Recommendation Followup: Vulnerabilities Continue To Exist in the HHS Small Business Innovation Research Program

We conducted this review to determine whether the Department of Health and Human Services (HHS) had addressed known vulnerabilities in its oversight of the Small Business Innovation Research (SBIR) program to ensure that program funds were being spent appropriately. In 2014, we reported vulnerabilities within HHS's SBIR program and made four recommendations to improve HHS's oversight. HHS implemented two recommendations from our 2014 report prior to this review. However, HHS had not formally notified OIG of any actions to implement the two outstanding recommendations-with which HHS had concurred-regarding awardee eligibility and duplicative funding. Since implementation of the SBIR program in 1982, HHS has obligated or awarded nearly $13 billion in awards to small businesses pursuing innovative research ideas.