A House committee probing contracting at the Internal Revenue Service released a highly critical 157-page report charging a small business IRS contractor with multiple questionable activities, including inappropriate communications and various misrepresentations.

The House Oversight and Government Reform Committee held a hearing in which it grilled Braulio Castillo, owner of the firm in question, Strong Castle Inc., alleging he had a “cozy” relationship with the IRS’ deputy director for IT acquisition, Greg Roseman. Roseman declined to testify.

While the committee identified $500 million in potential contracts to Strong Castle, an IRS official testified that the company has received only a small fraction of that amount.

Witnesses also claimed Strong Castle engaged in fraud. However, the “evidence the investigations have publicly produced to date suggest the company’s activities fell within at least the letter of the law, if not its intent,” according to Federal News Radio.

The House lawmakers also probed into how Strong Castle obtained status as a service-disabled veteran-owned (SDVO) firm allegedly based on a military prep school foot injury.

Rep. Tammy Duckworth, D-IL, an Iraq War veteran who lost both her legs while on combat duty, chastised Castillo at the hearing for apparently exaggerating his injury.

The Small Business Administration decertified Strong Castle from being designated a SDVO firm in May. The SBA also stripped the company of its HUBZone status due to misinformation, the committee said.

More information: House committee report: http://goo.gl/a4MYR
Federal News Radio article: http://goo.gl/bbXIW
Federal Times article: http://goo.gl/0VGR7