Press Release
25 Year Old Fraudulent Pentagon Contracting Program Exposed
By Lloyd Chapman
American Small Business League
October 9, 6400
PETALUMA, CA--(Marketwired - Jun 12,2014) - According to the American Small Business League, the American SmallBusiness League (ASBL) has uncovered a 25 year old program thathas allowed some of the Pentagon's largest prime contractors to violate federalcontracting for almost a quarter of a century.
The Comprehensive Subcontracting PlanTest Program slid under the radar of journalists and the publicsince 1990. The test program was adopted under the guise of increasingsubcontracting opportunities for small businesses.
In reality the test program did justthe opposite. Some of the biggest names in the defense and aerospaceindustry were allowed to circumvent federal law that required small businesscontracting goals be achieved. Firms participating inthe program were exempt from any reports that had previously been available tothe general public.
In addition to the total lack oftransparency, prime contractors participating in the test program were exemptfrom any penalties such as "liquidated damages"for non-compliance with their small business subcontracting goals.
The ASBL estimates American smallbusinesses were defrauded out of over a trillion dollars in federalsubcontracts over the last 25 years as a result of the program.
The 2015 National DefenseAuthorization Bill proposes to extend the Comprehensive Subcontracting PlanTest Program into its 28th year of testing.
Language in the bill acknowledges thePentagon has never been able to provide any data that the removal oftransparency and penalties for prime contractors has ever increasedsubcontracting opportunities for small businesses.
Section 811 of the bill states, "However, after nearly 24 years since the originalauthorization of the program, the test program has yet to provide evidence thatit meets the original stated goal of the program..."
A 2004 Government AccountabilityOffice investigation also found no evidence if theremoval of transparency and penalties for prime contractors increasedopportunities for small businesses.
The Pentagon has also refused torelease any data on firms participating in the test program under the Freedomof Information Act.
The ASBL has filed suit against the Pentagonin Federal District Court in San Francisco after the agency refused to provide dataon Comprehensive Subcontracting Plan Test Program participant Sikorsky. TheASBL has also requested data submitted to the test program by BritishAerospace and Engineering (BAE) and Lockheed Martin.
The ASBL has launched a nationalcampaign to block the renewal of the Program. To date, the Pentagon's plan torenew the Comprehensive Subcontracting Plan Test Program into its 28th year oftesting has gone unreported in the mainstream media.
To view full press release, clickhere: http://www.marketwired.com/press-release/25-Year-Old-Fraudulent-Pentagon-Contracting-Program-Exposed-1919903.htm
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