Welcome!

News Feed Item

SBA's "Safe Harbor From Fraud" Policy Comments End Monday

American Small Business League Comments on SBA's "Safe Harbor" Policy

PETALUMA, Calif., Aug. 21, 2014 /PRNewswire-USNewswire/ -- This is the comment to the Small Business Administration from the American Small Business League opposing the "safe harbor from fraud" policy.

American Small Business League Logo

The Small Business Administration Office of Inspector General began sounding the alarm in 1995 on large businesses fraudulently misrepresenting themselves as small business to illegally receive federal small business contracts.

Every year since 2005, the SBA Office of Inspector General has continued to name the diversion of federal small business contracts to large businesses as the number one challenge at the SBA.

The SBA Office of Inspector General has issued numerous reports on the diversion of federal small business contracts to large businesses such as Reports 5-14, 5-15 and 5-16.

A long series of federal investigations have uncovered rampant fraud in federal small business contracting programs.

The diversion of federal small business contracts to Fortune 500 firms and thousands of large businesses has been reported by Fox News, ABC, CNN, NBC, MSNBC, CBS and CNBC.

Even President Obama acknowledged the magnitude of the abuse in federal small business contracting programs when he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants."

For over twelve years the SBA has claimed the widely investigated and reported diversion of federal small business contracts to large businesses is the result of "miscoding", "computer glitches", "anomalies", "simple human error", "large businesses acquiring small businesses" and a variety of other excuses such as small businesses outgrowing their size standard.

The SBA has consistently denied there is any fraud in federal small business contracting.

I challenge anyone at the SBA to show me just one investigation by the SBA Inspector General that found too many large businesses were being unfairly prosecuted for misrepresenting themselves as small businesses.

Since there are no federal investigations that found too many large businesses were being unfairly prosecuted for fraud, I see no need for a "safe harbor from fraud" policy.

I do see a desperate need for a policy to stop the nation's 28 million small businesses from being cheated by the rampant diversion of billions of dollars a month in federal small business contracts to large businesses.

I do see a desperate need for a policy that would stop the SBA from cheating small business with their fabricated, "small business eligible dollars" policy.

I challenge anyone at the SBA or any other federal agency to show me the section of the Small Business Act that allows for "small business eligible dollars" to be used in calculating the percentage of awards to small businesses. I challenge anyone to provide the section from the Small Business Act that allows for Fortune 500 firms, their subsidiaries or any large businesses to legally receive federal small business contracts.

In conclusion, the American Small Business League is opposed to the "safe harbor from fraud" policy. This is just another loophole that will allow the federal government to cheat small businesses out of more contracts, encourage fraud, protect fraudulent firms and allow the SBA to continue to fabricate and falsify the government's compliance with the 23 percent small business-contracting goal.

Logo - http://photos.prnewswire.com/prnh/20140811/135286

SOURCE American Small Business League

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."