Semiannual Report to the Congress, October 1, 2019 through March 31, 2020
Abstract
The DoD OIG determined whether the DoD awarded service-disabled veteran-owned small business (SDVOSB) contracts to eligible contractors. Executive Order 13360 requires heads of Federal agencies to provide the opportunity for service-disabled veteran-owned small businesses to significantly increase their participation in Federal contracting. The U.S. Governments goal is to award at least 3 percent of all Federal contracting dollars to service-disabled veteran-owned businesses each year. The DoD OIG determined that DoD contracting activities awarded SDVOSB contracts to ineligible contractors and did not implement procedures to ensure compliance with SDVOSB subcontracting requirements after award. Specifically, of the29 contractors the DoD OIG reviewed, the DoD awarded 27 contracts, valued at $827.8 million, to16 contractors that did not meet the requirements for SDVOSB status. DoD contracting personnel also did not verify compliance with the SDVOSB subcontracting requirements for six contracts awarded to three contractors, valued at $164.7 million. In addition, the Small Business Administration (SBA)determined through SBA protest procedures that3 of the 29 contractors were ineligible, and the DoD OIG confirmed that those contractors did not always update their status in the System for Award Management after notification of ineligibility. In sum, he DoD OIG determined that the DoD awarded$876.8 million in contracts to contractors that were not eligible for the SDVOSB set-aside program; therefore, the DoD OIG considered the $876.8 million as questioned costs. As a result, the DoD OIG concluded that without additional controls in place ,the DoD contracting activities will continue to award SDVOSB contracts to ineligible contractors and that DoD agencies may be overstating the amounts reported for SDVOSB participation.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 31, 2020
- Accession Number
- AD1147101