16September 2009
Another bill was recently introduced into the House of Representatives that creates a loophole allowing large companies to compete for federal contracts meant for small business. Congressman Parker Griffith introduced a bill titled The Small Business Fair Competition Act (HR3558) on September 14. Who is the bill fair for?
Federal investigations have found that since 2003, there have been literally billions of dollars of federal contracts awarded to Fortune 500 companies and large companies around the world. These are contracts that were meant for small businesses. It’s also been reported that in 2008 60 of the top 100 businesses awarded federal contracts were large companies.
The Small Business Administration indicates that the diversion of federal contracts meant for small business to large companies is a major problem and one that is not easily solved. Up to this point Congress has not taken one step to solve this problem. It makes you wonder why. Is it because large companies can afford to pay more lobbyists and make more campaign contributions?
Let’s look at the evidence. Large companies like Boeing, Northrup Grumman, General Dynamics and British Aerospace, BAE, all have offices in Congressman Griffith’s district. It’s also interesting that all four firms have received federal contracts meant for small businesses. It appears that the Congressman may have sold out to the highest bidder according to ASBL President Lloyd Chapman.