/PRNewswire/ -- The Small Business Jobs Act being pushed by President Obama contains a loophole that will legalize contracting fraud while protecting large fraudulent businesses from prosecution, and stands in stark contradiction to a campaign promise made by President Obama.
In February of 2008, President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php) President Obama made this statement to address ongoing fraud and abuse in federal small business contracting programs that cost small businesses over $100 billion a year in missed contract opportunities. Federal law currently mandates that a minimum of 23 percent of all federal contract dollars go to small businesses.
Since 2003, there have been over a dozen federal investigations, which have found Fortune 500 firms and thousands of large companies around the world as the actual recipients of federal small business contracts. The Small Business Administration's (SBA) Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years and referred to this problem as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documentlibrary.html)
Section 1341 of H.R. 5297, the Small Business Jobs Act, contains specific language that will allow the SBA to develop policies and procedures to protect large businesses that have misrepresented themselves as small businesses from prosecution for felony contracting fraud. Section 16(d) of the Small Business Act prescribes a penalty of up to ten years in prison and a fine of not more than $500,000 per occurrence for firms that have misrepresented themselves as small businesses.
Some of the firms that have received government small business contracts include: Rolls-Royce, British Aerospace (BAE), Lockheed Martin, Boeing, Northrop Grumman, L-3 Communications, SAIC, Titan Industries, Raytheon, Dell Computer, Xerox, French firm Thales Communications, Italian firm Finmeccanica SpA, and Ssangyong Corporation headquartered in Seoul, South Korea. Textron, a Fortune 500 firm, received over $775 million in federal small business contracts in a single year.
"It is unbelievable that President Obama is going to create a loophole to benefit the corporate giants he promised to kick out of federal small business contracting programs," ASBL President Lloyd Chapman said. "When you see President Obama on television, I want every American to realize that his administration is giving over $1 million a minute in small business contracts to some of the largest companies in the world."
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Showing posts with label contracts. Show all posts
Showing posts with label contracts. Show all posts
Monday, September 20, 2010
Friday, October 2, 2009
Alabama Congressman Parker Griffith Claims Loophole to Give Billions to His Top Campaign Contributors was 'Unintended’
Alabama Congressman Parker Griffith Claims Loophole to Give Billions to His Top Campaign Contributors was 'Unintended’, According to the American Small Business League
(BUSINESS WIRE)--The following is a statement by the American Small Business League:
Alabama Congressman Parker Griffith (D-AL-5) is claiming that a bill he wrote would carry the ‘unintended consequence’ of allowing the subsidiaries of some of his largest campaign contributors to receive billions of dollars in federal small business contracts.
During an interview with the Times Daily newspaper regarding H.R. 3558, the Small Business Fair Competition Act, Congressman Griffith claimed that it was not his intention to create loopholes to allow two of his largest campaign contributors, Boeing and Northrop Grumman to land billions of dollars in federal small business contracts.
In the story, American Small Business League (ASBL) President Lloyd Chapman stated, "It is simply not believable that Congressman Griffith accidentally wrote a bill that is going to allow the subsidiaries of some of his largest campaign contributors like Boeing and Northrop Grumman to get small business contracts. It is absurd." (http://www.timesdaily.com/article/20090930/ARTICLES/909305008/1011/NEWS?Title=Griffith-Bill-needs-more-work)
The ASBL was the only organization to uncover the supposed accidental loophole. Yet, as opposed to thanking the organization, Griffith accused the group of seeking notoriety.
Recent data released by the Obama Administration indicates that Fortune 500 defense contractors in Congressman Griffith's district such as Boeing, Northrop Grumman and British Aerospace (BAE) are receiving federal small business contracts. Critics of Griffith and his bill believe that he was clearly trying to create a loophole to allow Fortune 500 corporations to continue to take contracts intended for small businesses.
Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts are diverted to Fortune 500 firms with a concentration on the defense and aerospace industry.
In 2005, the Small Business Administration Office of Inspector General referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
Even President Obama weighed in on the issue, when in February of 2008 he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
"Congressman Griffith's excuse that the language in H.R. 3558, that would allow large businesses to continue to receive federal small business contracts, was an accident is simply not believable," ASBL President Lloyd Chapman said. "It's ludicrous. I think Congressman Griffith is just another crooked politician and a classic example of everything the public hates about Washington. I think the American people are sick and tired of large corporations buying legislation from members of Congress, like Parker Griffith, that damage the middle class."
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(BUSINESS WIRE)--The following is a statement by the American Small Business League:
Alabama Congressman Parker Griffith (D-AL-5) is claiming that a bill he wrote would carry the ‘unintended consequence’ of allowing the subsidiaries of some of his largest campaign contributors to receive billions of dollars in federal small business contracts.
During an interview with the Times Daily newspaper regarding H.R. 3558, the Small Business Fair Competition Act, Congressman Griffith claimed that it was not his intention to create loopholes to allow two of his largest campaign contributors, Boeing and Northrop Grumman to land billions of dollars in federal small business contracts.
In the story, American Small Business League (ASBL) President Lloyd Chapman stated, "It is simply not believable that Congressman Griffith accidentally wrote a bill that is going to allow the subsidiaries of some of his largest campaign contributors like Boeing and Northrop Grumman to get small business contracts. It is absurd." (http://www.timesdaily.com/article/20090930/ARTICLES/909305008/1011/NEWS?Title=Griffith-Bill-needs-more-work)
The ASBL was the only organization to uncover the supposed accidental loophole. Yet, as opposed to thanking the organization, Griffith accused the group of seeking notoriety.
Recent data released by the Obama Administration indicates that Fortune 500 defense contractors in Congressman Griffith's district such as Boeing, Northrop Grumman and British Aerospace (BAE) are receiving federal small business contracts. Critics of Griffith and his bill believe that he was clearly trying to create a loophole to allow Fortune 500 corporations to continue to take contracts intended for small businesses.
Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts are diverted to Fortune 500 firms with a concentration on the defense and aerospace industry.
In 2005, the Small Business Administration Office of Inspector General referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
Even President Obama weighed in on the issue, when in February of 2008 he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
"Congressman Griffith's excuse that the language in H.R. 3558, that would allow large businesses to continue to receive federal small business contracts, was an accident is simply not believable," ASBL President Lloyd Chapman said. "It's ludicrous. I think Congressman Griffith is just another crooked politician and a classic example of everything the public hates about Washington. I think the American people are sick and tired of large corporations buying legislation from members of Congress, like Parker Griffith, that damage the middle class."
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Saturday, February 7, 2009
RNC Statement On Obama's Pro-Union Executive Order
Republican National Committee (RNC) Chairman Michael Steele today released the following statement concerning the executive order quietly signed by President Barack Obama on Friday ordering the use of union labor for federal construction projects:
"President Obama's executive order will drive up the cost of government at a time when we should be doing everything possible to save taxpayer dollars. Federal contracts should go to the businesses that can offer taxpayers the best value - not just the unions who supported the Democrats' campaigns last year. Quietly signing executive orders to payback campaign backers undermines Obama promise to change Washington. It is a disappointment for Americans hoping for more transparency and less politics as usual in Washington."
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"President Obama's executive order will drive up the cost of government at a time when we should be doing everything possible to save taxpayer dollars. Federal contracts should go to the businesses that can offer taxpayers the best value - not just the unions who supported the Democrats' campaigns last year. Quietly signing executive orders to payback campaign backers undermines Obama promise to change Washington. It is a disappointment for Americans hoping for more transparency and less politics as usual in Washington."
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Monday, January 19, 2009
Obama Stimulus Plan Breaks Campaign Promise to Small Businesses
/PRNewswire-USNewswire/ -- On February 22, 2008, Barack Obama released the following statement:
"It is time to end the diversion of federal small business contracts to corporate giants."
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The statement was made in response to more than 12 federal investigations, which found billions of dollars in federal small business contracts had been diverted to Fortune 500 corporations, their subsidiaries and thousands of other large businesses in the United States and Europe.
Report 5-15 from the Small Business Administration (SBA) Office of Inspector General 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 these awards." (http://www.sba.gov/IG/05-15.pdf)
Since the exposure of this issue in 2002, nearly every major newspaper in the United States has covered the diversion of federal small business contracts to Fortune 500 firms.
Now, in the face of one of the most catastrophic economic disasters in U.S. history, President-elect Obama has failed to include any provision in his economic stimulus plan to stop the diversion of billions of dollars in federal small business contracts to Fortune 500 firms.
President-elect Obama's refusal to take decisive action to stop the diversion of up to $100 billion a year in federal small business contracts seems to be a direct contradiction to everything he has said about taking "dramatic action" to "put people back to work."
Many of the nation's most respected experts on the economy like Dr. Laura Tyson and Carly Fiorina agree the best way to stimulate our nation's failing economy is to direct federal infrastructure funds to small businesses. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President-elect Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
President-elect Obama's refusal to stop the fraud and abuse in federal small business contracting programs will only result in more lost jobs at middle class firms across the nation.
"It does not make sense to throw nearly a trillion of hard earned taxpayer dollars at an economic stimulus plan and then ignore fraud and abuse in longstanding federal programs specifically designed to create jobs and stimulate the middle class economy," President of the American Small Business League Lloyd Chapman said. "It would take one sentence in this bill to create thousands of jobs and to redirect billions of dollars in federal contracts to legitimate small businesses all around the country. My advice to President-elect Obama is that if he sincerely wants to create jobs in America he needs to include this one line in the stimulus package, 'The federal government can no longer report awards to publicly traded companies as small business awards.'"
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"It is time to end the diversion of federal small business contracts to corporate giants."
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The statement was made in response to more than 12 federal investigations, which found billions of dollars in federal small business contracts had been diverted to Fortune 500 corporations, their subsidiaries and thousands of other large businesses in the United States and Europe.
Report 5-15 from the Small Business Administration (SBA) Office of Inspector General 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 these awards." (http://www.sba.gov/IG/05-15.pdf)
Since the exposure of this issue in 2002, nearly every major newspaper in the United States has covered the diversion of federal small business contracts to Fortune 500 firms.
Now, in the face of one of the most catastrophic economic disasters in U.S. history, President-elect Obama has failed to include any provision in his economic stimulus plan to stop the diversion of billions of dollars in federal small business contracts to Fortune 500 firms.
President-elect Obama's refusal to take decisive action to stop the diversion of up to $100 billion a year in federal small business contracts seems to be a direct contradiction to everything he has said about taking "dramatic action" to "put people back to work."
Many of the nation's most respected experts on the economy like Dr. Laura Tyson and Carly Fiorina agree the best way to stimulate our nation's failing economy is to direct federal infrastructure funds to small businesses. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President-elect Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
President-elect Obama's refusal to stop the fraud and abuse in federal small business contracting programs will only result in more lost jobs at middle class firms across the nation.
"It does not make sense to throw nearly a trillion of hard earned taxpayer dollars at an economic stimulus plan and then ignore fraud and abuse in longstanding federal programs specifically designed to create jobs and stimulate the middle class economy," President of the American Small Business League Lloyd Chapman said. "It would take one sentence in this bill to create thousands of jobs and to redirect billions of dollars in federal contracts to legitimate small businesses all around the country. My advice to President-elect Obama is that if he sincerely wants to create jobs in America he needs to include this one line in the stimulus package, 'The federal government can no longer report awards to publicly traded companies as small business awards.'"
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Wednesday, January 14, 2009
New Chairman of House Oversight and Government Reform Committee Will Prioritize Oversight of Bailout Funds, Executive Compensation
/PRNewswire-FirstCall/ -- U.S. Rep. Edolphus "Ed" Towns, recently named Chairman of the Committee on Oversight and Government Reform today outlined his plans on government oversight and investigations during a keynote address in Washington, DC. The panel discussion, sponsored by FTI Consulting, Inc. (NYSE:FCN) and its public affairs arm FD Dittus, also included the Honorable Richard A. Gephardt; The Honorable Roel C. Campos; Elizabeth Williamson of The Wall Street Journal; Allen D. Applbaum of FTI Consulting. The panel was moderated by Gloria Dittus, President and CEO of FD Dittus.
During Wednesday's event at the The Willard InterContinental Hotel, the distinguished panel offered their observations on the role the new administration and 111th Congress will take in corporate oversight, investigation and regulation, including the importance of government transparency, an issue that President-elect Barack Obama stressed during his Senate tenure.
In his address, Chairman Towns announced that as the new chairman of the House's chief investigative panel, he plans to make oversight of Wall Street one of his top priorities, emphasizing that he wants a full accounting of how the first half of the $700 billion in federal bailout funding was spent before the second half is released. Specifically, he plans to investigate how firms have spent federal bailout funds and whether any of the funds have been used for executive bonuses.
"We cannot continue to give money away and not hold somebody accountable for that money," said Chairman Towns. "It is an abomination that so many firms who are receiving government funds continue to reward poor performance."
In addition, he stated that he intends to further investigate government procurement and contracting processes, with a particular emphasis on ensuring that contractors delinquent on their taxes are not awarded new federal contracts.
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During Wednesday's event at the The Willard InterContinental Hotel, the distinguished panel offered their observations on the role the new administration and 111th Congress will take in corporate oversight, investigation and regulation, including the importance of government transparency, an issue that President-elect Barack Obama stressed during his Senate tenure.
In his address, Chairman Towns announced that as the new chairman of the House's chief investigative panel, he plans to make oversight of Wall Street one of his top priorities, emphasizing that he wants a full accounting of how the first half of the $700 billion in federal bailout funding was spent before the second half is released. Specifically, he plans to investigate how firms have spent federal bailout funds and whether any of the funds have been used for executive bonuses.
"We cannot continue to give money away and not hold somebody accountable for that money," said Chairman Towns. "It is an abomination that so many firms who are receiving government funds continue to reward poor performance."
In addition, he stated that he intends to further investigate government procurement and contracting processes, with a particular emphasis on ensuring that contractors delinquent on their taxes are not awarded new federal contracts.
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