FIRST ON FOX: The GOP-led House of Representatives’ Committee on Small Business has launched a probe into the Small Business Administration (SBA) after the agency’s Office of Inspector General said it overpaid a contractor millions of dollars for running COVID-19 pandemic loan programs.

House Small Business Committee Chair Roger Williams and Oversight Subcommittee Chair Beth Van Duyne, both Republicans from Texas, sent a letter Tuesday to SBA Administrator Isabella Guzman and Chief Acquisition Officer Patrick Ingram, informing the officials of the investigation and requesting information and documentation related to the allegations in the report.

The OIG’s report, which was released late last month, focused on the SBA’s blanket purchase agreement with contractor Highlight Technologies LLC, a company that administered loan payments for the agency, and found the agency’s handling of the contracts inflated them an extra $5 million after assessing 29 separate contracts spanning from 2017 to 2021, which totaled $254 million.

The OIG found that instead of paying the staffing rates originally agreed upon in its agreement with Highlight, the SBA allowed the contractor to bill the government using labor rates for Washington, D.C., the highest rate in the country, rather than paying the rates for the regions where the work was being conducted. That change cost taxpayers an extra $3.8 million more than it should have, according to the report.

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“As the OIG noted, it is not a prudent business practice for the SBA to allow Highlight to charge the government using rates for the most expensive region when most of the work was projected to be performed largely outside of Washington, D.C.,” Williams and Van Duyne wrote. “In fact, it is not clear whether any Highlight staff actually lived in this region, as the OIG report shows staff in only Little Rock, AR; Fresno, CA; Citrus Heights, CA; and Dallas-Ft. Worth, TX.”

The OIG also found five instances in which Highlight exceeded the federal subcontracting limit, which requires that at least 50% of an order’s value be performed by a small business and not subcontracted to a larger entity. According to the IG, the SBA failed to actively monitor Highlight’s compliance with that rule, which cost taxpayers an extra $1.2 million.

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“This is antithetical to the 8(a) [Business Development] program and a violation of the [Federal Acquisition Regulations (FAR) that no more than 50 percent of 8(a) contracts may be subcontracted out to larger businesses,” Williams and Van Duyne said in their letter. 

“As the main advocate for small businesses within the Executive Branch, the SBA is responsible for safeguarding contracting benefits meant for intended recipients, and is required to effectively monitor contract compliance with small business set-aside subcontracting limitations.”

In their letter to the SBA, chairs Williams and Van Duyne wrote, “It is imperative to understand how the SBA allowed such lax compliance and poor stewardship of taxpayer funds,” and asked the agency to provide documentation and justification for the added contract costs.

“In a recent report, the SBA Office of Inspector General found more than $5 million in misappropriated taxpayer funds,” Chairman Williams told FOX Business in a statement. “The SBA should be held to the same standards as our primary job creators, who cannot afford million-dollar errors. I guarantee my colleagues and I on this Committee will investigate and ensure taxpayer dollars are spent responsibly.”

In response to the House Small Business Committee Republicans’ letter, an SBA spokesperson pointed to the Trump administration. 

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“We understand that the committee is investigating the SBA’s pandemic-era staffing decisions made in 2020 under the previous administration and will work to provide the information requested,” the spokesperson said. “The Biden administration is committed to responsible stewardship of taxpayer dollars, which is why the SBA has been laser-focused on addressing the problems we inherited in COVID emergency relief programs.” 

The SBA said that at the time the contracts in question were made, all the agency’s employees were working remotely, and the Trump administration made the decision to use the single-duty station of Washington, D.C., because of the pandemic emergency. The agency said the contract allowed COVID loans to be expedited to businesses during that time.

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Wingstop announced Tuesday a new Cajun Meal Deal, offering fans a meal packed with fried chicken and French fries starting at $8.99.

The Texas-based fast casual chain describes the Cajun Meal Deal as “easy-to-indulge box, smothered in extra flavor.” It features the customer’s choice of chicken with seasoned French fries and a drink.

The loaded fries are “drizzled with Wingstop’s signature ranch, melty cheese and bold Cajun seasoning,” according to the chain.

Customers can choose between a chicken sandwich, classic wings, boneless wings or chicken tenders as their entrée. 

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The deal starts as low as $8.99 at participating locations, and is only available for a limited time. Customers can order through Wingstop.com or the Wingstop app.

“Wingstop’s Cajun Meal Deal combines everything you crave,” Wingstop Chief Growth Officer Anne Fischer said in a press release. “Our latest menu innovation delivers that cooked-to-order, indulgent Wingstop occasion that fans hunger for, all at a great value.”

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Wingstop was founded in 1994 and has over 2,000 locations worldwide. In 2022, the company’s system-wide sales jumped 16.8% to approximately $2.7 billion.

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Amazon CEO Andy Jassy recently stood firm on the company’s return-to-office policy and issued a warning for employees resisting it. 

Business Insider reported Monday that Jassy said it was “past the time to disagree and commit” to abiding by the tech giant’s rules on the matter while answering questions during a recent meeting with employees. 

In mid-February, the e-commerce giant informed workers that most would need to start working in person from an Amazon office again at least three times per week, a change that kicked in at the beginning of May. Under the rule, some have to change where they live, according to recent reports. 

“And if you can’t disagree and commit, I also understand that, but it’s probably not going to work out for you at Amazon because we’re going back into the office at least three days a week. And it’s not right for all of our teammates to be in three days a week and for people to refuse to do so,” Jassy added at an August meeting, according to Business Insider.

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Amazon confirmed to FOX Business the remarks Jassy made about the return-to-office policy. 

The move to bring workers back to the office for three in-person days came from a judgment call that Amazon executives made. Amazon said Jassy told employees at the meeting earlier this month. The company decided to go that route after looking at how teams were collaborating, the company’s culture, performance of the business and other factors. 

Business Insider also reported that Jassy, who has served as Amazon’s CEO since 2021, said the tech giant held discussions with dozens of other business leaders about the issue and their stances on it. 

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Amazon’s return-to-office mandate came after the company made a few prior updates to its guidance on attendance during the pandemic, including putting the decision in the hands of director-level leaders in late 2021. 

At that time, Jassy said the company would “continue to adjust as we keep learning what makes most sense for our customers and teams.” The company indicated it would do so other times over the course of the pandemic, Amazon told FOX Business. 

The company has a network of offices, including U.S. locations in Seattle, Arlington and Nashville, according to its website. Its second headquarters, built in northern Virginia near the nation’s capital, has been open since earlier this summer.

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Over 1.46 million people worked for the e-commerce giant on either a full-time or part-time basis at the end of the second quarter, its earnings release showed. 

In addition to the tech industry, companies in the entertainment, food and financial sectors have made changes to their remote work policies, mandating certain employees to report in person. 

Danielle Genovese contributed to this report.

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As Hurricane Idalia marches closes to the coastline of Florida, Walt Disney World has begun preparation for the storm and has assured guests that they will receive a full refund in light of the severe weather.

In their latest update at 4:30 p.m. on Tuesday, the theme park told guests that the resorts and popular parks are “currently operating under normal condition.”

“We are closely monitoring the path of the projected weather as we continue to prioritize the safety of our Guests and Cast Members,” the park announced in a statement.

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The central Florida theme park said that their water park, Typhoon Lagoon, will be closed on Wednesday, August 30. The corporation’s Winter Summerland Miniature Golf and Fantasia Garden Miniature Golf will also be closed on Wednesday.

The theme park also addressed guests that are either currently at a Walt Disney World Resort or if they have upcoming travel plans during the incoming category 2 hurricane. Disney World said that guests could receive a discounted rate to extend their stay through August 31.

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Additionally, any Florida residents evacuating from the storm and first responders assisting in may be eligible for a 50% off hotel stay between August 29 and August 31. Evacuees are encouraged to call 407-W-DISNEY and first responders should call 407-828-3200 (option 3). 

Idalia strengthened to a Category 2 storm with 100 mph winds Tuesday afternoon as Florida Governor Ron DeSantis expanded the state of emergency to 49 counties.

“You really got to go now. Now is the time,” DeSantis said. “If you stay hunkered down tonight, it’s going to be too nasty tomorrow morning to be able to do it.”

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Idalia is expected to strengthen more ahead of its landfall in Florida’s Big Bend region Wednesday morning.

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