When Small is Not Really Small
Posted by on July 6, 2006 at 09:19 AM
The NYT wrote yesterday about small business protections being misused. Government contracts that are supposed to be set aside for small businesses are actually in some cases going to large corporations.
The Small Business Administration and other federal agencies are mandated by law to provide at least 23 percent of federal contracts to small businesses. But for years, government studies show, large corporations like GTSI, Boeing, General Dynamics and Northrop Grumman have been counted as small businesses either through legal loopholes, via acquisitions or simply by mistake. And despite some efforts by the federal government to correct the mistakes, problems persist.
The stakes for small businesses are huge as they try to compete for contracts in an expanding federal marketplace. Since 2000, the amount of federal contracting has grown 55 percent, to $377 billion.
Last year, at least $4.9 billion worth of contracts, coded as small business, went to 13 of the largest government contractors, according to a review by The New York Times of contracting data provided by Eagle Eye, a research firm based in Virginia.
This may seem like a small matter, but it's not. There are two different types of errors. On one hand, clerical errors and improper categorization of large corporations as small businesses are problems that the government can fix relatively quickly. But the second problem - that large companies are able to compete for small business contracts because of a legal loophole - is a much more complex issue. The government doesn't seem to even want to touch it. Meanwhile, the big losers are small businesses who can't even compete fairly for small business contracts.
Comments (8) «
Oh, but the "Decider" is all about Small Bidness"
IMPEACH CHENEY FIRST
IMPEACH THE LOOSER-IN-CHEIF NEXT
Is anyone else feeling the noose tightening around our necks? We are losing our rights, our freedoms, our liberties. At the hands of our "government". And members of our Congress are holding the ropes.
I guess that makes the message clear: we cannot trust our government. Nor the people we elect to it. Starting over is the only solution. We need to start a "People's Party" --- one that represents the wishes of the people. Does anyone know how to go about doing this? And do we have time before the next election?
But the second problem - that large companies are able to compete for small business contracts because of a legal loophole - is a much more complex issue.
Posted by Christy McConville on July 6, 2006 at 09:19 AM
Well said.
And here is where we have the problem of self-proclaimed "strict constructionists" -- people who use the letter of the law to abuse and manipulate the spirit of the law
Posted by Rally on July 6, 2006 at 01:44 PM
I truly believe that Dean is doing this with the 50-state strategy, and with Democracy Bonds. We are starting from the grassroots and moving upward. We are building a party beholden to the people, not the largest donors.
*also* check out Democracy for America. This used to be Howard Dean's campaign, and it's now run by his brother Jim. DFA supports brand new Democratic candidates on the local level. Adding much-needed new blood to the ranks of the democratic party.
This is how we will begin to take our country back from the Bush/Cheney corporate supremacists.
Regressives are letting big businesses put real small businesses out of commission.
THAT'S NOT RIGHT.
Show me a loophole and I'll show you somebody getting a bribe.
It's time we started examining which legislators are sponsoring which loopholes (with the help of which K Street lobbyist) that make laws useless and then confront these incumbents during elections. That's the way way to get rid of the bad apples.
If we are really serious about taking back Congress, we need to bring forth the facts. Would it be that hard to do the research on major bills that people are upset about?
How about the Republicans perscription drug bill for seniors? Which House Republicans worked with which drug companies to create loopholes that allowed them to conrol the program not the government?
The wealthy and powerful may be favored but they are out numbered by more that tenmillion. If we can get everyone to vote we will win by several million votes. We have the power, now all we have to do is take charge and win.
Lobbying funds spiral to $2.4b
General Electric tops corporate list of spenders
By Jonathan D. Salant and Jeff St. Onge, Bloomberg July 7, 2006
WASHINGTON -- General Electric Co. spent $21.5 million last year trying to influence the US government, the most of any corporation, as total lobbying costs rose even as Congress began looking at ways to rein in such activities.
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