THE BLOG
09/21/2009 05:12 am ET Updated May 25, 2011

Obama Administration Fabricates Small Business Contracting Data

The American Small Business League (ASBL) is challenging the latest statistics released by the Obama Administration regarding the volume of federal contracts aawarded to small businesses during fiscal year (FY) 2008. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/goals_08_gov_wide.pdf)

Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts have been awarded to Fortune 500 firms and some of the largest corporations in the United States and Europe. (http://www.asbl.com/documentlibrary.html)

Every major newspaper in the country has covered this story along with a number of major television networks like ABC, CBS, CNN and FOX. These stories have reported that firms like British Aerospace (BAE), Xerox, Dell Computer, John Deere, Microsoft, Wal-Mart and Rolls-Royce have all received federal small business contracts. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170; FOX, http://www.asbl.com/showmedia.php?id=1388)

In February of 2008, President Obama acknowledged the extent of the abuses when he said, "Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. 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)

To date, President Obama has refused to support legislation such as H.R. 2568, the Fairness and Transparency in Contracting Act of 2009 or adopt any policy that would stem the flow of federal small business contracts to large corporations. Consequently, the same Fortune 500 firms that were allowed to receive small business contracts during the Bush Administration continue to receive federal small business contracts.

The ASBL points out that the government's small business contracting statistics have been inflated or falsified in several ways. In one way, the government under-reported the total volume of the federal acquisition budget as a means of manipulating the final percentage reported as going to small businesses. Secondly, the Obama Administration continues to include Fortune 500 firms in the government's small business contracting statistics.

The ASBL will release a more detailed analysis of the Obama Administration's 2008 small business contracting statistics early next week.

Despite all of President Obama's pre- and post-campaign rhetoric regarding small businesses, the fact is that the Obama Administration is allowing approximately $400 million a day in federal small business contracts to be awarded to Fortune 500 firms and some of the largest corporations in the world. The fact that the Obama Administration is awarding small business contracts to Fortune 500 corporations cannot be denied. It is irrefutable. I challenge anyone in the country to prove me wrong. In my mind, the Obama Administration is anti-small business, and we all need to stop listening to what they say, and start looking at what they do.