Presidentialcandidates Hillary Clinton and Donald Trump have been asked by the AmericanSmall Business League (ASBL) to address abuses that have been uncovered infederal small business contracting programs. The ASBL has sent openletters to both Trump and Clinton on the issue.

The ASBL haslaunched a national campaign to try and focus more media attention during theelection on abuses that have been uncovered in federal small businesscontracting programs. Federal law mandates a minimum of 23% of all federalcontracts be awarded to small businesses. Congress has established anadditional 5% small business contracting goal for firms owned by women andminorities, as well as a 3% small business contracting goal has beenestablished for service-disabled veteran owned firms.

The SmallBusiness Administration Office of Inspector General released Report5-15 on the diversion of federal small business contracts to Fortune 500firms and other clearly large businesses. It stated, "One of the most importantchallenges facing the Small Business Administration (SBA) and the entireFederal Government today is that large businesses are receiving small businessprocurement awards and agencies are receiving credit for these awards."

During hisfirst campaign, President Obama released a pro small business statementthat ended with the sentence, "It is time to end the diversion of federal smallbusiness contracts to corporate giants."

On July 25,2016, Mother Jones magazine released an article by Josh Harkinson on the issuetitled, "Giant Corporations Are Reaping Billions From Federal 'Small Business'Contracts."

TheGovernment Accountability Office (GAO) investigated the federal program forService-Disabled Veteran-Owned Small Businesses (SDVOSB). Their report GAO-10-108stated, "By failing to hold firms accountable, SBA and contracting agencieshave sent a message to the contracting community that there is no punishment orconsequences for committing fraud or abusing the intent of the SDVOSB program."

ProfessorCharles Tiefer served in 2008-2011 as Commissioner on the Congressionalchartered, Federal Commission on Wartime Contracting in Iraq and Afghanistan.He issued a statementto ValueWalk on the issue in April 2014 stating, "Billions of dollars are atstake for small businesses in America… They are, frankly, being cheated out oftheir opportunity to provide goods and services to the American people becauselarge companies such as Verizon, Citigroup, Boeing etc, have figured out how tomanipulate the system. Worse, when people such as Lloyd Chapman, the head ofthe American Small Business League and a true champion in this field try toexpose these unsavory practices, they are held up to scorn and ridicule."

In additionto their efforts to encourage Donald Trump and Secretary Clinton to addressabuses in federal small business programs, the ASBL will be contacting Chambersof Commerce and media outlets in battle raid states until November 8th.

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