Federal Court Ruling Could Kill 25-Year-Old Pentagon Test Program

Press Release

Federal Court Ruling Could Kill 25-Year-Old Pentagon Test Program

ASBL Legal Victory Over Pentagon Could Halt Renewal of “Sham” Test Program

By Lloyd Chapman
American Small Business League
October 9, 3600

PETALUMA, Calif., Dec. 3, 2014/PRNewswire-USNewswire/ — Congress has voted to renew a 25-year-old Pentagon program titled the ComprehensiveSubcontracting Plan Test Program (CSPTP).  Federal District Court Judge William Alsup has ordered thePentagon to release potentially damaging information that has been submittedunder the CSPTP by one of the Pentagon’s largest prime contractors, SikorskyAviation Corporation. This will be the first time in a quarter of a centuryanyone has ever seen any data on the CSPTP.

The American Small Business League (ASBL) filed a Freedom of Information Act (FIOA) request for the mostrecent data submitted by Sikorsky under the CSPTP as a test case to challengethe Pentagon’s refusal to release any information on the program.

The ASBL believes the data could be so damaging it couldconvince President Obama and Congress not to renew the CSPTP into its 28th year of testing.

The case was part of a national campaign launched by ASBL PresidentLloyd Chapman to block the renewal of the CSPTP.

Several stories have already been released on Judge Alsup’s ruling and the impact itcould have on the release of more data.

The Pentagon adopted the CSPTP in 1990 under the pretense of”increasing subcontracting opportunities for small businesses.” It appears the true purpose of the program was to do just the opposite. Inreality the CSPTP eliminated all publicly available data on a primecontractor’s compliance with their small business subcontracting goals. It alsoeliminated any penalties prime contractors had previously faced fornon-compliance with their small business subcontracting goals such asliquidated damages.

“Removing all transparency and penalties for Pentagon primecontractor’s as a means to increase subcontracting opportunities for smallbusinesses is ludicrous,” Chapman stated. “This program was clearlydesigned as a loophole to allow the Pentagon and its largest prime contractorsto circumvent federal law establishing small business subcontracting goals andcheat small businesses. It would be criminal to renew this blatant anti-smallbusiness program into its twenty-eighth year of testing.”

In September, Professor Charles Tiefer,one of the nation’s leading experts on federal contracting law issued a legal opinion of the CSPTP. It stated, “The program isa sham and its extension will be seriously harmful to vital opportunities forsmall business to get government contracting work… There is no doubt in mymind the CSPTP has significantly reduced subcontracting opportunities for smallbusinesses. It should not have gotten its 25 years of extension as anever-tested ‘Test Program.’ Let it expire.”

The renewal of the CSPTP until 2017 is currently included in the2015 National Defense Authorization Act (NDAA). It is probable that Congresswill vote on the bill before the December recess.

Judge William Alsup has ordered to the Pentagon torelease Sikorsky’s Comprehensive Subcontracting Plan to the ASBL no later than December 3, 2014.

“I’ll be stunned if we receive the information on December 3rd as Judge Alsup ordered. This information isso explosive it will block the renewal of the CSPTP in the 2015 NationalDefense Authorization Bill. I predict the Pentagon will do whatever it takes towithhold the release of this information until after Congress has renewed theprogram,” stated Lloyd Chapman.

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