Small Business Administration: Agency Should Assess Resources Devoted to Contracting and Improve Several Processes in the 8(a) Program

According to the Small Business Administration (SBA), in 2010, the agency had contracted with a consulting firm to conduct a study to define the optimal environment in which a procurement center representative's (PCR) efforts would have the maximum impact on directing contracts to qualified and capable small businesses. SBA received the final report in December 2010. As of April 2013, SBA had realigned PCRs to contract activities with the highest small business opportunities, revised PCR performance measures, and provided tools, such as ePCR, to gain additional oversight of buying activities procurement activities to ensure maximum practicable opportunities for small business. Officials explained that CMR assignments was not incorporated in the PCR assessment. However, they stated resource allocation decisions are based on workload and needs assessments made by the individual Area Directors and coordinated with SBA headquarters staff.

In September 2012, the Small Business Administration (SBA) updated the training available to prospective 8(a) participants. The training series consists of online courses, supplemental workbooks and other educational materials, including a module called Pre 8(a) Business Development Module-Setting Expectations. According to SBA, previously the agency provided similar training, but the purpose of a comprehensive online library of materials is to familiarize small business owners with all aspects of the federal procurement process and to assist them with the growth and development of their firms. Although firms are not required to take the courses, it is highly recommended to ensure that the firms fully understand the opportunities that exist and how to prepared the potential 8(a) firms to fully participate in the program.

According to the Small Business Administration (SBA), the Office of Field operations conducted an assessment of the workload of business development specialists, now called business opportunity specialists. In 2011 and 2012, the district director working group established the optimum number of firms to be assigned each BOS, revised position descriptions to clarify expectations, and developed new performance standards. In addition, SBA is in the process of developing a new automated information management system, One Track CMS, designed to capture and monitor data regarding business development assistance provided to 8a participants. The system is planned to be deployed in early FY 2014. Regarding the termination process, as of September 2009, SBA revised its 8(a) program procedures to shorten the termination process and improve internal controls. The procedural change shortens the termination process by 30 days to 135 days. While this falls short of the 75-day reduction SBA officials planned at the time of our November 2008 report, it may succeed in removing more ineligible firms from the program.

In November 2008, we reported that SBA had not updated its guidance in a timely manner to incorporate the 8(a) program into surveillance reviews. Further, SBA did not have procedures to monitor, and had not been monitoring regularly, how agencies with which it had partnership agreements ensure compliance with 8(a) program requirements. Therefore, we recommended that SBA increase the usefulness of surveillance reviews by updating its guidance to incorporate regular reviews of 8(a) contracting. SBA updated its guidance on surveillance reviews in October 2013 to include a review of 8(a) contracts. For example, the guidance was updated to include sites that had 8(a) contracts in the selection criteria for surveillance reviews. By updating its guidance, SBA can improve its oversight of contracting activity in the 8(a) program and overall small business contracting.