IG | The Contracting Education Academy

October 6, 2020 By cs

IG finds ‘significant inaccuracies’ in Federal Acquisition Service’s reporting of small business contracts

This resulted from issues with the GSA-managed federal procurement data system.

There have been “significant inaccuracies” in the Federal Acquisition Service’s reporting of small business contracts, a watchdog reported earlier this week.

The General Service Administration inspector general has issued a report that looked at the data GSA’s Federal Acquisition Service entered into the Federal Procurement Data System – Next Generation, which is managed by GSA. The Small Business Administration uses that system to assess if the federal government achieves its overall annual goal of awarding 23% of contracts to small businesses. Based on its review of Federal Acquisition Service procurements from fiscal 2016 and 2017 (that totaled $3.7 billion), the IG identified issues that led to overstating of small businesses procurements.

“We found that FAS’s reporting of small business procurements contained significant inaccuracies. We identified $89 million in procurements erroneously recorded as small business in [the Federal Procurement Data System–Next Generation],” said the IG. “In addition, FAS’ small business procurement reporting does not identify the extent of the work performed by large businesses. We found approximately $120 million of small business procurements in which large businesses performed a portion of the work.”

The IG reviewed the agency’s contracting data and internal policies as well as interviewed GSA officials and small business contractors, for its audit that was conducted from June 2018 to June 2019. While the report was about FAS, the IG found the issues were, in some ways, out the agency’s control.

Keep reading this article at: https://www.nextgov.com/analytics-data/2020/09/ig-finds-significant-inaccuracies-federal-acquisition-services-reporting-small-business-contracts/168602/

August 25, 2020 By cs

4 lessons from SBA’s $30 million ‘Certify’ platform debacle

Let me know if you’ve heard this one before: An agency hires “experts” to develop an application, spends tens of millions of dollars and the effort falls flat.

This easily could be the story to focus on with Small Business Administration’s Certify.SBA.gov project.

A recent agency inspector general report found the agency brought in U.S. Digital Service experts, spent upwards of $30 million over the last five years to develop the platform only for most of the effort to go to scrap and forcing SBA to basically start over again.

Instead this is a story about perseverance. It’s a story about lessons learned that every agency should keep in mind. And this is a story that offers an inside view into why federal projects do fail and how simple steps could change the direction of any IT project.

Keep reading this article at: https://federalnewsnetwork.com/reporters-notebook-jason-miller/2020/08/4-lessons-from-sbas-30m-certify-platform-debacle/

July 14, 2020 By cs

Contractor to pay $1 million to settle claims of fraudulently representing airport work by small disadvantaged business

Williams Brothers Construction Inc. (WBCI) has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by misrepresenting its use of a small disadvantaged business to obtain a federally-funded construction contract, the Department of Justice (DOJ) has announced.

“The Disadvantaged Business Enterprise (DBE) Program of the Department of Transportation creates important opportunities for small businesses to participate in construction projects paid for with federal funds,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who misrepresent their compliance with program requirements to obtain taxpayer funds to which they are not entitled, and thereby undermine the program’s goal of supporting small businesses.”

The settlement resolves claims arising from WBCI’s construction of a new terminal building at the Peoria International Airport using Federal Aviation Administration (FAA) grant funds, and is based on the following factors:

The FAA grant required the use of disadvantaged business enterprises for part of the construction.
DOJ contends that WBCI knowingly made false representations regarding its plans to use a disadvantaged small firm on the project and then falsified documents to make it appear that an eligible business did window, glazing, and curtain wall work.
Instead, WBCI allegedly used that business only as a pass-through and had the work done by an ineligible company.

The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Central District of Illinois, and U.S. DOT’s Office of Inspector General.

Readers are reminded that the claims resolved by the settlement are allegations only, and there has been no determination of liability.

Source: https://www.justice.gov/opa/pr/government-contractor-pay-1-million-settle-claims-fraudulently-representing-work-small

March 6, 2020 By cs

Contracting official sentenced to 18 months in federal prison for role in bribery scheme to rig VA contracts

U.S. Department of Veterans Affairs official Dwane Nevins has been sentenced to serve 18 months in federal prison, followed by three years of supervised release, for corruption offenses. He took cash bribes and then extorted undercover small business owners so that he could have his “Christmas.”

We first reported on the allegations against Nevins in September 2018. Then, in January of this year, we reported on the sentencing of a businessman who conspired with Nevins. Sentencing of one more individual in this case is scheduled later this month.

According to Court records, Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by co-defendants Robert Revis, Anthony Bueno, and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA.

Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno put it, the conspirators would then “own all the dogs on the track.”
Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting. At one of those sham trainings in Las Vegas, Nevada, Nevins accepted a $4,500 cash bribe from the undercover FBI agent.

After complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also told the undercover FBI agent “this is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”

Anthony Bueno was previously sentenced in this case to 30 months imprisonment. He was also sentenced to 63 months imprisonment for his role in a separately indicted wire fraud scheme in which he used false representations about investment opportunities to take over a million dollars from several victims.

Robert Revis pleaded guilty in April 2019 to an Information charging him with a single count of supplementing the salary of a federal official. His sentencing hearing is scheduled for March 2, 2020.

Source: https://www.justice.gov/usao-co/pr/former-veterans-affairs-official-sentenced-18-months-federal-prison-role-bribery-scheme

March 4, 2020 By cs

IG says Pentagon awarded $876 million in contracts meant for disabled vets to ineligible companies

Small businesses owned or run by disabled veterans may have been cheated out of hundreds of millions of dollars in Defense Department contracts by unscrupulous firms who were ineligible for the awards.

This information is contained in an Inspector General’s report released to the public on Feb. 20, 2020.

The IG’s audit found that the DoD “awarded $876.8 million in contracts to ineligible contractors and did not implement procedures to ensure compliance with the Service-Disabled Veteran-Owned Small Business (SDVOSB) subcontracting requirements after the contracts were awarded.”

At least 16 of the 29 contractors reviewed in the report who received business from the DoD on the basis that they met the disabled veteran requirements were found to be ineligible, the IG’s office said.

Unless the DoD conducts better oversight, “service-disabled veterans may be in jeopardy of not receiving contract awards intended for them, and the DoD will be at risk of misreporting the amounts for SDVOSB participation,” the 29-page report states.

Keep reading this article at: https://www.military.com/daily-news/2020/02/20/pentagon-awarded-876m-contracts-meant-disabled-vets-ineligible-companies-ig.html

This resulted from issues with the GSA-managed federal procurement data system.

Let me know if you’ve heard this one before: An agency hires “experts” to develop an application, spends tens of millions of dollars and the effort falls flat.

Williams Brothers Construction Inc. (WBCI) has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by misrepresenting its use of a small disadvantaged business to obtain a federally-funded construction contract, the Department of Justice (DOJ) has announced.

Small businesses owned or run by disabled veterans may have been cheated out of hundreds of millions of dollars in Defense Department contracts by unscrupulous firms who were ineligible for the awards.

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