Pentagon Facing New Challenge to 25-Year Old "Sham" Test Program

PETALUMA, Calif., April 22, 2015 (GLOBE NEWSWIRE) -- The Pentagon is facing a new legal challenge to their refusal to release any data on the controversial Comprehensive Subcontracting Plan Test Program (CSPTP) that has survived over 25 years. The American Small Business League (ASBL) has issued another Freedom of Information Act request for the specific section or page from every plan submitted to the CSPTP by every Pentagon prime contractor that would indicate the firm's company-wide small business subcontracting goal since the program began in 1989.

The ASBL believes the Pentagon will have no legal justification for withholding the information they have requested. They also expect the data to prove the Pentagon has used the CSPTP to cheat small businesses out of billions of dollars in subcontracts since the program began over 25-years ago.

In November of 2014, the ASBL won a case against the Pentagon seeking the latest subcontracting plan submitted to the CSPTP by Sikorsky Aviation Corporation.

The Pentagon has now appealed that case to the 9th Circuit Court of Appeals. In a November 6, 2014 hearing on the Sikorsky case Judge Alsup stated, "and here is the United States covering it up." In a subsequent hearing on January 20, he described the ASBL as being in a "David and Goliath" battle with "big government" and stated, "They are trying to suppress the evidence."

The Pentagon adopted the CSPTP under the pretense of "increasing subcontracting opportunities for small businesses." In reality the program eliminated all publicly available documents that could be used to verify a prime contractor's compliance with the small business subcontracting goals established by the Small Business Act.

The CSPTP also eliminated any and all penalties prime contractors had previously faced, such as "liquidated damages," for failing to comply with their small business subcontracting goals.

The ASBL believes the Pentagon has refused to release any data on the CSPTP for over 25 years because it would prove the Pentagon has fraudulently eliminated subcontracting opportunities for small business.

In September of 2014, Professor Charles Tiefer released a legal opinion of the CSPTP that stated "The program is a sham and its extension will be seriously harmful to vital opportunities for small business to get government contracting work ... Let it expire."

The Pentagon now has until May 16, 2015 to respond to the ASBL's most recent Freedom of Information Act request on the CSPTP and until May 1 to file their appellant opening brief with the 9th Circuit Court of Appeals in the Sikorsky case.

"It's shocking when you realize the Department of Justice is helping the Pentagon to cover-up evidence of apparent contracting fraud. The information I have requested must be incredibly damaging because it looks like there is nothing they won't do to suppress the evidence. I'm anticipating a classic anti-whistleblower campaign from the Department of Justice against myself and the ASBL," stated ASBL President Lloyd Chapman.

CONTACT: Steve Godfrey sgodfrey@asbl.com (707) 789-9575

Source:American Small Business League