thursday afternoonapproximately an hour after Washingtonjournalist Kent Hoover of the Washington BusinessJournal contacted SBA Press Office Director Terry Sutherland'soffice in response to the Public Citizen report. Hoover asked for a list of thetop 100 recipients of federal small business contracts for fiscal year 2014.Hoover had also told Sutherland's office he intended to ask SBA Administrator Contreras-Sweet what theSBA had done to insure the accuracy of the data.

The Public Citizen report mirrored numerous federalinvestigations and investigative reports that uncovered the ObamaAdministration had consistently inflated their small business contracting databy including billions of dollars in contracts to Fortune 500firms.

Every year of the Obama Administration, SBA Inspector General Peg Gustafson has named the diversion offederal small business contracts to large businesses as thenumber one problem at the SBA. The Obama Administration has consistentlyrefused to adopt any legislation or policies to halt the widespread fraud andabuse.

The SBA Press Office has repeatedly stuck to its excuse thatthousands of large businesses have received billions in federal small businesscontracts year, after year as a result of random errors they describe as "anomalies,miscoding, computer glitches, data entry errors and simple human error."

The White House may have canceled Friday's event to prevent SBAAdministrator Contreras-Sweet from being questioned by Hoover and otherjournalists about the Public Citizen report and why the supposed random errorsin federal small business contracting do not have a random pattern ofdistribution. Journalists were expected to ask why the supposed random errorsappear to be deliberate and intentional and always dramatically inflate thetrue volume of federal contracts awarded to small businesses by includingbillions in contracts to Fortune 500 firms and their subsidiaries.    

SBA spokesman Terry Sutherlandhas not announced a new date for the Small Business Procurement Scorecard's release.

To view full press release, click here: http://www.prnewswire.com/news-releases/white-house-canceled-small-business-event-to-avoid-tough-questions-300085627.html

 


White House Silent On New Date For Canceled Small Business Event

Press Release

White House Silent On New Date For Canceled Small Business Event

ASBL Waits For New Date On White House Small Business Event

By Lloyd Chapman
American Small Business League
May 18, 2015

PETALUMA, Calif., May 18, 2015/PRNewswire-USNewswire/ -- The White House has still not announced a new datefor a major event that was abruptly canceled on the last day of National SmallBusiness Week.

The largest White House event in history to celebrate theannouncement of the government's annual Small Business Procurement Scorecardwas abruptlycanceled just hours before it was planned to begin. The event was to be ledby Small Business Administrator Maria Contreras-Sweetand was to be attended by several members of the Presidents Cabinet and othersenior Obama Administration officials. 

The original date for the event was Friday,May 8, but the White House suddenly announced the event had beencanceled late Thursday afternoon. Washington Business Journal journalist Kent Hoover released an article on Fridaytitled, "It's time for the SBA to get real about small businesscontracting numbers." He reported the event was abruptly canceledapproximately an hour after he contacted the SBA Press Office, headed by Terry Sutherland, and requested the names ofthe top 100 recipients of federal small business contracts. Hoover alsonotified the SBA "he planned to ask Contreras-Sweet about what the agencyhad done to ensure their small business contracting numbers wereaccurate."

The sudden cancellation of the event may have been to reducemedia attention on the fact the majority of the top 100 recipients of federalsmall business contracts were actually Fortune 500 firms, their subsidiaries andother large businesses.

The decision to cancel the event may have also been based on therelease of an embarrassing investigative report on Wednesday, by PubicCitizen titled "Slighted" with the subtitle "Accounting TricksCreate False Impression That Small Businesses Are Getting Their Fair Share ofFederal Procurement Money, and the Political Factors That Might Be atPlay."

The report was prompted by research done by the American Small Business League (ASBL) that has found every yearof the Obama Administration the vast majority of the top100 recipients of federal small business contracts were actually corporategiants and large businesses. ASBL President Lloyd Chapmanwas interviewed for the report.

The House Small Business Committee has unanimously adopted an amendment requesting a new Government Accountability Office (GAO) investigation intofraud in federal small business contracting based on research done by Chapman'sASBL.

The first GAO investigation into small business contractingfraud in 2002 was also based on research by Lloyd Chapman.A February 2003 article inWashington Technology reported, "In December, the General AccountingOffice began its own investigation based on information Chapman provided, said Dave Cooper, Director of GAO's Acquisitionand Sourcing Management Office."

SBA Press Office Director Terry Sutherlandhas refused to speak with anyone from the press since the sudden cancellationof the White House Small Business Procurement Scorecard event, and no new datehas yet to be announced.

To view full press release, click here: http://www.prnewswire.com/news-releases/white-house-silent-on-new-date-for-canceled-small-business-event-300084951.html?tc=eml_cleartime

 


Obama Administration Cancels Small Business Celebration Over Embarrassing Report

Press Release

Obama Administration Cancels Small Business Celebration Over Embarrassing Report

ASBL Research for Public Citizen Prompts White House to Cancel SBA Event

By Lloyd Chapman
American Small Business League
May 11, 2015

PETALUMA, Calif., May 11, 2015/PRNewswire-USNewswire/ -- The Obama Administration abruptly canceled a scheduled White House event that was to be held on Friday, May 8 to announce their fiscal year 2014 Small Business Procurement Scorecard.

Washington Journalist Kent Hoover may have frightened the ObamaAdministration into canceling a major White House event to celebrate the fiscalyear 2014 Small Business Procurement Scorecard. It was anticipated the White House was going to announce smallbusiness received 25% of all federal contracts in fiscal year 2014. TheSmall Business Administration Press Office, headed by TerrySutherland, may have panicked after Hoover asked for a list of the top 100 recipients of federalsmall business contracts.

Over the last decade it has been widelyreported that the vast majority of the top 100 recipients of federal small business contracts are actuallyFortune 500 firms and other large businesses. Hoover had apparently toldthe Press Office he planned to ask SBA Administrator MariaContreras-Sweet why the SBA had continued toinclude billions of dollars in federal small business contracts to Fortune 500firms and their subsidiaries in their small business contracting reports.

The sudden decision to cancel the event also appears to havebeen related to an embarrassing report by Public Citizen that was released on Wednesdaythat challenged the accuracy of the Obama Administration's smallbusiness contracting data. The Public Citizen investigative report wasbased largely on research done by the American Small Business League andinterviews with their President Lloyd Chapman.

Information Chapman provided to Public Citizen proved the SBA policy ofincluding contracts to Fortune 500 firms in their small business data was infact illegal, fraudulent and in direct violating of the Small Business Act.Chapman has released a series of press releases and blogs exposing the fraud in SBA managed programs.

Chapman also provided the language in the Small BusinessAct that proves the SBA policy of excluding billions from the overall federalprocurement budget in order to significantlyinflate the percentage of federal contracts that appear to have beenawarded to small business was also blatantly illegal. The Small Business Actmandates a minimum of 23% of the total value of all federal contracts beawarded to small business and has no provisions for any exclusions used bythe SBA to inflate and misrepresent the percentage of awards to small businesses.

The Obama Administration has not announced when the event willbe rescheduled.

To view full press release, click here: http://www.prnewswire.com/news-releases/obama-administration-cancels-small-business-celebration-over-embarrassing-report-300080641.html?tc=eml_cleartime

 


Small Business Administration Uses Variety of Accounting Tricks to Give Contracts to Big Businesses

News

Small Business Administration Uses Variety of Accounting Tricks to Give Contracts to Big Businesses

By Steve Straehley
AllGov
May 10, 2015

Lockheed Martin is the largest federal contractor. It had morethan $45 billion in revenue in 2013 and currently employs 112,000people. But as far as the Small BusinessAdministration (SBA) is concerned, it can be counted as a smallbusiness.

The federal government reserves some of its contracts, 23% forprime contracts and 36% of subcontracts, for small businesses. What constitutesa small business varies, but generally it can't have more than 1,500 employeesor have more than $38.5 million in revenue.

So how did Lockheed Martin and other huge corporations such asBoeing and General Dynamics qualify for contracts set aside for businesses ofthat size? At least partly due to the misconception that a small businessacquired by a giant corporation may keep its status for several years,according to a report(pdf) by Public Citizen. Thatmisconception starts at the top. SBA Administrator MariaContreras-Sweet was asked last year by a House panel why largecorporations were getting contracts set aside for small businesses. "We have arule in place that says that once you get in a contract with government, thatyou are given five years. And so if a large company acquires a small business,then it is grandfathered in for a number of years," Contreras-Sweet replied.

Except that's not the case. According to a 2007 rule:

"Inthe case of a merger or acquisition, where contract novation is not required,the contractor must, within 30 days of the transaction becoming final,recertify its small business size status to the procuring agency, or inform theprocuring agency that it is other than small. If the contractor is other thansmall, the agency can no longer count the options or orders issued pursuant tothe contract, from that point forward, towards its small business goals. Theagency and the contractor must immediately revise all applicable Federalcontract databases to reflect the new size status."

Toview full article, click here: http://www.allgov.com/news/where-is-the-money-going/small-business-administration-uses-variety-of-accounting-tricks-to-give-contracts-to-big-businesses-150510?news=856445

 


SBA Accused of Shortchanging Small Business Contractors

News

SBA Accused of Shortchanging Small Business Contractors

By Rick H
Procas
May 8, 2015

The consumer rights advocacy group Public Citizen released aninvestigative reportduring National Small Business Weekaccusing the Small Business Administration (SBA) of using accounting tricks andfunky statistics to artificially inflate the number of contracts awarded tosmall businesses.

Public Citizen's premise,based on earlier work conducted by the American Small Business League (ASBL),centers on two findings:

1.      The Small BusinessAct mandates that smallbusinesses receive a minimum of 23% of the total value of all federalcontracts. The SBA uses asignificantly lower budget number than the actual total procurement budget that greatly inflatesthe percentage of federal contracts to small businesses.

2.     The Federal Government greatlyexaggerates the volume of federal contracts awarded to small businesses by including billions of dollars infederal contracts to Fortune 500 firms, their subsidiaries and thousands of large businesses. The SmallBusiness Act clearly defines a small business as being independently owned andhaving no more than 1500 employees. The definition independentlyowned would exclude any Fortune 500 firms since they are publicly owned and obviously have more than 1500employees.

GovExec reportsthat "In 2013, seven of the 10 largest federal contractors received at leastone contract that SBA counted toward fulfillment of small business goals, thereport said. Of the 100 contractors receiving the most federal dollars countedtoward small business goals in 2012, 71 did not meet the government'sstandards to qualify as small businesses, the [Public Citizen] report said,citing the American Small Business League."

To view full article, click here: http://www.procas.com/blog/index.php/headlines-sba-accused-of-shortchanging-small-business-contractors/