The Federal Government has a stated goal to award 23% of prime contract dollars to small businesses, with sub-goals for HUBZONE, Women-Owned businesses, Service-Disabled Veteran-Owned businesses and Small Disadvantaged businesses. Last year, the Federal Government spent approximately $9 Billion on construction contracts awarded to small and disadvantaged businesses.
The Federal Government has a stated goal to award 23% of prime contract dollars to small businesses, with sub-goals for HUBZONE, Women-Owned businesses, Service-Disabled Veteran-Owned businesses and Small Disadvantaged businesses. Last year, the Federal Government spent approximately $9 Billion on construction contracts awarded to small and disadvantaged businesses.
On October 27, the U.S. House Subcommittee on Investigations, Oversight and Regulations of the Committee on Small Business held hearings entitled “Misrepresentation and Fraud: Bad Actors in the Business Procurement Program.” The purpose of the hearing was to make sure that the government is taking appropriate steps to investigate and prosecute misrepresentation and fraud in the federal set-aside programs. In summarizing her testimony, the Inspector General for the Small Business Administration stated:
The SBA Inspector General will continue to focus its work to ensure Federal contracts are awarded to small businesses that deserve preferential contracting opportunities. The SBA Inspector General will continue to pursue those who defraud the government by lying to gain access to Federal set-aside contracts.
Additional statements and testimony from the hearing are available at http://smbiz.house.gov/Calendar/EventSingle.aspx?EventID=265135. As a result of this hearing, contractors should anticipate increased scrutiny and enforcement of regulations relating to these federal said-aside programs.
