GAO urges action to prevent fraud in SBIR, STTR programs

In a report released this week, the U.S. Government Accountability Office (GAO) found that the 11 agencies participating in the Small Business Research (SBIR) and Small Business Technology Transfer (STTR) programs have varied in their implementation of fraud, waste and abuse prevention requirements. The ten requirements were put in place as part of the SBIR/STTR Reauthorization Act of 2011, following a 2009 congressional hearing regarding fraud in the programs. The extent to which the agencies have implemented the requirements varies – all 11 agencies have fully implemented two of the requirements and more than half have fully implemented another six. Officials from nine agencies indicated they have gone beyond the minimum requirements. However, officials from the Small Business Administration, which developed the requirements, said they had not confirmed with all agencies that all the requirements had been implemented. Similarly, Offices of Inspectors General (OIG) varied in their implementation of the requirements which had been assigned to them, with the military services branches failing to implement them.

GAO is making six recommendations, including that SBA confirm agency implementation of the fraud, waste, and abuse requirements, and that the Army, Navy, and Air Force OIGs implement the OIG requirements or delegate them to the investigative services.