American Small Business League Applauds New Senate Bill

July 28, 2006; 07:41 AM
PETALUMA, Calif. - The American Small Business League released the following statement today, applauding the Senate Committee on Small Business and Entrepreneurship for passing a new bill to curtail small business contracting fraud and abuse. The legislation was authored by Senator Olympia J. Snowe (R-Maine), Chair of the Committee, and passed by a unanimous vote yesterday.

The ASBL is gratified that the bill contains provisions to address many of the problems that have allowed billions of dollars in federal small business contracts to be diverted to some of nation's largest corporations. The provisions include increasing federal authority to prosecute, suspend, and debar large corporations that obtain government contracts by misrepresenting themselves as small businesses; creating a stronger system of SBA size protests; requiring annual certifications of small business status and size; ensuring implementation of the President's Initiative Against Contract Bundling; and providing more Procurement Center Representatives.

"I'm very happy to see the Senate Committee taking major steps to address the abuses that the ASBL first disclosed back in 2002. Small business owners around the country should really appreciate what Senators Snowe and Kerry are trying to do and take action by contacting their congressional representatives to encourage them to pass this legislation," stated Lloyd Chapman, president of the American Small Business League.

Chapman added, "The ASBL has been working on this challenging issue for over four years. We have continually been issuing Freedom of Information Act requests and filing lawsuits to expose more evidence of contracting abuse. We're very proud of the fact that our efforts prompted the first GAO investigation and first congressional hearing on this issue. Perhaps if we would have had some help from other business organizations, we could have put a stop to this sooner. Small business owners need to realize that groups like the NFIB and U.S. Chamber of Commerce never identified this as a problem and made no attempt to lobby Congress in any way regarding this matter."

Last month, Chapman traveled to Washington D.C. to meet with both Republican and Democrat Senate Small Business Committee staff to share documentation with them on the fraud and abuse in small business contracting. Many of the individuals with whom he met were surprised and very concerned at the extent of the problem that has been uncovered in over a dozen federal investigations.

The ASBL is hopeful that this is the first of many pieces of legislation that will be passed that will finally keep Fortune 1000 corporations out of America's small business contracting program.

About the ASBL

The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.