PETALUMA, Calif., August 10, 2006 /PRNewswire/ -- Less than a week after the Senate Small Business Committee proposed several measures to stop fraud and abuse in federal small business contracting, the Coalition for Government Procurement has recoiled at provisions that could snatch federal small business contracts out of the hands of some of the nation's largest companies.

In an interview with Federal Computer Week, Coalition executive vice-president, Larry Allen, characterized the Senate's most progressive provision, annual recertification as "an overreaction". The policy would require that businesses certify their small business size status every year, preventing companies that are no longer small from receiving contracts intended for small firms.

Annual recertification was proposed by the SBA Inspector General over three years ago as a way to curb fraud and abuse in small business contracting. The SBA never implemented the policy. Current SBA Inspector General Eric Thorson has recommended that the Senate include this policy in legislation to ensure that it is enacted.

Interestingly, members of the Coalition for Government Procurement include some of the very firms that have been found to be recipients of billions in small business awards, including Lockheed Martin, General Dynamics, L-3 Communications, Northrop Grumman, GTSI, and Office Depot.

At least three firms owned by foreign entities are also on the list, British-owned BAE, Dutch-owned Corporate Express, and French-owned Sanofi-Aventis. All three of these firms have received millions in U.S. small business contracts. Terminix, a division of giant franchisor ServiceMaster, is also a member of the Coalition. ServiceMaster is the former employer of new SBA Administrator Steven Preston.

More than a dozen federal investigations have found that billions of dollars in federal small business awards have been diverted to some of the biggest companies in the world. The American Small Business League has applauded the Senate for including annual recertification in the SBA Reauthorization bill. League president, Lloyd Chapman calls the policy a reasonable and prudent move to stop the rampant abuse in federal small business contracting.

"It's no big surprise that the Fortune 1000 companies that have been defrauding American small businesses out of their fair share of government contracts would object to any policies that would put an end to fraud and abuse in federal small business contracting," stated Chapman. "The days of these corporate bandits stealing contracts meant for small businesses are over."

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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