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American Small Business League Sues DHS

Government subcontract distribution scrutinized

By Doug Caverly
Small Business Newz
November 2, 2010

When government contracts are distributed, there's often a concern that not enough of them go to small businesses.  Now, to ensure all the rules and regulations were followed in a situation involving Boeing, the American Small Business League has sued the Department of Homeland Security.

According to the ASBL, DHS has chosen not to release certain subcontracting reports on contracts awarded to Boeing, ignoring repeated Freedom of Information Act requests.

The ASBL said in a press release that it "believes the information contained in the reports may show that Boeing and the DHS cooperated in an effort to circumvent federal law, which requires 23 percent of all federal contracts to be awarded to small businesses."

That would be a potentially troubling turn of events.  It might be that the contracts involved ultra-top secret tech or dangerous material that only large corporations are equipped to handle, but there's no sign so far that this was the case.

ASBL President Lloyd Chapman just stated, "It is really kind of silly that we are having to file this suit because the 9th Circuit ruled over 20 years ago that this information is releasable.  The fact that DHS is willing to get involved with a lawsuit they have no hope of winning, really speaks to the damaging nature of this information."

The ASBL promised that more lawsuits are on the way, too.

Source:  http://www.smallbusinessnewz.com/topnews/2010/11/02/american-small-business-league-sues-dhs



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