Government Small Business Data Includes Billions to Fortune 500 Firms, ASBL ReportsAmerican Small Business League
June 15, 2017
PETALUMA, Calif., June 15, 2017 /PRNewswire-USNewswire/ -- Data from the Congressional Budget Office and the Federal Procurement Data System indicates the Small Business Administration falsified the federal government's compliance with the 23% small business contracting goal for fiscal year 2016.
In a May 18th, press release the SBA claimed small businesses had received $99.96 billion in federal contracts and 24.34 percent of all federal contracts awarded in fiscal year 2016.
The Small Business Act mandates small businesses receive a minimum of 23% of all federal contracts. The Congressional Budget Office reports the total federal acquisition budget for 2016 was $1.2 trillion.
23 percent of the $1.2 trillion the federal government actually awarded in contracts for fiscal year 2016 would be approximately $276 billion. The SBA excluded $790 billion in federal contracts from their calculations to claim small businesses received 24.34 percent of all contracts.
Data from the Federal Procurement Data System (FPDS) indicates the SBA included contracts to over 100 Fortune 500 firms and over 5,000 large businesses in the $99.96 billion they claimed went to small businesses.
Every year since 2005 the SBA Office of Inspector General has named the diversion of federal small business contracts to large businesses as the number one management problem at the SBA. As early as 2003 the Government Accountability Office (GAO) found over 5,300 large businesses were the actual recipients of federal small business contracts.
In 2008, President Obama released the statement, "It is time to end the diversion of federal small business contracts to corporate giants."
Some of the firms that have received federal small business contracts 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 Rolls Royce.
Professor Charles Tiefer, one of the nation's leading authorities on federal procurement law and a contributor to Forbes released an article on June 5, 2017 challenging the accuracy of the SBA's statistics.
In 2014, Public Citizen released an investigative report titled "Sleighted," that found the SBA had fabricated compliance with federal small business contracting goals. In 2016, Mother Jones released their investigative report titled, "Giant Corporations Are Reaping Billions From Federal Small Business Contracts."
American Express Open Forum named ASBL President Lloyd Chapman as one of the 4 strongest voices for small businesses in Washington for 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.