National Small Business Advocates Join Forces To Protect Small Business Programs

Press Release

National Small Business Advocates Join Forces To Protect Small Business Programs

ASBL's President Lloyd Chapman And Professor Charles Tiefer Oppose New SBA Policy

By Lloyd Chapman
American Small Business League
October 9, 6400

PETALUMA, Calif., Nov. 10, 2014/PRNewswire-USNewswire/ -- Today is the last day to leave a public comment opposing the SBA's plan to eliminatethe 150 employee based size standard under NAICS code 541519 for InformationTechnology Value Added Resellers (ITVARs).

The nation's leading expert on federal contracting law,Professor Charles Tiefer, has teamed up with AmericanSmall Business League (ASBL) President and founder, Lloyd Chapman,to oppose a new SBA policy they believe will be devastating to thousands of small businesses. ProfessorTiefer has left an extremely powerful comment that refutes every argument theSBA has for removing ITVARs from NAICS code 541519.

The policy was derived from Congress's intent in the Small Business Jobs Act of 2010 toincrease small business size standards "to allow small businesses tocompete in the current federal marketplace." This proposed rule does exactly the opposite by "eliminating" the highersize standard of 150 employees and using the lower size standard of $27.5 million in receipts. In fact, Professor Tiefermentioned that if the SBA adopts the final rule, "small businesses will besqueezed out of the federal marketplace."

One of the SBA's justifications for implementing this new changeis, "Over the years, SBA has received comments that its size standardshave not kept up with changes in the economy, in particular the changes in theFederal contracting marketplace and industry structure."

"It's curious the SBA would propose to change the sizestandard for 541519 based on an undisclosed number of anonymous comments andyet ignore a decade of reports from the SBA's own Office of Inspector Generaland the General Accounting Office on the rampant diversion of federal smallbusiness contracts to corporate giants," LloydChapman stated in his comment.

"I believe the most compelling argument against eliminatingthe 150 employee small business size standard for 541519 comes from the SBAitself," said Chapman referring to the SBA's 2003 final rule when they established the 150 employee sizestandard and stated, "An employee size standard is considered a bettermeasure of the size of ITVARs operation than receipts since a substantialproportion of their receipts merely reflect the dollar value of equipment andsoftware sold."

Many concerned ITVARs that believe this policy will hurt theircompany have already left compelling arguments as to why this rule should berejected. "Eliminating the 150 employee ceiling puts the 'high-employee-level'type of contractor out of business, because it cannot get down under $27.5 million without a kind of radical chopping itcannot handle – i.e., switching to a business model of fewer employees, and,laying off a third (50) or more employees," stated Professor Tiefer.

The SBA's only argument to support their proposal of removingthe exception from NAICS code 541519 is that, "it has created someinconsistencies, confusion, and misuse."

"The arguments the SBA puts forth simply do not have anytraction for questioning or changing the 2003 establishment of thecategory.  It should continue, not eliminate, IT-VAR," statesProfessor Tiefer in his final remarks.

To view full press release, click here: http://www.prnewswire.com/news-releases/national-small-business-advocates-join-forces-to-protect-small-business-programs-282159601.html

 


Pentagon Going To Court For Refusing To Release Sikorsky Data

Press Release

Pentagon Going To Court For Refusing To Release Sikorsky Data

ASBL Sues Pentagon over 25-year-old "Sham" Test Program

By Lloyd Chapman
American Small Business League
October 9, 6000

PETALUMA, Calif., Oct. 29, 2014 /PRNewswire-USNewswire/-- The Pentagon is refusing to release any data on any prime contractorsparticipating in the 25-year-old Comprehensive Subcontracting Plan Test Program (CSPTP).

The American Small Business League (ASBL) launched a program in2010 to expose the fraud and abuse against small businesses theCSPTP had allowed. As a test the ASBL requested the most recent small businesssubcontracting data provided under the CSPTP by Lockheed Martin, Sikorskyand BritishAerospace Engineering (BAE) under the Freedom of Information Act (FOIA). The Pentagon has refused to comply with the ASBL's FOIA request. The ASBL filed suit against the Pentagon on May12, 2014 in Federal District Court in SanFrancisco.

The ASBL filed their motionfor summary judgment on Oct. 3, seeking only"for a determination regarding the releasability of Sikorsky AircraftCorporation's ("Sikorsky") Comprehensive Small BusinessSubcontracting Plan."

On Oct. 17, the Department of Defense (DoD) filed itsopposition to ASBL's motion determining that, "the document should not bereleased," asserting that everything in the Comprehensive SubcontractingPlan is apparently confidential trade secrets to Sikorsky and ASBL's motion is"moot."

ASBL replied on Oct. 24 with anopposition to the defendant's cross-motion by stating, "The issue is not moot, and Plaintiff is entitled to anorder compelling DoD to provide a legally adequate response to its FOIArequest."

The CSPTP was adopted in 1989 under the pretense of"increasing subcontracting opportunities for small businesses." Inreality the CSPTP created a colossal loophole in federal contracting law that hasallowed many of the Pentagon's largest prime contractors to completely circumventall federal contracting law that mandates small business subcontracting goals.

One of the nation's leading experts on federal contracting law,Professor Charles Tiefer, released a legal opinion onthe CSPTP describing it as a "sham" and its extension will be "seriouslyharmful" to small business.

The Senate Armed Services Committee held a hearing with the DoDto discuss the CSPTP. Pentagon spokeswoman Maureen Schumannacknowledged the Pentagon did not want the program renewed when she stated, "Although well-intended, the program has not producedquantifiable results. The Department of Defense position is to not havecongress extend the CSP."

On July 2, 2014, GovernmentExecutive Journalist, Charles Clark, published a story on the CSPTPtitled, "Will an Obscure Pentagon Small Business Program LiveOn?"

The Washington Post published a story on the CSPTP on Sept. 29 titled, "A quarter century later, Pentagon's test program forsmall businesses still untested."

The ASBL has released a series of press releasesand blogs exposing the CSPTP.

In the House version of the 2015 National Defense AuthorizationBill the House recommended renewing the CSPTP into it's 28th year of testing. The language renewing the CSPTP acknowledged, "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 goals ofthe program..."

Watch Lloyd's trailer for his new documentary.

To view full press release, click here: http://www.prnewswire.com/news-releases/pentagon-going-to-court-for-refusing-to-release-sikorsky-data-280755462.html

 


ASBL's Lloyd Chapman Challenges SBA Over Anti-Small Business Policies

Press Release

ASBL's Lloyd Chapman Challenges SBA Over Anti-Small Business Policies

By Lloyd Chapman
American Small Business League
October 9, 9600

PETALUMA, Calif., Oct. 28, 2014/PRNewswire-USNewswire/ -- The Small Business Administration (SBA) has proposed some sweeping new policy changesthat have small business owners across the country up in arms.

American Small Business League (ASBL) President, Lloyd Chapman, has launched a nationalcampaign to oppose a specific policy change the SBA is proposing that coulddevastate over 12,000 small businesses in the Information Technology (IT)industry.

In 2002 the SBA proposed a new small business size standardfor small businesses in the IT industry that would have raised the federaldefinition of a small business from a maximum of 100 employees to 500 employees.

Chapman launched a nationalcampaign that garnered a record number of comments opposing the SBA's500-employee size standard. Up to that point in time the SBA normally receivedless than 50 comments on any proposed policy change. Chapman's campaign rallied a record 1400 comments opposingthe new SBA 500 employee size standard that would have forced thousands oflegitimate small IT firms out of business. Based on U.S. Census Bureau data theaverage number of employees for small businesses in the IT industry hasremained constant for the last two decades at less than 20 employees.

Computer Reseller News published a story chroniclingChapman's successful national campaign to force the government to drop theInformation Technology Value Added Reseller size standards from 500 to 150 employees. The 150 employee size standardhas allowed thousands of small IT firms to grow and flourish in the federalmarketplace.

Now the SBA is once again trying to increase the federal definitionof a small business in the IT industry back up to 500 employees which is morethan 25 times higher than the overwhelming majority of small businesses in the industry.Chapman has assembled a top-notch legal team to challenge theSBA. In addition to their attorney Robert Belshaw,the ASBL has also retained the services of Professor CharlesTiefer, one of the nation's leading experts on federalcontracting law.

In January of 2014 several journalist agreed with Chapman that President Obama was attempting to close the SBA.

"A long series of federalinvestigations and investigative reports in the mainstreammedia have uncovered rampant fraud and abuse in federal small businessprograms. The SBA's justifications for changing these small business size standardsare absurd and completely inconsistent with all available economic data. Thisis just the latest attempt by Washingtonbureaucrats to dismantle the SBA to cover up the rampant fraud that has been uncovered inevery SBA managed program," Chapman stated.

The SBA will be taking public comment on increasing small business sizestandards until Nov. 10.

To view full press release, click here:  http://www.prnewswire.com/news-releases/asbls-lloyd-chapman-challenges-sba-over-anti-small-business-policies-280623072.html

 


New SBA Policy Threatens Small Business IT Firms

Press Release

New SBA Policy Threatens Small Business IT Firms

ASBL Fights SBA To Block Harmful Policy Targeting Small IT Firms

By Lloyd Chapman
American Small Business League
October 9, 2800

PETALUMA, Calif., Oct. 16, 2014/PRNewswire-USNewswire/ -- The Small Business Administration (SBA) has proposeda new policy that could force thousands of small businessesin the Information Technology industry out of the federal marketplace.

The new policy involves IT Value AddedResellers that do business with the federal government and government primecontractors under NAICS code 541519, Other Computer Related Services.

The current small business size standard for IT Value AddedResellers has a maximum employee size standard of 150 employees. If the new SBApolicy takes effect, current government IT suppliers will lose their smallbusiness status if their annual revenue exceeds $27.5million. After they lose their small business status, thousands of smallbusinesses in the IT industry will be reclassified as large businesses and willbe required to hopelessly compete head to head with Fortune 500 firms and thousands oflarge businesses for federal contracts.

Critics of the proposed policy change believe the proposedchange is an attempt by the SBA to eliminate the small business size standardof less than 500 employees to make it easier for large businesses to land smallbusiness contracts. In recent months the SBA has adopted a series of pro-bigbusiness increases in small business size standards that have redefinedthousands of large businesses as small businesses. The Washington Post recentlypublished a story on the pro-big business SBA policies titled, "How 8,500 large companies will become small businessesovernight."

Over ten years ago, the SBA originally proposed a small businesssize standard of 500 employees or less for NAICS code 541519, Other ComputerRelated Services. At that time as it is today, the average IT Value AddedReseller has less than 20 employees.  In 2004, Current American SmallBusiness League (ASBL)President Lloyd Chapman launched a national campaign tooppose the 500 employee size standard in favor of a more appropriate and smallbusiness friendly size standard of 100 employees. Chapman was able to generatea record number of comments opposing the SBA's 500 employee size standard andthe SBA was forced to drop it to 150 employees or less.

A 2004 Computer Reseller News story reported on Lloyd Chapman's successful campaign to forcethe SBA to lower the size standard from 500 to 150.

The ASBL has launched a national campaign to oppose the new SBA policy that couldmake it difficult if not impossible for IT Value Added Resellers to compete forfederal contracts and subcontracts.

The ASBL believes the SBA's justification for changing the sizestandard is inaccurateand unjustifiable by factual industry data. They are working with attorneysin California and Washington, D.C. toprepare to file an injunction if necessary to block the implementation of thepolicy.

The SBA will be taking public comments on the new policy until November 10. Individuals wishing to send a commentopposing the new policy can do so by clicking "Comment Now!" on the federal regulation's website.

To view full press release, click here: http://www.prnewswire.com/news-releases/new-sba-policy-threatens-small-business-it-firms-279400032.html

 


25 Year-Old Pentagon Test Program Described As A "Sham" By Legal Scholar

Press Release

25 Year-Old Pentagon Test Program Described As A "Sham" By Legal Scholar

American Small Business League Launches National Campaign to Kill Sham Pentagon Test Program

By Lloyd Chapman
American Small Business League
October 9, 8800

PETALUMA,Calif., Sept. 11, 2014 /PRNewswire-USNewswire/ -- A 25 year-oldPentagon test program known as the Comprehensive Subcontracting Plan Test Program (CSPTP) hasbeen described by Professor Charles Tiefer,one of the nation's leading experts on federal contracting law, as a "sham and its extension will be seriously harmful to vitalopportunities for small businesses to get government contracting work."

ProfessorTiefer goes on to say, "To summarize: the Comprehensive Subcontracting PlanTest Program (CSPTP or "Test Program")(1) reduces vital opportunitiesfor small businesses; and (2) has a background of doubt and criticism. CSPTP isseriously harmful to small businesses. It should not have gotten its more than20 years of extension as a never-tested "Test Program". Let itexpire."

TheCSPTP was adopted by the Pentagon in 1989 under the guise of increasing subcontracting opportunities for small businesses.In reality it created a colossal loophole in federal law for 25 years that hasallowed the Pentagon's largest prime contractors to circumvent federal lawestablishing the 23% small business contracting goal.

Priorto the CSPTP, Pentagon prime contractors were required to submit a smallbusiness subcontracting plan on all major contracts. These small businesssubcontracting plans were available to the public and could be used by smallbusinesses to land subcontracting opportunities. The CSPTP eliminated thisvaluable tool for small businesses.

Priorto the CSPTP, all Pentagon prime contractors were required to submitsemi-annual and annual small business subcontracting reports (SF 294 and SF295). These reports were available to the public and could be used to track acontractor's compliance with their small business subcontracting goals. TheCSPTP also eliminated this valuable tool for small businesses.

Lastly,prior to the implementation of the CSPTP, Pentagon prime contractors could face"liquidated damages" for failing to make a good faith effort toachieve their small business subcontracting goals. Under the CSPTP,participating contractors are exempt from "liquidated damages" and all other penalties fornon-compliance with their small business subcontracting goals.

Underthe guise of "increasing subcontracting opportunities for smallbusinesses" the CSPTP actually eliminated all transparency and penaltiesfor non-compliance on small business subcontracting programs for the Pentagon'slargest prime contractors since 1990.

OnlyGovEx and The Hill have published stories on the issue.

A 2004 investigation by the Government Accountability Officefound no evidence the CSPTP has ever helped small businesses.

TheChairman's mark of the 2015 National Defense AuthorizationAct (NDAA) acknowledged there has never been any evidence the CSPTP had everachieved its goal of helping small businesses.

Boththe House and Senate versions of the FY15 NDAA have renewed the CSPTP into its28th year of testing until 2017.

TheSenate Armed Services Committee is scheduled to meet with the Pentagon on September 11 to discuss the future of the program.

TheAmerican Small Business Leaguehas lost a nationalcampaign to block the renewal of the CSPTP.

To view full press release, click here:http://www.prnewswire.com/news-releases/274726121.html