The SBA has rescinded USAID’s independent contracting authority under the 8(a) program. Image: Postmodern Studio/Shutterstock.com
By: FEDweek StaffThe SBA has issued a “letter of warning” to contracting officers government-wide directing those involved in 8(a) Business Development Program procurement to “fulfill their obligation to report potential misconduct, including entities that knowingly submit false information, conceal disqualifying facts, or other abuse.”
“Our 8(a) contracting officers have a legal responsibility to uphold the law and protect taxpayer dollars, ensuring that federal awards go to legitimate, eligible small businesses,” the SBA said. “This notice is part of our effort to ensure officers understand their obligation – and the SBA’s renewed commitment to rigorous oversight of their work.”
That comes after a Justice Department investigation uncovered what it called “a years-long fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors” involving U.S. Agency for International Development contracts.
The SBA meanwhile has rescinded USAID’s independent contracting authority under the 8(a) program, which aims to help socially and economically disadvantaged small businesses access sole-source and competitive set-aside contracts in the federal marketplace.
The SBA also has started an audit of the 8(a) program “beginning with high-dollar and limited-competition contracts” looking back 15 years. “Findings will be referred to the SBA Office of Inspector General and DOJ for enforcement, and the SBA will pursue all available actions to recover misused funds,” it said.
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