ORLANDO, FL--(Marketwired - May 30, 2015) - US Federal Contractor Registrationassists small businesses with their government registration and comprehensivefederal marketing campaigns. Their successful track record with helpingthousands of businesses win millions in government contracts has given theircompany a creditable authority in the federal community. However, one of thebiggest issues they encounter with new small businesses emerging in the federalmarketplace is making sure they are actually a small business.

The Small Business Administration (SBA)states that 23% of all government contracting dollars must be devoted toregistered small business set-asides holders. These set-asides include: Woman Owned, VetBiz,HUBZone, 8a, Economically Disadvantaged, and total small business. However,organizations like the American Small Business League and Public Citizen reportthat a great deal of these small business contracts are being illegally awardedto large businesses. Generally this dilemma steams from small businesses thatqualify for small business federal set-asides and then are merged with a largerbusiness. Businesses are confused if small businesses still retain theirset-aside credentials after they have been bought out by a larger business.

In a recent interview with GovernmentExecutive an SBA spokesperson stated in an email response, "When a firm growsorganically, the agency can continue receiving small business credit for up tofive years. … [But] in the case of a merger or acquisition, the agency (SBA)should be notified within 30 days and the small business credit should bediscontinued." This has been a looming issue that has been apparent ingovernment contracting for over a decade.

Lylod Chapman in an interview with GovernmentContractingTips.comcommented about these figures stating, "Federal law states that 23% of allgovernment contracting dollars must be given to registered small businessgovernment contractors according to the Small Business Act. The most recentdata from the Federal Procurement Data System (FPDS) show that the federalgovernment spent around $1.1 trillion on unclassified contracts. That meansthat small businesses should be receiving around $253 billion. The SBA statedthat $89.9 billion went to small businesses in 2012, which is 22.25 percent.Well, that is just not true. When you look at FPDS, not what Lloyd Chapman(referring to oneself) says, it shows that some of the companies that receivedsmall business contracts were Fortune 500 companies. Sears, Honeywell, IBM, HP,General Dynamics and Coke to name a few directly out of FPDS. So when you lookat the SBA's $89.8, of the top 100 recipients of small business governmentcontracts today 72% are currently large businesses. So in my viewpoint, peoplethink that the SBA is there to help small businesses but is actually the mostanti-small business organization out there."

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