SBA "Grandfathering" Plan Could Give Billions to Big Businesses

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SBA Ignores Public Opposition To Proposal To Allow Big Biz To Receive Billions In Small Biz Contracts

The Small Business Administration has ignored overwhelming public opposition to a controversial proposal that would allow some of the nation’s largest companies to continue to receive billions of dollars annually in government small business contracts. The SBA has extended the comment period until April 3rd, even though over 90% of the public responses were against their “grandfathering” proposal as well as all the other SBA proposed changes. The number of comments received from small business groups, chamber of commerce, and individual small businesses was one of the highest in SBA history. Small businesses around the country are crying foul and believe the SBA has extended the comment period in an attempt to manipulate the results and give large businesses and the special interest groups that represent them more time to try and counteract the public opposition to the “grandfathering” plan.

The American Small Business League (ASBL) has led the opposition to a series of SBA’s proposals that have diverted federal contracts away from legitimate small businesses. ASBL President Lloyd Chapman believes the recent SBA plan is designed to assist large DC area firms to continue to receive federal small business contracts.

“The SBA’s decision to extend the comment period on their “grandfathering” proposal is clearly an attempt to manipulate the public comments on this issue. Even the way they presented the proposal was designed to manipulate the results of the public comment. They did not ask the public if they should “grandfather” large businesses, they asked “what approaches” should the SBA use to grandfather,” Chapman said.

As part of an ongoing legal battle, Chapman’s ASBL forced the SBA to release portions of an embarrassing report which found that the SBA had allowed some of the largest firms in the U.S. to receive billions in federal small business contracts.

Some of the firms that had received over $100 million dollars in federal small business contracts include Titan Industries, Raytheon Corp., Northrop Grumman, and BAE Systems. Buhrmann NV, a Dutch firm with 26,000 employees worldwide received $98 million dollars in U.S. government small business contracts.

Federal law requires that a minimum of 23% of the total value of all federal contracts and sub-contracts be awarded to small businesses. Investigations by the General Accountability Office and the Center for Public Integrity found billions in federal small business contracts have been awarded to some of the largest companies in the U.S. The SBA’s own Office of Inspector General found widespread fraud in federal small business contracting programs as early as 1995.

For more information please contact Lloyd Chapman, 707-789-9575, Lchapman@asbl.com                

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Le Jeune Paris