On-Going Government Audits of Small Business Programs: Why the Federal Government’s Focus on ‘Waste, Fraud, and Abuse’ Impacts Both Large and Small Contractors

The federal government has identified purported ‘waste, fraud, and abuse’ in small business programs as a major focus of its current enforcement efforts. As it relates to federal procurement, we have seen audits and investigations rolled out not only of active participants in the Small Business Administration’s 8(a) Business Development Program but also reviews of various types of small business contracts (such as 8(a) sole source and set-aside awards, preference-based awards, and small business set-aside awards over particular values). Join Crowell & Moring as we discuss what aspects of contract performance and teaming arrangements are being scrutinized (e.g., size/status eligibility, limitations on subcontracting compliance, reasonableness of market rates, etc.) and how these considerations can impact both small government contractors holding the prime contracts under review and their subcontractors. 

Please find Crowell’s prior alerts on these topics available here: 

• DoW’s Previously Announced 8(a) Audit Expanded to Include All Small Business Set-Aside Awards over $20 Million
• 8(a) Participants – and the 8(a) Program – Under the Microscope or on the Chopping Block
• DoW Joins SBA’s Fight Against Alleged Pass-Through Fraud in the 8(a) Program
• SBA Office of General Counsel Audit of Participants in the 8(a) Program and Beyond