PETALUMA, Calif., April 8, 2015/PRNewswire-USNewswire/ -- As a member of the House Small Business Committee, CongresswomanJanice Hahn from California's44^th District has proposed an amendment that would request a new GovernmentAccountability Office (GAO) investigation into the diversion of billions ofdollars in federal small business contracts unfairly awarded to Fortune 500companies.

Congresswoman Hahn's decision to request the new GAO investigationwas based on research by the American Small Business League (ASBL). Hahn expressed concernabout the government's claim that 23% of all federal contracts were actuallybeing awarded to small businesses when that number includedbillions of dollars to Fortune 500 firms such as Apple, Chevron, Disney, Verizonand Bank of America.

The last GAO investigation into the diversion of federal smallbusiness contracts to corporate giants was in 2002 and was prompted byinformation providedby ASBL President and founder Lloyd Chapman. That investigation found over 5,300 large businesses werereceiving federal small business contracts. Chapman was invited to testifybefore the House Small Business Committee after the results of theGAO investigation were released.

A recent study by the ASBL found Fortune 500 firms are stillreceiving billions of dollars in federal small business contracts. Afterreviewing data from the Federal Procurement Data System, the ASBL found of thetop 100 recipients receiving the highest dollar amount in federal smallbusiness contracts, over 75 were currently large businesses, Fortune 500 firmsor subsidiaries of large businesses. Some of the firms that have receivedfederal small business contracts in recent years include, Disney, BritishAerospace Engineering (BAE), Raytheon, Apple, IBM, Hewlett-Packard, Oracle,Lockheed Martin, Rolls Royce and Finmeccanica in Italy.

The largest recipient of federal small business contracts infiscal year 2014 was Verizon.  They received over $125,885,000in federal small business contracts through their subsidiary Terremark Federal Group.

Every year since 2005 the Small Business Administration Officeof Inspector General has named the diversionof federal small business contracts to large businesses as "One of themost important challenges facing the Small Business Administration (SBA) andthe entire Federal Government today…"

ABC, CBS, NBC, CNN, MSNBC, CNBC, Fox News and RTTV haveall released investigative reports on the diversion of federal small businesscontracts to Fortune 500 firms.

"Congresswoman Hahn's call for a new GAO investigation intosmall business contracting fraud could redirect billions in federal smallbusiness contracts from corporate giants and back into the hands of thousandsof legitimate small businesses. This would provide a significant boost to themiddle class economy and create jobs across the country. Congresswoman Hahn iswithout question one of the strongest voices for American small businesses inCongress today," stated ASBL President Lloyd Chapman.

To view full press release, click here: http://www.prnewswire.com/news-releases/congresswoman-hahn-requests-federal-investigation-into-small-business-contracting-fraud-300062497.html

PETALUMA, Calif., Dec. 3, 2014/PRNewswire-USNewswire/ -- Congress has voted to renew a 25-year-old Pentagon program titled the ComprehensiveSubcontracting Plan Test Program (CSPTP).  Federal District Court Judge William Alsup has ordered thePentagon to release potentially damaging information that has been submittedunder the CSPTP by one of the Pentagon's largest prime contractors, SikorskyAviation Corporation. This will be the first time in a quarter of a centuryanyone has ever seen any data on the CSPTP.

The American Small Business League (ASBL) filed a Freedom of Information Act (FIOA) request for the mostrecent data submitted by Sikorsky under the CSPTP as a test case to challengethe Pentagon's refusal to release any information on the program.

The ASBL believes the data could be so damaging it couldconvince President Obama and Congress not to renew the CSPTP into its 28^th year of testing.

The case was part of a national campaign launched by ASBL PresidentLloyd Chapman to block the renewal of the CSPTP.

Several stories have already been released on Judge Alsup's ruling and the impact itcould have on the release of more data.

The Pentagon adopted the CSPTP in 1990 under the pretense of"increasing subcontracting opportunities for small businesses." It appears the true purpose of the program was to do just the opposite. Inreality the CSPTP eliminated all publicly available data on a primecontractor's compliance with their small business subcontracting goals. It alsoeliminated any penalties prime contractors had previously faced fornon-compliance with their small business subcontracting goals such asliquidated damages.

"Removing all transparency and penalties for Pentagon primecontractor's as a means to increase subcontracting opportunities for smallbusinesses is ludicrous," Chapman stated. "This program was clearlydesigned as a loophole to allow the Pentagon and its largest prime contractorsto circumvent federal law establishing small business subcontracting goals andcheat small businesses. It would be criminal to renew this blatant anti-smallbusiness program into its twenty-eighth year of testing."

In September, Professor Charles Tiefer,one of the nation's leading experts on federal contracting law issued a legal opinion of the CSPTP. It stated, "The program isa sham and its extension will be seriously harmful to vital opportunities forsmall business to get government contracting work... There is no doubt in mymind the CSPTP has significantly reduced subcontracting opportunities for smallbusinesses. It should not have gotten its 25 years of extension as anever-tested 'Test Program.' Let it expire."

The renewal of the CSPTP until 2017 is currently included in the2015 National Defense Authorization Act (NDAA). It is probable that Congresswill vote on the bill before the December recess.

Judge William Alsup has ordered to the Pentagon torelease Sikorsky's Comprehensive Subcontracting Plan to the ASBL no later than December 3, 2014.

"I'll be stunned if we receive the information on December 3rd as Judge Alsup ordered. This information isso explosive it will block the renewal of the CSPTP in the 2015 NationalDefense Authorization Bill. I predict the Pentagon will do whatever it takes towithhold the release of this information until after Congress has renewed theprogram," stated Lloyd Chapman.

ASBL documentary trailer

To view full press release, click here: http://www.prnewswire.com/news-releases/federal-court-ruling-could-kill-25-year-old-pentagon-test-program-300003871.html

PETALUMA, Calif., Dec. 2, 2014/PRNewswire-USNewswire/ -- Federal Judge William Alsupof the Northern District Federal Court has ordered the Pentagon to releasefederal subcontracting data no private citizen, journalist or member ofCongress has ever been allowed to see.

The Pentagon was ordered to release subcontracting data on Sikorsky AviationCorporation that had been submitted under the 25-year-old ComprehensiveSubcontracting Plan Test Program (CSPTP).

The information had been requested under the Freedom of Information Act (FOIA) by the American SmallBusiness League (ASBL) as atest case in response to the Pentagon's refusal to release any data on theCSPTP in over 25 years.

The CSPTP was adopted in 1990 under the pretense of "increasing subcontracting opportunities for small businesses."In reality the program did just the opposite and eliminated all publiclyavailable reports and all penalties for non-compliance with subcontractinggoals for the Pentagon's largest prime contractors.

During the last 25 years the Pentagon has refused to release any data on the program. The ASBL'slegal victory will result in the first public access to documents on the CSPTPsince it began in 1990.

"Judge Alsup's ruling will be the first step in forcing thePentagon to release every single document that has been submitted to the CSPTPby every prime contractor that has participated in the program since 1990. Ibelieve these documents will prove the Pentagon has been complicit in hundredsof billions in fraud in subcontracting programs. Once we receive the documentswe will begin to provide them to the FBI and the Government AccountabilityOffice for investigation," said ASBL President LloydChapman.

In September of this year one of America's leading experts onfederal contracting law, Professor Charles Tiefer,released a legal opinion that harshly criticized the CSPTP andreferred to it as a "sham." Professor Tiefer's opinion stated,"The program is a sham and its extension will be seriously harmful tovital opportunities for small business... There is no doubt in my mind theCSPTP has significantly reduced subcontracting opportunities for smallbusinesses. It should not have gotten its 25 years of extension as anever-tested 'Test Program.' Let it expire."

Both the House and Senate have voted to extend the CSPTP intoits twenty-eighth year of testing even though no member of Congress has everseen a single report on the program in over 25 years. The Chairman's Mark ofthe 2015 National Defense Authorization Bill stated, "However,after nearly 24 years since the original authorization of the program, the testprogram has yet to provide evidence that it meets the original stated goal ofthe program..."

The ASBL's lawsuit to obtain data on the CSPTP was part of a national campaign they launched in 2010 to halt therenewal of the program. The ASBL is the only national small businessadvocacy group to ever criticize the program publicly.

"The Pentagon's refusal to release any data on the CSPTP inover 25 years proves Professor Tiefer was right when he referred to it as asham. I'm confident the data we will receive will convince Congress not torenew this blatantly anti-small business program. Congress should launch aninvestigation into the program and all of its participants," Chapmanstated.

Judge Alsup has ordered the Pentagon to release the data by Dec. 3.

Lloyd Chapman Documentary Trailer

To view full press release, click here: http://www.prnewswire.com/news-releases/pentagon-ordered-to-release-data-on-25-year-old-sham-test-program-300003036.html

PETALUMA, Calif., Nov. 20, 2014/PRNewswire-USNewswire/ -- In a matter of daysPresident Obama and Congress will likely renew the 25-year-old Pentagon Comprehensive SubcontractingPlan Test Program (CSPTP) into its 28^th year of testing.

The Pentagon adopted the CSPTP 25 years ago in 1990 under the guise of "increasing subcontracting opportunities for small business."In reality the CSPTP did just the opposite. Once the CSPTP was implemented, it eliminated all transparency on publicly available smallbusiness subcontracting information and any penalties, such as liquidated damages,for prime contractors that failed to comply with their small businesssubcontracting goals.

Before 1990, the general public could use the small businesssubcontracting reports to track a prime contractor's compliance with theirsmall business subcontracting goals. 

For 25 years the Pentagon has refused to release any of the subcontracting data primecontractors participating in the CSPTP have submitted.

A 2004 GAO investigation found no evidence that the CSPTP hadever "increased subcontracting opportunities for small businesses."

The Chairman's Mark of the House version of the 2015 NationalDefense Authorization Bill stated, "However,after nearly 24 years since the original authorization of the program, the testprogram has yet to provide evidence that it meets the original stated goal ofthe program..."

In September, Professor Charles Tieferissued a legal opinion on the CSPTP that stated, "The programis a sham and its extension will be seriously harmful to vital opportunitiesfor small business to get government contracting work… There is no doubt in mymind the CSPTP has significantly reduced subcontracting opportunities for smallbusinesses. It should not have gotten its 25 years of extension as anever-tested 'Test Program.' Let it expire."

The American Small Business League (ASBL) has launched a national campaign to block the renewal of the CSPTP. The ASBL has been the onlynational small business advocacy group to publicly oppose the renewal of theprogram. The ASBL has filed suit in federal District Court in San Francisco under the Freedom of Information Act to force the Pentagon to releasethe most recent subcontracting reports submitted under the CSPTP by Lockheed Martin, British Aerospace and Engineering (BAE)and Sikorsky.

"The Comprehensive Subcontracting Plan Test Program is oneof the biggest anti-small business scams in the history of the Pentagon. Thevery idea of eliminating all transparency and penalties for prime contracts tosee if that increases subcontract opportunities for small business is astaggering example of Pentagon fraud. The fact that Congress has renewed thisprogram for 25 years is insane. The idea that President Obama and Congresscould renew this program into its 28^th year of testing is the absolute pinnacle of corruption in Washington," ASBL PresidentLloyd Chapman stated.

To view full press release, click here: http://www.prnewswire.com/news-releases/pentagon-25-year-old-sham-program-to-be-renewed-by-congress-283317751.html

PETALUMA, Calif., Nov. 19, 2014/PRNewswire-USNewswire/ -- In 2005, the Small Business Administration Office ofInspector General released Repot5-15 that stated, "One of the most important challenges facing theSmall Business Administration (SBA) and the entire Federal Government today isthat large businesses are receiving small business procurement awards andagencies are receiving credit for these awards."

Every year since 2005, every SBA Inspector General hasreiterated that the diversion of federal small business contracts to largebusinesses is still the number one problem at the SBA.

A long series of federalinvestigations have all uncovered many Fortune 500 firms have been theactual recipients of billions of dollars in federal small business contracts.The Associated Press reported on the problem in 2003. NBC, CBS, ABC, CNN, Fox Newsand RTTVhave also reported on the diversion of federal small business contracts tocorporate giants.

Some of the firms that have receivedfederal small business contracts include, Oracle, Hewlett-Packard, Dell,IBM, Verizon, Chevron, Apple, General Electric, AT&T, UPS, Bank of America,Citigroup, J.P. Morgan Chase & Co., Home Depot, Wells Fargo, L-3Communications, Microsoft, Pepsi, Boeing, Raytheon, Lockheed Martin, NorthropGrumman, General Dynamics, American Airlines and John Deere.

During his first campaign President Obama released thestatement, "Its time to end the diversion of federal small business contracts to corporategiants."

Congress has refused to pass any legislation such as theFairness and Transparency in Contracting Act (H.R. 1622)to stop large businesses from hijacking billions of dollars in federal smallbusiness contracts year after year.

Under section 16(d) of the Small Business Act the penalty for anylarge business that misrepresents itself to illegally received federal smallbusiness contracts is up to ten years in prison, a $500,000fine or both.

As opposed to passing any legislation to halt the illegaldiversion of federal small business contracts to large businesses, Congresspassed legislation that will likely encourage more fraud in federal smallbusiness programs. In the 2013 National Defense Authorization Act (NDAA),Congress approve the "safe harbor from fraud penalties" policy. Under thepolicy any large business that is uncovered illegally receiving federal smallbusiness contracts can avoid all penalties simply by claiming they "acted in good faith".

American Small Business League President, LloydChapman, launched anationalcampaign to oppose the policy. "It's very disappointing Congresshas refused to pass any legislation to stop the rampant fraud that has beenuncovered in federal small business contracting programs. It's absolutelyastounding that instead they passed legislation that will certainly increasefraud by adopting legislation that will actually protect fraudulent firms fromprosecution. It seems Congress has received more lobbying dollars from largefraudulent firms than America's 28 million legitimate small businesses."

The SBA is expected to release thefinal rule establishing the "safe harbor from fraud penalties"policy before the end of the year.

Here is a trailer about Lloyd Chapman'scrusade for his new documentary.

To view full press release, click here: http://www.prnewswire.com/news-releases/congress-voted-to-protect-contracting-fraud-not-stop-it-283171631.html