Glue Sniffing and big business...


Well-Known Member
Jul 14, 2006

July 26, 2006 — Some of the biggest and richest companies in the world, including Microsoft, AT&T Corp. and Rolls Royce, have qualified for what could add up to as much as $12 billion worth of small-business contracts from the federal government.
Democratic congressional investigators are asking why in a report they're releasing today.
The legislators allege a myriad corporate giants were wrongly awarded millions.
"They didn't have any right to accept any contract that was supposed to go to a small business, and that is the reality here," said Rep. Nydia Velazquez, D-N.Y.
Microsoft won eight small-business contracts from the federal government, worth $1.5 million; Rolls Royce won $2.2 million in contracts; AT&T, $5 million.
Defense contractor Northrop Grumman was granted a whopping $90 million in small-business contracts from Uncle Sam.
In a statement, Northrop Grumman — the only corporation to respond so far to the report — said, "We do not seek any dollars intended for small businesses."
Meanwhile, Republicans on the small-business committee call the investigation a "purely political exercise."
They contend that small businesses often outgrow their small-business status after receiving federal money.
That doesn't fly with Susan Hughes, who runs a company out of her Virginia home. She applied for a federal contract, which she says went to a larger business.
"I would tell a small business that wants to stay in business to stay away from the federal government and its programs," Hughes said.

I really dont get this ...Im hoping if i keep sniffing this glue it will all make sense soon.....

It all depends on if the small business can do the job. If the required job cannot be done by a small business then large business should take it.

Just like everything else about business, larger businesses tend to get what they want to to the amount of leverage they have. The other side is that over 80% of companies fall into the category of being a small business (Small Business Administration). Larger companies might not be able to provide specialized service to the government due to it's size. Smaller businesses can turn on a dime, while larger companies often can't move as swiftly.
To me it sounds as if the multi-nationals are being a bit greedy.

The worse thing however is that they are being encouraged!
I used to own a small business. We had seven employees at our height. I can tell you that for a compnay that small, federal contracts are very difficult to get. The reasons are many, including a lot of adminsitrative time, a very long tail on the application process, financial and insurance requirements that may make it unfeasible for the small business, etc. I think the program is still a good idea, but government will always be highly beaurocratic, and many small businesses are simply too close to the bone to effectively compete.
Just complying with the paperwork the government mandates can place a serious drag on any small business.