The 8(a) Pilot Program for Disadvantaged Small Businesses Has Not Been Effective
CED-81-22
Published: Jan 23, 1981. Publicly Released: Jan 23, 1981.
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Highlights
The implementation of the 8(a) pilot contracting program of the Small Business Administration (SBA) is discussed. SBA awards procurement contracts under this program to socially and economically disadvantaged small businesses for the purpose of helping them become competitive. When SBA uses the pilot program, it has the exclusive authority to designate procurement requirements. The Department of the Army was selected as the pilot agency in 1979; however, the Army and SBA disagree over the manner in which this program can be most effective. In 1980, the President designated three other agencies to participate in the pilot program. GAO sees no basis for these designations.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| The Congress should amend the authorizing legislation to allow for the further testing of the pilot program in an additional Federal agency that has yet to demonstrate its complete support for the 8(a) program. |
Closed
|
Please call 202/512-6100 for additional information. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Small Business Administration | The Administrator of SBA should direct program officials to make sure that 8(a) firms selected for the pilot program have the capability to successfully do the job. |
Closed
Please call 202/512-6100 for additional information.
|
| Small Business Administration | The Administrator of SBA should ask the Office of the Inspector General to conduct reviews of the three initial pilot contracts to find out how effectively the contractors performed. |
Closed
Please call 202/512-6100 for additional information.
|
| Small Business Administration | The Administrator of SBA should direct program officials to make sure that procurement center representatives have enough information on 8(a) firms' capabilities so that this data can be used to match qualified firms to procurements. |
Closed
Please call 202/512-6100 for additional information.
|
| Small Business Administration | The Administrator of SBA should direct program officials to diligently enforce the objective of the pilot program by demanding contracts only when the Army is reluctant to offer them under the regular 8(a) program. |
Closed
Please call 202/512-6100 for additional information.
|
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