Newinvestigations by the Small Business Administration (SBA) Office of InspectorGeneral have found SBAAdministrator Maria Contreras-Sweet's announcement that small businessesreceived 23.39% of all federal contracts was greatly exaggerated.As WaPoreports, Federal agencies overstated their success last year in contractingwith small businesses that face socio-economic disadvantages finding $400million worth of contracts that agencies gave to ineligible firms but stillcounted toward their targets. Rather stunningly, the report found of the top 100 recipients of thehighest dollar amount of federal small business contracts, over 75% wereactually current large businesses. Trust...

AsThe Washington Post reports,

Federal agencies overstatedtheir success last year in contracting with small businesses that facesocio-economic disadvantages, accordingto a watchdog report released Wednesday.

The Small Business Administration'sinspector general's office said it identified $400 million worth of contractsthat agencies gave to ineligible firms but still counted toward their targets.

Thefindings are significant because 2013 was the first year that the Obamaadministration claimed to have met the federal government's small-businesscontracting goals. The flawed numbers led to inaccurate reports to Congress andthe American people, according to the report.

Andas MarketWatch adds,

The most recent data from the FederalProcurement Data System indicates of the top 100 recipients of the highestdollar amount of federal small business contracts, over 75% were actuallycurrent large businesses.

...

The first SBA Inspector Generalinvestigation that uncovered fraud in federal small business contracting wasreleased in 1995. In 2003 an investigation by the Government AccountabilityOffice found over 5,000 large businesses were receiving federal small businesscontracts.

TheAmerican Small Business League (ASBL) has launched a national campaign tosecure a Government Accountability Office (GAO) and FBI investigation touncover the specific individuals that were responsible for the two decades offraud that have been uncovered at the SBA.

To viewfull article, click here: http://www.zerohedge.com/news/2014-09-30/more-lies-watchdog-finds-government-greatly-exaggerated-success-funding-small-busine

Earlier this year, the Small Business Administration announced that the

federal government had reached its goal of awarding at least 23 percent of its

total contracts to small businesses—the highest percentage in nearly eight

years.

This was a big deal for the federal

government—as Washington is always happy to tout its support for small firms.

Related: Small Business Contracts Flow to

Mega Corporations

But a scathing new report

from the SBA's inspector general casts doubts on the government's commitment to

small businesses—and claims that the agency's numbers were significantly

inflated—by as much as $2 billion.

The IG reviewed federal contracts

intended for companies eligible for the HubZone program, which benefits

companies in low-income communities, as well as the 8(a) program, which

benefits minority-owned firms.

Auditors concluded that inaccurate

reporting practices and lax oversight resulted in some $428 million intended

for disenfranchised groups going to ineligible firms. They added that another

$1.5 billion went to business that used to be eligible for the programs—but are

no longer qualified.

"In addition to overstating the small

business "goal" dollars, this may have also prevented other eligible firms from

being awarded these contract actions," the report says.

Related: The 10 Hottest Spots to Start a

Small Business

The auditors said information for the

HubZone and 8(a) programs wasn't consistently transmitted to the System for

Award Management, "As a result the affected small businesses—especially HubZone

firms—are not getting the visibility" in the system, which "may impact federal

agencies in meeting their procurement goals."

The auditors only reviewed contracts

worth more than $3 million, so it's likely that even more money was awarded to

ineligible companies.

The IG recommended that SBA create a

streamlined process to more accurately award contracts. Agency officials agreed

with the recommendations.

This isn't the first time federal

grants for small businesses have gotten in the wrong hands. Earlier this year, an investigation by

the American Small Business League revealed that only 16 of 100 companies

receiving small business grants were actually small firms. The rest of the

money was going to behemoth corporations like Apple, Bank of America and

General Electric.

To view full article, click here: http://www.thefiscaltimes.com/Articles/2014/09/30/Agency-Lies-About-How-Much-It-s-Helping-Small-Businesses#sthash.8pPVKJQU.dpuf#ixzz3F672C6r7

Earlier this year, the Small Business Administration announced that thefederal government had reached its goal of awarding at least 23 percent of itstotal contracts to small businesses—the highest percentage in nearly eightyears.

This was a big deal for the federalgovernment—as Washington is always happy to tout its support for small firms.

Related: Small Business Contracts Flow toMega Corporations

But a scathing new reportfrom the SBA's inspector general casts doubts on the government's commitment tosmall businesses—and claims that the agency's numbers were significantlyinflated—by as much as $2 billion.

The IG reviewed federal contractsintended for companies eligible for the HubZone program, which benefitscompanies in low-income communities, as well as the 8(a) program, whichbenefits minority-owned firms.

Auditors concluded that inaccuratereporting practices and lax oversight resulted in some $428 million intendedfor disenfranchised groups going to ineligible firms. They added that another$1.5 billion went to business that used to be eligible for the programs—but areno longer qualified.

"In addition to overstating the smallbusiness "goal" dollars, this may have also prevented other eligible firms frombeing awarded these contract actions," the report says.

Related: The 10 Hottest Spots to Start aSmall Business

The auditors said information for theHubZone and 8(a) programs wasn't consistently transmitted to the System forAward Management, "As a result the affected small businesses—especially HubZonefirms—are not getting the visibility" in the system, which "may impact federalagencies in meeting their procurement goals."

The auditors only reviewed contractsworth more than $3 million, so it's likely that even more money was awarded toineligible companies.

The IG recommended that SBA create astreamlined process to more accurately award contracts. Agency officials agreedwith the recommendations.

This isn't the first time federalgrants for small businesses have gotten in the wrong hands. Earlier this year, an investigation bythe American Small Business League revealed that only 16 of 100 companiesreceiving small business grants were actually small firms. The rest of themoney was going to behemoth corporations like Apple, Bank of America andGeneral Electric.

To view full article, click here: http://www.thefiscaltimes.com/Articles/2014/09/30/Agency-Lies-About-How-Much-It-s-Helping-Small-Businesses#sthash.8pPVKJQU.dpuf#ixzz3F672C6r7

Federal agencies handed out more than $83billion in contracts to small businesses in 2013, allowing Washington tosurpass its goal of awarding 23 percent of government jobs to small businessfor the first time since 2005. How did the government manage to reach thatrarely met goal? Fudging the numbers may have helped, according to a reportissued last week.

Agencies overstated the amounts awarded by almost $2 billion,the Small Business Administration's Office of the Inspector General said in a Sept.24 report (PDF) that focused on set-aside programs for minority-ownedbusinesses, as well as businesses located in poor neighborhoods. That includes$428 million that went to companies that shouldn't have gotten set-asides, andan additional $1.5 billion to companies that qualified for the programs whenthey won the awards but no longer qualified last year, when agencies werecutting checks. "In addition to overstating the small business goaling dollars,this may have also prevented other eligible firms from being awarded thesecontract actions," the report says.

The SBA "generally concurred" with the findings, the reportsays.

To view full article, click here: http://www.businessweek.com/articles/2014-09-29/the-fuzzy-math-of-a-federal-program-for-minority-owned-businesses