Washington (May 15, 2003) -- Some government contract dollars reported as being awarded to small businesses may actually be going to large companies, a report released by the General Accounting Office has found.
In a review of five large companies that received contracts totaling $1.1 billion in fiscal year 2001, the GAO found that $460 million of that amount was listed in the Federal Procurement Data System as small business awards. According to the GAO, the mis-reporting was caused in most cases by federal regulations that permit companies to be considered as a small business over the life of the contract, even if they’ve grown into a large business, merged with another company, or been acquired.
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