Small Business Innovation Research (SBIR) Program | Reporting Fraud

Ensuring accountability and integrity in HHS programs

The U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) promotes the effective, efficient, and economical operation of HHS' programs and operations through audits, inspections, investigations, and other reviews. The HHS OIG investigates any fraudulent acts involving HHS, its contractors or subcontractors, or any crime affecting the programs, operations, Government funds, or employees of those entities.

How to report fraud or obtain additional information

Please use the following if you want additional information or want to report wrongdoing:

At CDC, please direct inquiries to:

• Office of Technology and Innovation at SBIR@cdc.gov or 404-718-1386, or
• Strategic Business Initiatives (SBI) Unit, Office of the Chief Operating Officer (OCOO) at ERM@cdc.gov.

Combating fraud

What types of fraud are found in the Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Programs?

• During Application Process:
  • Submitting a plagiarized proposal
  • Providing false information regarding the company, the Principal Investigator, or work to be performed
  • Seeking funding for the work that has already been completed

• During Award:
  • Using award funds for personal use or any use other than the proposed activities
  • Submitting plagiarized reports or reports falsely claiming work has been completed
  • Claiming results for an award that was funded by a different source

Knowing the rules

Which SBIR rules should you be particularly familiar with?

• Duplicate or overlapping proposals may not be submitted to multiple agencies without full disclosure to all agencies.
• The company must meet the Small Business Administration's (SBA's) requirements for a small business, including being majority American-owned and having 500 employees or fewer.
• The Principal Investigator's primary employment must be with the company during the award period, and he or she may not be employed full-time elsewhere.
  • For Phase I SBIR, a minimum of two-thirds of the research effort must be performed by the grantee company; for Phase II, a minimum of one-half of the research effort must be performed by the grantee company. Work performed by a university research lab does not count as work completed by the company/small business concern.
• University employees participating in an SBIR award should disclose their involvement to the university as well as their use of university facilities.
• Research and development (R&D) must be performed in the United States.

Consequences

What happens if you break the rules?

• HHS will investigate if you commit fraud or other wrongdoing when applying for or carrying out an SBIR award.
• "HHS refers potential civil or criminal violations to the Department of Justice for prosecution. A conviction for fraud or making false statements may result in incarceration, as well as an obligation to provide full restitution." If the DOJ pursues a civil action under the False Claims Act, you may have to pay treble (triple) damages and $11,000 for each false claim.
• HHS may terminate your awards and debar you from receiving grants or contracts from any federal agency.

For the latest list of both SBIR and STTR fraud, waste and abuse (FWA) convictions and settlement agreements by calendar year, please see the Small Business Administration's (SBA) site: Fraud Waste Abuse | SBIR

For additional information, please contact us at SBIR@cdc.gov.