Three men were handed down prison sentences this week for participating in a scheme to defraud the government of more than $20 million through Army Corps of Engineers contracts, the Justice Department announced Thursday. Harold Babb, the former director of contracts at Eyak Technology LLC, was sentenced to seven years and three months in prison on federal charges of bribery and unlawful kickbacks, according to a news release. Babb admitted that he paid Army Corps of Engineers program manager Kerry Khan in return for Khan’s approval on contracts and subcontracts to EyakTek and Big Surf Construction Management, an EyakTek subcontractor,…
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The Small Business Administration launched a new online course today designed to help small firms win federal contracts. The course gives businesses information about the federal market, such as where to find opportunities, contract rules and how to sell to federal agencies. The course, “Recovery Act Opportunities: How to Win Federal Contracts,” is part of the new Obama administration initiative to increase the use of small business among federal agencies. Last month, the White House announced SBA and the Commerce Department will take part in 200 outreach, education and training events over the next thee months to help small businesses…
I recently reported that the Small Business Administration and the Commerce Department were planning to participate in more than 200 events boost small businesses contracting under the American Recovery and Reinvestment Act. But it looks like those agencies aren’t the only ones working to ensure small businesses benefit from stimulus spending. The Transportation Department announced today that it has dedicated $20 million in Recovery Act funds to create a “Disadvantaged Business Enterprise Bonding Assistance Program.” The program, which is run by the department’s Office of Small Disadvantaged Business Utilization, allows small and disadvantaged businesses to apply for reimbursements for the…
There is widespread fraud in the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) Program, the Government Accountability Office has found. In a review of 36 contracts awarded in four cities, GAO found that 19 firms claiming to be HUBZone eligible didn’t meet the qualifications for the program that is meant to benefit small businesses in severely economically depressed areas. The firms didn’t have their principal offices in HUBZones or didn’t meet the requirement mandating a certain percentage of employees live in the HUBZone. The result: the firms fraudulently obtained more than $30 million in HUBZone contracts in fiscal 2006…
Bet your bottom dollar that the Small Business Administration’s second annual report card on the government’s use of small businesses in procurement will come out tomorrow. We say this because we’ve been told there is a press conference on that very topic, so it’s a pretty safe bet. The report cards grade agencies on how well they’ve met their individual goals for contracting with small businesses. These goals are often above and beyond the governmentwide goal of 23 percent, which is set by statute. Last year, SBA reported 12 agencies got red scores indicating they failed to reach their goals…