The federal government's dismal record on small-business contracts has again drawn scrutiny. In June, the Small Business Administration released the original draft of a 2004 report that sheds light on just how companies like Hewlett-Packard and Raytheon have been miscategorized as "small businesses"–and thus eligible for some of the $60 billion a year the Feds earmark for such companies. A California court ordered the SBA to release the document in April.

The draft report's existence came to light thanks to Lloyd Chapman (below), a self-styled small-business advocate and longtime SBA critic. In 2003, Chapman's testimony before Congress on the subject led to the SBA purging 600 large firms from its in-house database of "small" contractors.