Federal Gov Illegal Actvity Example #37 - Violation Of Federal Contracts 23% Rule

By federal law %23 of all Federal Contracts are to be awarded to Small Businesses and yet the Federal Government has been unable to meet that small requirement more then 3 times in the last 12 years and that's using inaccurate/inflated numbers. Of the current years contracts that have been awarded (22.7% which is still not the minimum required by law) , of the top 100 recipients of these contracts, 72 were fortune 100 corporations. Included among these non-small business recipients is over 300 million to a Russian owned arms dealer. These are federal monies being illegally diverted to large corporations and "friends" (translate that to mean large campaign donators) of the current administration. Hard to believe? I thought so to but this is Loyd Chapman of the ASBL and not Alex Jones so its hard to just dismiss because you don't like what it means. The corporate giants of the fortune 100 do control our government despite best efforts to debunk otherwise and the same goes for the media. The fact that several times Loyd has worked with media people on stories about egregious illegal acts by government in this area that never saw the light of day because of outside pressure shows that the media is also controlled. You can see the full interview with Loyd Chapman at the below Youtube channel: http://www.youtube.com/watch?feature=player_embedded&v=c54mnEjXVL4 Of special interest in the video is the part about how the Obama administration got
 

Mick West

Administrator
Staff member
Seems quite close to the 23% target - pretty good for government work:



I don't think this is exactly "federal law", it always seems described as a "goal" rather than any kind of requirement. Maybe you could quote the law?
 
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Seems quite close to the 23% target - pretty good for government work:



I don't think this is exactly "federal law", it always seems described as a "goal" rather than any kind of requirement. Maybe you could quote the law?

Apolagies for not replying sooner but my time is not as much as it used to be.


" The Small Business Act of 1953 states that 23 percent of all federal contracts must be awarded to small businesses."

That said the quoted value of %20.5 looks like as if it is close in terms of percentages but its misleading at best and more likley an outright falsification. How so? Here is an analysis/breakdown of the reported number. It (or reports it links to) show abuse/fraud involved with the way the Feds report this number. It shows that 72 of the 100 companies receiving the highest amount of federal small business contracts in 2011 were firms that exceeded the Small Business Administration’s size standards for small companies.

http://www.asbl.com/documents/FY2011Top100Analysis.pdf



EXAMPLES of government spending abuses:

1) GSA chief resigns amid reports of excessive spending (http://www.washingtonpost.com/polit...ive-spending/2012/04/02/gIQABLNNrS_story.html)

2) GSA inspector general’s report - It blasts the agency for excessive spending on clowns, mind readers and lavish parties during a training conference just outside Las Vegas, claims that officials awarded a $58,808 contract to a large audio and visual services firm when federal regulations require contracts of such size be reserved for small businesses. (http://www.gsaig.gov/?LinkServID=90537F5B-FBF8-E39E-A4F0D09005742C28&showMeta=0 )


Here's an alnlysis of the givermnets
 
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MikeC

Closed Account
As far as I can see teh Act required the President to set goals, and the level of the goals is defined in the statute - in the case you describe the goal has to be at least 23%. Eg see this document (500kb pdf) under "Government wide and agency specific goals".

this is the text of the appropriate section (I think) according to cornell.edu:

(g) Goals for participation of small business concerns in procurement contracts
(1)The President shall annually establish Government-wide goals for procurement contracts awarded to small business concerns, small business concerns owned and controlled by service disabled [1] veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women. The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year.

(there is more covering various other goals - such as 3% to businesses run by veterans, and other cases in that section too)
 

scombrid

Senior Member.
Florida has similar guidelines regarding minority owned businesses for state purchase orders . Various state agencies are required to seek out minority bids when bidding out purchase orders. Minority bids are to be given preference. If a minority vendor is not available for the product or service sought then the purchasing agent has to file a justification. It is very much as described by the allgovbids' post regarding the federal process for small business contracts.
 
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