Small Business Research Programs: Additional Actions Needed to Implement Fraud, Waste and Abuse Prevention Requirements

Small Business Administration To help improve agency implementation of the fraud, waste, and abuse prevention requirements in the policy guidelines, the SBA administrator should confirm that each SBIR and STTR agency implements the minimum requirements. prevention of fraud, waste and abuse in policy guidelines, for example by requesting documents from agencies.

The SBA agreed with this recommendation. The SBA sent emails to the 11 participating agencies and received responses, including detailed documentation, from November 2017 through December 2018 regarding their implementation of all fraud, waste, and abuse requirements in policy guidelines. Based on this information, the SBA determined that the 11 participating agencies had either implemented the requirements or had a plan in place to meet the requirements and report compliance to the SBA.

Small Business Administration To help improve agencies’ implementation of the fraud, waste, and abuse prevention requirements in the policy guidelines, the SBA administrator should seek input from participating agencies regarding the clarity of the requirements; review all SBIR and STTR minimum fraud, waste, and abuse prevention requirements, including the agency’s requirement to publish information about successful SBIR or STTR fraud prosecutions; determine if additional guidance is needed; and revise policy guidelines accordingly.

The SBA agreed with this recommendation. Following the release of our April 2017 report, the SBA scheduled time to discuss fraud, waste, and abuse as a regular agenda item at each of its bi-monthly SBIR program managers’ meetings. . Participating agencies asked the SBA for clarification on a few requirements for preventing fraud, waste, and abuse, including: (1) publication of successful cases on agency websites, (2) the amount of resources needed to implement the provisions and (3) adaptation of the requirements. for each agency. Because these issues and questions were discussed and clarified at program manager meetings, the SBA determined that there was no need to provide additional guidance or revise policy guidance.

Small Business Administration To help improve agencies’ implementation of the fraud, waste, and abuse prevention requirements in the policy guidelines, the SBA administrator should revise the fraud, waste, and abuse provisions. abuse in the policy guidelines to reflect the definition of substantially equivalent work used elsewhere in the policy guidelines and require participating organizations to verify substantially equivalent work they fund as well as work funded by other organizations .

The SBA agreed with this recommendation. In April 2019, the SBA published revised SBIR and STTR policy guidelines in the Federal Register, which became effective May 2, 2019. The revised guidelines reflect the definition of substantially equivalent work in the “Fraud , waste, and abuse; This definition is consistent with the definition previously used in an earlier section of the policy guidelines. In the revised guidelines, the SBA also requires participating organizations to verify substantially equivalent work they fund as well as work funded by other organizations.

Small Business Administration To help improve agencies’ implementation of the fraud, waste, and abuse prevention requirements in the policy guidelines, the SBA administrator should assess the agency’s SBIR and STTR fraud performance, waste and abuse to ensure the fraud, waste and abuse prevention requirements are appropriate and serve their purpose for the SBIR and STTR programs.

The SBA agreed with this recommendation. In August 2020, the SBA evaluated the Fraud, Waste, and Abuse Prevention requirements, noting that it is often impossible to assess the impact of a requirement on the specific reduction or deterrence of fraud, waste and abuse. The SBA concluded that the implemented requirements appeared appropriate. The SBA provided a more in-depth assessment of the four requirements that had not been implemented by at least two agencies and included information about additional guidance provided to agencies regarding the requirements. For example, the SBA said two agencies had not implemented a requirement to post information about successful lawsuits for fraud, waste, and abuse on their websites. One agency didn’t because they hadn’t been sued. The SBA said it informed the two agencies that they could link to the list of lawsuits on the SBIR.gov website to satisfy this requirement.

Department of Health and Social Services To help improve implementation of fraud, waste, and abuse prevention requirements, the Secretary of Health and Human Services (HHS) should direct HHS SBIR and STTR program offices to collect copies of forms self-certification with its SBIR and STTR winners. .

In October 2018, HHS announced that it would require all SBIR and STTR awardees to submit lifecycle certification forms, effective January 1, 2019. The notice also outlines the consequences if an SBIR or STTR awardee does not provide failure to HHS all required completed certifications, including corrective actions by HHS, denial of further awards, suspension or termination, among others.

Inspector General’s Office To help ensure that the DOD implements fraud, waste, and abuse prevention requirements with BIGs, Inspectors General of the Army, Navy, and Air Force must implement implement the requirements themselves or delegate the implementation of the requirements to the investigation services.

DOD agreed with the recommendation in its comments on the draft report and confirmed its agreement in its May 2017 letter on the final report. In October 2019, the Air Force OIG delegated authority for implementing SBIR requirements to the Air Force Office of Special Investigations.

Inspector General of the Navy To help ensure that the DOD implements fraud, waste, and abuse prevention requirements with BIGs, Inspectors General of the Army, Navy, and Air Force must implement implement the requirements themselves or delegate the implementation of the requirements to the investigation services.

DOD agreed with the recommendation in its comments on the draft report. In March 2021, the Inspector General of the Navy determined that he would retain responsibility for fraud, waste, and abuse requirements and coordinate their implementation with the appropriate offices.

Office of the Inspector General To help ensure that the DOD implements fraud, waste, and abuse prevention requirements with BIGs, Inspectors General of the Army, Navy, and Air Force must implement implement the requirements themselves or delegate the implementation of the requirements to the investigation services.

DOD agreed with the recommendation in its comments on the draft report. In March 2021, the Army Inspector General Agency determined that Fraud, Waste, and Abuse Prevention requirements were currently assigned or otherwise delegated to other organizations and that it would monitor implementation. implement requirements.