Recent SBA OIG Report Reveals Continuing Concerns With 8(a) Approvals

To be eligible to participate in the 8(a) Business Development Program, an applicant firm must be a small business that is at least 51% owned and controlled by a socially- and economically-disadvantaged individual (or individuals) who are of good character and citizen(s) of the United States. The firm, moreover, must show a potential for success.

The Small Business Administration’s internal watchdog (the Office of Inspector General, or OIG) recently raised its continuing concerns regarding the admission of several entities to the 8(a) Program. The OIG’s report is worth reading, as it may lead to changes in the 8(a) Program’s eligibility criteria.

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Inspector General: SBA Should Implement WOSB Certification Program

The SBA should implement a women-owned small business certification program, according to the SBA’s own Inspector General.

In a recent report on management challenges facing the SBA, the SBA Office of Inspector General urged the SBA to adopt a WOSB certification program–and stated that failing to do so may allow ineligible firms to receive WOSB set-aside contracts.

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WOSB Program: 15 Of 34 Set-Aside Awards Improper, Says SBA OIG

Of 34 WOSB and EDWOSB set-aside awards examined by the SBA Office of Inspector General, 15 of those awards were improper.

The SBA OIG’s conclusion comes in a new WOSB program report, and suggests that some Contracting Officers are unaware of the WOSB progran’s unique requirements, including the NAICS code limitations for WOSB and EDWOSB set-asides.

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8(a) Program Improvements Needed, Says SBA OIG

8(a) Program improvements are needed to allow more disadvantaged firms to receive 8(a) contracts, according to a recent report issued by the SBA Office of Inspector General.

In its report, the SBA OIG credits the SBA with positive steps taken to improve the 8(a) Program, but says that more must be done to ensure that 8(a) business development assistance reaches more 8(a) Program participants.

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HUBZone Certifications Averaging 116 Days–And Other Tidbits From The SBA OIG HUBZone Report

HUBZone certifications are averaging 116 days from the date of application to the date of certification, according to a fascinating SBA Office of Inspector General Report on the HUBZone certification process.  The 116-day time frame is considerably longer than the SBA’s goal of 90 days.  However, in a majority of cases, the SBA does complete the certification process within 90 days of receiving all of the applicant’s supporting documentation.

In addition to an overview of the time frames associated with a HUBZone certification (a question I am often asked), the SBA OIG report concludes that the SBA’s HUBZone application procedures need updating–and that three potentially ineligible firms were certified in 2012.

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