By the American Small Business League.
Wednesday President Obama signed four executive orders aimed at helping small businesses. After reviewing the executive actions, American Small Business League (ASBL) President Lloyd Chapman is certain that President Obama is ignoring the number one problem facing small businesses—that large businesses are receiving tens of billions of dollars each year in federal small business contracts.
“President Obama’s latest executive orders are just smoke and mirrors,” said Chapman. “He promised to end this abuse, and the fact that he has done nothing shows that he has a complete lack of integrity.”
This comes one week after the Obama administration quietly announced that it once again missed its federal small business contracting goal, which is set at 23 percent.
Since 2003, a series of federal investigations have uncovered hundreds of billions of dollars in federal small business contracts diverted to large businesses. These include, Boeing, Lockheed Martin, Hewlett-Packard, Xerox, Dell, Raytheon, 3M Company, Northrop Grumman, General Electric, Apple and AT&T and several others. Even more telling are the foreign corporations that have received billions of dollars in federal small business contracts, including British Aerospace Engineering (BAE), Rolls-Royce, Finmeccanica and Russian state-owned defense broker Rosoboronexport.
During his 2008 presidential campaign, Barack Obama promised to end fraud and abuse in federal small business contracting with the statement, “It is time to end the diversion of federal small business contracts to corporate giants.” After being elected, he removed that statement from his website and never mentioned it again.
President Obama has also refused to back legislation aimed at preventing large foreign and domestic firms from hijacking federal small business contracts. Representative Hank Johnson (D-GA) has introduced legislation aimed at closing loopholes and ending fraud and abuse in small business contracting programs. The bill would direct billions of dollars in existing government infrastructure spending to small businesses.
“The Small Business Act defines a small business as one that is independently owned and not a foreign company,” said Chapman. “President Obama could simply issue a one line executive order that says: ‘The federal government will no longer report contracts awarded to publicly traded companies and foreign-owned companies as small business contracts.’”