PETALUMA, CA--(Marketwired - Jun 23,
2014) - According to the American Small Business League, the renewal of a
25-year-old fraudulent Pentagon program has been hidden in the House version of
the 2015 National Defense Reauthorization Bill.
The renewal of the Comprehensive Subcontracting Plan
Test Program (CSPTP) into its 28th year of
testing is covered in section 811 of the FY 15 National Defense Authorization
Bill (H.R. 4435). To try and hide the renewal of the controversial and
fraudulent program section 811 has been obscured from the bill.
The language renewing the Test Program
is hidden under the section titled, "Subtitle B--Industrial Base Matters."
The Comprehensive Subcontracting Plan
Test Program began in 1990 under the guise of "increasing subcontracting
opportunities for small businesses." In reality the Test
Program was carefully written to do just the opposite. Prior to the Test
Program all Pentagon prime contractors were required to submit subcontracting
plans and quarterly and annual subcontracting reports that were available to
Pentagon prime contractors
participating in the Test Program were no longer required to submit any
subcontracting plans and reports that were once available to the public
effectively eliminating all transparency.
Prior to the Test Program all Pentagon
prime contractors were subject to "liquidated damages" for failing to
achieve subcontracting goals required under federal law. Under the Test Program
prime contractors were exempt from any "liquidated damages"
or other penalties for non-compliance with subcontracting goals.
With the elimination of publicly
available subcontracting plans, achievement reports and all penalties for
non-compliance, prime contractors had little or no incentive to comply with
federal law establishing subcontracting goals.
The American Small Business League (ASBL)
estimates that since the Comprehensive Subcontracting Test Program was
established in 1990 small businesses have
likely been defrauded out of over one trillion
dollars in federal subcontracts.
The decision by the House of
Representatives to hide section 811 may have also been based on the
embarrassing language that had been included in the "Chairman's Mark" of
the bill. Language in section 811 that renewed the Test Program into its 28th year of
testing (2017) stated:
"However, after nearly 24 years since the original
authorization of the program, the test program has yet to provide evidence that
it meets the original stated goal of the program..."
The American Small Business League filed suit against the
Pentagon in May in Federal District Court in San Francisco after the Pentagon
refused to release any data on the Test Program under the Freedom of
The American Small Business League has
also launched a national campaign working
with Chambers of Commerce across the country to block the renewal of the
Comprehensive Subcontracting Plan Test Program.
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