Breaking News

Glaxo to Pay $488.7 Million Fine to End China Corruption Probe
Tweet TWEET

CBS Investigation Overshadows Federal Small Business Week, According to the American Small Business League

  CBS Investigation Overshadows Federal Small Business Week, According to the
  American Small Business League

Business Wire

PETALUMA, Calif. -- June 17, 2013

President Obama has proclaimed June 16 through June 22 as National Small
Business Week. He stated, “This week we celebrate America’s entrepreneurial
spirit, and we recommit to helping our small businesses get ahead.”

A recent investigative report by CBS Boston seems to contradict the federal
government’s commitment to small businesses. CBS Boston has uncovered the
government-wide diversion of billions of dollars in federal small business
contracts to Fortune 500 firms. They found 10 federal investigations that
proved federal officials at the Small Business Administration (SBA) and other
agencies have been aware of the fraud and abuse for years and appear to have
even helped facilitate it.

An investigation by NBC in 2012 had similar findings.

CBS and NBC interviewed American Small Business League President, Lloyd
Chapman who has fought to end the abuses for over a decade.

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

The latest federal data indicates of the top 100 largest recipients of federal
small business contracts for 2012, 71 are currently large businesses.

Some of the firms that have recently received federal small business contracts
include, Russian-owned Rosoboronexport, Italian defense giant Finmeccanica,
Lockheed Martin, Raytheon, Global Partners, Hewlett-Packard, IBM, Oracle, AT&T
and Bechtel. In 2012, General Dynamics received over $215 million in federal
small business contracts.

For the last nine years, the SBA Office of Inspector General (SBA OIG) has
named the diversion of federal small business contracts to large businesses as
the number one problem at the SBA.

In October of 2009, the General Accounting Office essentially accused
government officials of encouraging fraud in Report GAO-10-108, which stated,
“By failing to hold firms accountable, SBA and contracting agencies have sent
a message to the contracting community that there is no punishment or
consequences for committing fraud.”

Other federal investigations have found large businesses had committed fraud
through, “vendor deception” and “false certifications.”

In Report 5-15, the SBA OIG referred to the diversion of federal small
business contract to corporate giants as, “One of the most important
challenges facing the Small Business Administration and the entire Federal
government today…”

The General Services Administration responded to the series of embarrassing
investigations by removing the parent company Dunn & Bradstreet number from
the Central Contractor Registration database, which makes it more difficult
for journalists and federal investigators to determine if a firm is a
legitimate small business or a subsidiary or division of a Fortune 500 firm.

Contact:

American Small Business League
Lacie Schwarz, 707-789-9575
PR Specialist
lschwarz@asbl.com
 
Press spacebar to pause and continue. Press esc to stop.