PETALUMA, CA--(Marketwired - Jun 26,
2014) - According to the American Small Business League, the Senate has voted
to renew the 25 year old controversial Comprehensive Subcontracting Plan
Test Program into its 28th year of testing with
language that appears to have been specifically written to be ambiguous.
The Senate version of the
2015 National Defense Authorization Bill (S.2410) states the Test Program:
terminate on September 30, 2015, if the Under Secretary for Acquisition,
Technology and Logistics certifies to the congressional defense committees not
later than December 31, 2014, that --
Department of Defense will not be able to transition all participants in the
test program to individual small business subcontracting plans that meet all
relevant requirements contained in the Federal Acquisition Regulation before
December 31, 2014; or
participants transitioned to individual small business subcontracting plans do
not enhance subcontracting opportunities for small business concerns."
The Comprehensive Subcontracting Plan
Test Program was adopted back in 1990 under the guise of changing federal
contracting law to increase subcontracting
opportunities for small businesses. In reality, small businesses
have lost out on hundreds of billions of dollars in subcontracts as a result of
The first change was the elimination
of publicly available small business subcontracting plans and publicly
available quarterly and annual subcontracting reports. This change essentially
removed all transparency from Pentagon subcontracting programs.
The second change was the elimination
of "liquidated damages"
for Pentagon prime contractors that failed to comply with federal law
establishing small business subcontracting goals. Prior to the implementation
of the Test Program, prime contractors that failed to achieve their small
business subcontracting goals were subject to paying liquidated damages in the
amount of the deficiency.
Research by the American Small
Business League (ASBL) indicates the Test Program was obviously
not designed to help small businesses but to create a significant loophole in
federal contracting law that has allowed the Pentagon's largest prime
contractors to circumvent federal law establishing small business
The ASBL estimates small businesses
have been defrauded out of over one trillion dollars in subcontracts
since the Test Program began in 1990.
ASBL President Lloyd Chapman stated,
"What would you think if your local school district came up with a test
program to determine if eliminating tests, report cards and any penalties for
students that did not attend classes actually increased scholastic scores? Now
imagine testing that insane program for 25 years. This is exactly what Congress
has done with the Comprehensive Subcontracting Plan Test Program."
The Pentagon has refused to release
any data on the Test Program. The ASBL has filed suit against the
Pentagon in Federal District Court in San Francisco for refusing to respond to
Freedom of Information Act Requests for specific subcontracting data submitted
under the Test Program.
During the last 25 years, no
journalist has ever interviewed anyone from the Pentagon or Congress on why no
results have ever been released or why the Test Program is still in effect
after 25 years.
Please take a moment of your time to
view this helpful video in
describing why this Test Program was designed specifically to help prime
contractors and not small businesses.
To view press release, click here: http://www.marketwired.com/press-release/Senate-Uses-Ambiguous-Language-to-Renew-Controversial-Pentagon-Test-Program-1924668.htm