federal government hits its small business goals by reporting
contracts to Fortune 1000 firms as small business awards,
America's small businesses lose out on billions. This is totally
unfair and it has to stop.
Lloyd Chapman, President, American Small Business League
A new policy proposed by the Small
Business Administration (SBA) and the Office of Federal
Procurement Policy (OFPP) will allow the government to continue
reporting awards to large companies as federal small business
contracts. So claims the the American Small Business League
(ASBL), a government watchdog group.
ASBL claims that billions of dollars earmarked for small
business is diverted to large corporations. According to ASBL,
even though the SBA's Inspector General has urged the agency to
implement annual recertification of business size status to
prevent fraud and abuse in small business contracting, the SBA
has consistently refused to implement it. Instead, ASBL says the
agency has adopted a policy that will allow companies to retain
their small business status for up to five years. Issued under
the guise of improving federal contracting opportunities for
small business, this recertification policy will allow the
government to continue including contracts to some of the
nation's largest companies toward their small business
"This policy should be evaluated by asking one question," stated
Lloyd Chapman, president of the ASBL. "Will this policy allow
the government to report contracts to Fortune 1000 companies as
small business awards? The answer is yes and I'm against it. SBA
Administrator Steven Preston and OFPP Administrator Paul Dennett
are being deceptive. This policy was designed to help the
government, not small firms."
Chapman added, "For over three years the SBA Inspector General
has recommended annual recertification of small business size
status. This would truly increase contracting opportunities for
legitimately small firms by forcing the government to eliminate
large businesses from its small-business contracting database.
When the federal government hits its small business goals by
reporting contracts to Fortune 1000 firms as small business
awards, America's small businesses lose out on billions. This is
totally unfair and it has to stop."
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