A newly released report from the Office of the Inspector General (OIG) of the U.S. Small Business Administration (SBA) identifies the most critical risks facing the SBA, including several items related to government procurement.

The report includes an overview of cases where individuals and businesses have fraudulently participated in SBA programs, and an analysis of areas where the SBA may be most vulnerable to fraud.  Several of the findings may be of interest to the contracting community, including:

• Over $400 million in federal contracts were awarded to ineligible firms, which may have contributed to overstatement of small business dollars for the Small Disadvantaged Business and the HUBZone Business Preference Programs in FY 2013.
• The owner of a Colorado real estate firm and 5 family members were charged in a 37-count indictment by a state grand jury in connection with a $2,323,000 SBA-guaranteed loan to refinance an office building and other existing debt.
• Sixteen cases of contract-related bribery and/or fraud were identified in connection with contracts or subcontracts set-aside for 8(a), HUBZone, veterans, or other categories of small business.

The full report is now available to the public.