During the presidential campaign, Barack Obama said his administration "would direct the Small Business Administration to amend regulations under the Small Business Act that provide preferences in federal contracting to small businesses owned by members of socially and economically disadvantaged groups to include individuals with disabilities."
Veterans with disabilities already receive assistance from the Small Business Administration. When we asked Hayley Matz, a spokeswoman with the Small Business Administration, whether anything had been done to advance this promise, she offered one specific initiative that's under way -- a three-year agreement to expand and deliver entrepreneurship training for service-disabled veterans of the wars in Iraq and Afghanistan. Under this initiative, the SBA"s Office of Veterans Business Development will support the expansion of the yearlong Entrepreneurship Bootcamp for Veterans with Disabilities, a training and mentorship program.
But this is a narrow program. In the meantime, the SBA is grappling with allegations that an existing program -- the Service-Disabled Veteran-Owned Small Business -- is not working correctly.
In October 2009, the Government Accountability Office concluded that 10 firms "received approximately $100 million from SDVOSB contracts through fraud or abuse of the program, or both." The GAO added that "firms found ineligible do not face real consequences, can be allowed to complete the contracts received, and are not suspended or debarred."
As far as the larger question of allowing disabled Americans who aren't veterans to receive preferences under the SBA, we haven't found any indication that this promise is advancing. So we're labeling this promise Stalled.
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← Back to Change rules so small businesses owned by people with disabilities get preferences for contracts.
No broad-based effort yet on federal contract preferences for the disabled
Our Sources
E-mail interviews with Hayley Matz, spokeswoman for the Small Business Administration, November 2009 and January 2010
Government Accountability Office, "Service-Disabled Veteran-Owned Small Business Program: Case Studies Show Fraud and Abuse Allowed Ineligible Firms to Obtain Millions of Dollars in Contracts," October 2009
Internet and Nexis searches that produced no results