The Obama Administration has proposed the latest in a very long series of anti-small business policies and regulations. On June 20th the General Services Administration announced their Federal Strategic Sourcing Initiative (FSSI). Under this new policy thousands of legitimate small businesses that are currently receiving federal small business contracts, will be forced out of the federal market place and possibly out of business.
One of the nation’s leading experts on federal contracting law, Professor Charles Tiefer, has issued a damming legal opinion on the proposed policy. Professor Tiefer was a Commissioner from 2008-2011 on the Congressionally chartered, independent Commission of Wartime Contracting in Iraq and Afghanistan.
His legal opinion on the proposed GSA policy is titled, “Proposed Regulations Illegally Authorize “Strategic Sourcing” to Massively Reduce the Breadth of Contracting With Small Businesses”.
Tiefer’s legal opinion states, “the proposed regulations would reduce the breadth of small business contracting by up to 80% or even 90% in line of business where small business contracting is currently common. The proposal is blatant and undeniably illegal; indeed, the proposal impliedly admits the key facts underlying the illegality.”
Professor Tiefer points out the new Obama Administration policy is in direct conflict with federal legislation and the Supreme Court ruling that require the federal government to provide small businesses with “the maximum practicable opportunity” for federal contracting.
If adopted this latest anti-small business policy will join the Obama Administrations policy of diverting hundreds of billions in federal small business contracts to many of the largest corporate giants in the United States and Europe.
The Small Business Act mandates small businesses shall receive a minimum of 23% of ALL federal prime contracts. The Obama Administration has defrauded small businesses including those owned by women, minorities and service disabled veterans out of billions by cooking the books and using a total federal acquisition budget that is less than a third of the real number to fabricate the federal governments compliance with all categories of small business contracting goals.
According to the Congressional Budget Office the total federal acquisition budget for 2015 was $1.2 trillion. The Small Business Administration used a number of just $391 billion to falsify compliance with small business contracting goals.
A recent article in Mother Jones magazine titled, “Giant Corporations Reaping Billions in Federal Small Business Contracts” exposes the rampant fraud and abuse against America’s 28 million small businesses and the 50 plus million voters they employ.
If the Obama Administration adopts the illegal anti-small business policy, the GSA has proposed the American Small Business League (ASBL) will file for a federal injunction to stop it.
My current federal injunction case against the Obama Administration to end fraud and corruption against small businesses is going quite well. When we win, I predict legitimate American small businesses will receive an additional $200 billion a year in federal contracts and subcontracts. GovExec just released a decent article on this case.
Maybe someday politicians in Washington will read the U.S. Census data that show small businesses are responsible for over 90% of the net new jobs in America and finally understand anti-small business policies are economic suicide.