Elliott Rosenfeld writes in the Washington Post:
As more details about wasteful spending and outright fraudulent practices at the General Services Administration are emerging, it becomes clearer every day that there is a far deeper, government-wide contracting problem plaguing the nation.
News of the scandal broke two weeks ago, when GSA Administrator Martha Johnson resigned following the agency inspector general’s report claiming that more than $800,000 of federal spending on a GSA employee conference held in Las Vegas in 2010 was “excessive, wasteful, and in some cases, impermissible.”
Of particular concern to small-business advocates, the IG’s report found that the GSA allegedly awarded “a $58,000 contract to a large business in violation of small-business set-asides.”
This problem of large companies receiving federal contracts that are reserved by law for small businesses is a decades-old scandal of corrupt federal spending and undue corporate influence over politics. Overall, waste, fraud and abuse in federal small-business contracting programs (across all federal agencies) results in tens of billions of taxpayer dollars a year being illegally diverted to large companies, often some of the largest companies in the world.
Read More: Washington Post