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Defense Dept. Allowed Dubious Contractors to Self-Verify as Disabled-Vet Owned - Even Though They Were Not

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The Department of Defense has allowed companies to obtain contracts intended for disabled-veteran owned businesses by doing little more than check boxes on a form, thanks to a self-verify system that provides no accountability.

The Pentagon's inspector general uncovered at least 137 examples of ineligible companies receiving deals that are supposed to go only to vets with disabilities who started their own business. The collective value of the improperly awarded contracts was $1.3 billion, including $342 million to contractors that were probably ineligible.

The IG also found that defense officials failed to perform the routine task of checking the Central Contractor Registration (CCR) database while reviewing bids from ineligible companies.

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