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How Selected DOD Consolidation Efforts Affected Small Business Opportunities

NSIAD-83-30 Published: Aug 12, 1983. Publicly Released: Aug 17, 1983.
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Highlights

GAO was asked to review recent Department of Defense (DOD) procurement practices that may be running contrary to longstanding procurement principles.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should task the Director of the DOD Small and Disadvantaged Business Utilization Office to review policies and practices related to consolidated procurement and determine if the factors GAO identified as inhibiting small business opportunities in these two cases are systemic within DOD.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense When economy is the critical factor in determining the most desirable procurement approach, DOD should consider adopting the following approach: unless cost analysis demonstrates that the all-or-none approach can be expected to be less costly, the contracting officer should use the any-or-all approach because it allows the contracting officer to rely on the marketplace to determine the most cost-effective award or combination of awards and provides maximum opportunity for small firms to participate a prime contractors.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense When economy is the critical factor in determining the most desirable procurement approach, DOD should consider adopting the following approach: the small and disadvantaged business utilization specialist at an activity should participate during the requirements determination process to ensure that, when proposed, the all-or-none approach is justified by the expected cost savings or, lacking such a basis, that the any-or-all approach is followed instead.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense When economy is the critical factor in determining the most desirable procurement approach, DOD should consider adopting the following approach: the Director of the DOD Small and Disadvantaged Business Utilization Office should develop a methodology, which should be followed when the contracting officer determines that it is cost effective to award an entire package to a large firm, for encouraging prime contractors to subcontract work to small firms.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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