Government Contracting Programs:
Activities to Enhance Fraud Detection and Deterrence

“ Over the past few years, the Investigations Division has noted several instances of a particular fraudulent practice: companies that SBA, after sustaining protests against them, had prohibited from representing themselves as small businesses, under a particular SIC code, were continuing to falsely certify themselves as eligible for small business set-aside contracts.”

“ The Inspector General issued a program vulnerability memo suggesting…that the agency <SBA> periodically generate a list of companies found ineligible to self-certify as small for contracts…and circulate it to all Federal agencies of their use.”

“ The Assistant Administrator for Government Contracting, responding for the Deputy Administrator, responded that, while the suggestion had merit, its risks outweighed the benefits.”

What risk could outweigh the benefit of true small businesses being awarded contracts meant specifically for them?

In 2003, Lloyd Chapman and his organization provided evidence to the SBA that proved that large companies, which included Nike and AT&T Wireless, were misrepresenting themselves on Pro-Net and CCR, the government’s databases for small businesses.

In response, the SBA removed over 600 companies from the databases for the misrepresentation. However, the SBA failed to take Chapman’s suggestion to distribute the list of companies to Federal agencies, reminiscent of the Inspector General’s request eight years prior.

When is the SBA going to stop helping large businesses and start helping US??

If you have uncovered similar evidence of fraud and abuse committed by large companies, the government, or any other institution please let us know.

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