SBA Moves to Curtail Contractor Fraud

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SBA Moves to Curtail Contractor Fraud

By Keith Girard
Allbusiness.com
May 30, 2006

A new Small Business Administration proposal to curtail government contracting fraud is having trouble getting off the ground at the U.S. Air Force.

The Government Accountability Office and the SBA's Office of the Inspector General have recommended that government agencies annually recertify the status of small business contractors to prevent billions of dollars in work from going to larger firms.

But the Air Force is pushing back. It only wants to recertify companies every five years for reasons of "national security." But that creates a problem when a small business is acquired by a large firm or outgrows its small business status.

"It's time for this practice to stop," said Lloyd Chapman, founder and president of the American Small Business League. "The Air Force's excuse that annual recertification is somehow going to compromise national security is a farce and an insult to Americans everywhere."





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