Small Business Administration Accused of Fabricating Latest Contracting Data

Press Release

Small Business Administration Accused of Fabricating Latest Contracting Data

ASBL Accusing the SBA of Falsifying Small Business Contracting Data

American Small Business League
April 29, 2016

Petaluma, Calif. -The Small Business Administration(SBA) has announcedthey will hold a national conference call on Thursday, April 28 to announce thefederal government awarded $90.7 billion dollars in federal contracts to smallbusinesses in fiscal year 2015. The SBA has claimed that the $90.7 billion was25.7% of all federal contracts awarded in 2015.

 

The American Small BusinessLeague (ASBL) is accusing the SBA of cheating American small businesses outof hundreds of billions in federal contracts by fabricating policies that violatethe Small Business Act to dramatically misrepresent the true volume andpercentage of federal contracts awarded to legitimate small businesses.

 

The Small Business Act mandates small businesses receive aminimum of 23% of the total value of all federal contracts and subcontracts.The ASBL is objecting to an SBA policy used to significantly inflate thepercentage of contracts awarded to small businesses that excludes over 70% ofall federal contracts from their calculation.

 

The SBA has referred to this policy as their "exclusionaryrule". The ASBL points to the fact the SBA's "exclusionary rule" has no basisin law and is inconsistent with both the specific language of the SmallBusiness Act and the Congressional intent of passing the Small Business Act.

 

In order to arrive at their 25.7% number the SBA used afederal acquisition budget number of just $352 billion. According to data fromthe Congressional Budget Office, the total federal discretionary spending forFY 2015 was approximately $1.2trillion. Using the SBA's $90.7 billion figure, this would mean smallbusinesses actually received no more than 7.5% and not the 25.7% claimed by theSBA.

 

The ASBL is also challenging the accuracy of the $90.7 billion the SBA claims wasawarded to small businesses. Data from the Federal Procurement Data System indicatesin FY 2015, 151Fortune 500 firms and hundreds of other large businesses received federalsmall business contracts.

 

Research by the ASBL indicates that legitimate smallbusinesses received no more than $40 billion in federal contracts in FY 2015 orapproximately 3.4%, of the $1.2 trillion in contracts awarded by the federalgovernment in FY 2015.

 

The SBA Inspector General,CBS, NBC and PublicCitizen have all released investigative reports that found the SBA has, infact, fabricated the volume of federal contracts awarded to small businesses byincluding billions to Fortune 500 firms for over ten years.

 

Attorneysfor the ASBL are considering filing an injunction against the SBA toprevent them from reporting contracts to Fortune 500 firms as small businesscontracts as well as using a dramatically reduced federal acquisition budget tofabricate the accurate percentage of contracts awarded to small businesses.

 

The ASBL plans to release a documentary this summerchronicling the history of corruption and fraud at the SBA.

 

To view full press release, click here: http://www.prnewswire.com/news-releases/fortune-500-firms-land-billions-in-government-small-business-contracts-300259013.html

 

 

 


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