Biggest of the Smalls: The Rise of a Federal Contractor

Number 26168
Subject Business
Source The Washington Post
Year 2013
Publication Date Nov. 12-13, 2013
Summary In the last decade, the federal government has made an unprecedented push to direct work to small businesses in order to help such firms gain a foothold in the U.S. economy. The amount of money devoted to small business contracting rose 70 percent to $90 billion annually during that period. In this tide of spending, one firm stood out as the paragon of success: MicroTechnologies LLC. Records show it received $1.4 billion in federal technology deals over nine years, much of it reserved for small firms own by minority and service-disabled veteran entrepreneurs. MicroTech became the fastest growing small contractor in the nation. Founder Anthony R. Jimenez, declared it to be the "Biggest of the Smalls." Those deals transformed Jimenez's lifestyle. He bought a mansion -- and then commissioned a quarter-million entertainment system for it. He began driving a $190,000 Mercedes coupe. And he became a top sponsor of multiple martial arts "cage fighting," routinely flying to Las Vegas at company expense. “I am living the American Dream,” he said in a letter to The Washington Post. But MicroTech's extraordinary ascent begged a simple-seeming question: How could such a large company still be eligible to receive contracts set aside for small firms? Until The Post's Robert O'Harrow Jr. dug in, no one in the media or government knew the answer or bothered to check. O'Harrow's investigation found that MicroTech had misled the government and the public about its ownership and operations to get access to preferential contracts and burnish its own image. In doing so, the firm abused taxpayers and deprived other small firms access to hundreds of million in deals. In response to those findings, the government suspended MicroTech from contracting and changed some contracting rules. Two inspectors general offices are investigating and Congress has launched its own probes.
Category Contest Entry
Keywords small business; money; government; business
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