PETALUMA, CA--(Marketwired - June 21, 2017) -
from the Federal Procurement Data System compiled by Rockville,
Maryland-based Fedmine, found the Small Business Administration included
federal contracts to over 5,000 large businesses in the $99.96 billion the SBA
claimed were awarded to small businesses.
The SBA's small business data also included
billions in federal contracts that actually went to over 150 Fortune 500 firms.
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 Royce.
The Fedmine report indicates the SBA
dramatically inflated the volume and percentage of federal contracts awarded to
legitimate small businesses.
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.
Data from the Congressional Budget Office
indicates the SBA also significantly inflated the percentage of awards to small
businesses by excluding the vast majority of federal acquisitions from their
The Congressional Budget Office (CBO) reports
the total federal acquisition budget for 2016 was $1.2
trillion. The Small Business Act mandates small businesses receive a
minimum of 23%
of all federal contracts.
Small businesses should have received 23
percent of the $1.2 trillion in contracts the federal government actually
awarded in 2016 which would be approximately $276 billion. To claim small
businesses received 24.34 percent of all federal contracts in FY 2016, the SBA
excluded over $790 billion in contracts and used an acquisition budget number
of just $410 billion.
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."
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
Corporations Are Reaping Billions From Federal Small Business Contracts."
ABC, CBS, NBC, CNN, CNBC, MSNBC, Fox News and RTTV have all released
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.
For the full press release, click here: http://www.marketwired.com/press-release/-2222981.htm