VA Contracts Went to Ineligible Businesses, Audit Finds

Written by Ross Wilkers Federal Agencies Jul 27, 2011

From: VA

The Department of Veterans Affairs awarded over a half billion dollars to companies that did not meet eligibility requirements for veteran-owned small businesses, a VA inspector general report says.

Army Times reports a VA spot check found that 76 percent of businesses did not meet eligibility requirements and at least 1,400 ineligible businesses are receiving contracts from the VA valued at $540 million.

To be eligible for VA contracts, a business has to be owned and operated by a veteran. Some companies leave the owner as a figurehead, leaving day-to-day operations to a non-veteran.

FierceGovernment reports businesses were either ineligible due to veteran-owned businesses subcontracting more than half the work to non-veterans or that veterans did not really own or control the business.

The House Veterans’ Affairs Committee plans to discuss the inspector general’s report during a Thursday hearing.

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