News
SBA sued to release name of contractor
By Doug Caldwell
Central Valley Business Times
October 9, 0
The U.S. Small Business Administration has been sued in an effort to get it to release the name of a company that the SBA inspector general said should be banned from getting government contracts.
The U.S. District Court Freedom of Information lawsuit was brought by Lloyd Chapman, president of the American Small Business League of Petaluma.
He says the SBA has refused to release the name of a government contractor which the SBA's inspector general had recommended be debarred for intentionally misrepresenting its size as a small business in order to illegally obtain Federal contracts set aside for small firms.
The lawsuit says the recommendation was made to SBA Administrator Hector Barreto in June 2005 and was subsequently reported in the Inspector General's semiannual report to Congress.
But Mr. Barreto has failed to take action to debar any firm for contracting fraud and only one firm has been fined, the ASBL says.
"I am sick and tired of the Federal government turning a blind eye to blatant felony contracting fraud," Mr. Chapman says. "The SBA Office of Inspector General would not have recommended that this firm be debarred unless they had conducted an exhaustive investigation and were absolutely sure the firm is guilty. I intend to take every legal option available to expose this firm and see that it is prosecuted to the fullest extent of Federal and civil law."
Under section 16d of the Small Business Act, falsely claiming to be a small business in order to receive a Federal small business contract is a felony carrying a penalty of up to ten years in prison, a $500,000 fine, and permanent debarment from government contracting.
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