Government Small Business Data Includes Billions to Fortune 500 Firms, ASBL Reports

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Government Small Business Data Includes Billions to Fortune 500 Firms, ASBL Reports

American Small Business League
June 15, 2017

PETALUMA, Calif., June 15, 2017 /PRNewswire-USNewswire/-- Data from the Congressional Budget Office and the Federal ProcurementData System indicates the Small Business Administration falsified the federalgovernment's compliance with the 23% small business contracting goal for fiscalyear 2016.

In a May 18th, press release the SBA claimed small businesses hadreceived $99.96 billion in federal contracts and24.34 percent of all federal contracts awarded in fiscal year 2016. 

The Small Business Act mandates small businesses receive aminimum of 23% of all federal contracts. TheCongressional Budget Office reports the total federal acquisition budget for2016 was $1.2 trillion.

23 percent of the $1.2 trillion thefederal government actually awarded in contracts for fiscal year 2016 would beapproximately $276 billion. The SBA excluded $790 billion in federal contracts from their calculationsto claim small businesses received 24.34 percent of all contracts.

Data from the Federal Procurement DataSystem (FPDS) indicates the SBA included contracts to over 100 Fortune 500firms and over 5,000 large businesses in the $99.96billion they claimed went to small businesses.

Every year since 2005 the SBA Office of Inspector General hasnamed the diversion of federal small business contracts to large businesses as the number one management problem at the SBA. Asearly as 2003 the Government AccountabilityOffice (GAO) found over 5,300 large businesses were theactual recipients of federal small business contracts.

In 2008, President Obama released the statement, "It is time to end the diversion of federal smallbusiness contracts to corporate giants."

Some of the firms that have received federal small businesscontracts in recent years include, Apple, Walmart, Microsoft, Home Depot, Bechtel, SAIC,Raytheon, Hewlett-Packard, Oracle, IBM, Johnson and Johnson, General Electric,Northrop Grumman, Honda Motors, British Aerospace and Engineering and RollsRoyce.

Professor Charles Tiefer, one of the nation's leadingauthorities on federal procurement law and a contributor to Forbes released an article on June 5, 2017 challenging the accuracy of the SBA'sstatistics.

In 2014, Public Citizen released an investigative report titled "Sleighted," that foundthe SBA had fabricated compliance with federal small business contractinggoals. In 2016, Mother Jones released their investigative report titled, "Giant Corporations Are Reaping Billions FromFederal Small Business Contracts."

ABC, CBS, NBC, CNN, CNBC, MSNBC, Fox News and RTTV  have all release investigative reportsthat found the SBA included billions in federal small business contracts toFortune 500 firms.

The American Small Business League (ASBL)has filed for a federal injunction to stop the SBA fromfalsifying federal small business data. The case is currently in the 9th Circuit Court of Appeals.

American Express Open Forum named ASBL President Lloyd Chapman as one of the 4 strongest voices for smallbusinesses in Washingtonfor his efforts to end fraud in federal small business programs. In July, the ASBL will releasing their documentary entitled'Cheated' on their campaign to end fraud in federal small business programs.

For the full release, click here: http://www.prnewswire.com/news-releases/government-small-business-data-includes-billions-to-fortune-500-firms-asbl-reports-300474429.html

 


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