I was very grateful and flattered to be included in a recent article by Kelly Spores from the American Express Open Forum titled, “Meet 4 People Giving Small Businesses a Big Voice in Washington.”
It is rare for me to receive any recognition for the 25 years I have invested lobbying for small businesses and trying to end the rampant fraud and abuse in federal small business contracting programs.
I hope Kelly didn’t get in too much hot water with the SBA and Pentagon Press Offices for her description of me: “Depending on whom you ask, Lloyd Chapman is either a crusader fighting for small business or an outspoken and litigious leader.”
I’m sure SBA Press Office Director, Terry Sutherland, had a stroke when he read, “Moreover, Chapman’s research of federal contracting databases shows that agencies divert more than $100 billion each year in small business contracts to Fortune 500 corporations.”
I’m sure Kelly Spores and her boss received one of the infamous threatening SBA Press Office conference calls angrily berating them and slandering their journalistic credibility.
Luckily for Kelly Spores, her boss and myself, we have a new legal opinion from Professor Charles Tiefer, one of the most reputable experts on federal contracting law, to back us up. In Professor Tiefer’s legal opinion he found small businesses had been cheated out of billions of dollars and he described it as “fraud”. He acknowledged in calculating the percentage of awards to small businesses, the SBA uses a federal acquisition budget number that is approximately 50% of the actual federal acquisition budget.
By using a federal acquisition budget that is less than half the actual acquisition budget and by including billions of dollars in contracts to thousands of large businesses, the government inflates the real percentage of contracts to legitimate small business by a factor of ten. I estimate over the last decade small businesses have been cheated out of well over a trillion dollars in federal contracts.
In addition to Professor Tiefer’s legal opinion, a 10 year history of federal investigations and investigative reports in the media have all found the federal government cheats American small businesses out of billions of dollars every year.
Every year since 2005, every Inspector General for the Small Business Administration appointed by President Bush and President Obama has named the diversion of federal small business contracts to large businesses as the number one problem at the SBA.
Even President Obama acknowledged the staggering magnitude of the fraud against America’s 28 million small businesses when he released the statement, “It is time to end the diversion of federal small business contracts to corporate giants.”
I can link to dozens of federal investigations and investigative reports in the mainstream media that have all found the rampant and fraudulent diversion of hundreds of billions of dollars in federal small business contracts to corporate giants around the world.
I think the very best piece of evidence of the fraud I have uncovered in federal small business contracting that Kelly Spores recognized me for in her American Express Open Form article is not found in any federal investigations or investigative reports in the media.
It can be seen by who the Obama Administration has chosen to take over the Small Business Administration Press Office. Last April, Terry Sutherland left his job as Director of Corporate Communications at the Pentagon Force Protection Agency to become the Director of the SBA Press Office. A man with over 20 years of experience as the spokesman for the single largest agency in the federal government suddenly takes over the press office for the smallest agency in government. Look at it this way; the SBA’s annual operating budget is .001 of the Pentagon’s annual budget.
Terry Sutherland, or as he is know around Washington, Commander Cover-Up, did not suddenly take over the SBA Press Office because I am a conspiracy nut. He didn’t quietly take over the SBA Press Office because every year for over a decade Fortune 500 firms have landed billions of dollars in federal small business contracts accidentally through miscoding, computer glitches and anomalies. The Obama Administration doesn’t need a 20 year Pentagon PR hit man to deal with conspiracy nuts and anomalies.
You call a guy like Terry Sutherland in when you need to cover up, smear and squash something very nasty like the Abel Danger 9/11 whistleblowers. You need Terry Sutherland if you want to kill media coverage on the hundreds of billions of dollars in felony federal contracting fraud I have uncovered at the Pentagon with my unrelenting Freedom of Information Act litigation.
So hats off to Kelly Spores and her American Express Open Forum article for the much appreciated recognition. Thank you for telling the truth about my 25 year campaign and legal battles to end fraud and abuse against the 28 million small businesses where most Americans’ work
If you would like to know what Commander Cover Up/Terry Sutherland thinks about the article, here is his contact information. I’m sure he would be glad to talk to you about it in an angry and intimidating conference call.
(202) 205-6919 | [email protected]