Pentagon Accused Of Cover-Up In Case Over Sikorsky Data

Press Release

Pentagon Accused Of Cover-Up In Case Over Sikorsky Data

Pentagon withholds evidence in ASBL lawsuit

By Lloyd Chapman
American Small Business League
February 25, 2015

PETALUMA, Calif., Feb. 25, 2015/PRNewswire-USNewswire/ -- The American Small Business League (ASBL) is accusing the Pentagonof tryingto cover-up trillions of dollars in fraud in a federal case over datasubmitted to the 25-year-old Comprehensive Subcontracting Plan Test Program(CSPTP).

In August 2013 under the Freedom ofInformation Act (FOIA), the ASBL requested themost recent comprehensive subcontracting plan that Sikorsky AviationCorporation submitted to the CSPTP. The ASBL's goal was to file a test case tochallenge the Pentagon's refusal to release any data on the program in over 25years and prove the program had defrauded small businesses out of trillions ofdollars in subcontracts since the program began in 1990.

On November 23, 2014, Judge Alsup ruled against the Pentagonand ordered them to release the Sikorsky data to the ASBL by December 3, 2014.

On December 2, 2014, the Office of Solicitor Generalintervened in the case and secured a 60-day stay of the release of the data.

"The purpose of the Freedom of Information Act is so thepublic can see how our government works. Congress passed this law to make thesmall businesses have access to some of these projects, and here is the United States coveringit up," stated Judge Alsup in his November 6, 2014 hearing.

On December 11, 2014, Sikorsky filed a motion with the U.S.District Court for their right to intervene with the case.

"DOD argued that the Plan was exempt from disclosure underFOIA because it contained confidential commercial and financial information,the disclosure of which would cause substantial harm to Sikorsky's competitiveposition," stated Rex Heinke, attorney for Sikorsky Aircraft intheir motion to intervene.

Judge Alsup referred to this case as a "David and Goliath" battle between ASBL and both theDoD and Sikorsky. "You get to come in there and be the underdog againagainst the big company and against the big government… They are trying tosuppress the evidence," Alsup stated to the ASBL.

On Jan. 21, both the Pentagon and Sikorsky filed a motion to appeal the case to the 9th Circuit Court of Appeals.

In September 2014, Professor Charles Tiefer, one of America's leadingexperts on federal contracting law issued a legal opinion on the CSPTP. He stated, "The program isa sham and its extension will be seriously harmful to vitalopportunities for small business... It should not have gotten its 25 years ofextension as a never-tested 'Test Program.' Let it expire."

In a December 31, 2014 article in the Washington Post, Pentagonspokeswoman Maureen Schumann admitted the CSPTP had infact reduced subcontracting opportunities for small business. Ms. Schumannstated that the program "has led to an erosion of [the agency's] smallbusiness industrial base," and that "there is no evidence that theCSPTP has benefited small companies."

"The move in Washingtonto closethe Small Business Administration is clearly designed to cover-upthe rampant fraudthat has been exposed in small business programs like the ComprehensiveSubcontracting Plan Test Program," stated Lloyd Chapman,President of the American Small Business League.

To view full press release, click here: http://www.prnewswire.com/news-releases/pentagon-accused-of-cover-up-in-case-over-sikorsky-data-300040965.html

 


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