The 2011 SBIR/STTR Reauthorization and the 2014 SBIR Policy Directive from the Small Business Administration (SBA) provide an outline for minimizing the risk of Fraud, Waste and Abuse (FWA) in the SBIR and STTR programs.

The Department of Defense, Office of the Inspector General Hotline is an important avenue for reporting Fraud, Waste, Abuse, and mismanagement with the Department of Defense. Individuals, who wish to report any Fraud, Waste, or Abuse, may contact the Defense Hotline at the following:

Online: Submit a Complaint
Phone: (800) 424-9098 between 8:00 AM to 5:00 PM EST
Mailed Correspondence:
Defense Hotline
The Pentagon
Washington, DC 20301

To report Fraud, Waste, Abuse, or mismanagement of Federal funds involving SBA programs, operations, or personnel to SBA OIG Hotline:

Online: Submit a Complaint
Phone: (800) 767-0385
For Component-specific SBIR / STTR FWA Information, visit the links below:
NOTE: the DoD SBIR/STTR Program’s FWA information page is representative for all participating departments and agencies including those do and do not have individual FWA pages.

The SBIR/STTR Policy Directive gives the following as examples of fraud, waste, and abuse related to the SBIR/STTR program, however, please note, this is not an exhausted list:
  • misrepresentations or material, factual omissions to obtain, or otherwise receive funding under, an SBIR/STTR award
  • misrepresentations of the use of funds expended, work done, results achieved, or compliance with program requirements under an SBIR/STTR award
  • misuse or conversion of SBIR/STTR award funds, including any use of award funds while not in full compliance with SBIR/STTR program requirements, or failure to pay taxes due on misused or converted SBIR/STTR award funds
  • fabrication, falsification, or plagiarism in applying for, carrying out, or reporting results from an SBIR/STTR award
  • failure to comply with applicable federal costs principles governing an award
  • extravagant, careless, or needless spending
  • self-dealing, such as making a sub-award to an entity in which the PI has a financial interest
  • acceptance by agency personnel of bribes or gifts in exchange for grant or contract awards or other conflicts of interest that prevent the Government from getting the best value
  • lack of monitoring, or follow-up if questions arise, by agency personnel to ensure that Awardee meets all required eligibility requirements, provides all required certifications, performs in accordance with the terms and conditions of the award, and performs all work proposed in the application

Knowingly and willfully making any false, fictitious, or fraudulent statements or representations may be a felony under the Federal Criminal False Statement Act (18 U.S.C. Sec 1001), punishable by a fine of up to $10,000, up to five years in prison, or both.