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Obama Tries to Downplay Questionable Small Business Data

August 30, 2010

Petaluma, Calif. – The Obama Administration has released its fiscal year (FY) 2009 Small Business Procurement Scorecard, reporting that the government missed its 23 percent small business contracting goal.  In its scorecard, the government claimed to have awarded a mere 21.89 percent to small businesses, while also failing to meet congressionally mandated contracting goals for women, Service Disabled Veteran Owned Small Businesses and HUBZone firms.  The Obama Administration missed 4 of its 5 contracting goals. (http://www.businesswire.com/news/home/20100827005701/en)  

The American Small Business League (ASBL) maintains that based on a recent evaluation of FY 2009 small business contracting data, the actual percentage of contracts awarded to small businesses is closer to 5 percent.  In June, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

The ASBL also identified a series of Fortune 500 corporations and other large firms in the government’s 2009 contracting data. Recipients of small business contracts included: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, General Electric, Booz Allen Hamilton, Thales Communications, General Dynamics, and Dell Computer.

Since 2003, more than a dozen federal investigations have found billions of dollars a month in federal small business contracts flowing into the hands of corporate giants. (http://www.asbl.com/documentlibrary.html)  

The ASBL believes the Obama Administration has dramatically inflated the percentage of contracts awarded to small businesses by under-reporting the actual federal acquisition budget and by including billions of dollars in contracts awarded to large businesses.  The actual federal acquisition budget for foreign, domestic, classified and unclassified projects is roughly $1 trillion. The Obama Administration’s goaling achievement is based on a number that is less than half of the actual federal acquisition budget.

As the American Small Business League predicted, the Obama Administration released its FY 2009 small business contracting numbers near the close of business on Friday afternoon.  The late release of data is a clear indication the Obama Administration was trying to avoid scrutiny form the mainstream media. (http://www.huffingtonpost.com/lloyd-chapman/obama-administration-fabr_b_693359.html, http://www.huffingtonpost.com/lloyd-chapman/obama-administration-will_b_674073.html)  

“President Obama is not fooling anyone.  These 5 o’clock Friday afternoon press releases are like sending up a signal flare that the data is fabricated,” ASBL President Lloyd Chapman said.  “Every year billions of dollars in federal contracts are diverted to Fortune 500 corporations and other large businesses, and every year the government fabricates its numbers.  It is time for Congress and the Obama Administration to pass H.R. 2568, the Fairness and Transparency in Contracting Act, and end this abuse once and for all.”




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Reid Brownlie
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American Small Business League
3910 Cypress Dr., Suite B
Petaluma, CA 94954

707-789-9575 | fax 707-789-9580
email to rbrownlie@asbl.com




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