Major U.S. companies including General Dynamics and Medtronic have received billions of dollars in federal government contracts that were supposed to go to small businesses.
About $4.74 billion, or 45 percent, of more than $10.6 billion targeted for small businesses under government acquisition rules were won by bigger competitors in the year ended Sept. 30, 2011, according to government data.
Companies that need the revenue the most are losing opportunities, said Margot Dorfman, chief executive of the Washington-based U.S. Women’s Chamber of Commerce.
“I think this particular issue should be one of the top concerns of the Small Business Administration and the president,’’ Dorfman said in an interview. “Fix it now. Let’s not wait.’’
The awards to bigger companies stem in part from an undertrained and understaffed acquisition workforce as well as an excessive use of exemptions, according to former procurement officials and contract attorneys.
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