PETALUMA, Calif., May 7, 2015 /PRNewswire-USNewswire/ -- OnFriday the Obama Administration will release their 2014 SmallBusiness Federal Procurement Scorecard. As it has been for over 15years the information released will fabricate the true volume andpercentage of federal contracts awarded to small businesses. It willalso significantly misrepresent the Obama Administration's achievement of the23% federal small business contracting goal.

A Public Citizenreport titled "Slighted" points out a number of ways inwhich the data is falsified to misrepresent the true volume of federalcontracts awarded to small businesses. The cover page of the investigativepiece contains the subtitle, "Accounting Tricks Create False ImpressionThat Small Businesses Are Getting Their Share of Federal Procurement Money, andthe Political Factors That Might Be at Play."

The Obama Administration's small business contracting data willbe fabricated and falsified in two ways.

1.    Exclusions – The Small Business Act clearly mandates a minimum of 23%of the total value of all federal contracts shall be awarded tosmall businesses. No provision in the Small Business Act allows for any"exclusions" to be made in calculating the percentage of awards tosmall businesses. To fabricate andinflate the percentage of awards to small businesses the SBA willuse an eligibledollar figure that is significantly lower than the actual totalprocurement budget. As stated in the Public Citizen article this practice"does not appear to a basis in law." The American Small BusinessLeague agrees the exclusionary rule is illegal and fraudulent and is used bythe SBA to intentionally fabricate and falsify the true percentage of awards tolegitimate small businesses.

2.    Five-year rule– To further fabricate and falsify the true volume and percentage of federalcontracts to small businesses the Obama Administration will include billions ofdollars in contracts to Fortune 500 firms and their subsidiaries. As the PublicCitizen article points out, "There is no'five year' loophole." The Small Business Act clearlystipulates the definition of a small business requires a firm to be"independently owned" which would exclude Fortune 500 firms. TheSmall Business Act also clearly stipulates no firm can have more than 1500employees and still qualify as a small business.

The percentage of awards to small businesses to be announced bythe Obama Administration on Friday will be completely fabricated and false.Friday's small business contracting data will include billions of dollars infederal contracts to Fortune 500 firms and their subsidiaries as ithas for over fifteen years.

In 2005, the SBA Office of Inspector General released Report 5-15 that stated,"One of the most important challenges facing the Small BusinessAdministration (SBA) and the entire federal government today is that largebusinesses are receiving small business procurement awards and agencies arereceiving credit for these awards."

The Public Citizen article proves the Obama Administration'ssmall business data isblatantly false, and fraud and abuse against small business willcontinue to be unchecked.

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