House Armed Services Committee Chairman Howard McKeon Loves Pentagon Anti-Small Business Program

House Armed Services Committee Chairman, Howard P. McKeon likes the Pentagon’s 25 year old anti-small business, anti-transparency, anti-middle class test program so much he has voted to extend it into its 28th year of testing.

The 2015 National Defense Authorization Bill, H.R. 4435 includes an extension of the Comprehensive Subcontracting Plan Test Program (CSPTP) until 2017. The Pentagon adopted the CSPTP in 1990 under the guise of testing changes in federal contracting law to determine if those changes would increase subcontracting opportunities for small businesses.

The changes the Pentagon felt should help small businesses were the elimination of any subcontracting plans and reports that were available to the public and the elimination of “liquidated damages” for prime contractors that failed to achieve their small business subcontracting goals.

Anyone with the I.Q. north of a gerbil’s can see the CSPTP was not adopted to increase subcontracting opportunities for small business. It was adopted to help some of the Pentagon’s largest prime contractors violate federal contracting law, cheat small businesses out of billions of dollars and hide all the evidence of that fact.  

It is not surprising that during the 25 years the CSPTP has been tested, the Pentagon has consistently refused to release any data on the test program. Especially anything that showed that the elimination of transparency and any penalties for prime contractors actually increased subcontracting opportunities for small businesses.

Congressman McKeon’s own language in the Chairman’s Mark of the FY15 National Defense Authorization Bill acknowledges there has never been any evidence the test program has increased subcontracting opportunities for small businesses. Knowing that, Congressman McKeon in his infinite wisdom has voted to renew it into its 28th year of testing.

In the Chairman’s Mark, McKeon states,“ However, after nearly 24 years since the original authorization of the program, the test program has yet to provide evidence that it meets the original stated goal of the program…

A 2004 Government Accountability Office (GAO) investigation into the Comprehensive Subcontracting Plan Test Program also concluded there was no evidence the program had increased subcontracting opportunities for small businesses.

In 2010 several members of Congress requested another GAO investigation into the CSPTP but the GAO declined to launch the investigation.

Based on all of the information I have seen, I estimate small businesses have been defrauded out of well over one trillion dollars in subcontracts since the “Test Program” began 1990.

I have launched a legal challenge to the CSPTP. The American Small Business League (ASBL) is suing the Pentagon in Federal District Court in San Francisco after the Pentagon refused to release any subcontracting data from the CSPTP under the Freedom of Information Act.

The Comprehensive Subcontracting Plan Test Program is an obvious loophole in federal contracting law that allows the Pentagon and its largest prime contractors to cheat small businesses and the middle class out of billions of dollars. I’m sure Congressman McKeon’s belief that this anti-small business program needs to be renewed into its 28th year has nothing to do with the fact that according to OpenSecret.org, no member of the House Armed Services Committee has received more money from the defense industry than he has.

Congressman McKeon likes to be referred to as Buck. Considering the amount of money he has received from the defense industry I think we should all start calling him “Big Bucks McKeon”.

I continue to be astonished, amazed and disappointed by the fact that not one journalist from the mainstream media has ever reported on this blatant Pentagon scam in 25 years. Let me say that again, in a quarter of a century, no journalist from the mainstream media, not one, has ever reported on the 25 year old Comprehensive Subcontracting Plan Test Program.