Pentagon Funding Bill Includes Language to Dismantle Small Business Programs

Press Release

Pentagon Funding Bill Includes Language to Dismantle Small Business Programs

American Small Business League
September 14, 2016

PETALUMA,Calif., Sept. 14, 2016 /PRNewswire-USNewswire/ -- Senate Armed ServicesCommittee Chairman, Senator John McCain, has included language in the 2017National Defense Authorization Act (NDAA) that could virtually repeal the SmallBusiness Act and put thousands of small businesses out of business.

TheNDAA bill includes three provisions that could dismantle federal law thatmandates American's 28 million small businesses receive a minimum of 23%of all federal contracts. McCain's version of the 2017 NDAA (S.2943) would excludesmall businesses from participating in all foreign contracts. It would alsocreate a loophole that would allow the Pentagon to falsify compliance withthe federal government's 23% small business goal.

McCain'sversion of the 2017 NDAA also includes language that would makethe Pentagon's controversial 27-year-old Comprehensive Subcontracting Plan TestProgram (CSPTP) permanent. TheCSPTP was adopted in 1989 after the Pentagon was forced to release smallbusiness subcontracting reports that indicated Pentagon prime contractors werenot complying with federal small business subcontracting laws and regulations.

TheTest Program was adopted under the guise of "increasingsubcontracting opportunities for small business." In reality,it eliminatedall public transparency on small business subcontracting data. It alsoeliminated penalties that had existed for prime contractors that violatedfederal contracting law. The Pentagon has now been "testing" whetherthe elimination of transparency and penalties for prime contractors will"increase subcontracting opportunities for small businesses."

ThePentagon has refused to release any dataon the Test Program for 27 years. In 2015, the Pentagon finally produced astudy that admitted the CSPTP had actually dramatically reducedsubcontracting opportunities for small businesses since 1989. The AmericanSmall Business League (ASBL) estimates since1989 American small businesses where cheated out of up to two trillion dollarsin federal subcontracts as a result of the CSPTP. Pentagon prime contractorsthat violated federal contracting law faced no penalties.

ProfessorCharles Tiefer one of the nation's leading experts on federal contracting lawreleased a legal opinion of the CSPTP describing it as a "sham."In his legal opinion Professor Tiefer states, "Theprogram is a sham and its extension will be seriously harmful to vitalopportunities for small business to get government contracting work... Let itexpire."

TheASBL filed suitagainst the Pentagon for refusing to release data on the CSPTP under theFreedom of Information Act. During the ASBL's suit against the Pentagon FederalDistrict Court Jude William Alsup stated,"So it would be more like a David and Goliath. You get to come in thereand be the underdog again against the big company and against the biggovernment… They are trying to suppress the evidence."

TheASBL has launched a nationalcampaign to encourage Senator McCain to remove the language from the2017 National Defense Authorization Bill that would dismantle federal smallbusiness contracting programs.

Toview full press release, click here: http://www.prnewswire.com/news-releases/pentagon-funding-bill-includes-language-to-dismantle-small-business-programs-asbl-reports-300327744.html

 


Clinton and Trump Asked To Address Problems in Federal Small Business Programs

Press Release

Clinton and Trump Asked To Address Problems in Federal Small Business Programs

American Small Business League
September 13, 2016

Presidentialcandidates Hillary Clinton and Donald Trump have been asked by the AmericanSmall Business League (ASBL) to address abuses that have been uncovered infederal small business contracting programs. The ASBL has sent openletters to both Trump and Clinton on the issue.

The ASBL haslaunched a national campaign to try and focus more media attention during theelection on abuses that have been uncovered in federal small businesscontracting programs. Federal law mandates a minimum of 23% of all federalcontracts be awarded to small businesses. Congress has established anadditional 5% small business contracting goal for firms owned by women andminorities, as well as a 3% small business contracting goal has beenestablished for service-disabled veteran owned firms.

The SmallBusiness Administration Office of Inspector General released Report5-15 on the diversion of federal small business contracts to Fortune 500firms and other clearly large businesses. It stated, "One of the most importantchallenges facing the Small Business Administration (SBA) and the entireFederal Government today is that large businesses are receiving small businessprocurement awards and agencies are receiving credit for these awards."

During hisfirst campaign, President Obama released a pro small business statementthat ended with the sentence, "It is time to end the diversion of federal smallbusiness contracts to corporate giants."

On July 25,2016, Mother Jones magazine released an article by Josh Harkinson on the issuetitled, "Giant Corporations Are Reaping Billions From Federal 'Small Business'Contracts."

TheGovernment Accountability Office (GAO) investigated the federal program forService-Disabled Veteran-Owned Small Businesses (SDVOSB). Their report GAO-10-108stated, "By failing to hold firms accountable, SBA and contracting agencieshave sent a message to the contracting community that there is no punishment orconsequences for committing fraud or abusing the intent of the SDVOSB program."

ProfessorCharles Tiefer served in 2008-2011 as Commissioner on the Congressionalchartered, Federal Commission on Wartime Contracting in Iraq and Afghanistan.He issued a statementto ValueWalk on the issue in April 2014 stating, "Billions of dollars are atstake for small businesses in America… They are, frankly, being cheated out oftheir opportunity to provide goods and services to the American people becauselarge companies such as Verizon, Citigroup, Boeing etc, have figured out how tomanipulate the system. Worse, when people such as Lloyd Chapman, the head ofthe American Small Business League and a true champion in this field try toexpose these unsavory practices, they are held up to scorn and ridicule."

In additionto their efforts to encourage Donald Trump and Secretary Clinton to addressabuses in federal small business programs, the ASBL will be contacting Chambersof Commerce and media outlets in battle raid states until November 8th.

To view fullpress release, click here: http://www.prweb.com/releases/2016/09/prweb13678982.htm

 


Federal Injunction Case Could Impact Monthly Jobs Report

Press Release

Federal Injunction Case Could Impact Monthly Jobs Report

American Small Business League
September 1, 2016

PETALUMA, CA--(Marketwired -September 01, 2016) - A federal lawsuit that has been filed against the SmallBusiness Administration (SBA) could have an impact on the monthly jobs reportreleased by the Labor Department. A report by the SBA found that 90% of all U.S. firmshave less than 20 employees and those firms are responsible for up to 97% ofall net new jobs in America.

Federal law mandates that smallbusiness receive a minimum of 23% of allfederal contracts. American Small Business League (ASBL) research based oninformation from the Federal Procurement Data Systemand the Congressional Budget Officeindicates legitimate small businesses may be receiving as little as 3% of allfederal contracts.

If the ASBLwins their case, they estimate the nation's 28 million small businesses couldreceive an additional $240 billion a year infederal contracts and subcontracts.

ASBL President Lloyd Chapmanstated, "When we win this case it will redirect over one trillion dollarsin additional federal infrastructurespending to small businesses over the next five years. This shouldhave a noticeable impact on the monthly jobs report as those funds begin toflow to small businesses across the country. U.S. Census Bureau data and SBA data indicatesmall businesses are responsible for over 90% of net new jobs in America. Inreality, the monthly jobs report is predominantly the small business jobsreport."

The American Small BusinessLeague has filed the case against the SBA in federal district court in SanFrancisco. The ASBL is asking the courtto grant an injunction to stop theSBA from diverting federal smallbusiness contracts to Fortune 500 firms, their wholly owned subsidiaries andany other firms that would not currently qualify as small businesses underfederal law.

Mother Jones released anarticle on July 25th, titled, "Giant Corporations Reaping Billions in FederalSmall Business Contracts" that concurred with the ASBL's position.

The ASBL is also asking thecourt to stop the SBA from fabricating and inflating the percentage ofcontracts awarded to small businesses by excluding the vast majorityof federal acquisitions from their calculations. For 2015 the CongressionalBudget Office reported a total acquisition budget of 1.2 trillion. The SBA useda number of just $391 billion to claim small businesses received 24.9% of all federalcontracts that year.

A legal opinion from one ofthe nation's leading experts on federal contracting law, Professor Charles Tiefer agrees with the ASBLfindings the SBA has been excluded approximately two thirds of the federalacquisition budget from their calculations.

President Obama pledged to end the abuses at the SBA when hereleased the statement, "It is time to end the diversion offederal small business contracts to corporate giants."

The first court appearance inthe case will be on October 6, 2016, before Federal District Court Judge VinceChhabria.

To view full press release,click here:  http://www.marketwired.com/press-release/federal-injunction-case-could-impact-monthly-jobs-report-according-to-asbl-2155065.htm

 


Best way to get a federal contract? Be working with the feds already

News

Best way to get a federal contract? Be working with the feds already

Miami Herald
August 30, 2016

WASHINGTON - North Carolina small firms might be able to obtainadditional federal business if lawmakers change the rules surrounding thegovernment's process of awarding contracts.

Thosebusinesses have been struggling to win the lucrative contracts, in part becauseofficials tend to give them to firms that have long-term relationships with thefederal government. That is why HouseSmall Business Committee Chairman Steve Chabot, R-Ohio, wants totweak the rules that govern the Small Business Administration. Chabot hascrafted legislation, known as the DefendingAmerica's Small Contractors Act of 2016, to make those changes.

▪ Thelegislation would make it easier for small-business advocates to reviewcontracts and delivery orders set aside for fledgling companies.

▪ Itwould improve the process by which those companies are educated onsmall-business rules.

Largementor firms would be barred from having relationships with smaller firmsbefore pairing up with them in a mentor-protégé program.

F.O.C.U.S. Resources PresidentLea Strickland, who advises small businesses – and even a few fledgling defensecontractors – on how to navigate contracting issues, says the new congressionalsupport is welcome but falls short of addressing some of the bigger problems.

Morethan anything, those contractors need the federal government to provide themwith clear statements on contract requirements and time commitments, she said.Small businesses that pursue federal contracts experience difficulty competingfor them due to that lax guidance, Strickland said.

"It'seven more critical to a small business, because they have less opportunity toabsorb any timing differences and financing differences," she said.

Thegovernment should also consider offering advance payments to those contractorsso that they can pay up front for inventory and staffing increases, she said.

Smallbusiness contract actions plummeted almost 60 percent from fiscal years 2011 to2014, according to a July25 congressional report. Additionally, the number of companiesregistered to perform contract services has dropped by over 100,000 since 2012,Rep. Alma Adams, D-Charlotte, said in an email.

Someof that attrition may be due to the fact that some firms do not know how toapply for federal contracts or navigate the federal contract process, Adamssaid. Regulations surrounding that process can sometimes be overly complicatedand inconsistent, she said.

The percentage of contractdollars awarded to small businesses at DoD increased from just over 16 percentto just over 19 percent, but the actual dollars only fluctuated by about 10percent. The number of small business contract actions at DoD fell by almost 70percent, and the value of those contract actions rose by nearly 290 percent.July25 congressional report

"Ithink there are many reasons (for that trend), including perhaps of a lack ofknowledge or understanding on where and how to apply for federal contracts,"she said.

Adamsis theonly North Carolina lawmaker with a seat on the House Small BusinessCommittee.

Fightingfor and winning a Defense Department contract is particularly difficult forfledgling firms. At the Defense Department, the percentage of contract dollarsawarded to small businesses has plummeted by almost 70 percent, while the valueof those contracts has spiked about 290 percent.

Someof those contracts are being scooped up by large companies that have boughtsmall companies.

"We'vefound that there have been reports of instances where federal contracting dollarswere being awarded to a large business, but counted towards federal smallbusiness contracting goals," Adams said.

H.R. 4341 fixes this issueby including a reporting mechanism requirement for the SBA to report the valueof contracts credited to each goal if the contract is being performed by acompany that is no longer small or no longer qualifies for the procurementprogram. Rep. Alma Adams, D-Charlotte

National Small Business Association spokeswomanMolly Day said it was a natural part of the cycle for businesses to grow and besold off.

"Idon't think always you know some nefarious large corporation is doing it tofleece the federal contractors into getting small business contracts," she said.

TheAmerican Small Business League seesthings differently. Small businesses have been fighting an uphill battle fordecades and have received little help from lawmakers who have accepteddonations from big companies, said league President Lloyd Chapman. Hequestioned Chabot's effort to improve conditions for small businesses.

"TheHouse Small Business Committee hasn't done anything good for small business in30 years," he said.

Whether it is waivingupfront fees for veterans who want to become entrepreneurs or helping smallcompanies ravaged by natural disasters get back on their feet, members of thiscommittee will continue to work in a bipartisan manner to help the owners,employees and patrons of America's 28 million small businesses to prosper andthrive. House Small Business Committee spokesman Joe Sangiorgio

TheAmerican Small Business League has filed multiple lawsuits on behalf of smallcompanies. This year, its members sued Small Business AdministrationAdministrator Maria Contreras-Sweet, accusing her of using "creativeaccounting" to compile its annual reports. Each federal agency is required tosend a report to the administrator at the end of every fiscal year thatexplains why that agency was able to achieve its small-business goals or why itwasn't.

Thelawsuit accuses the administration of failing to ensure that the required 23percent of the lead contract awards went to small businesses from 2006 to 2012.

 

To view full article, click here: http://www.miamiherald.com/news/nation-world/national/article98804657.html