PETALUMA, Calif., April 15, 2015 /PRNewswire-USNewswire/
-- The House Small Business Committee has unanimously adopted an amendment that
would initiate a Government Accountability Office (GAO) investigation into fraud and
abuse in federal small business contracting programs. The purpose of the
investigation is to find out why billions of
dollars a year in federal small business contracts are being diverted to
Fortune 500 firms.
Congresswoman Janice Hahn
wrote the amendment based on research done by Lloyd Chapman's
American Small Business League (ASBL).
On March 25, 2015, Hahn issued a press release expressing her concerns on the
The last GAO investigation into fraud and abuse in federal
small business contracting programs, which was also based on information
provided by Chapman, was completed in 2003.
A February 2003 story in Washington Technology reported,
"The General Accounting Office began its own investigation based on
information Chapman provided," stated by GAO executive, Dave Cooper.
Chapman provided information to the GAO in
2002 that uncovered thousands of corporate
giants were receiving federal small business contracts. The GAO
investigation found over 5,300 large businesses were the actual recipients of
federal small business contracts.
Chapman has won a series of Freedom of Information Act cases that
widespread fraud in federal small business
contracting programs. The government was forced to release thousands of
pages of documents that proved Fortune 500 firms were the actual recipients of
federal contracts that the SBA reported as contracts awarded to small
In Report 5-15 the SBA Inspector General described the
diversion of federal small business contracts to corporate giants as, "One
of the most important challenges facing the Small Business Administration (SBA)
and the entire Federal Government today."
At the end of last year the House Small
Business Committee chastised SBA's Administrator, Maria
Contreras-Sweet, for including dozens of Fortune 500
companies and other large businesses in their FY2013
small business contracting data.
During his first campaign, President Obama released the
statement, "It is time to end the diversion of federal small business
contracts to corporate giants."
ABC, CBS, NBC, CNN, MSNBC, CNBC, Fox News and RTTV all
released reports on the diversion of federal small business contracts to
Some of the firms that were uncovered
receiving federal small business contracts included, IBM, Hewlett-Packard,
Oracle, Microsoft, Rolls-Royce, Walmart, Disney, Apple, Chevron, Bank of
America, British Aerospace Engineering (BAE), Raytheon, Lockheed Martin,
Verizon, AT&T and Northrop Grumman.
"Congresswoman Hahn's amendment could bring an end to the
rampant fraud and abuse in federal small business contracting programs that
have cheated legitimate small businesses out of hundreds of billions over the
last few years. Being an advocate for small business is not a popular stance in
Washington these days and
Congresswoman Hahn has demonstrated a great deal of courage and integrity in
requesting a new GAO investigation into this very serious problem," stated
Chapman, President of the American Small Business League.
ASBL documentary trailer
To view full press release, click here: http://www.prnewswire.com/news-releases/lloyd-chapman-prompts-second-congressional-investigation-into-small-business-contracting-fraud-300066033.html?tc=eml_cleartime