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Tuesday, June 12, 2012

Large Corporations and Federal Contracting Officers are not being punished...

Large Corporations and Federal Contracting Officers are not being punished for missing their small business procurement goals and are not being prosecuted for fraudulent contracting.

Existing federal laws known as "Liquidated Damages" clauses establish penalties for prime contractors when they are non-compliant with small business goals. Because this law has never been enforced by the SBA and Department of Justice, most prime contractors never achieve the small business goals required in their federal contracts.

Current federal law establishes that misrepresenting the size of a firm in order to illegally receive federal contracts and subcontracts is a felony with penalties of up to 10 years in prison, a fine up to $500,000, cancellation of all contracts and debarment from selling to the government. Federal policy should require the SBA to respond to any protest against any firm that misrepresents its size, regardless of whether or not the contract is a small business set-aside. Section 16(d) of federal code makes no differentiation as to the type of the contract; therefore current SBA policy is illegal and does not address the magnitude of the problem.

One way to get involved...

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