New SBA Small Business Numbers Include Billions to Corporate Giants

New SBA reports show that billions of dollars have been given to Corporate machine while real Small Businesses are left by the wayside. One of the reports was prompted by a request from John Kerry. Last week, the SBA’s Office of Inspector General “released the results of three investigations in the past year that found the SBA has intentionally included awards to large businesses in their small business contracting statistics.”

Report 5-14 was prompted by a request from Senator John Kerry. It stated, “The SBA awarded four of the six high dollar procurements, reported as small business procurements, to large companies at the time of the procurements.”

A 2004 investigation by the SBA’s own Office of Advocacy found the SBA had reported billions in awards to such firms as Hewlett-Packard, Northrop- Grumman, Titan Industries, Raytheon and Buhrmann, a Dutch firm with 18,000 employees, as small business awards. The report concluded “vendor deception” was one of the reasons for the dramatic abuses.

Report 5-16 was prompted by information provided by Lloyd Chapman, President of the California-based American Small Business League. It concluded that the SBA had allowed large businesses to receive small business contracts through “false certifications.”

Report 5-16 was prompted by information provided by Lloyd Chapman, President of the California-based American Small Business League. It concluded that the SBA had allowed large businesses to receive small business contracts through “false certifications.”

In the press release from Lloyd Chapman, President of the American Small Business League, the following questions for the SBA were asked:

1. Has the SBA included awards to any Fortune 1000 firms or their subsidiaries in the 2004 small business statistics?

2. Do the 2004 small business statistics include awards to any of the 600 large businesses the SBA was forced to remove from your small business vendor database in 2003?

3. Are any awards to the 44 large businesses that were uncovered in the SBA Office of Advocacy (Eagle Eye) report included in the 2004 small business contracting statistics?

4. Are there any firms included in the 2004 small business contracting statistics that would not qualify today for new small business contracts?

5. Is it true that until December of 2004, the SBA allowed large businesses that acquired small businesses to keep their small business status for up to 20 years?

6. In the past the SBA has claimed “miscoding” and “computer glitches” were responsible for large businesses being included in small business contracting statistics. Do the 2004 statistics include any firms that were “miscoded” as small businesses in the past?

7. Do the 2004 small business statistics include awards to any foreign owned firms?

8. Do the 2004 small business statistics include awards to the multi-billion dollar Dutch firm Buhrmann or any of their subsidiaries?

9. Are any awards to the four large businesses the SBA Inspector General found the SBA reported as small businesses in report 5-14 included in the 2004 small business statistics?

10. The SBA Office of Inspector General found fraud in small business contracting as early as 1995 and again this year the Inspector General found firms were still making “false certifications” to receive small business contracts. Can you provide me with a list of the firms that have been prosecuted for small business contracting
fraud?

Bookmark and Share

Bookmark the permalink.

Comments are closed.