PETALUMA, Calif., July 28, 2006 /PRNewswire/ -- A story by the Associated Press this week exposed the fact that some of the biggest companies in the world, such as Rolls Royce, Microsoft, Lockheed Martin, Boeing, and Walmart, are being awarded federal small business contracts. The information came from an annual report issued by House Small Business Committee Ranking Member Nydia Velazquez (D-NY) on small business contracting, "Scorecard VII". The report states that "the data paints a picture suggesting that the federal government is either ignoring mandated goals or attempting to skew numbers" and that the research raises "serious concern for small businesses and their ability to participate in the federal marketplace."

In an attempt to downplay the problem, Rich Carter, a GOP spokesman for the House Small Business Committee, characterized this matter to the Associated Press as nothing more than an accounting issue. An ABC News report on the $12 billion contracting debacle quoted a Republican spokesman referring to the Scorecard report as "political posturing".

This week, the Senate Committee on Small Business and Entrepreneurship will be compiling their recommendations for the SBA reauthorization bill. This is the opportunity for Congress to address the problem identified by the SBA Inspector General as "one of the biggest issues facing the Small Business Administration and the entire federal government today".

Small business advocates are concerned that the Republican-controlled Congress may not take adequate steps to address fraud and abuse in small business contracting. American Small Business League president, Lloyd Chapman stated, "If Congress fails to include provisions in the SBA reauthorization bill to address policies that have allowed billions of dollars in small business contracts to be diverted to Fortune 1000 firms, that would indicate to me that we have a pro-fraud, anti-small business controlled Congress. Their lack of action would serve to encourage the abuse to continue and likely grow worse. If this happens, I think America's 23 million small business owners need to take this into account when they go to the polls in November."

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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