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Service-Disabled Veteran-Owned Small Business Program: Case Studies Show Fraud and Abuse Allowed Ineligible Firms to Obtain Millions of Dollars in Contracts: Testimony Before the Committee on Small Business, U.S. House of Representatives
Service-Disabled Veteran-Owned Small Business Prog

Our Price: $10.00
By Gregory D. Kutz (au)
Year: 2009
Pages: 15
Binding Paperback

Product Code: 1437926703

Statement of Gregory D. Kutz, Mng. Dir., Forensic Audits and Special Investigations. GAO. The Small Business Admin. (SBA), which, along with fed. procuring activities, administers the Service-Disabled Veteran-Owned Small Business (SDVOSB) program, reported in FY 2008 that $6.5 billion in fed. contracts were awarded to firms who self-certified themselves as SDVOSBs. Government contracts to SDVOSBs accounted for only 1.5% of all government contract dollars paid in FY 2008. Since the SDVOSB program began, the government has not met its annual mandated goal of 3%. In addition to SBA's statutory authority over admin. of the SDVOSB program, several other government agencies have separate authority over issues related to the SDVOSB program. The Veterans Benefits, Health Care, and Info. Tech. Act requires the Dept. of Veterans Affairs (VA) to maintain a database of SDVOSBs and Veteran-Owned Small Businesses (VOSB) so contractor eligibility can be verified on VA SDVOSB and VOSB contracts. In addition, the Office of Fed. Procurement Policy (OFPP), within the Office of Mgt. and Budget (OMB), provides overall direction for governmentwide procurement policies, regulations, and procedures and to promote economy, efficiency, and effectiveness in the acquisition processes. The Office's primary focus is on the Fed. Acquisition Regulation (FAR), the governmentwide regulation governing agency acquisitions of goods and services, including SDVOSB set-aside and sole-source contract actions. Fraud and abuse in the SDVOSB program allowed ineligible firms to improperly receive millions of dollars in set-aside and sole-source SDVOSB contracts, potentially denying legitimate service-disabled veterans and their firms the benefits of this program. GAO identified 10 case-study examples of firms that did not meet SDVOSB program eligibility requirements, which received approximately $100 million in SDVOSB contracts, and over $300 million in additional 8(a), HUBZone, and non-SDVOSB federal government contracts. Tables.

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