The Service-Disabled Veteran-Owned Small Business (SDVOSB) program is intended to provide federal contracting opportunities to qualified firms. In FY 2007, the Small Business Admin. reported $4 billion in governmentwide sole source and set aside SDVOSB contract awards. Given the amount of federal contract dollars being awarded to SDVOSB firms, this report determined: (1) whether cases of fraud and abuse exist within the SDVOSB program; and (2) whether the program has effective fraud-prevention controls in place. To identify whether cases exist, the report reviewed SDVOSB contract awards and protests since 2003, and complaints sent to a fraud hotline. Includes recommendations. Charts and tables.