Congresswoman Hahn Amendment Calls for Investigation into Small Business Contracts Unfairly Awarded to Fortune 500 Companies

Mar 25, 2015

Washington, DC—Today, Congresswoman Janice Hahn (CA-44) called for an investigation into why designated federal small business contracts often are unfairly rewarded to large corporations.

“Contracting is one of the most important ways the federal government can empower small businesses. But every year, small business contracts are routinely given to some of our country’s largest corporations, “ said Congresswoman Hahn. “Small businesses should not be losing out on these valuable contracts to corporate giants!”

An amendment introduced by Congresswoman Hahn directing the U.S. Government Accountability Office (GAO) to assess the extent of this problem, identify why this happens, and make recommendations for possible solutions was unanimously passed today by the House Small Business Committee and received praise from Committee Republicans Chairman Steve Chabot, Congressman Chris Collins, and Carlos Curbelo and Ranking Democrat Nydia Velazquez.

The federal government has an annual goal of awarding 23% of all contracting dollars to small businesses. However, numerous reports have cast doubt on whether designated small business contracts are actually going to small businesses. Major corporations including Disney, Apple, Chevron, and Bank of America have all reportedly received these small business contracts in the past several years according to reports by the American Small Business League.

“I love my iPhone, and I enjoy taking my grandchildren to Disneyland, but Apple, Disney and other major corporations should not be receiving federal contracts designated for small businesses,” said Congresswoman Hahn. “This problem is pervasive, and I hope that my amendment will lead us to take the necessary steps to stop the abuses in federal contracting. When Fortune 500 companies are awarded small business contracts, small businesses across the country missing out on billions of dollars in business.”

Congresswoman Hahn’s amendment was included in the markup of the “Small Contractors Improve Competition Act of 2015,” (HR 1481), legislation which aims to improve federal contracting policy and enable small businesses to better compete for federal contracts.

Congresswoman Hahn serves on the House Small Business Committee and is an advocate for small businesses in her district and nationwide.