**GAO-10-740T**                      Published: May 24, 2010. Publicly Released: May 24, 2010.                  

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## Highlights

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program is intended to provide federal contracting opportunities to qualified firms. In fiscal year 2008, the Small Business Administration (SBA) reported $6.5 billion in sole-source, set-aside, and other SDVOSB contract awards. Testimonies GAO delivered on November 19 and December 16, 2009 identified millions of dollars in SDVOSB contracts that were awarded to ineligible firms, and weaknesses in fraud prevention controls at the SBA and VA which allowed ineligible firms to receive contracts. GAO was asked to testify about the key elements of a fraud prevention framework within the SDVOSB program and to provide an update on the status of fraud referrals made based on the prior investigation of selected SDVOSB firms. To address these objectives, GAO reviewed prior findings from audits and investigations of the SDVSOB program and contacted investigative agency officials concerning the referrals GAO made on prior work. GAO also reviewed applicable guidance on internal control standards from the Comptroller General's Standards for Internal Controls in the Federal Government.

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## Topics

Business Regulation and Consumer Protection

Bidder eligibilityContract terminationEligibility criteriaFederal procurementInternal controlsInvestigations into federal agenciesMonitoringProgram abusesRequirements definitionService-disabled veteransSet-asidesSmall businessSole source procurementSubcontractsWaste, fraud, and abuse