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  • Writer's pictureJoshua Duvall

SBA OIG Report: The Most Serious Management and Performance Challenges Facing SBA in FY 2020

On Friday, October 11, 2019, the Small Business Administration Office of Inspector General ("SBA OIG") published its Report on the Most Serious Management and Performance Challenges Facing SBA in FY 2020. While the Report focuses on significant issues, its objective is to enhance the effectiveness of SBA's programs and operations.

Relevant to many small business contractors, for example, the first problem area that SBA OIG identified covers three areas that are all too familiar: (1) Exclusions From the Small Business Goaling Report Impact the Overall Prime Contract Goal, (2) Agencies Receive Goaling Credit for Ineligible Firms, Firms No Longer in the 8(a) or HUBZone Programs, or Firms That Are No Longer Small, and (3) Woman-Owned Small Business Federal Contracting Program Susceptible to Abuse.

In total, the Report covered eight areas, including:

  1. Weaknesses in Small Business Contracting Programs and Inaccurate Procurement Data Undermine the Reliability of Contracting Goal Achievement

  2. Information Technology Controls Need Improvement to Address Cybersecurity Risk

  3. SBA Needs Effective Human Capital Strategies to Carry Out Its Mission Successfully and Become a High-Performing Organization

  4. SBA Needs to Improve Its Risk Management and Oversight Practices to Ensure Its Loan Programs Operate Effectively and Will Continue to Benefit Small Businesses

  5. SBA Needs to Ensure That the Section 8(a) Business Development Program Identifies and Addresses the Needs of Program Participants, Only Eligible Firms Are Admitted Into the Program, and Standards for Determining Economic Disadvantage Are Justifiable

  6. SBA Can Improve Its Loan Programs by Ensuring Quality Deliverables and Reducing Improper Payments at SBA Loan Operation Centers

  7. SBA’s Disaster Assistance Program Must Balance Competing Priorities to Deliver Timely Assistance and Reduce Improper Payments

  8. SBA Needs Robust Oversight of Its Grant Management

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