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One Call To SBA’s Terry Sutherland Could Lead To A Pulitzer Prize

3:09 pm in Uncategorized by Lloyd Chapman

Portrait of Terry Sutherland

Journalists: Call Terry Sutherland for a chance to win valuable prizes.

You think stories about the Small Business Administration (SBA) are beneath you and trivial. Would a story about over a trillion dollars in federal contracting fraud that involves every federal agency and the Pentagon’s largest prime contractors interest you? I suggest you take five minutes and make one phone call and see what happens.

Call Terry Sutherland at the Small Business Administration Press Office and ask him if the SBA is including any Fortune 500 firms or their subsidiaries in the SBA’s latest small business contracting statistics. See what happens.

See if you can just call Terry Sutherland up and get him to answer questions on why the SBA has included billions of dollars in federal contracts to Fortune 500 firms in their small business contracting data every year since 2000.

See if you can just give him a call and talk with him without having to make an appointment with him and several people all at once on a conference call. (They love those conference calls) Tell him you just want to talk to him one on one. See what happens.

If I’m just a conspiracy nut like the SBA has been telling journalist for over a decade there shouldn’t be any problem getting Terry Sutherland to answer extemporaneous questions on why Fortune 500 firms have been receiving billions of dollars in federal small business contracts for 15 years.

Listen to him tell you it’s the result of miscoding, anomalies, computer glitches and simple human error. Then ask him why these random errors always divert federal business contracts to Fortune 500 firms and other large businesses and never the other way around.

Random, unintentional errors would have a random pattern of distribution like flipping a coin. Heads or tails or in the case of federal contracting, big or small. Ask him to explain why for every billion dollars in federal contracts to a large business that was miscoded as a small business contract there isn’t a billion dollars in contracts to small businesses that have been miscoded as large business contracts.

Ask him why according to the latest data from the Federal Procurement Data System, 175 Fortune 500 firms received small businesses contracts in FY 2013.

When he tells you it’s the result of big companies purchasing small ones, remind him under federal law that as soon as a big business buys a small one that firms is legally no longer a small business.

Ask Terry Sutherland if he will release all his phone records and emails. See what happens. Ask Terry Sutherland why the SBA Office of Inspector General has named the diversion of federal small business contracts to large businesses as the number one problem at the SBA every year since 2005 and yet the SBA has never even proposed any policies to stop it.

Ask Terry Sutherland why the SBA is now taking public comment on a new SBA policy that will create a “safe harbor from fraud penalties” for large businesses that have misrepresented themselves as small businesses and illegally landed federal small business contracts.

When he gives you some baloney about protecting firms that have “acted in good faith” ask him if the SBA Office of Inspector General has ever issued a report that found too many firms that “acted in good faith” were being prosecuted for contracting fraud.

The SBA has vehemently denied there is any fraud in federal small business contracting since 2002. Ask Terry Sutherland why the SBA is taking public comment on a policy to create a “safe harbor” for fraud when they have consistently denied any evidence of fraud in federal small business contracting.

When you see the reaction to some of these questions you might begin to wonder what is really going on here. You might even ask yourself why one of the Pentagon’s most senior spokesmen suddenly showed up at the teeny tiny Small Business Administration. Ask him how he went from handling issues like the possibility of a nuclear missile strike on the U.S. by China to miscoding and anomalies at the SBA.

When Terry wants to talk to you off the record, say no. When he starts trash talking me tell him you are not interested in talking about Lloyd Chapman. Tell him you just want to stick to the facts and leave me out of it. Do me a favor, when he starts trash talking me, ask him how he feels as a veteran about the Government Accountability Office essentially accusing the SBA of encouraging fraud in the Service-Disabled Veteran-Owned Small Business program in GAO Reports 10-108 and DOD OIG Report DODIG-2012-059. Imagine the color draining from his face as he nervously begins looking at his watch.

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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 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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Does Terry Sutherland Prove The Pentagon Runs The Small Business Administration?

3:04 pm in Uncategorized by Lloyd Chapman

Read the Small Business Administration (SBA) press release announcing that retired Naval Commander Terry Sutherland is taking over as Press Office Director of the SBA.

Portrait of Terry Sutherland

Was Terry Sutherland sent from the Pentagon to dismantle the SBA?

It states, “Terry Sutherland reported as the Director, Press Office, U.S. Small Business Administration, Washington D.C. in April 2013.”

The second paragraph says, “Prior to this assignment he served from 2009-2013 as the Director, Corporate Communications, for the Pentagon Force Protection Agency…”

I would imagine that Terry Sutherland almost certainly wrote that press release. He at least reviewed it before it went out. Look at the statement that he “reported” as the Press Office Director. Who refers to taking a new job as “reported?” People working for the Pentagon do.

How about the statement, “Prior to this assignment…” It sounds like he was given an “assignment” to “report” to the SBA as Press Office Director. Who gets an “assignment” to  “report” to a new position? People that work for the Pentagon do.

When you read that press release it sounds like Terry Sutherland was ordered to “report” to his new “assignment” as SBA Press Office Director by the Pentagon.

I have already written about the astounding fact that one of the most tenured and experienced spokesmen for the largest agency in government, the Pentagon, would suddenly take over the Press Office of one of the smallest agencies in government, the Small Business Administration. I’ve written about the fact the SBA budget is .001% of the Pentagon’s budget. I have written about the fact Terry Sutherland went from the Pentagon spokesman in stories such as “China Threatens U.S. With Missile Strike”, “U.S. Team In China For Look At Spy Plane” and “Defense Agency Proposes Outsourcing More Spying” to “National Small Business Week hosting training and webinars and online events May 12-15.”

I think Terry Sutherland’s sudden appearance at the SBA is part of a larger plan by the Pentagon to bring an end to all federal small business programs. Current federal law requires a minimum of 23% of the total value of all federal contracts to be awarded to small businesses. The Pentagon’s largest prime contractors want 100% of all contracts awarded by the federal government. The only way to achieve that goal is to eliminate the federal laws and policies that require that and the agency that manages those programs.

The Pentagon has always been behind the efforts to close the SBA by combing it with the Department of Commerce. They tried it during the Reagan Administration and they tried it again under the Obama Administration.

Over the last two years the SBA budget has been slashed more than any federal agency in history. The annual operating budget for the SBA has been cut by more than 25% in just 24 months.

Now the SBA has announced several new policies that will essentially legalize fraud. The SBA has proposed new small business size standards that will allow hundreds of Pentagon contractors that were before illegally included in federal small business contracting data to be now legally considered small businesses. Many of these firms are 100 times larger than the average American small business. According to the US Census Bureau, 98% of all U.S. firms have less than 100 employees. The new SBA policies will allow firms 15 times larger than that to be considered small businesses.

So I don’t think the sudden appearance of one of the Pentagon’s most senior PR officers at the SBA is just a coincidence. I believe Terry Sutherland received his “assignment” to “report” to the SBA by the Pentagon to preside over the Pentagon’s latest attempt to dismantle the SBA and all federal programs for American small businesses.

Terry Sutherland’s job is to make sure no journalists report on what is actually happening at the SBA. His job is to make sure no journalist writes about the fact the SBA Office of Inspector General has found the diversion of federal small business contracts to large businesses as the number one problem at the SBA for close to a decade. Later this summer when the SBA announces the federal government has just missed the 23% small business-contacting goal, Terry Sutherland’s job will be to make sure no journalist reports that in reality, most of the money the SBA will claim was awarded to small businesses actually went to some of the largest firms in the world.

If you would like to have some fun with Commander Cover-Up, as we like to call Terry here at the American Small Business League, here is a link to some questions he won’t answer.

Why Does The SBA Need Terry Sutherland If There Is No Fraud?

3:53 pm in Uncategorized by Lloyd Chapman

I think this in an excellent question. For years I have tried to expose the rampant fraud and abuse in federal small business contracting programs. Dozens of federal investigations have uncovered billions of dollars in federal small business contracts that have been diverted to some of the largest corporations in the world.

Terry Sutherland

Every year for the last nine years the Small Business Administration (SBA) Office of Inspector General has named the diversion of federal small business contracts to corporate giants as the number one problem at the SBA.

Numerous investigative reports in the media have found that dozens, if not hundreds, of Fortune 500 firms have received federal small business contracts.

The SBA and federal officials have responded to the well-documented fraud in several ways. First, they admitted it. In 2003 the Associated Press ran a story on the first federal investigation and congressional hearing regarding the diversion of federal small business contracts to Fortune 500 firms.  In that story David Drabkin, senior procurement officer for the General Services Administration, stated, “The numbers are inflated, we just don’t know the extent.”

In that same article Sue Hensley, a spokeswoman for the SBA, stated, “This transition has led to the apparent diversion of federal small business contract dollars intended for small businesses.”

In 2006 the SBA Press Office claimed it was a myth that large businesses were receiving federal small businesses contracts. They released the now infamous Myth vs. Fact press release.

What was so astonishing about the Myth vs. Fact press release was the fact that back in 2005 the SBA Office of Inspector General released Report 5-15 that described the diversion of federal small business contracts to Fortune 500 firms as, “One of the most important challenges facing the Small Business Administration (SBA) and the entire federal government today…”

Think of the gall of the SBA Press Office. First, a Government Accounting Office investigation finds over 5300 large businesses receiving federal small business contracts. Then the Associated Press writes a story about it and runs it in newspapers all across the country, with the SBA’s own Inspector General referring to it as, “One of the most important challenges facing the Small Business Administration (SBA) and the entire federal government today…” Then the very next year, the SBA Press Office issues a press release that claims it’s all just a myth. Astounding! A myth, like dragons and unicorns!

In 2009 the Government Accountability Office released Report 10-108 that essentially accused the SBA and other federal agencies of encouraging fraud and 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.”

Investigative reports by CBSABCNBCCNN and RTTV have all uncovered rampant fraud and abuse in SBA managed programs.

The SBA Press Office’s standard response is that Fortune 500 firms have landed billions of dollars in federal contracts year after year, for over 11 years now as a result of miscoding, computer glitches, simple human error and anomalies.

So back to my original question. Why does the SBA need Terry Sutherland, or Commander Cover-Up as he is known around Washington, if there is no fraud? Look at Terry Sutherland’s background and see if he looks like a guy that shows up to deal with myths, miscoding and anomalies.

He was the guy the Defense Intelligence Agency counted on to smear the Able Danger 9/11 whistleblowers when it came out that they had uncovered three of the 9/11 hijackers a YEAR BEFORE 9/11.

Terry Sutherland’s sudden appearance at the SBA Press Office last April is proof we’re not talking about myths, miscoding and anomalies.

Terry Sutherland/Commander Cover-Up is there to cover up hundreds of billions of dollars in felony federal contracting fraud. Most of it at the Pentagon.

I’m flattered they had to call Commander Cover-Up to deal with me and try to shut down the media coverage on the rampant fraud at the Pentagon and the SBA. It’s the strongest indication I have ever seen from the federal government that I’m doing my job very, very well and they are scared. They should be.

They are so desperate they are trying to make it difficult for people to comment on all of my blogs. If you ever have any problems commenting on my blogs, please let me know (Lchapman@ASBL.com).