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Big business getting contracts that should go to small businesses
By CAROLINE FOSTER
Posted: 7/27/2011 11:33:34 AM

A Senate inquiry has found that federal contracts meant to go to small businesses are being given to large companies.

Certain contracts given to big business are being counted as a part of the Congressional mandated goal that 23 percent of all federal contracts go to small business, according to the news source. Senator Claire McCaskill, a democrat from Missouri, said in the hearing that the system, which should be helping small business, is "doing little more than helping the government play a numbers game."

The Federal Times said McCaskill discussed a contract going to the VSE Corporation, which does not meet the revenue-based small business size standards for repair and maintenance work. The company, which earns more than $300 million a year, was apparently awarded a $2.6 billion multi-year contract in 2008. Revenues must be under $7 million for a company to be considered a small business that performs repair and maintenance.

The Small Business Administration reports that 22.7 percent, or $98 billion, of federal contract dollars went to small business, but McCaskill said this clearly isn't true.

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