Press Release
White House Still Silent on New Date for Cancelled SBA Event
ASBL research finds SBA still counting big businesses as small
By Lloyd Chapman
American Small Business League
June 2, 2015
PETALUMA, Calif., June 2, 2015 /PRNewswire-USNewswire/-- A major White House event to release the Obama Administration's SmallBusiness Procurement Scorecard was abruptly cancelled just hours before theevent was scheduled to begin on May 8.
It's now been over three weeks since the event was cancelledand neither the White House nor the Small Business Administration (SBA) hasannounced a new date for the event. The event was to be attended by members ofthe President's cabinet and other senior Obama Administration executives.
Washington Business Journal's Kent Hooverreported on the decision to cancel the event which cameapproximately an hour after he contacted the SBA Press Office, headed by Terry Sutherland, and asked for a list of thetop 100 recipients of federal small business contracts. Hoover also mentionedthat he told the SBA Press Office he intended to ask SBA Administrator Maria Contreras-Sweet what the SBA had doneto insure the accuracy of their small business contracting data.
Suspicions began to build that the SBA had falsified their smallbusiness contracting data after Washingtonbased government watchdog group Public Citizen released a report titled "Slighted."
The subtitle of the report was, "Accounting Tricks Create False Impression That SmallBusinesses Are Getting Their Fair Share of Federal Procurement Money, and the PoliticalFactors That Might Be at Play."
The Public Citizen investigative report was based on research from the American Small Business League(ASBL) and interviews with the organization's President Lloyd Chapman. The ASBL has begun to film a documentaryon their campaign to end fraud in federal small business contractingprograms.
An article in Fortune Small Business titled "How the Feds Starve Small Contractors" reported on theproblem back in 2004. In 2005, Entrepreneur magazine published an articletitled "SizingThings Up" that reported on Chapman's campaign to end small businesscontracting fraud.
On May 19, LouisianaSenator and Senate Small Business Committee Chairman, DavidVitter, sent a letter to SBA Administrator Maria Contreras-Sweet askingfor a complete list of all the firms the SBA reported asreceiving federal small business contracts in fiscal year 2014. Senator Vitteralso asked for the specific volume of contracts awarded to each firm and thefirm's current status as a small or large business.
Every year of the Obama Administration, SBA Inspector General Peg Gustafson, who was appointed by PresidentObama, has named the diversion of federal small business contracts to largebusinesses as the agency's number one problem.
The ASBL has begun an annualanalysis of the Federal Procurement Data System's statistics for fiscalyear 2014. So far, the ASBL has uncovered over one hundred Fortune 500 firmsthat have received federal small business contracts. Last year, the ASBL found over 70 of the top 100 recipients of federal small businesscontracts for fiscal year 2013 were actually large businesses.
Recent articles on Vox and the US Federal Contractor Registration found the SBA's policyof reporting awards to large businesses as small business contracts areunlawful.
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