PETALUMA, CA--(Marketwired - Nov 26,
2014) - The Pentagon has lost a landmark Freedom of Information Act (FOIA)
case to the American Small Business League (ASBL). San Francisco
Federal District Court Judge William Alsup has ordered the Pentagon to release the small business
subcontracting data that has been submitted by Sikorsky under the
Comprehensive Subcontracting Plan Test Program (CSPTP).
The Pentagon had refused to release the data
claiming that it contained "confidential financial information."
Judge Alsup disagreed and denied both of their motions for summary judgment and
ordered the Pentagon to release the information to the ASBL by December 3,
"Judge Alsup's ruling will be the
basis for the American Small Business Leagues efforts to ensue the
subcontracting information that has been submitted by all of the participants
of the Comprehensive Subcontracting Plan Test Program will be made publicly
available," said ASBL's attorney Robert Belshaw.
Current participants of the Pentagon's CSPTP
include, BAE Systems, Boeing, GE Aviation, General Dynamics, Hamilton Sundstrand
Corporation, Harris Corporation, L3 Communications, Lockheed Martin, Northrop
Grumman Electronics Systems, Pratt & Whitney, Raytheon Company and Sikorsky
The ASBL originally requested the data
because they believed the CSPTP was designed to
create a loophole in federal contracting law that has allowed many
of the Pentagon's largest prime contractors to circumvent federal law
establishing small business subcontracting goals.
When the Pentagon implemented the
CSPTP in 1990 it eliminated any publicly available information on small
business subcontracting goals and any penalties that Pentagon contractors could
face for refusing to comply with their small business subcontracting goals.
Although the CSPTP eliminated all transparency and penalties for prime
contractors, the stated mission of the program was to "increase subcontracting
opportunities for small businesses."
In 2004 the Government Accountability
Office (GAO) released the results of an investigation into the CSPTP that
stated, "Although the Test Program was
started more than 12 years ago, DOD has yet to establish metrics to evaluate
the program's results and effectiveness."
Professor Charles Tiefer, one of the
nation's leading experts on federal contracting law released a legal opinion on the CSPTP
that stated, "The program is a sham and its extension will be seriously
harmful to vital opportunities for small business to get government contracting
work... There is no doubt in my mind the CSPTP has significantly reduced
subcontracting opportunities for small businesses. It should not have gotten
its 25 years of extension as a never-tested 'Test Program.' Let it
"Think of the lunacy of removing
all transparency and penalties for small business subcontracting programs for
the Pentagon's largest prime contractors and test it for 25 years to see of it
increases subcontracting opportunities for small businesses. It's an
unparalleled example of fraud and corruption at the Pentagon. We expect Judge Alsup's
ruling to lead to the eventual release of data on all firms participating in
the CSPTP that will prove the Pentagon has cheated American small businesses
out of well over a trillion dollars in subcontracts," stated ASBL
President Lloyd Chapman.
For more information contact ASBL
attorney Robert Belshaw (415) 956-9590, ASBL Communications Director Steve
Godfrey (707) 789-9575, or Sikorsky Supplier Diversity Manager Martha Crawford
ASBL documentary trailer
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