Federal Injunction Case Could Triple Federal Funds for Women and Minorities
American Small Business League
October 3, 2016
PETALUMA, CA--(Marketwired -October 03, 2016) - A federal case filedby the American Small Business League (ASBL)against the Small Business Administration (SBA) could result in a significantincrease in the volume of federal contracts that will be awarded to bothwoman-owned and minority-owned small businesses in the next administration.
The case will be heard byFederal District Court Judge Vince Chhabria on October 6th in Federal DistrictCourt in San Francisco.
Federal law has established aminimum small business contracting goal for the federal government of 23%of all federal contracts. Including a minimum of 5% of all federalcontracts be awarded to woman-owned small businesses and a 5% goal forminority-owned small businesses.
According to the CongressionalBudget Office the total federal acquisition budget for fiscal year 2015 was$1.2 trillion. To claim the federal government had awarded 5% of all federalcontracts to small businesses owned by women and minorities in 2015, the SBA excluded over $800 billionin federal acquisitions from their calculations. The ASBL believes in 2015alone legitimate woman-owned small businesses and minority-owned smallbusinesses were each shortchanged out of over $40 billion in federal contractsand subcontracts.
The ASBL's case points out the SmallBusiness Act mandates all categories of small business goals are based on"all" federal contracts and makes no mention of any provisions toexclude any portion of the federal acquisition budget.
The ASBL is also asking thecourt to issue an injunction to stop the SBA from diverting billions ofdollars a month in federal small business contracts to Fortune 500 firms, theirwholly owned subsidiaries and thousands of large businesses. In recent years some of thefirms that received federal contracts the SBA reported as going to smallbusinesses included, Rolls Royce, IBM, Apple, General Electric, Target, HomeDepot, Pepsi, Staples, John Deere, CVS, Wells Fargo and UPS.
In the ASBL's filingswith the court, they point out that no language in the Small Business Actwould allow any large businesses, or their subsidiaries, to be considered asmall business. The ASBL believes if they win their case against the SBA,legitimate woman-owned andminority-owned small businesses will see their volume of federal contractsgo up by $400 billion each over the next ten years.
ASBL President Lloyd Chapman stated,"We believe the court will agree that the word 'all' is not ambiguous andthat Fortune 500 firms are not small businesses."
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