According to the Cherry Hill Courier Post, the American Small Business League said it’s preparing to take the U.S. Small Business Administration to federal court to stop a new policy that allows the SBA to officially report government contracts to Fortune 1000 firms and other large businesses as small business awards for at least five more years.
Without the new policy, the SBA could no longer claim the federal government was reaching the minimum 23 percent small-business procurement goal required under current federal law, the league said.
Under the policy that went into effect June 30, the federal government can officially count federal contracts to hundreds of Fortune 1000 firms toward the government’s 23 percent small-business procurement goal through the year 2012, the league said.
D2DInc supports this lawsuit since the government is currently over-reporting the contract dollars going to small businesses. We don’t have a problem with large businesses keeping contracts they acquire when they buy small companies, even if those contracts were awarded as a SB set-aside. However, the agency shouldn’t be allowed to count the dollars towards their SB contracting goal.