25 Year-Old Pentagon Test Program Described As A "Sham" By Legal Scholar

Press Release

25 Year-Old Pentagon Test Program Described As A "Sham" By Legal Scholar

American Small Business League Launches National Campaign to Kill Sham Pentagon Test Program

By Lloyd Chapman
American Small Business League
October 9, 8800

PETALUMA,Calif., Sept. 11, 2014 /PRNewswire-USNewswire/ -- A 25 year-oldPentagon test program known as the Comprehensive Subcontracting Plan Test Program (CSPTP) hasbeen described by Professor Charles Tiefer,one of the nation's leading experts on federal contracting law, as a "sham and its extension will be seriously harmful to vitalopportunities for small businesses to get government contracting work."

ProfessorTiefer goes on to say, "To summarize: the Comprehensive Subcontracting PlanTest Program (CSPTP or "Test Program")(1) reduces vital opportunitiesfor small businesses; and (2) has a background of doubt and criticism. CSPTP isseriously harmful to small businesses. It should not have gotten its more than20 years of extension as a never-tested "Test Program". Let itexpire."

TheCSPTP was adopted by the Pentagon in 1989 under the guise of increasing subcontracting opportunities for small businesses.In reality it created a colossal loophole in federal law for 25 years that hasallowed the Pentagon's largest prime contractors to circumvent federal lawestablishing the 23% small business contracting goal.

Priorto the CSPTP, Pentagon prime contractors were required to submit a smallbusiness subcontracting plan on all major contracts. These small businesssubcontracting plans were available to the public and could be used by smallbusinesses to land subcontracting opportunities. The CSPTP eliminated thisvaluable tool for small businesses.

Priorto the CSPTP, all Pentagon prime contractors were required to submitsemi-annual and annual small business subcontracting reports (SF 294 and SF295). These reports were available to the public and could be used to track acontractor's compliance with their small business subcontracting goals. TheCSPTP also eliminated this valuable tool for small businesses.

Lastly,prior to the implementation of the CSPTP, Pentagon prime contractors could face"liquidated damages" for failing to make a good faith effort toachieve their small business subcontracting goals. Under the CSPTP,participating contractors are exempt from "liquidated damages" and all other penalties fornon-compliance with their small business subcontracting goals.

Underthe guise of "increasing subcontracting opportunities for smallbusinesses" the CSPTP actually eliminated all transparency and penaltiesfor non-compliance on small business subcontracting programs for the Pentagon'slargest prime contractors since 1990.

OnlyGovEx and The Hill have published stories on the issue.

A 2004 investigation by the Government Accountability Officefound no evidence the CSPTP has ever helped small businesses.

TheChairman's mark of the 2015 National Defense AuthorizationAct (NDAA) acknowledged there has never been any evidence the CSPTP had everachieved its goal of helping small businesses.

Boththe House and Senate versions of the FY15 NDAA have renewed the CSPTP into its28th year of testing until 2017.

TheSenate Armed Services Committee is scheduled to meet with the Pentagon on September 11 to discuss the future of the program.

TheAmerican Small Business Leaguehas lost a nationalcampaign to block the renewal of the CSPTP.

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