ASBL President Lloyd Chapman
About Lloyd Chapman
Mr. Chapman has been credited with prompting the first federal investigation and congressional hearing looking into the diversion of small business contracts to large corporations. During the last seven years, Mr. Chapman and the ASBL have been instrumental in prompting the removal of 600 large firms from federal small business databases, more than 25 federal investigations and nearly 1000 stories in various media outlets across the nation. Additionally, on six separate occasions Mr. Chapman has filed suit against the federal government and won. As a result of Chapman's work, small businesses across the country are doing more business with the federal government, and business owners are more aware of the challenges facing their small businesses. A relentless champion and vocal crusader for the rights of small businesses, Mr. Chapman is a familiar figure at the Small Business Administration (SBA) and on Capital Hill where he has continued to work tirelessly during the last two presidential administrations to prevent widespread fraud and abuse.
Mr. Chapman began his career working for legendary Texas political leader Bob Bullock. He spent eight years in the Texas Controller's office, before moving to California in 1986 to enter the computer industry. It was at this time that he first became aware of major problems in federal small business contracting programs, and soon became an advocate for small technology firms.
By law, the federal government is obligated to award a fair portion (currently 23%) of its contracts to small businesses. That said, a series of federal investigations and private studies have found that the government is reporting billions of dollars in contracts to large companies as federal small business awards.
In his continuing role as a small business advocate, Mr. Chapman spearheaded litigation to acquire information on small business utilization in government contracts. In 1993, the U.S. Court of Appeals for the 9th Circuit ruled against the Defense Logistics Agency, forcing it to release vital information documenting small business contract awards. This has paved the way for greater participation by small businesses in federal contracting by exposing the lack of enforcement of congressionally mandated small business goals.
Lloyd Chapman's Track Record
Since Ronald Reagan's administration, Lloyd Chapman has been active in the fight for small businesses. Here is a look at a few of the highlights of his efforts.
Lloyd's efforts were publicized when the Reagan administration changed the small business size standards from 100 to 500 employees
Filed a Freedom of Information Act (FOIA) request that triggered a Congressional investigation into the F-22 Stealth fighter that forced the Air Force and Lockheed Martin to allocate an additional $501 million to small and minority-owned firms.
Filed a lawsuit against Defense Logistics Agency (DLA) over large companies' small business subcontracting goals (view document) President Clinton issues Executive Order 12928 promoting improved SDB contracting as a direct result of the DLA lawsuit (download PDF of Presidential Document)
President Clinton issues Executive Orders 12958 and 12968 changing FOIA restrictions and making it easier to get information. (download PDF of Presidential Document for EO 12958 and EO 12968)
Information provided by Lloyd prompted a Government Accountability Office (GAO) investigation confirming that, in direct conflict with the Small Business Act of 1953, a significant number of small business contracts were being awarded to some of the world’s largest corporations. (LA Times article covering the opening of the investigation)
Lloyd testified before Congress during the GAO investigation (download transcript from GAO investigation or review report of hearing) The Associated Press (AP) ran a nationwide story on Lloyd's GAO testimony (review CBS News article) Lloyd succeeded in calling for the removal of 600 large firms from the SBA's Pro-Net Database (now CCR). (review Inc Magazine coverage, download a PDF report from the Committe of Small Business, or download a ZIP file of ASBL's complete folder of documentation.)
Fought the SBA rule change to increase the size standard for the North American Industry Classification System (NAICS) code for the IT industry. Lloyd succeeded and they kept the classification for small business at 150 employees or fewer. (read Computer Reseller News coverage, or a report of the proceedings.)
Lloyd took an active role with the GAO in the investigation of the US Department of Energy (DOE), finding that they had falsified small business contracting data. (read Entrepreneur magazine coverage, or All Business coverage)
Provided information to the SBA Inspector General which prompted the release of reports 5-15 and 5-16. The SBA Inspector general admitted in 5-15 admitted that “One of the most important challenges facing the [SBA]... is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards”
Sued the SBA forcing the release of information on all firms whose contract protests had been denied (Pioneering Solutions coverage, Dollars and Sense Coverage)
Lloyd mounted a nationwide campaign against the grandfathering / 5-year recertification loophole which allowed large firms 5 years after aquiring a small company before losing the acquired firm's small business status. (Download a PDF report from the Set Aside Alert, listen to a radio interview, review Computer Reseller News coverage, download a PDF of Washington Technology's coverage, or read Eagle Eye Inc's report)
Worked with (and later filed suit against) the SBA Inspector General to release information on Insight Public Sector falsely claming to be a small business. They were eventually fined $1 million thanks largely to Lloyd's involvement. (read Government Executive's news story, or Minority and Women In Business coverage.)
After a failed attempt to work in partnership with the SBA, filed suit against the SBA Inspector General to release information on GTSI's receipt of small business contracts, which resulted in the firm with 850 employees being debarred from federal contracting. (Computer Reseller News coverage was extensive: Article One, Article Two, and Article Three.)
Lloyd publicized the fact that the Bush Administration was cutting the SBA budget. (Dollars and Sense news coverage, Business Week's coverage)
Filed suit and won against NASA to obtain the names of firms awarded small business contracts by NASA. (Space Ref coverage)
Fought the SBA for the release of the Eagle Eye Report documenting that large firms continue to receive small business contracts. The report is a bit of a legend, and there are stories claiming the report did not actually claim that fact, but Lloyd proved that it did. (read Entrepreneur magazine coverage, All Business Coverage, and the Fairness in Procurement Alliance (FPA)'s concise report which includes many reference links to pertinent data)
Won a lawsuit against the SBA in Federal Court which forced the release of Contracting Data for the 2005 and 2006 fiscal years. (this story was covered nation wide by dozens of news outlets.)
Prompted the release of a Department of Interior (DOI) report which unequivocally concluded the SBA "consistently" failed to verify business size. (All Business news story)
- Lloyd partnered with Congressman Hank Johnson to write the legislative bill, The Fairness and Transparency in Contracting Act, which passed and is now known as H.R. 2568. (Congressman Johnson's statement, Money Magazine / CNN coverage.)
Sued for the release of SBA's head spokesman, Communications Director, Mike Stamler's phone records. This is currently on appeal to the 9th circuit court (read Hispanic Business coverage, and Legal Radar's coverage: First Article, Subsequent Article)