Pentagon, Sikorsky sued over small-business contracts

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Pentagon, Sikorsky sued over small-business contracts

By Anna Radelat
The CT Mirror
August 14, 2017

Washington – A group representing small businesses is suing thePentagon and Sikorsky for information about the defense contractor's hiring ofsmall and minority businesses as subcontractors.

The Sonoma,Calif.-based American Small Business League says the information it has soughtfrom Sikorsky will show the Pentagon has for decades falsified the volume ofsubcontracts that have been awarded to small businesses.

The league's lawsuitstems from it's efforts to obtain information about Sikorsky's participation ina Defense Department program aimed at increasing subcontracting opportunitiesfor small businesses.

In April of 2014, theAmerican Small Business League filed a freedom of information request for theannual report submitted by Sikorsky and about a dozen large defense contractorsthat participate in the Pentagon's Comprehensive Subcontracting Plan TestProgram. By law, federal agencies are obligated to award a portion – currently23 percent – of their contracts to small businesses and those owned by women orother disadvantaged groups.

Sikorsky initiallydeclined to provide the information, but eventually was forced to do so by afederal judge.

Despite being orderedto release an un-redacted copy of the requested documents, Sikorsky onlysupplied the court with a heavilyredacted version and appealed the judge's order to the California-based 9thCircuit Court of Appeals. A trial date of Dec. 11 has been set for the case.

The redacted documentblacked out all names and addresses of the helicopter makers' subcontractors.Sikorsky projected spending more than $913 million on large subcontractors and$272 million on small businesses and those owned by women, veterans andminorities.

Sikorsky, purchased byLockheed Martin in late 2015, said it could not divulge details of itssubcontractors because that would put it at a competitive disadvantage withother defense companies.

"At Lockheed Martin oursuppliers are integral partners in delivering our products and services to ourcustomers," said Sikorsky spokesman Paul Jackson. "Sikorsky is an activeparticipant in the Comprehensive Subcontracting Plan Test Program and hascomplied with all small business requirements under the Department of Defense'sguidelines."

Jackson also saidSikorsky's Comprehensive Small Business Plan "is competition sensitive" and wasrecognized as such by the appeals court.

"We will continue towork with the Department of Defense to ensure that our rights under FOIA areprotected," Jackson said.

The business leagueargues that  Sikorsky's contracts with the government are "solesource" contracts and Sikorsky has no competitors for their Pentagonbusiness.

Headed by smallbusiness advocate Lloyd Chapman, the American Small Business League isskeptical that the Pentagon's Comprehensive Subcontracting Plan Test Programactually helps small business.

In a recent op-ed,Chapman said the CSPTP "was designed to eliminate all transparency for thePentagon's largest prime contractors."

Chapman said the CSPTPalso eliminated all penalties that defense contractors may face fornon-compliance with federal small business contracting goals.

Witnesses at December'strial include Janice Buffler, Department of Defense associate director ofsubcontracting policy; Andrew Driver, Sikorsky Aircraft senior manager ofmarket analytics; Amy Johnson, Sikorsky director of supply chain;and Martha Crawford, Sikorsky supplier diversity manager.

For the full article,click here: https://ctmirror.org/2017/08/14/pentagon-sikorsky-sued-over-small-business-contracts/

 


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