IG finds $4.5B in apparent fraud, errors in EIDLs

      The SBA delivered $4.5 billion in apparently fraudulent or erroneous emergency EIDL grants to sole proprietors and independent contractors from March to July in 2020, the SBA’s Inspector General reported on Oct. 7.

      Business owners were entitled to receive $1,000 per employee under the EIDL grants program, but hundreds of thousands of business owners who received grants for multiple employees did not show proof of being employers.

      There were 704,094 applicants who received grants for multiple employees without submitting an Employer Identification Number (EIN), the IG report states. They should have received no more than $1,000 each, the IG said.

      In total, there was $4.5 billion in improper disbursements.

Read more:
IG Report: https://bit.ly/3lRyiXs

Cost/price data update

      DOD issued a Class Deviation on Oct. 7 to immediately raise the threshold for obtaining certified cost or pricing data for subcontracts, at any tier, and for price adjustments to a prime contract or subcontract. The threshold was raised to $2 million, up from $750,000.

Read more at:
DoD Class Deviation: https://bit.ly/3aSEaJK

SCR reporting now in effect in SAM until 1/31/22

      Fiscal 2021 manpower data reporting requirements for covered DOD contracts began on Oct. 8 and will continue through Jan. 31 under a new DFARS regulation. The reports are to be made in the Service Contract Reporting (SCR) section of SAM.gov.

      Covered contracts are those with an estimated value, including extensions, of $3 million or more, and are for services in these areas:

• Logistics management services;
• Equipment-related services;
• Knowledge-based services; and
• Electronics and communications services.

      DOD contractors must complete reporting on deadlines set in their contracts. However, the SCR reporting section in SAM.gov will be operational for corrections and amendments to the data until Jan. 31, 2022.

Read more at:
DFARS memo: https://bit.ly/2YZVSs0

Inside this edition:

IG: SBA’s 2020 HUBZone, SDB rules threaten SBA’s “integrity”

WOSB certs lagging: OIG

Less racial bias online for PPP

HSBC: Number of small business federal contractors has been declining

Labor Surplus List released

Vendor data complications

NDAA local hiring amendment

WOSB rule proposed

DOD losing vendors: GAO

Column: Requests for Equitable Adjustments vs. Claims: Which Should Contractors Pursue?

Washington Insider:

Coronavirus Update