“Substantial progress” in SBA goaling report accuracy: OIG

The Small Business Administration has made “substantial progress” in ensuring the accuracy of the government’s annual small business goaling report, according to a new report from the SBA’s Office of Inspector General.

In fiscal 2014, the OIG recommended that the SBA tighten controls on data reported for small business goaling.

This occurred after the OIG found $400 million in small business contracts that may have been awarded to ineligible firms, and another $1.5 billion that may have been credited to 8(a) small business goals incorrectly.

While the SBA relies on other agencies to report the data, the SBA puts together the goaling report.

To address the inaccuracies, SBA collaborated with other agencies on data quality issues and gave the agencies opportunities to correct their data, the OIG said.

SBA also provided digital tools and support to procurement personnel to help them improve data accuracy.

As a result, the OIG awarded the SBA a “substantial progress” rating on addressing the challenge.

In another finding, the OIG urged SBA to start litigating against small business federal contractors that do not follow the law in cases involving small-dollar frauds.

SBA has authority to do so under the Program Fraud Civil Remedies Act (PFCRA) of 1986; however, the SBA has not promulgated regulations to implement the law.

The OIG identified 28 serious management challenges. Of those, one challenge was fully resolved, 19 showed “substantial progress,” seven showed “limited progress,” and one showed “no progress.”

In other findings, the OIG gave these ratings:

• ”Limited progress” on implementing a certification program for the Women-Owned Small Business contracting program;
• ”Limited Progress” on having effective information security and continuous monitoring of cybersecurity risks;
• ”Substantial progress” in developing a plan to customize 8(a) support to individual needs;
• ”No progress” on establishing criteria that effectively measure “economic disadvantage” in the 8(a) program;
• ”Substantial progress” in implementing comprehensive improvements in management.

OIG report: http://goo.gl/zrxLWo

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