Professor Charles Tiefer Joins ASBL's Lloyd Chapman To Protect Small Business Programs

Press Release

Professor Charles Tiefer Joins ASBL's Lloyd Chapman To Protect Small Business Programs

By Lloyd Chapman
American Small Business League
November 4, 2014

PETALUMA, Calif., Nov. 4, 2014 /PRNewswire-USNewswire/-- Professor Charles Tiefer is one of the nation's leading experts onfederal contracting law. Professor Tiefer was appointed by President Obama toserve as commissioner in 2008-2011 on the congressionally chartered, independentCommission on Wartime Contracting in Iraqand Afghanistan.

American Small Business League (ASBL) President, Lloyd Chapman,has retained Professor Tiefer to review a new SBA policy Chapman has described as "anti-small business". Professor Tiefer will bereviewing the new policy that the SBA proposed on September20, 2014.

If the new SBA policy were adopted small businesses that providea wide range of information technology (IT) products would lose their small business status and be forced out of thefederal market place. Under current federal policy, most small businessesthat provide IT products to the federal government and government primecontractors are classified as Information Technology Value Added Resellers(ITVARs) and operate under North American Industry Classification System(NAICS) code 541519.

The current small business size standard for NAICS code 541519is 150 employees. If the new SBA policy is adopted those small businesses thatprovide IT products to the federal government will be considered a largebusiness if their annual sales exceed $27.5 million.At the same time thousands of small businesses in the IT industry will be reclassified as large businesses, the SBA will continue to reportbillions of dollars in awards to Fortune 500 firms and their subsidiariesas small business contracts.

In a recent hearing in the House Small Business Committee, SBAAdministrator Maria Contreras-Sweet was scolded fordiverting federal small business contracts to Fortune 500 firms such asLockheed Martin, Northrop Grumman, Raytheon and Chevron. The SBA has recently adopted policies that will allow many of the largest firms in a variety of industries to be considered small businesses.The Washington Post published a story critical of the new policies titled, "How 8,500 large companies will become small businessesovernight."

The ASBL has launched a nationalcampaign to bring media attention to the significant negative impact the newSBA policy could have on small businesses in the IT industry. Computer Reseller News (CRN) reported on Lloyd Chapman's successful campaign back in2003 to force the SBA to reduce the small business size standard on NAICS code541519 from 500 employees down to 150 employees.

CRN journalist Sarah Kurandahas released an in-depth story on the issuewith quotes from numerous firms that could be devastated if the new policy isadopted.

Professor Tiefer has been reviewing the new propose SBA policyfor several days and agrees with the ASBL that it would have a significantnegative impact on thousands of small businesses that are currently providingIT products to the federal government.

Professor Tiefer is expected to submit his formal comment to theSBA later this week. The SBA will be taking public comment on the proposed policy changes until Nov. 10.

To view full press release, click here: http://www.prnewswire.com/news-releases/professor-charles-tiefer-joins-asbls-lloyd-chapman-to-protect-small-business-programs-281427501.html

 


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