GAO: Billions in small-business contracts go to big firms

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GAO: Billions in small-business contracts go to big firms

Santa Rosa Press Democrat
January 15, 2003

Large companies are improperly getting billions of dollars in government contracts meant for small business, a preliminary investigation by the U.S. General Accounting Office has found.

Although the GAO probe is not complete, agency officials have advised staffers with the House Committee on Small Business that the amount of improperly awarded contracts is in the "billions of dollars," Wendy Belzer, a spokeswoman for Rep. Nydia Velazquez of New York, the ranking Democratic committee member, said Tuesday.

The GAO is the investigative arm of Congress. The agency launched the probe last year amid complaints by a Novato small-business group to Sen. Barbara Boxer, D-Calif., and Rep. Juanita Millender-McDonald, D-Calif.

Under a 1997 revision to the Small Business Act, Congress urged the federal government to spend at least 23 percent of its procurement dollars with small companies. Although there is no uniform definition for a small business, many federal agencies consider companies to be small if they have fewer than 500 employees.




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