DREXEL HILL, PA - Former U.S. Attorney Pat Meehan joined Representative Nick Miccarelli and members of the veteran community today to call for improvements to government procurement programs benefitting service-disabled veteran-owned small businesses.  Meehan called for reforms in Congress that would ensure that the federal government meets its goals for awarding contracts to service-disabled veteran-owned businesses and address problems of fraud in the program.  
 
The federal Service-Disabled Veteran-Owned Small Business Program(SDVOSB) was created under the Veteran Benefits Act of 2003, legislation authored by Congressman Chris Smith of New Jersey.  That bill required federal agencies and departments to give special consideration during federal contracting and procurement to small businesses owned by service-disabled veterans.  
 
"Service-disabled veterans deserve our recognition and appreciation for the sacrifices they have made defending our nation and our freedoms," said Pat Meehan, the Republican candidate for Congress in Pennsylvania's 7th Congressional District.  "But the current program in place on the federal level is falling short of its goals of awarding federal procurement contracts and has been the target of fraud.  As a Member of Congress, I will work to improve procurement opportunities for these service-disabled veterans businesses and work with those in Congress who are currently fighting to root out fraud in the program."
      
Meehan noted that in 2002, prior to the creation of the federal Service-Disabled Veteran-Owned Small Business Program, disabled veteran owned firms received just 0.13 percent in federal contracts -- despite a statutory goal of 3 percent.  But as of 2008, just 1.5 percent of all federal contracts went to businesses owned by service-disabled veterans, still far short of the mandated annual goal. Also, while the program resulted in the award of about $6.5 billion in contracts to disabled veteran owned businesses in 2008, millions of those awards went to ineligible firms due to the lack of proper protocols and safeguards.  
 
"This is a good program that recognizes and rewards service disabled veterans who have created and built their own small businesses," said Meehan.  "More importantly, it recognizes the sacrifices made by so many veterans.  But while the program has been successful in expanding business opportunities for service-disabled veterans, changes and reforms are needed on the federal level to address problems."  
 
A former federal prosecutor who targeted businesses and individuals engaged in fraud against the federal government, Meehan expressed support for a number of reforms cited in a recent report issued by the General Accounting Office in May.  That report found that 10 firms received $100 million in contracts designated for service-disabled veteran-owned businesses through fraudulent schemes.  Reforms supported by Meehan include:
 
-- Stricter preventative controls to ensure that only Service-Disabled Veteran-Owned Small Businesses are eligible to take part in the program, including verification that a business owner is a service-disabled veteran.  The GAO found that effective controls to verify eligibility were not in place.  
 
-- Improved monitoring of firms participating in the program to ensure they continue to meet program eligible requirements
 
-- Aggressive investigation and prosecution of firms that engage in fraud and abuse of the program as a deterrent to other businesses that may seek to improperly take part in the program or abuse its eligibility requirements. 
 
On the state level, Meehan also expressed support for Miccarelli's proposal to alter the state procurement code to include recognition for service-disabled veteran-owned businesses.  Miccarelli's legislation would change the procurement code in the Commonwealth of Pennsylvania to include businesses owned by service-disabled veterans to the distinction of disadvantaged businesses, which already includes women and minority owned businesses.
 
"I commend Representative Miccarelli for his foresight in this matter and recognizing that service disabled veterans deserve the same respect and consideration on the state level as they receive on the federal level," said Meehan. "I look forward to working in concert with state officials when I serve in the U.S. Congress to pool our ideas and make sure oversights like this do not continue to occur."