Federal Injunction Against The SBA Thrown Out, Costing Small Businesses Billions of Dollars
American Small Business League
October 19, 2016
PETALUMA,Calif., Oct. 19, 2016 /PRNewswire-USNewswire/ -- The American SmallBusiness League's (ASBL's) controversialinjunction against the Small Business Administration was thrown out today.
Aftera rocky litigation riddled with several eyebrow raising moments, (the SBA triedto reword the ASBL's accusations that they were not hitting their small businesscontracting goals, and the initial hearing was canceled at the last minute infavor of a private ruling) Judge Vince Chhabria has ruled against theinjunction. "This is not unexpected" says ASBL President LloydChapman, "This case would uncover over $2 trillion in fraud from the ObamaAdministration. If the Federal courts can't stop fraud in federal smallcontracting, where do you go?"
Federallaw mandates small businesses receive a minimum of 23%of all federal contracts. Within that goal are separate goals for smallbusinesses owned by women, minorities and service-disabled veterans.
TheASBL estimates that as opposedto the $276 billion legitimate small businesses should have received in 2015,they likely received between $35 to $40 billion or just 3% of all federalcontracts.
Inaddition, the ASBL seeks to stop the SBA from divertingbillions of dollars in federal small business contracts to Fortune 500 firmsand their subsidiaries.
AGovernment Accountability Office investigation uncoveredthe SBA had falsified the government's compliance with the 23% small businesscontracting goal by including billions of dollars in federal smallbusiness contracts to over 5,300 Fortune 500 firms and other large businesses.
ProfessorCharles Tiefer, one ofthe nation's leading experts in federal contracting law and former Commissionerof Wartime Contracting in Iraq and Afghanistan, submitted a declaration insupport of the ASBL case. "Today's ruling locked the courthouse doorwithout even giving this very real and meaningful suit its rightful day incourt," says Tiefer. "If the lawsuit had been allowed to get itsrightful day in court on the merits, the lawsuit would have required the SBA togive all small businesses -- and doubly so for minority, women-owned,and disabled veteran businesses -- a larger and proper share of federalprocurement." "Dismissing the suit frustrates the legitimate rightsof small businesses to their proper share of the true scale of governmentcontracting."
Toview full press release, click here: http://www.prnewswire.com/news-releases/federal-injunction-against-the-sba-thrown-out-costing-small-businesses-billions-of-dollars-300347877.html