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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

Congressional Testimony

The Small Bus. Admin. (SBA) administers the Service-Disabled Vet.-Owned Small Bus. (SDVOSB) program, reported in FY 2008 that $6.5 billion in fed. contracts were awarded to firms who self-certified themselves as SDVOSBs. 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 vets. and their firms the benefits of this program. The auditor identified 10 case-study examples of firms that did not meet SDVOSB program eligibility requirements, which received $100 million in SDVOSB contracts, and over $300 million in additional 8(a), HUBZone, and non-SDVOSB fed. gov¿t. contracts. Illustrations.

The Small Bus.