Small Business Contracting: Action Needed by Those Agencies Whose Advocates Do Not Report to Agency Heads as Required

Agriculture made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure that were consistent with legislation in place at the time we conducted our review. (Congress has since enacted revised requirements; we did not assess Agriculture's compliance with these new requirements.) Specifically, in a July 2014 Federal Register notice, Agriculture revised its delegations of authority to reflect that the Assistant Secretary for Administration was no longer the designated OSDBU director. Rather, the official responsible for carrying out the duties of the OSDBU director would report directly to the Secretary or Deputy Secretary. The notice also stated that offices within the Departmental Management organization would continue to provide general administrative support to the OSDBU. In addition, the OSDBU director's position description as of September 2015 stated that, while the director is under the administrative control of the Assistant Secretary for Administration, the director has direct access to the Secretary and/or Deputy Secretary on all matters related to the OSDBU to ensure top level support for small business efforts and effective implementation of program requirements. The position description also noted that the Deputy Secretary is the rating official for performance and the Secretary is the approving official to ensure the incumbent's expectations and performance are aligned with USDA goals. Finally, the OSDBU director's performance agreement for fiscal year 2015 showed that the Deputy Secretary was the rating official.

In response to our recommendation, Treasury made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure that were consistent with legislation in place at the time we conducted our review. (Congress has since enacted revised requirements; we did not assess Treasury's compliance with these new requirements.) Specifically, the OSDBU director's position description, dated January 2015, now states that the director is appointed by, and reports directly to, the Deputy Secretary of the Treasury. Treasury's organizational chart also shows that the OSDBU director reports directly to the Deputy Secretary. In addition, the OSDBU director provided support showing that he had monthly meetings scheduled with the Deputy Secretary. Finally, the Deputy Secretary signed the OSDBU director's performance agreement for fiscal year 2015. Taking these steps to give the Treasury OSDBU director direct access to the deputy agency head should help increase small businesses' visibility and help the director advocate for them effectively.

Justice made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure that were consistent with legislation in place at the time we conducted our review. (Congress has since enacted revised requirements; we did not assess Justice's compliance with these new requirements.) Specifically, in an October 2011 response to the report, Justice stated that while the Deputy Assistant Attorney General for Policy, Management and Planning would continue in the role of rating official for the OSDBU director, it planned to elevate the review function for the OSDBU director's performance appraisal to the Office of the Deputy Attorney General. According to the agency, this change would reinforce and enhance the OSDBU director's access to the Deputy Attorney General. To effect this change, Justice stated that it would revise the OSDBU director's position description to clarify the relationship of this position to the Deputy Attorney General and that its placement within the Justice Management Division was for administrative support purposes only. The revised position description, dated November 2011, states that for purposes of administrative management, support, and assistance, the OSDBU is organizationally in the Justice Management Division. It also notes that the OSDBU director reports to the Deputy Attorney General for all substantive matters related to his/her responsibilities for implementing and executing the functions and duties required by sections 637 and 644 of title 15 U.S. Code. In addition, it states that the Associate Deputy Attorney General is the rating official and the Deputy Attorney General the reviewing official for performance rating purposes. Taking these steps to give the OSDBU director direct access to the deputy agency head should help increase small businesses' visibility and help the director advocate for them effectively.

In response to our recommendation, Commerce made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure that were consistent with legislation in place at the time we conducted our review. (Congress has since enacted revised requirements; we did not assess Commerce's compliance with these new requirements.) Specifically, Commerce notified the Chairman of the Subcommittee on Contracting and Workforce, House Committee on Small Business in October 2011 that while the agency planned to maintain a dual reporting structure OSDBU, it planned to strengthen the relationship between the OSDBU Director and the Deputy Secretary by scheduling meetings every other month. In November 2011, Commerce notified the Chairman of the House Committee on Small Business that it would also ensure that (1) the OSDBU director had access to senior staff in the Deputy Secretary's office in between meetings with the Deputy Secretary and (2) the OSDBU performance evaluations would be conducted by either the Senior Advisor to the Deputy Secretary or the Chief of Staff to the Deputy Secretary and reviewed by the Deputy Secretary. In December 2012, Commerce provided GAO with documentation showing that the OSDBU director had meetings scheduled with the Deputy Secretary once every 2 months and biweekly meetings scheduled with the Senior Advisor to the Deputy Secretary. In addition, the OSDBU director's performance plan for fiscal year 2012 showed that the rating official was the Senior Advisor to the Deputy Secretary and the reviewing official was the Deputy Secretary. Finally, Commerce revised the agency's internal order on the OSDBU effective April 2015. The order changed the organizational placement and reporting structure for the OSDBU from the Chief Financial Officer and Assistant Secretary for Administration to the Deputy Secretary. Specifically, it stated that the OSDBU shall be headed by a director who shall be responsible to, and report directly to, the Deputy Secretary. Taking these steps to give the OSDBU director direct access to the deputy agency head should help increase small businesses' visibility and help the director advocate for them effectively.

The Department of the Interior made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure that were consistent with legislation in place at the time we conducted our review. (Congress has since enacted revised requirements; we did not assess Interior's compliance with these new requirements.) Specifically, in a January 2015 job announcement for the OSDBU director position, Interior stated that the OSDBU director was a direct report to the department's Deputy Secretary. Further, in November 2015, Interior provided an updated organizational chart showing that the OSDBU director reports to the Deputy Secretary. Similarly, the Departmental Manual was updated to state that the director reports to the Deputy Secretary and serves as the principal policy advisor to the Deputy Secretary and Assistant Secretary - Policy, Management and Budget for the department's small business programs. Finally, the OSDBU director's performance plan for fiscal year 2016 was signed by the Deputy Assistant Secretary - Budget, Finance, Performance and Acquisition as the rating official and the Deputy Secretary as the reviewing official. Taking these steps to give the OSDBU director direct access to the deputy agency head should help increase small businesses' visibility and help the director advocate for them effectively.

In response to our recommendation, the Social Security Administration (SSA) has made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure. Specifically, in August 2011, SSA notified us that effective July 31, 2011, the agency's OSDBU director had begun reporting to the Deputy Commissioner, the deputy agency head for SSA. The OSDBU director's position description was revised on August 10, 2011, to show that the director was being moved from the Office of the Deputy Commissioner for Budget, Finance and Management to the Office of the Commissioner. The revised position description also stated that the director reports to the Deputy Commissioner of Social Security, who provides administrative direction, and included an organization chart that showed that the OSDBU director reported to the Deputy Commissioner.

State made changes to its Office of Small and Disadvantaged Business Utilization (OSDBU) reporting structure that were consistent with legislation in place at the time we conducted our review. (Congress has since enacted revised requirements; we did not assess State's compliance with these new requirements.) Specifically, in an October 2011 letter to the House Small Business Committee, State stated that it would designate the former OSDBU Operations Director as the OSDBU Director and that the Assistant Secretary for Administration would no longer function as the OSDBU director, as had been the case in the past. Further, the department stated that the new OSDBU director would be evaluated by the senior career official in the Office of the Deputy Secretary of State for Management and Resources who conducts the performance appraisals for the most senior staff in the Deputy's office. It also stated that the Deputy Secretary of State for Management and Resources would serve as the final reviewer and the Deputy Secretary would meet with the OSDBU director on a regular basis. In August 2015, State provided the current position description for the OSDBU director, which states that the OSDBU director reports directly to the Deputy Secretary for Management and Resources. The position description also states that the OSDBU director will be evaluated by the senior career official in the Office of the Deputy Secretary of State for Management and Resources who conducts the performance appraisals for the most senior staff in the Deputy's office and the Deputy Secretary of State for Management and Resources will serve as the final reviewer. Taking these steps to give the OSDBU director direct access to the deputy agency head should help increase small businesses' visibility and help the director advocate for them effectively.