SBA to Release Controversial Small Business Contracting Data Soon

Press Release

SBA to Release Controversial Small Business Contracting Data Soon

By Lloyd Chapman
American Small Business League
July 1, 2014

PETALUMA, CA--(Marketwired - Jul 1,2014) - According to the American Small Business League, every summer the SmallBusiness Administration (SBA) releases the federal government's small businesscontracting statistics for the previous fiscal year. They usually claim thefederal government just missed the minimum 23% smallbusiness contracting goal required by law.

"For the last few years the SBAgenerally releases the information late on a Friday afternoon to reduce mediapick up. They try to release the report just before a three-day weekend ifpossible," stated American Small Business League President, Lloyd Chapman.

Last year the AmericanSmall Business League (ASBL) predicted the SBA would release the annualreport on July 3rd. The SBA released the report onJuly 2nd.

Every year for the last 12 years the SBA includes billions of dollars in contractsto Fortune 500 firms in their calculations on the percentage of awards to smallbusinesses. In 2012, 235 Fortune 500 firmswere included in the SBA's small business data. In 2013, 175 Fortune 500 firmswere included.

For the past 12 years, if and when stories emerged that billions of dollars in federal small businesscontracts were actually awarded to Fortune 500firms and other large businesses, the SBA has claimed this is theresult of miscoding, computer glitches, simplehuman error and anomalies.

Every year for 12 years no journalisthas ever questioned the SBA why the alleged random miscoding errors do not havea random pattern of distribution like flipping a coin, but always end updiverting federal small business contracts to large businesses.

Every year when the SBA releases thefalsified small business contracting data, other than the ASBL, no organization claiming to representthe interests of small businesses in America objects to the diversion offederal small business contracts to corporate giants.

In 2008 President Obama released thestatement, "It is time to end thediversion of federal small business contracts to corporate giants."

Every year of the Obama Administrationthe SBA Office of Inspector General, Peg Gustafson, who was appointed byPresident Obama, has named the diversion of federal small business contracts tolarge businesses as the number one problem at the SBA.

In 2009 after investigating the SBA,the Government Accountability Office essentially accused the SBA of encouragingfraud when it released report 10-108 that stated, "By failing to hold firmsaccountable, SBA and contracting agencies have sent a message to thecontracting community that there is no punishment or consequences forcommitting fraud."

Although the SBA has refused to adopt anypolicies to stop the diversion of federal small business contractsto corporate giants, they are currently proposing policies thatwill allow thousands of large businessesto qualify as small businesses for the purposes of federalcontracting.

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