David Kirkpatrick

October 7, 2009

Not all small businesses are created equal

And some small business government contractors aren’t all that small. This type of system rigging ought to be more of a public outrage than it ever is. The economic realities, and the government’s response to such, over the last 18 months or so really let Main Street know where small business stood in the overall picture — on the bottom and practically forgotten.

From the link:

In August the Small Business Administration released its annual scorecard tallying federal dollars awarded to small business contractors last year.

The good news? Federal agencies claim they spent $93.3 billion. That’s $10 billion more than the year before.

The bad news? It’s fuzzy math. Billions of dollars reportedly allocated to small contractors are still flowing to corporate giants. The SBA’s top two “small business contractors” for 2008 — VSE Corp. ($1 billion in annual revenues) and AAI Corp., a division of Textron Inc. (TXTFortune 500) ($14.2 billion in annual revenues) — weren’t small at all. They alone accounted for $1.6 billion in federal “small business” spending.

Joe Jordan, SBA associate administrator for government contracting, says his agency has been trying to weed out impostors. To get to the $93.3 billion total from the original $107 billion reported to it, he says, the SBA scrubbed out some $6 billion in contracts incorrectly attributed to small businesses, plus more than $7 billion worth of contracts that were awarded and performed overseas or fell under other exemptions.

1 Comment »

  1. […] (Co-posted from here.) […]

    Pingback by Government contracting and small business « davidkirkpatrick — October 21, 2009 @ 1:35 am

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