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Terry Sutherland’s Appearance Explained with New SBA Fraud Protection Policy

3:19 pm in Uncategorized by Lloyd Chapman

I have been wondering why one of the most tenured and experience Pentagon spokesmen suddenly popped up at one of the smallest agencies in government, the Small Business Administration (SBA).

Portrait of Terry Sutherland

Sympathy for the devil.

It makes perfect sense. Terry Sutherland is there to help journalists understand why the SBA needs a policy to create a “safe harbor” from penalties for firms that are guilty of the fraud that is absolutely not happening at the SBA.

Terry Sutherland is there to help the public understand why the SBA needs a policy to essentially legalize the fraud that has not been uncovered in over a dozen federal investigations and countless reports in the mainstream media. They have not all found hundreds of billions of dollars in federal small business contracts that have actually wound up in the hands of some of the biggest corporations in the world.

Commander Cover-Up has taken over the SBA Press Office to help journalists understand they need a new “safe harbor “policy to protect fraudulent firms from penalties because Lloyd Chapman is a conspiracy nut.  CNN did not uncover wide spread fraud in a federal program designed to help small businesses.

Terry Sutherland is there to help the mainstream media understand there is no fraud in SBA managed programs. That’s why the Government Accountability Office released Report 10-108 that stated, “By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.”

Terry Sutherland is just there to help the media clearly understand that even though the SBA Inspector General has named the diversion of federal small business contracts to big businesses as the number one problem in the SBA ever year for a decade, there is no fraud at the SBA. That’s why the SBA needs a new policy to protect fraudulent firms with a “safe harbor” from penalties.

I hope it’s clear to everyone the fact that one of the Pentagon’s top cover-up hit men went from the largest agency in government to a teeny tiny agency with a budget that is .001% of the Pentagon’s budget because there is no fraud at the SBA or the Pentagon.

And of course Lloyd Chapman is just a conspiracy nut with his 40 national television appearances, his endless press releases and blogs and his 30 legal victories over the federal government and his Bill in Congress, H.R. 1622.

Federal law mandates a penalty of not more than 10 years in prison, a $500,000 fine per occurrence, or both, for big businesses that misrepresent themselves as small businesses to hijack federal small business contracts.

Since there is clearly no fraud in SBA managed small business contracting programs, Terry Sutherland simply wants everyone in the media to understand that’s why the SBA has proposed a new “safe harbor” from penalties for firms that commit fraud.

SBA Magic Trick Turns Thousands of Big Businesses into Small Ones

1:01 pm in Uncategorized by Lloyd Chapman

Seal of the Small Business Administration

Legalistic trickery threatens to turn fraudulent big corporations into legal businesses.

On Monday morning July 14, thousands of big businesses will instantly become small businesses again. The Small Business Administration (SBA) will perform this magical miracle with just two quiet policy changes.

Hounded for over a decade for diverting billions of dollars in federal small business contracts to big businesses, the SBA has finally come up with a very creative solution to their dilemma. Adopt phony baloney polices under the guise of “helping small businesses” that turn all the big businesses the SBA has been including in their small business contracting data for over a decade into small businesses.

Abracadabra! Thousands of small businesses suddenly appear. Shazam! Problem solved!

The SBA has displayed an astounding mystical magnitude of slight of hand and misdirection that would make David Copperfield proud.

Every year for a decade the SBA’s pesky Office of Inspector General has named the diversion of federal small business contracts to big businesses as the number one problem at the SBA. The SBA is sick and tired of investigative journalists at NBC, CBS, ABC and CNN making them look bad with their facts and accurate data.

The SBA won’t have to take that anymore. Their new smoke and mirrors policies will take thousands of firms that were guilty of felony federal contracting fraud last year and, presto chango, no more fraud. Siegfried and Roy never came up with a magic trick better than this one.

According to the latest data from the U. S. Census Bureau, 98% of all American firms have less than 100 employees and the average American firm has approximately 12 employees. SBA’s magical powers and policies have turned companies that are 100 times larger than the average American firm into small businesses. SBA mystical, magical policies have turned companies that are 15 times larger than 98% of all U.S. firms into small businesses.

Now the SBA is even adopting a new policy that legalizes fraud. They’re creating a “safe harbor” to protect large firms that have fraudulently misrepresented themselves as small businesses to hijack small business contracts.

If you would like to tell the SBA what you think about their new magical policies to turn big businesses back into small ones, you can send comments to here.

SBA Expected to Release Fraudulent and Falsified Small Business Data Soon

3:30 pm in Uncategorized by Lloyd Chapman

Every year about this time the Small Business Administration (SBA) issues a press release claiming the federal government barely missed the 23% small business contracting goal required by law.

Seal of the Small Business Administration

The real job creators suffer after cuts to the Small Business Administration.

In reality the Obama Administration has never come anywhere close to reaching the minimum 23% small business-contracting goal. Based on all the information I have been able to obtain under the Freedom of Information Act, I estimate legitimate small businesses in America are currently receiving no more than 5% of all federal contracts and subcontracts.

The SBA’s favorite time to release their annual falsified and fabricated small business contracting data is late on a Friday afternoon. Over the last few years they have shown a particular fondness for releasing this information just before a three-day weekend. Since they know the information they are releasing is totally false, they want to release it as quietly as possible to reduce any chance some journalist might possibly question their findings.

As it has been for the last dozen or more years, the SBA will include billions of dollars in federal contracts to many of the largest corporate giants around the world in their small businesses contracting data.

According to the data from the Federal Procurement Data System (FPDS) in 2012, 235 Fortune 500 firms were included in the SBA’s small business contracting data. In 2013, the FPDS shows 175.

Since President Obama has taken office some of the firms that have been included in the SBA’s small business contracting data include Hewlett-Packard, IBM, Oracle, Boeing, Rolls-Royce, British Aerospace and Engineering (BAE), Raytheon, Northrop Grumman, General Dynamics, Chevron, Apple, AT&T, CVS, Verizon, UPS, Bank of America, Home Depot, Target, Microsoft, Wells Fargo, Pepsi, Disney, U.S. Bank, Lockheed Martin, Coca-Cola, Sears, American Airlines, J.P.  Morgan Chase & Co., Citigroup and even more.

If by some miracle some journalist does question the inclusion of hundreds of Fortune 500 firms in the SBA’s small business data, the SBA will no doubt stick to their standard excuses of miscoding, anomalies, computer glitches and simple human error.

Not one journalist in a decade has ever thought to ask anyone from the SBA why these random errors do not have a random pattern of distribution. Errors like miscoding and computer glitches would have a random pattern of distribution like flipping a coin. For every contract to a large business that was accidentally miscoded as a small business contract, there would be a contract to a small business that was miscoded as a large business contract.

Why hasn’t any journalist ever asked anyone at the SBA why these alleged random errors always seem to divert small business funds to big business? Duh!

The Pentagon’s top PR conman, Terry Sutherland or Commander Cover-Up as he is known around Washington, has quietly taken over as SBA Press Office Director.  I wouldn’t be surprised if he tried something really tricky this year. They may even have some unknown SBA staffer quietly releasing the data on a blog. Who knows, they may even try and avoid the traditional confrontation we have every year and sneak the fraudulent and blatantly falsified report out with some new clandestine ploy.  

We play this little game every year. They come out and claim they just missed the 23% goal and I release a barrage of press releases and blogs telling the truth that most of the funds they claim went to small businesses actually wound up in the hands of some of the largest corporate giants in the U.S. and even Europe.

Here are some fun links to my previous blogs and press releases on the SBA from the last few years. Occasionally the mainstream media has joined me in questioning the accuracy of the SBA’s small business data.

The SBA has come up with some new tricks to finally stop the controversy around diverting billions of dollars in small business contracts to big businesses. They are rolling out new policies this month to make thousands of big businesses suddenly become small businesses. It’s like magic but more evil, sinister and fraudulent.

So here we go again. I’m predicting the data will be released very, very soon. I’m guessing they may try something new this year. Commander Cover-Up is very skilled at his job of duping the media. The media also seems very good at being duped.

I guess we will just have to wait and see what type of media dodging tactics the SBA has up their sleeve for this year. Stay tuned!

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House Armed Services Committee Chairman Howard McKeon Loves Pentagon Anti-Small Business Program

8:52 am in Uncategorized by Lloyd Chapman

House Armed Services Committee Chairman, Howard P. McKeon likes the Pentagon’s 25 year old anti-small business, anti-transparency, anti-middle class test program so much he has voted to extend it into its 28th year of testing.

The 2015 National Defense Authorization Bill, H.R. 4435 includes an extension of the Comprehensive Subcontracting Plan Test Program (CSPTP) until 2017. The Pentagon adopted the CSPTP in 1990 under the guise of testing changes in federal contracting law to determine if those changes would increase subcontracting opportunities for small businesses.

The changes the Pentagon felt should help small businesses were the elimination of any subcontracting plans and reports that were available to the public and the elimination of “liquidated damages” for prime contractors that failed to achieve their small business subcontracting goals.

Anyone with the I.Q. north of a gerbil’s can see the CSPTP was not adopted to increase subcontracting opportunities for small business. It was adopted to help some of the Pentagon’s largest prime contractors violate federal contracting law, cheat small businesses out of billions of dollars and hide all the evidence of that fact.  

It is not surprising that during the 25 years the CSPTP has been tested, the Pentagon has consistently refused to release any data on the test program. Especially anything that showed that the elimination of transparency and any penalties for prime contractors actually increased subcontracting opportunities for small businesses.

Congressman McKeon’s own language in the Chairman’s Mark of the FY15 National Defense Authorization Bill acknowledges there has never been any evidence the test program has increased subcontracting opportunities for small businesses. Knowing that, Congressman McKeon in his infinite wisdom has voted to renew it into its 28th year of testing.

In the Chairman’s Mark, McKeon states,“ However, after nearly 24 years since the original authorization of the program, the test program has yet to provide evidence that it meets the original stated goal of the program…

A 2004 Government Accountability Office (GAO) investigation into the Comprehensive Subcontracting Plan Test Program also concluded there was no evidence the program had increased subcontracting opportunities for small businesses.

In 2010 several members of Congress requested another GAO investigation into the CSPTP but the GAO declined to launch the investigation.

Based on all of the information I have seen, I estimate small businesses have been defrauded out of well over one trillion dollars in subcontracts since the “Test Program” began 1990.

I have launched a legal challenge to the CSPTP. The American Small Business League (ASBL) is suing the Pentagon in Federal District Court in San Francisco after the Pentagon refused to release any subcontracting data from the CSPTP under the Freedom of Information Act.

The Comprehensive Subcontracting Plan Test Program is an obvious loophole in federal contracting law that allows the Pentagon and its largest prime contractors to cheat small businesses and the middle class out of billions of dollars. I’m sure Congressman McKeon’s belief that this anti-small business program needs to be renewed into its 28th year has nothing to do with the fact that according to OpenSecret.org, no member of the House Armed Services Committee has received more money from the defense industry than he has.

Congressman McKeon likes to be referred to as Buck. Considering the amount of money he has received from the defense industry I think we should all start calling him “Big Bucks McKeon”.

I continue to be astonished, amazed and disappointed by the fact that not one journalist from the mainstream media has ever reported on this blatant Pentagon scam in 25 years. Let me say that again, in a quarter of a century, no journalist from the mainstream media, not one, has ever reported on the 25 year old Comprehensive Subcontracting Plan Test Program.

Anti-Small Business Policies Prove Depth of Government Corruption

4:03 pm in Uncategorized by Lloyd Chapman

Over the last twenty-five years three U.S. Presidents and thousands of members of Congress have continually approved some of the most anti-small business, anti-middle class federal programs in history.

Microsoft sign in front of company research building

Just one of many small businesses awarded small business contracts by the US government.

U.S. Census Bureau data indicates small businesses are responsible for over 90% of net new jobs, over 50% of the private sector workforce, over 50% of the Gross Domestic Product and over 90% of all U.S. exports.

The single largest federal program in history to assist small businesses, stimulate the middle class economy and create jobs is the Small Business Act of 1953. Today federal law based on the original Small Business Act requires that a minimum of 23% of all federal contracts be awarded to small businesses.

For over 11 years a series of federal investigations and investigative reports in the media have found billions of dollars a year in federal small business contracts that have been knowingly diverted to Fortune 500 firms and corporate giants around the world. ABC, CBS, NBC and CNN have all covered the rampant fraud in federal small business contracting programs.

Some of the firms that have been uncovered as receiving federal small business contracts include IBM, Hewlett-Packard, Oracle, Microsoft, Dell, Lockheed Martin, Northrop Grumman, Raytheon, General Dynamics, Chevron, Apple, General Electric, AT&T, Verizon, Citigroup, Boeing, UPS, John Deere, Thales in France, Rosoboronexport in Russia, Ssangyong Co. in South Korea, Finmeccanica in Italy, Buhrmann N.V. in Holland and British Aerospace Engineering (BAE) and Rolls-Royce in England.

One of the ways that this fraud and abuse has been allowed to occur, even endorsed, is via the Comprehensive Subcontracting Plan Test Program.  The program began in 1990 and eliminated all transparency, along with any and all penalties for non-compliance with federal small business subcontracting goals for the Pentagon’s largest prime contractors.  The purpose of the “Test Program” was to determine if this would increase subcontracting opportunities for small businesses.

Let me emphasize this was a “Test Program.” Think of the insanity of a program that eliminates transparency and penalties for the Pentagon’s largest prime contractors and then tests it for 25 years to see if it helps small businesses. Even the language in the FY15 National Defense Authorization Bill that will renew the “Test Program” admits it has failed, yet Congress and President Obama intend to renew it for three more years through 2017.

Our government is going to renew this anti-small business, anti-middle class, anti-job creation scam into its 28th year and no one is objecting but me? Astounding!

If you are a Democrat, Progressive, Republican, Conservative, Libertarian or however you chose to describe your political views, realize this. Not one of the politicians you support has ever stood up to oppose any of the federal government’s anti-small business policies. NOT ONE!

Much like they say you can tell a lot about people by the way they treat animals, I think you can tell everything about politicians by how they treat small businesses. Remember, small businesses are where most Americans work and where most of the nation’s Gross Domestic Product is created, yet politicians continue to turn a blind eye towards anti-small businesses policies that affect the very people who got them elected.

The fact that Fortune 500 firms have been allowed to fraudulently and illegally hijack trillions of dollars in federal small business contracts for over 11 years with no repercussions proves how corrupt the government actually is.

The fact Congress and President Obama will renew the anti-small business, anti-transparency Comprehensive Subcontracting Plan Test Program into its 28th year of testing without objection from the American people must mean one of two things. Either the government thinks Americans are apathetic, uninformed, delusional fools who don’t care about small business, or they are confident that a lack of media coverage will allow them to slide in anti-small business policies right under all of our noses.

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Congress to Renew 25 Year Old Pentagon Test Program to “Help” Small Businesses by Eliminating Transparency

1:29 pm in Uncategorized by Lloyd Chapman

Government Accountability Office seal

The GAO calls it a bad idea … but who listens to those dirty hippies anyway?

Congress and President Obama are set to renew a 25 year old Pentagon test program. The Comprehensive Subcontracting Plan Test Program (CSPTP) was developed to determine if removing all transparency from federal small business contracting programs for the Pentagon’s largest prime contractors would increase subcontracting opportunities for small businesses. That makes sense right?

Then to really sweeten the deal for small businesses and increase subcontracting opportunities, the Comprehensive Subcontracting Plan Test Program totally eliminates all penalties such as “liquidated damages” for prime contractors that do not comply with their small business contracting goals. Genius!!!

This all sounds like a really amazing opportunity for small businesses. Current federal law, The Small Business Act of 1953, requires that a minimum of 23% of all federal contracts and subcontracts be awarded to small businesses. Obviously, eliminating all transparency and public access to the reports used to determine if prime contractors are complying with their small business goals will cause subcontracting opportunities for small businesses to skyrocket. The elimination of any penalties for non-compliance is a total bonus for small businesses. What took them so long to come up with this fantastic idea?

Oh wait, did I mention the part about testing it for the last 25 years? How about the part where the Pentagon has refused to release any data on the results of the “Test Program” for a quarter of a century? Clearly, they don’t want to jump to any conclusions. Anything worth doing is worth doing right, I say.

Those wacky conspiracy nuts over at the Government Accountability Office just don’t get what a sweet deal this is for small businesses. Ten years ago they issued the results of an investigation, GAO-04-381, that found no data showing that the Pentagon “Test Program” had ever helped small businesses in any way.

Those guys at the GAO are so suspicious. Don’t they know that all the men and women that work at the Pentagon and in the defense industry are American heroes? Have they not seen the Sunday TV news shows with those fantastic Lockheed Martin, Boeing and Northrop Grumman ads talking about how they are helping to protect this great nation of ours? You would have to be a paranoid conspiracy nut with a tin foil hat if you don’t realize that the men and women at the Pentagon only have the best interest of American small businesses at heart.

I think even Congress is getting a little paranoid. The language in the 2015 Defense Authorization Bill Section 811 says, “However, after nearly 24 years since the original authorization of the program, the test program has yet to provide evidence that it meets the original stated goal of the program…

DUH! In just 25 years how can you expect the Pentagon to adequately test if removing all transparency and eliminating all penalties for non-compliance with federal small business contracting goals would actually increase subcontracting opportunities for small businesses?

House Small Business Committee Chair Sam Graves is right: The Comprehensive Subcontracting Plan Test Program clearly needs to be renewed until 2017. That would give the Pentagon 28 years to see if the “Test Program” works.

I think the Pentagon is on to something. I’m thinking we could dramatically streamline government and get some really impressive results if we applied the same principal used in the Comprehensive Subcontracting Plan Test Program to other areas of government.

The IRS should immediately launch a 25 year test program to determine if eliminating tax returns and any penalties for not paying your income taxes increases tax revenue. Tax revenues should hit an all time high!

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