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SBA fights back on contracting goals lawsuit

August 11, 2016 By Nancy Cleveland

SBA logo smallThe Small Business Administration (SBA) is asking a judge to throw out a lawsuit claiming it uses “creative accounting” for federal contracting benchmarks.

SBA filed a motion to dismiss the lawsuit, which was filed in May by the American Small Business League, related to the agency’s annual goaling report.

ASBL“SBA’s requirement to publish agency remediation plans stems directly from the Small Business Act,” SBA counsel stated in court documents. “Though the implementation of this requirement is tied to the outcomes published in the goaling reports, it is the statute — not the reports — which binds SBA to act. Moreover, the alleged legal consequences for [ASBL] are speculative and result not from SBA’s actions but from individual contracting decisions across multiple federal agencies.”

ASBL in a statement called the motion a dodging of fraudulent policies.

Keep reading this article at: http://federalnewsradio.com/contractsawards/2016/08/sba-fights-back-contracting-goals-lawsuit/

Read ASBL’s response to SBA’s motion at: http://www.prnewswire.com/news-releases/sba-denies-responsibility-for-fraudulent-policies-in-federal-injunction-case-asbl-reports-300308268.html 

Filed Under: Contracting News Tagged With: ASBL, exclusionary rule, goaling, SBA, small business, small business goals

Group sues SBA, says government ‘defrauded small businesses’

May 9, 2016 By Nancy Cleveland

ASBL Injunction Against SBA - May 2016Just a week after the Small Business Administration celebrated record-breaking contract awards to small business owners eligible for government set-asides, a longtime critic filed suit in federal court for an injunction to force SBA to halt some of the practices used in measuring its success.

The Petaluma, Calif.-based American Small Business League, in an injunction addressed to Administrator Marie Contreras-Sweet filed in Federal District Court in San Francisco, argued that the SBA’s “illegal policies” have “defrauded small businesses and small businesses owned by women, minorities and disabled veterans out of hundreds of billions of dollars in government contracts.”

ASBLIt quotes the Small Business Act’s language noting that “the governmentwide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year.” And within that category, the goal states 5 percent for women-owned small businesses, 5 percent for minority-owned firms, and 3 percent for disabled veterans.

But the SBA, the group’s argument goes, “has created a policy they call the ‘exclusionary rule’ and ‘small business eligible dollars’ that uses a significantly lower federal acquisition budget number to calculate the percentage of contracts awarded to all categories of small businesses.”

SBA logo smallKeep reading this article at: http://www.govexec.com/management/2016/05/group-sues-sba-says-government-defrauded-small-businesses/128084

See copy of complaint for injunctive relief here: http://www.asbl.com/documents/Filed_Complaint_For_Injunctive_Relief.pdf

Filed Under: Contracting News Tagged With: ASBL, exclusionary rule, fraud, goaling, injunction, SBA, set-aside, small business, small business goals, suit

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