9th Circuit Decides Pentagon Sikorsky Case Not Going To Mediation

Press Release

9th Circuit Decides Pentagon Sikorsky Case Not Going To Mediation

ASBL vs. Pentagon Case Not Going To Mediation in 9th Circuit Appeals Court

By Lloyd Chapman
American Small Business League
March 18, 2015

PETALUMA, Calif., March 18, 2015 /PRNewswire-USNewswire/-- The 9th Circuit Court of Appeals has decidedthe case between the Pentagon and the American Small Business League (ASBL)over Sikorsky Aircraft Corporation's subcontracting reports is not appropriatefor mediation. In February, the 9th Circuit originally requested to see if the parties wanted toenter into mediation to resolve the case. The ASBL opposed mediation. On Mar. 9, the 9th Circuit issued their decision the case was not appropriate formediation.

Under the Freedom of Information Act, the ASBL originallyrequested the most recent report Sikorsky had submitted to the Pentagon's25-year old ComprehensiveSubcontracting Plan Test Program (CSPTP). The ASBL selected Sikorsky atrandom as a test case to challenge the Pentagon's refusal to release any dataon the CSPTP for over 25 years.

The ASBL also intended to use the Sikorsky data to try and block the renewal of the CSPTP in the 2015 National DefenseAuthorization Act (NDAA).

In November of 2014, Federal District Court Judge William Alsup ruled in favor of the ASBL and ordered the Pentagon torelease the Sikorsky data by December 3, 2014. On Dec. 2, the Office of Solicitor General intervened in the case and thePentagon was granted a 60-day extension on the release of the data.

Judge Alsup accused the Pentagon of trying to "cover up" the data. In a subsequent hearing inJanuary, Judge Alsup described the ASBL as being in a "David andGoliath" battle with the Pentagon and Sikorsky and stated the Pentagon wastrying to "suppress the evidence" in the case.

The Pentagon adopted the CSPTP in 1989 under the pretense of"increasing subcontracting opportunities for small businesses."In reality the program eliminated all transparency and penalties on small businesssubcontracting programs for prime contractors.

The Pentagon recently admitted the CSPTP had actually reduced opportunities for small businesses.

One of the nation's leading experts on federal contracting law,Professor Charles Tiefer, issued a legal opinion on the program that stated, "The programis a sham and its extension will be seriously harmful to vitalopportunities for small business... It should not have gotten its 25 years ofextension as a never-tested 'Test Program.' Let it expire."

The Pentagon is expected to file their appellant opening briefwith the 9th Circuit Court of Appeals by May 1, 2015.

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