Questions for SBA Administrator Karen Mills

In February of 2008, President Obama released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." Every year since 2006, the Small Business Administration Office of Inspector General (SBA OIG) has released a report, which listed the agency's #1 management challenge as, "Procurement flaws allow large firms to obtain small business awards and agencies to count contracts performed by large firms towards their small business goals."
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php, http://www.sba.gov/idc/groups/public/documents/sba/oig_reports_tmc_fy09.pdf)

Since 2003, over 15 federal investigations have found that billions of dollars a year in federal small business contracts are diverted to some of the largest corporations in the world. The most recent statistics released by the Obama Administration indicate that hundreds of Fortune 500 corporations, their subsidiaries and other large businesses were included in the government's fiscal year (FY) 2008 small business contracting data. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)

Firms that received federal small business contracts included: Lockheed Martin, Boeing, Raytheon, GTSI, L-3 Communications, British Aerospace (BAE), Northrop Grumman, Booz Allen Hamilton, Thales, General Dynamics, 3M, Hewlett-Packard, AT&T, Rolls-Royce and Dell Computer.

Despite the fact that the diversion of federal small business contracts to large corporations is the SBA's #1 challenge, Administrator Karen Mills has refused to mention the issue or adopt any policies to address it. The American Small Business League (ASBL) believes it is time for someone in the media to question Ms. Mills about the Obama Administration's refusal to address this pressing issue.

- Will the Obama Administration support federal legislation or policy that would allow wealthy venture capitalists to participate in federal small business contracting programs?

- Considering the fact that America is in the midst of its worst economic downturn in 80 years, why is the Obama Administration continuing to allow contracts to Fortune 500 firms to be counted as small business awards?

- Will any contracts to Fortune 500 corporations and their subsidiaries be included in the government's small business contracting statistics for FY 2009?

- Why hasn't the Obama Administration adopted polices or legislation to end the diversion of federal small business contacts to corporate giants?

- In February of 2009, the Obama Administration awarded a $128 million contract to Bechtel as a small business, how would you justify that to the millions of small businesses who are struggling to keep their doors open? (http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf)

- Is there any truth to the rumor that the Obama Administration may try to close the SBA by combining it with the U.S. Department of Commerce?

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Comments

[SBBeliever]

What has happened to responsible journalism that reporters are NOT asking these questions? Wait! I know! Large businesses not only own our government, they now own our newspapers. American journalists are just as opposed to small businesses as the U.S. government because large corporations are dumping truck loads of money at both - journalists and politicians know who butters their bread, so what do they care? Do their jobs? Operate from a place of integrity? Freedom of Speech? Reporting the real deal? I think we have to go to Europe for that now.

[Read2know]

When will Karen Mills focus on this #1 issue to help small businesses?
It would definitely put Ms. Mills on the spot if a reporter would question her and call her out on this issue.

[GrimJack]

I read an interview with Mills in the NY Times from last week, she is a pro in dodging direct answers to questions, she has the politicianese down well. It would be really nice to actually have someone who is in a power position to actually do something, answer these kinds of questions. What ever happened to accountability?

[Radar423]

If it makes any difference, I will buy a Tootsie Roll for any journalist that asks her one of those questions.

Is anyone ever going to solve this issue??

[Ashki]

I would love to hear the answers to some of those questions.

[Areyoukiddingg]

The SBA needs to cut the red tape and BS needed to procure a loan. We need to have a streamlined system right now for small biz to get $30K-$50K. Otherwise it's more layoffs & less diversity. Where's the bailout for small business? We're waiting.....