PETALUMA, Calif., June 15, 2017 /PRNewswire-USNewswire/
-- Data from the Congressional Budget Office and the Federal Procurement
Data System indicates the Small Business Administration falsified the federal
government's compliance with the 23% small business contracting goal for fiscal
In a May 18th, press release the SBA claimed small businesses had
received $99.96 billion in federal contracts and
24.34 percent of all federal contracts awarded in fiscal year 2016.
The Small Business Act mandates small businesses receive a
minimum of 23% of all federal contracts. The
Congressional Budget Office reports the total federal acquisition budget for
2016 was $1.2 trillion.
23 percent of the $1.2 trillion the
federal government actually awarded in contracts for fiscal year 2016 would be
approximately $276 billion. The SBA excluded $790 billion in federal contracts from their calculations
to claim small businesses received 24.34 percent of all contracts.
Data from the Federal Procurement Data
System (FPDS) indicates the SBA included contracts to over 100 Fortune 500
firms and over 5,000 large businesses in the $99.96
billion they claimed went to small businesses.
Every year since 2005 the SBA Office of Inspector General has
named the diversion of federal small business contracts to large businesses as the number one management problem at the SBA. As
early as 2003 the Government Accountability
Office (GAO) found over 5,300 large businesses were the
actual recipients of federal small business contracts.
In 2008, President Obama released the statement, "It is time to end the diversion of federal small
business contracts to corporate giants."
Some of the firms that have received federal small business
contracts in recent years include, Apple, Walmart, Microsoft, Home Depot, Bechtel, SAIC,
Raytheon, Hewlett-Packard, Oracle, IBM, Johnson and Johnson, General Electric,
Northrop Grumman, Honda Motors, British Aerospace and Engineering and Rolls
Professor Charles Tiefer, one of the nation's leading
authorities on federal procurement law and a contributor to Forbes released an article on June 5, 2017 challenging the accuracy of the SBA's
In 2014, Public Citizen released an investigative report titled "Sleighted," that found
the SBA had fabricated compliance with federal small business contracting
goals. In 2016, Mother Jones released their investigative report titled, "Giant Corporations Are Reaping Billions From
Federal Small Business Contracts."
ABC, CBS, NBC, CNN, CNBC, MSNBC, Fox News and RTTV have all release investigative reports
that found the SBA included billions in federal small business contracts to
Fortune 500 firms.
The American Small Business League (ASBL)
has filed for a federal injunction to stop the SBA from
falsifying federal small business data. The case is currently in the 9th Circuit Court of Appeals.
American Express Open Forum named ASBL President Lloyd Chapman as one of the 4 strongest voices for small
businesses in Washington
for his efforts to end fraud in federal small business programs. In July, the ASBL will releasing their documentary entitled
'Cheated' on their campaign to end fraud in federal small business programs.
For the full release, click here: http://www.prnewswire.com/news-releases/government-small-business-data-includes-billions-to-fortune-500-firms-asbl-reports-300474429.html