Agencies Are Implementing New Fraud, Waste, and Abuse Requirements
November 15, 2012
SBA issued revised policy directives for the SBIR and STTR programs in August 2012 that included new requirements designed to help agencies identify and prevent potential fraud, waste, and abuse in the SBIR and STTR programs--changes that SBA developed in consultation with agencies that participate in the programs and a working group of inspectors general. Among other changes, the revised SBIR and STTR policy directives each include a new section on preventing fraud, waste, and abuse in the programs. They also include 10 minimum requirements related to fraud, waste, and abuse that the 11 participating agencies must meet, such as providing information on how to report fraud, waste, and abuse on their program websites and in solicitations. The revised policy directives include elements of our fraud-prevention framework. Based on our prior work, an effective fraud-prevention framework should include up-front preventive controls, detection and monitoring, and investigations and prosecutions. The 10 requirements in the revised directives include elements of the framework, but the effectiveness of the requirements in helping agencies identify and prevent potential fraud, waste, and abuse will depend on how participating agencies implement the requirements.