First Source Contractors Under Scrutiny: Report The Homeland Security Department is reviewing its First Source contracts to make sure the small businesses are not subcontracting too much of their work, the Washington Post reported. SBA has suspended two First Source contractors for allegedly passing through almost all their work to a large subcontractor, in violation of the rules governing the small business set-aside contract. In an internal DHS memo obtained by the Post, a department official wrote, “DHS intends to undertake a comprehensive review of all 11 First Source contracts to ensure that the program can continue forward without further risk or abuse.” SBA suspended EG Solutions and Multimax Array, two small contractors that had used GTSI as a subcontractor on orders awarded under First Source. GTSI was suspended from federal contracting in October for allegedly using small businesses as fronts. GTSI’s suspension was lifted after two top executives resigned and the company agreed to independent oversight of its business practices. The Post said an SBA investigation of the company is continuing. The Post also reported that an Alaska Native 8(a) company, United Solutions and Services (US2), is under investigation for a $250 million sole source contract. US2 was hired to work on a campaign to prevent sexual assault and harassment in the Army, although the tiny company had no experience in that area. Army officials told the newspaper they did not have time to compete the contract because of the urgency of combating sexual assault. Company officials acknowledged they hired subcontractors to do much of the work. The Post said the contract is being investigated by the Army Criminal Investigation Command and the Defense Criminal Investigative Service, along with the Interior Department inspector general. Interior’s National Business Center awarded the contract for the Army. A spokesman for US2 said it is cooperating with investigators and is confident “that the company and government agencies acted properly and responsibly.”