Film to Document Fraud in Federal Small Business Contracting Program

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Film to Document Fraud in Federal Small Business Contracting Program

By Adrienne Burke
Aabaco Small Business
February 11, 2016

The AmericanSmall Business League says it plans to release a full-length documentarychronicling a history of corruption and fraud in federal small businesscontracting programs.

Although theSmall Business Administration reported in fiscal years 2013 and 2014 thatfederal agencies had achieved the goal to award nearly 25 percent of governmentcontracts to small businesses, SBA watchdogs including ASBLargued that many of those contracts actually went to large corporations.

The SBA isn'texpected to release an FY2015 federal contracting scorecard until June, butyesterday ASBL released its own analysis of2015 activity based on the Federal Procurement Data System. ASBLfound that thousands of "clearly large businesses" including 151 Fortune 500 firmsreceived billions in federal small business contracts again last year.

According toASBL, some of the biggest Fortune 500 beneficiaries of small business contractsinclude A-Mark Precious Metals with $481 million incontracts; Verizon with $108 million; Anthem with $31 million; consumerproducts holding company Jarden Corporation with$23 million; drug wholesaler AmerisourceBergen with$12 million; transportation fuel products financer World Fuel Services at $4 million; and Hewlett Packard, IBM,and the mason-jar maker Ball Corporation at over$3 million each. Other household name brands from Apple to Wells Fargo alsoreceived federal contracts meant for small businesses, ASBL says.

"The governmenthas done everything they can to cover this up, where you can't tell who'sgetting government contracts," President Lloyd Chapman says in a video on the ASBL website. "They've removedthe parent company's Dunn & Bradstreet number off the database, you can nolonger see how many employees a company has, or their annual revenue. You can'teven tell what business they're in. Any time you want any information from anyfederal agency about who gets small business contracts, you're going to court."

To view full article, click here: https://www.aabacosmallbusiness.com/advisor/post/139115370967/film-to-document-fraud-in-federal-small-business


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