Small-Business Watchdog Calls on New SBA Administrator to Release List of Small-Business Contractors

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Small-Business Watchdog Calls on New SBA Administrator to Release List of Small-Business Contractors

By Charles Wallace
The Government Contractor
July 19, 2006

In June 2006, the Small Business Administration announced that, in 2005, small businesses received a "record-breaking $79.9 billion in federal prime contracts," epresenting an increase of $10 billion over 2004. Though the list of small-business contract recipients is not publicly available, private research suggests that not all small-business contracts go to actual small businesses. A list of top smallbusiness contract recipients for 2005 compiled by Eagle Eye Publishers Inc. of Fairfax, Va. includes large corporations such as General Dynamics, Lockheed Martin, Science Applications International Corp., Boeing and L-3 Communications.

Though SBA size standards mandate that a firm must have fewer than 500 workers to qualify as a small business (see 13 CFR § 121 et seq.), the top three companies on Eagle Eye's list are Apptis Inc., an information technology firm with 1,600 employees; SAIC, which claims to have 43,000 employees worldwide; and GTSI, an IT firm with 850 workers. In fact, the SBA inspector general lists the problem of large fi rms receiving small-business set-asides as the agency's top challenge for Fiscal Year
2006. "As the advocate for small business, the Small Business Administration should strive to ensure that only small firms obtain small business awards and agencies only receive small business credit for awards to small firms," the IG said.

Some view a lack of transparency as part of the problem. "The list of small-business award recipients is unobtainable," Lloyd Chapman, president of the American Small Business League, told THE GOVERNMENT CONTRACTOR. In a July 12 statement, Chapman called upon new SBA Administrator Steven C. Preston to release the complete list of firms coded as small businesses for federal contracting in 2005. "Preston can prove what kind of administrator he intends to be by allowing public access to the truth about federal small business contracting–that large businesses are walking away with the lion's share of small business awards," Chapman said.





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