Press Release
New Federal Policy Illegal, According to National Legal Expert, ASBL Reports
American Small Business League
August 2, 2016
PETALUMA,Calif., Aug. 2, 2016 /PRNewswire-USNewswire/ -- A new policy proposedby the General Services Administration (GSA) on June 20, 2016 is "blatantand undeniably illegal" according to a new legal opinion by one ofAmerica's leading legal experts on federal contracting law, Professor CharlesTiefer. Professor Tiefer also found that the new GSA Federal Strategic SourcingInitiative (FSSI) would "reduce the breadth of small businesscontracting by up to 80% or even 90% in lines of business where small businessis currently common."
ProfessorTiefer's legal opinion is titled, "Proposed Regulations IllegallyAuthorize 'Strategic Sourcing' to Massively Reduce the Breadth of ContractingWith Small Business."
Tieferis a Professor of Government Contractsat the University ofBaltimore Law School. He was Commissioner from 2008 to 2011 on theCongressionally chartered independent Commission on Wartime Contracting inIraq and Afghanistan and is also a contributor at Forbes.com.
ProfessorTiefer's legal opinion states, "The House Small Business Committee hasheld, in recent years, a number of hearings on how strategic sourcing wouldaffect small businesses, with impressive witnesses warning against letting itinjure small business contracting. The witnesses warned the unmanaged strategicsourcing may push large numbers of small businesses out of the federalprocurement market and possibly even out of business especially when done asthe proposed rules would."
ProfessorTiefer states, " both Congress and the Supreme Court instruct agencies toprovide small business with 'the maximum practicable opportunity' for federalcontracting " He goes on to say, "The Proposed'Strategic Sourcing' Rules Must, But Do Not, Provide Small Businesses with 'theMaximum Practicable Opportunity' for Federal Contracting."
His conclusionstates, "The proposal should be junked. It would have an overwhelminglybad impact on the breadth of small business contracting, contrary to the intentof the small business laws."
TheAmerican Small Business League (ASBL) has mounted anational campaign to opposethe GSA's FSSI policy proposal. The ASBL is evaluating the filing of a federalinjunction to block the implementation of the FSSI policy.
TheASBL currently has two cases againstthe government in the federal courts to halt policiesthat have harmed small business contracting and subcontracting opportunities.Mother Jones recently published an articleon the ASBL's legal battles with the federal government.
ASBLPresident Lloyd Chapman stated, "A recent study by the World Bank found theUnited States is 49th world wide in the ease ofstarting a new small business. If you want to start a new business it would beeasier if you moved to Morocco, Kazakhstan, Armenia, Latvia, Macedonia or Lithuania.All available data show small business creation in America has completely stalled out. Our economyis growing at record lowrates. Small Businesses create over 90% of the net newjobs so it's no wonder our middle class economy is withering under anunrelenting barrage of anti-smallbusiness legislation and policies coming out of Washington."
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