Defense Contractor Earns $119 million in Small Business Contracts Despite Illegally Providing U.S. Military Technology to China,

  Defense Contractor Earns $119 million in Small Business Contracts Despite
  Illegally Providing U.S. Military Technology to China, According to the
  American Small Business League

Business Wire

PETALUMA, Calif. -- July 05, 2012

The following is a statement by the American Small Business League:

United Technologies Corporation (UTC), a Fortune 500 company which owns
numerous large defense contractors including Pratt & Whitney, Hamilton
Sundstrand and Sikorsky Aircraft, was fined $75 million last week after it was
found that the firm had illegally exported U.S. computer software that helped
China build its first modern attack helicopter, the Z10 (which was first
delivered to China in 2009 and still remains in production today).

However, while UTC has now been given a slap on the wrist for violating a U.S.
embargo on military exports to China that dates back to Tiananmen Square
events in 1989, no mention has been made of the $119 million in federal small
business contracts the U.S. has awarded to UTC since 2006 – the same year the
Justice Department launched its probe into export violations committed by UTC
while under contract with the Pentagon.

UTC is just one of many large corporations that received billions of dollars
worth of federal small business contracts in recent years. Others include
Lockheed Martin, Apple, Rolls-Royce, Chevron, GE, Time Warner, and Russian
arms company Rosoboronexport.

In 2005, the Small Business Administration Office of the Inspector General
issued Report 5-15, which stated, “One of the most important challenges facing
the SBA and the entire federal government today is that large businesses are
receiving small business procurement awards and agencies are receiving credit
for those awards.”

In 2008, President Obama even issued the statement, “It is time to end the
diversion of federal small business contracts to corporate giants.”

Legislation has been introduced to prevent large corporations from receiving
federal small business contracts but neither committee leadership nor the
President have supported the bill (H.R. 3184).

“The Pentagon has given over $2 billion worth of federal contracts (including
$119 million in small business contracts!) to a company that illegally sold
U.S. military technology to China,” ASBL President Lloyd Chapman said. “Such
rampant abuse of federal programs designed to help small businesses has gone
on for the last decade because Congress, the President and the mainstream
media refuse to address these blatant issues.”

Contact:

American Small Business League
Elliott Rosenfeld, 707-789-9575
Public Relations Director
erosenfeld@asbl.com