SERVICE DISABLED VETERAN-OWNED SMALL BUSINESS PROGRAM: Case Studies Show Fraud and Abuse Allowed Ineligible Firms to Obtain Millions of Dollars in Contracts
Abstract
To identify examples of firms that received SDVOSB contracts through fraudulent or abusive eligibility misrepresentations, we reviewed SDVOSB contract awards and protests filed with SBA since the programs inception in 2003. We also reviewed allegations of fraud and abuse sent to our fraud hotline, FraudNET. In addition, we posted inquiries on our Web page and on several veteran advocacy-group Web pages and newsletters seeking information on fraud or abuse of the SDVOSB program. We received over100 allegations of fraud and abuse in the SDVOSB program. From these sources, we selected 10 cases for further investigation based on a variety of factors, including facts and evidence provided in protests and allegations, whether a firm received multiple SDVOSB contracts, and whether a firm received other non-SDVOSB contracts. To investigate these case studies, we interviewed firm owners and managers and reviewed relevant documentation, such as business filings and tax returns, to determine if SDVOSB eligibility requirements had been met. We also analyzed data from Federal Procurement Data System Next Generation(FPDS-NG) for years 2003 through 20095 to identify SDVOSB contracts received by the firms since the programs inception. Furthermore, we reviewed certifications made by firms, such as certifications about a firms size, SDVOSB status, and line of business, in the federal governments Online Representations and Certifications Application (ORCA).6 To determine whether the program has effective fraud-prevention controls in place, we reviewed relevant laws and regulations governing the SDVOSB program. We also interviewed agency officials about their responsibility over the program and controls currently in place to prevent or detect fraud and abuse. Additional details on our scope and methodology can be found in our report that we issued today.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 19, 2009
- Accession Number
- AD1180311
Entities
People
- Gregory D. Kutz
Organizations
- United States Government Accountability Office