June 7, Ms. Karen Mills, Administrator US Small Business Administration 409 3rd St, SW Washington DC Dear Ms. Mills,

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1 June 7, 2012 Ms. Karen Mills, Administrator US Small Business Administration 409 3rd St, SW Washington DC Request that the 2011 Small Business Procurement Scorecard accurately reflect the proportion of federal prime and subcontract dollars awarded to legitimate small businesses Dear Ms. Mills, The undersigned individuals and organizations are writing to you requesting that the 2011 Small Business Procurement Scorecard accurately reflect the percentage of federal prime and subcontract dollars awarded to legitimate small businesses, including women owned small businesses, small disadvantaged businesses, service disabled veteran- owned small businesses and small businesses operating in a HUBZone. In the past, the Small Business Administration (SBA) has inaccurately reported the percentage of prime and subcontract dollars awarded to small businesses by: Not dividing the amount of prime contract dollars awarded to small businesses by the full federal acquisitions budget in accordance with the Small Business Act, but instead using an amount referred to as small business eligible dollars, which is not defined in the Small Business Act. Including prime contract dollars awarded to large corporations and their subsidiaries. Including prime contracts dollars awarded to Miscellaneous Foreign Contractors. Including prime contract dollars awarded to large Alaska Native Corporations (ANCs) that do not qualify as small under SBA size standards. Not providing sufficient, quality subcontracting data. Accurate knowledge of the percentage of federal contracts awarded to small businesses is essential to government transparency. Such knowledge will undoubtedly help agencies come up with strategies to hit their small business procurement goals. Moreover, small businesses play an essential role in the U.S.

2 economy creating the majority of net new jobs so it is imperative that the SBA inform federal agencies of their failure to achieve their small business procurement goals. During fiscal year (FY) 2010, the federal government spent more than $540 billion on goods and services, which means small businesses should have been awarded at least $124 billion worth of federal prime contracts. However, the SBA reported that small businesses won $ billion worth of federal prime contracts, which included billions of dollars awarded to large businesses and their subsidiaries and billions of dollars awarded to large ANCs that exceed SBA small business size standards. During FY 2011, the federal government spent more than $530 billion on goods and services, which means small businesses should have had access to more than $120 billion worth of federal prime contracts. We respectfully request that the SBA report the accurate dollar amount in prime and subcontracts awarded to legitimate small businesses. Sincerely, Lloyd Chapman President American Small Business League (ASBL) Scott Amey General Counsel Project on Government Oversight (POGO) Roger A. Campos President & CEO Minority Business Round Table

3 Raul Espinosa President & CEO Fairness in Procurement Alliance Charles Tiefer Professor of Government Contracting University of Baltimore Law School Former Commissioner, on the Commission on Wartime Contracting in Iraq and Afghanistan Mike McLaren Director Oregon State Chamber of Commerce Fox Cities Chamber of Commerce and Industry Wilda Parks Vice President External Affairs North Clackamas County Chamber of Commerce

4 Heather Scanlon Executive Director Leadville/Lake County Chamber of Commerce Leigh Nixon President & CEO Simi Valley Chamber of Commerce Gene Hale Chairman Greater Los Angeles African American Chamber of Commerce Bryan Daniels President/CEO The Blount Partnership Nancy Ploeger President Manhattan Chamber of Commerce Val Vargas President & CEO

5 Hispanic Chamber of Commerce of Minnesota Sandy Cajas President & CEO Regional Hispanic Chamber of Commerce (Southern California) John M. Palatiello President Business Coalition for Fair Competition John McNerney General Counsel Mechanical Contractors Association of America

6 Doris Carson Williams President and CEO African American Chamber of Commerce of Western Pennsylvania Jack Friedman Executive Director Queens Chamber of Commerce Ayden Chamber of Commerce Faith Smith CEO/Founder Eyes Cream Shades Vision Passion Faith Public Citizen Jonah Weinberg Executive Director Hispanic Chamber of Commerce for Ohio

7 Christine Michaels President Melbourne Regional Chamber of East Central Florida Chevie Ruder Executive Director Washington (IL) Chamber of Commerce Tony Davis President/CEO Natchitoches Area Chamber of Commerce Stop FSSI

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