Small Business League Crusades to Shut Down 25-Year-Old Government Subcontracting Test Program

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Small Business League Crusades to Shut Down 25-Year-Old Government Subcontracting Test Program

By Kim Mays
ITBusinessEdge
October 9, 6000

According to a recent newsrelease, the Pentagon is denying the request from the American Small BusinessLeague (ASBL) to release contract data that pertains tocontractors that participated in the Comprehensive Subcontracting Plan TestProgram (CSPTP). ASBL is seeking to uncover fraud by contractors such asLockheed Martin, British Aerospace Engineering (BAS) and Sikorsky.

The information was requested under the Freedom of Information Act (FOIA),and the ASBL eventually filed suit against the Pentagon. An opposition toASBL's motion was filed by the Department of Defense (DoD) on October 17, whichstated that the document shouldn't be released because it contained "tradesecrets." The ASBL, however, opposed the cross-motion and replied that it is"entitled to an order compelling DoD to provide a legally adequate response toits FOIA request."

Although the 25-year-old CSPTP was created in hopes of helping smallbusinesses obtain subcontracts, it is believed to have actually opened a"loophole in federal contracting law" by which many contractors have been ableto bypass federal mandates on contracting.

The WashingtonPost reported about several oddities associated with the CSPTP,one of which was that the program was created in 1989 as a "test," but hasremained in "test mode" ever since and "has yet to be evaluated," though it wasinitially supposed to be approved for only two years.

The program was reported on back in 2004 by the Government AccountabilityOffice (GAO), and in the report, it was concluded that the DoD had not yetagreed upon metrics by which to evaluate the program. In 2010, lawmakersrequested that the GAO follow up and investigate the program, but no furtherreports were produced.

The NationalSmall Business Association, which has fought other anti-small business policies,and House Small Business Committee both believe the program has demonstrated novalue to small businesses, and it seems the DoD agrees. The Defense Departmenthas announced plans to scrap the program.

However, the House 2015 National Defense Authorization Bill has actuallyrecommended renewing the CSPTP, despite language in the bill that acknowledgeda lack of evidence to prove that the program meets the original goals the programwas created to meet.

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