WASTE

DoD SBIR/STTR Training

Who's responsible for waste?

WASTE

DoD SBIR/STTR Training

What is Waste?

Waste is extravagant, careless, or needless expenditure of government funds, or the consumption of government property that results from deficient practices, systems, controls, or decisions.  

Individuals who waste DoD resources can include contractors, subcontractors, civilian employees, and individual service members.

What contributes to waste?

A lack of knowledge and controls may limit even the best efforts to reduce waste.

There are 3 types of waste. What are they?

WASTE

DoD SBIR/STTR Training

WASTE

DoD SBIR/STTR Training

Lack of Monitoring 

A lack of monitoring, or follow up if questions arise, by government personnel to ensure that the awardee meets all requirements and performs the agreed upon work. 

Type 1

Examples

Failure to verify if an awardee meets all required conditions of eligibility to receive an award and provides all required certifications. 

Failure to verify if the small business has the ability to perform in accordance with the terms and conditions of the award. 

Not ensuring that the awardee performs all of the work proposed in their application. 

WASTE

DoD SBIR/STTR Training

Failure to Check for Duplicate Awards

Not researching the awardee to ensure that they have not received SBIR funds for similar or overlapping work. 

Type 2

Examples

Not searching SBA TechNet, Google, and other resources prior to award for the applicant, key individuals in the proposal, and similar abstracts to make sure that the small business is not receiving duplicate funds

Not checking the small businesses certification before the award, or documenting the funding agreement that the certification evidenced the small business has not already received funding for the same work. 

Not checking both parties in a joint venture to ensure that neither has received funding for similar work. 

WASTE

DoD SBIR/STTR Training

Fraud Committed By Small Businesses

Acts of fraud committed by small businesses submitting proposals for SBIR/STTR waste resources that could go to deserving businesses. Acts of fraud are more thoroughly covered in the fraud module.

Type 3

Examples

Submitting certifications that misrepresent a company's eligibility, including certifying that the company can do in-house research when it doesn't have the capability.

Using SBIR funds to pay for cars, property, home renovations, or other purchases that enrich individuals, rather than completing research. 

Receiving funds, but not using the money to perform the agreed upon work.

Receiving multiple payments for the same work product from different agencies.

ACTIVITY

DoD SBIR/STTR Training

Fill in the blank with the correct type of waste for each example

Hint: main types of waste are Lack of monitoring, Failure to check for duplicate awards

Not verifying if an awardee meets all required conditions of eligibility to receive an award and provided all certifications.
Type of waste:
Failing to search SBA TechNet, Google, and other resources for key individuals in a proposal for previous similar work.
Type of waste:
Failing to check both parties in a joint venture to ensure that neither has received funding for similar work.
Type of waste:
Failing to verify if a small business has the ability to perform in accordance with the terms and conditions of the award.
Type of waste:

Complete the activity to continue.

GERALD MINKS | Federal Employee

DoD - SBIR/STTR program

WASTE CASE STUDY

DoD SBIR/STTR Training

As part of Gerald's responsibilities, he reviews SBIR Phase I and Phase II proposals. Before a contract can be awarded, his tasks include ensuring the awardee meets all required eligibility and has not already received SBIR funds for the same work.  

 

WASTE CASE STUDY

DoD SBIR/STTR Training

During the review process, Gerald feels overwhelmed by the number of proposals he has to review. He decides to take some shortcuts during the process to make sure that he’s able to complete all of his work. He thinks that the likelihood of a small business submitting a proposal for work they’ve already completed is low, so he plays the odds and doesn’t check to see if any of the proposals he is reviewing have already been funded by another component or agency.

GERALD MINKS | Federal Employee

DoD - SBIR/STTR program

WASTE CASE STUDY

DoD SBIR/STTR Training

Unfortunately, an audit later uncovered that two awardees, which Gerald was responsible for reviewing before the award, had duplicated Phase I awards. This duplication of funds was not caught until after the offending small business had already used the funds. Gerald’s neglect of his responsibilities led directly to the waste of DoD resources and taxpayer money. Gerald was later transferred to another position where he no longer supports the DoD SBIR program.

GERALD MINKS | Federal Employee

DoD - SBIR/STTR program

TEST YOUR KNOWLEDGE

DoD SBIR/STTR Training

1. Waste is an extravagant, careless, or ______________ expenditure of government funds.

2. It is not the responsibility of government personnel to ensure awardees meet all requirements and perform the agreed upon work.

3. Both parties in a joint venture must be checked to ensure that neither has received previous funding for similar work.

Complete the questions to continue.



TEST YOUR KNOWLEDGE

DoD SBIR/STTR Training

4. If questions arise during during performance of the contract government personnel should ask the awardee questions to ensure that the agreed upon work is being performed.

5. Waste is the consumption of government property that results from deficient practices, systems, controls, or decisions.

6. Government personnel should always make an effort to check for duplicate awards.

Complete the questions to continue.



You've finished the lesson on Waste.

Congratulations!