Army Refuses to Release Controversial Contracting Data on SAIC

Press Release

Army Refuses to Release Controversial Contracting Data on SAIC

By Lloyd Chapman
American Small Business League
May 15, 2014

PETALUMA, CA--(Marketwired - May 15,2014) - According to the American Small Business League, the United States Armyis refusing to release subcontracting reports on Science ApplicationsInternational Corporation (SAIC) under the Freedom of Information Act (FOIA).The Army will not give any explanation for their refusal to provide thedocuments. The reports could show that SAIC may be in violation of theircontracts with the Army and may have failed to comply with their subcontractingrequirements.

The American Small Business League (ASBL)has filed a case against the Army in Federal District Court in San Franciscounder the Freedom of Information Act. The case was filed after the Army refusedto comply with a FOIA request from the ASBL for the most recent subcontractingreports for SAIC.

The ASBL believes the Army's refusalto comply with their FOIA request could be an indication that the SAICsubcontracting reports may contain fraudulent information relating to theircontracts with the Army.

The ASBL has won dozens of FOIA casesagainst the Pentagon in the past forcing the release of thousands of pages ofgovernment documents that exposed fraud and abuse in federal contractingprograms. This issue has been the subject of dozens of federal investigations.

The Office of GovernmentAccountability released Report 10-108 that stated, "By failing to hold firmsaccountable, SBA and contracting agencies have sent a message to thecontracting community that there are no penalties or consequences forcommitting fraud."

Every year for the last nine years theOffice of Inspector General for the Small Business Administration has named thediversion of federal small business contracts to corporate giants like SAIC tobe the number one management problem at theSBA.

A recent legal opinion byProfessor Charles Tiefer, one of the nation's leading experts on federalcontracting law, found small businesses have been fraudulently cheated out ofbillions of dollars in federal contracts.

ASBL President Lloyd Chapman stated,"The fact that the Pentagon has consistently refused to release smallbusiness subcontracting data is a clear indication they are still trying tohide the rampant fraud and abuse in contracting programs that have beenuncovered in dozens of federal investigations and reports in the mainstreammedia."

The ASBL expects to prevail in thiscase since the Ninth Circuit Court of Appeals ruled in 1994 that subcontractingreports are releasable under the Freedom of Information Act.

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