ASBL Appeals SBA Injunction Case to 9th Circuit Court of Appeals
American Small Business League
November 17, 2016
PETALUMA,Calif., Nov. 17, 2016 /PRNewswire/ -- The American Small Business League (ASBL)has appealedtheir federal injunction case against the Small BusinessAdministration to the 9thCircuit Court of Appeals in San Francisco.
Theaim of their injunction is to halt two SBA policies they believe are illegal,and have resulted in the defrauding of legitimate small businesses out ofhundreds of billions in federal small business contracts.
TheASBL asked the court for an injunction against the SBA's "grandfatheringpolicy." The SBA uses their "grandfathering policy" todramatically misrepresent the government's compliance with the 23% small business contracting goal by including billionsin federal contracts to Fortune 500 firms. In 2015 the SBA included contractsto over 150 Fortune 500 firms and large businesses in the $91billion they claim were awarded to small businesses. A GovernmentAccountability Office investigation in 2003 found federal contracts to over5,300 large businesses were being reported as smallbusiness contracts. No language in the Small Business Act would allow Fortune500 firms or their subsidiaries be considered as small businesses.
Someof the firms the SBA counted as small businesses in recent years have included,Rolls Royce, Home Depot, General Dynamics, Microsoft, Oracle, Hewlett-Packard,IBM, Bechtel, Disney, Johnson & Johnson, General Electric and BritishAerospace, Leonardo Finmeccanica in Italy and Thales Communication inFrance.
TheASBL was also seeking an injunction against the SBA's "exclusionary rule". The Small Business Actspecifically states small business shall receive a minimum of 23% of"all" federal contracts. No language in the Small Business Act wouldallow any exclusions. The SBA has used their "exclusionary rule" toinflate the percentage of federal contracts awarded to small businesses byexcluding the majority of federal acquisitions from their calculation on thepercentage of federal contracts that have been awarded to small businesses eachyear.
Accordingto the Congressional Budget Office the total available federal acquisitionbudget for 2015 was $1.2 trillion. For 2015 the SBA used an acquisition budget number of just $352,291,573,414.00 to claim smallbusiness received 24.9% of all federal contracts. A legal opinion by ProfessorCharles Tiefer, one of the nation's leading experts on federal contracting lawagrees the total federal acquisition budget that should be used in calculatingthe correct percentage of federal contracts awarded to small businesses is overone trillion dollars.
ASBLPresident Lloyd Chapman stated, "This is actually a very simple case,Fortune 500 firms are obviously not small businesses and the Small Business Actclearly states small business shall receive 23% of all federal contracts withno exclusions of any kind."
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